Status of Budget Planning

Status of budget planning

On February 23rd I held an open forum to provide an update on the Division of Academic Affairs, FY16 Strategic Enrollment Management (SEM) plans, and Performance-Based Budgeting (PBB) process. The Division includes all of the schools and colleges, the PSU Library, the Office of Academic Innovation (OAI), the Office of Graduate Studies (OGS), the Office of International Affairs (OIA), the Intensive English Language Program (IELP), the Provost Office, and University Studies. The session provided an update from the forums held last October.

Over 50 faculty members, deans, associate deans, department chairs and staff attended. The presentation provided an overview and the status of the FY16 enrollment management and budget planning process, as well as an opportunity for questions, comments and suggestions.

What goes into budget planning?
The basic building blocks for Performance Based Budgeting (PBB) focus on academic units assessing their past, current and future enrollment; their former and projected costs; the impact that one school/college has on another; and our needs to support the success and quality of our faculty, staff and students through their own units and others on campus. The planning cycle begins in the fall with Strategic Enrollment Management planning.

Strategic Enrollment Management Planning
This is the third year that PSU has engaged in Strategic Enrollment Management (SEM) planning at the school/college level. From October to December each school/college develops a SEM plan to assess their performance from the past year and to project their enrollment for the upcoming year (FY16); trends of demographics, enrollment, and demand; efforts to improve success of current students; and potential new programs.

Over time we have built (and continue to refine) a host of enrollment tools: DataMaster, TM1, RCAT and RCAT planner to assess trends and examine actual enrollments to date.

The building of the SEM plans takes a village. The process includes input from the Faculty Senate Budget Committee (FSBC), FSBC liaisons, the Academic Leadership Team (Deans, Vice Provosts, and Provost), academic departments, Finance and Administration, Enrollment Management and Student Affairs, and Office of Institutional Research.

Translating plans into budgets
During the months of February and March we begin to build performance requirements for schools/colleges. If you need a Performance Based Budgeting (PBB) primer or refresher, now is the time to take a detour to a series of previously posted blogs to make the most sense of what is to follow.

Through an iterative process the SEM plans are translated into changes in revenue and expenses for each school/college. Assumptions are tested and impacts are assessed. For the Revenue Generators in the Division of Academic Affairs (the schools and colleges) their performance requirement has two components: a revenue requirement and an expenditure budget. For the Revenue Supporters in the Division of Academic Affairs their performance requirement is only an expenditure budget (since they do not generate revenue).

The knowns and unknowns
We are currently at the stage of the process where there are knowns and unknowns.

Among the things we know are the preliminary SEM plan data, the tuition recommendation from the Finance and Administration Committee of our Board of Trustees, the roll up costs from labor contracts, and increases we will see from the state in retirement costs.

What we do not know is our final FY 15 enrollment/revenue performance, all the possible cross school/college impacts, the potential mix of in and out of state undergraduate and graduate students, our State appropriation, increased costs out of our control, and potential new contract costs.

Over the next few months, we will work on adding these unknowns as they become known and determine the final performance requirements by June.

I want to thank those that came to the forum to listen, learn and ask questions. I will host another forum in May. In the meantime, let me know if you have suggestions or questions.

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