Budget Decisions

By Office of the President
Tuesday, 08 09 2016
Message from the President


Budget Decisions Fiscal Year 2017


Dear Members of the University Community:

The University Resources Commission concluded its FY17 budget deliberations. I appreciate the herculean efforts by campus leaders to represent budget needs across the Divisions of Academic Affairs, Business Affairs, Student Affairs and University Advancement. As anticipated, the requests exceeded the funds available to support 100% of the need. Based on the University's foreseeable growth and strategic priorities, the following principles and budget decisions shall be implemented:


1. The University's budget process shall allocate the proposed $2.1M (shown below) revenue consistent with actual enrollment and fiscal obligations: 
 

Projected Net Revenue Growth

$9,375,679*

FY17 Commitments

Debt Service

$4,873,379

Salary Plan

$1,275,560

Scholarships

$827,226

Increasing Costs on Mandatory Service Contracts

$259,048

Total Remaining Allocations

$2,140,466*

*Based on enrollment forecasts for FY17

 

Actual budget allocations shall be based upon achieving fall enrollment targets on Census date; however the approved budget items shall be distributed at the onset of the fiscal year. If enrollment targets are not met, these allocations may be withdrawn based upon the President's Cabinet review.

  1. As noted in the summer announcements about salary policies and adjustments, the results of the Price Waterhouse Cooper (PWC) study for staff and CUPA study for faculty will be effective in the fall. A salary merit pool may be created in late Fall dependent upon student enrollment and retention results.

2. Vice President and Provost O'Brien shall review resource allocations within the Office of Academic Affairs to ensure the following priorities remain intact and appropriate to support expansion needs.

  1. Funding for faculty development and instructional design to meet the pedagogical needs of a growing faculty and student population.
  2. Completion of the ongoing process for faculty evaluations and merit adjustments for FY 17, and prepare final recommendations to the President. A proposal shall be submitted to the President's Cabinet prior to January 15, 2017.
  3. An updated budget process to support student scholarship and/or student development for presentations or conferences shall be submitted to the Office of the President no later than November 15, 2016.

3. Vice Presidents O'Brien, Mahan and Alonzo shall review campus-wide technology priorities to ensure consistency with the campus strategic plan, student and academic success plans. A recommendation for technology priorities should be submitted by September 15, 2016.

4. Vice President Alonzo (or his designee) shall provide a progress report on the allocation and usage of University Service Fee (USF) and the Student Recreation Fee (SRF). A preliminary report shall be available for the President's Cabinet by September 30, 2016.

5. Vice President's O'Brien and Mahan shall ensure the National Model for Student and Academic Success is underway and funded from existing resources to support growth.

6. Vice President Alonzo shall be responsible for:

  1. Implementation of the A&M system-wide PWC recommendations, implementation of market rate adjustments for faculty and managers.
  2. Maintaining internal administrative costs between 10 - 13% of the University's operating budget.
  3. Collaboration with Vice President's O'Brien and Mahan on the continual space planning process for the relocation of the Brooks Campus.

As you are aware, the 85th Legislative Session commencing in January 2017 shall be a constrained fiscal environment; I will keep you aware of the preliminary planning and progress throughout the session. I applaud the governance work undertaken by the URC. You may view further details of the process here.

Sincerely,

Dr. Cynthia Teniente-Matson

Dr. Cynthia Teniente-Matson
President