March 2, 1998
SUBJECT: College Policy E-3, College Budget, Revisions
PROPOSED ACTION
That the Board of Trustees adopt the proposed revised policy, after any desired amendments.
RELATED BOARD POLICY OR PLANNING PRIORITY (Directive/Goal/Action Plan)
RATIONALE
The proposed amendments to the policy address some issues raised during the budget discussions at the January 16, 1998 Board retreat.
The proposed changes to Section [4] are a codification of the approach taken in the last budget on the improvements in scheduling efficiency, and that proposed for this year in lapsed salaries. It is also an appropriate way to approach enrollment growthBthe president would not build any more into the budget than he is confident of, but would also give the Board a description of his plans to promote it and their target results. The scope and results of such plans (in the various areas of importance) would be used by the Board as part of its overall assessment of Presidential leadership, but the specific targets (except to the intent they are reflected in the budget) would be information/goals for the staff rather than commitments to the Board.
The proposed changes to Section [5] coordinate it with the financial policies adopted last spring.
BUDGETARY CONSIDERATION
RESOURCE PERSONNEL
Carol Nasworthy, Chair, Board of Trustees
Hunter Ellinger, Board Member
Richard Fonte, President
ATTACHMENTS
Proposed Policy
College Policies
February 23, 1998 Draft
Proposed changes are shown in bold and strikethrough text.
E-3. COLLEGE BUDGET
The President shall, prior to the end of June each year, develop and submit to the Board and for public review in written form a proposed annual budget which:
[1] Provides adequate support for the educational programs of the College, based on efficient operation of both direct and support services.
[2] Distributes resources primarily on objective criteria based on student enrollment and program needs.
[3] Provides a justification or plan for correction of any substantial disparities in the resources supplied to serve students in similar programs at different campuses.
[4] Budgets revenues and expenses based on actual expected performance.
When there is substantial uncertainty about performance in
an area, such as tuition revenue and enrollment,
the associated budget revenue projection should be moderately
conservative; in such cases, the administration should describe
its targets also provide its best estimate
for the area and the budget effects of a
range of plausible outcomes. When such an area
yields a net surplus over budget, that surplus shall be used to
accelerate capital-improvement plans.
[5] Budgets expected overall current-funds expenses plus mandatory
transfers mandated by law or policy of less than expected
current-funds revenues, and budget fund balances within the
limits imposed by policy E-6, Fund Balance.
[6] Is consistent with a multi-year master plan developed in compliance with policy E-1, Master Planning.
[7] Provides a recent history and a three-year plan for tuition/fee levels, enrollment, overall revenues and expenses, debt service, plant-fund expenditures, and fund-balance levels, with a description of planning assumptions and material changes.
When deemed appropriate by the administration, capital items in an annual budget may be purchased during the period after budget approval but prior to the start of the fiscal year.
The President shall inform the Board whenever the actual performance
of the College differs materially from the approved budget, and
shall propose corrective budget amendments if projected performance
falls short of differs from the budget
target for current-funds surplus by more than $500,000
1/2% of annual Education &General Fund revenues.
College Policies
Draft presented at the February 16 Committee of the Whole meeting.
Proposed changes are shown in bold and strikethrough text.
E-3. COLLEGE BUDGET
The President shall, prior to the end of June each year, develop and submit to the Board and for public review in written form a proposed annual budget which:
[1] Provides adequate support for the educational programs of the College, based on efficient operation of both direct and support services.
[2] Distributes resources primarily on objective criteria based on student enrollment and program needs.
[3] Provides a justification or plan for correction of any substantial disparities in the resources supplied to serve students in similar programs at different campuses.
[4] Budgets revenues and expenses based on actual expected performance. When there is substantial uncertainty about performance in an area, such as tuition revenue and enrollment, the associated budget revenue projection should be on the conservative side; in such cases, the administration should also provide its best estimate for the area and the budget effects of a range of plausible outcomes. When such an area yields a net surplus over budget, that surplus shall be used to accelerate capital-improvement plans.
[5] Budgets expected overall current-funds expenses plus mandatory
transfers mandated by law or policy of less than expected
current-funds revenues, and budget fund balances within the
limits imposed by policy E-6, Fund Balance.
[6] Is consistent with a multi-year master plan developed in compliance with policy E-1, Master Planning.
[7] Provides a recent history and a three-year plan for tuition/fee levels, enrollment, overall revenues and expenses, debt service, plant-fund expenditures, and fund-balance levels, with a description of planning assumptions and material changes.
When deemed appropriate by the administration, capital items in an annual budget may be purchased during the period after budget approval but prior to the start of the fiscal year.
The President shall inform the Board whenever the actual performance of the College differs materially from the approved budget, and shall propose corrective budget amendments if projected performance falls short of the budget target for current-funds surplus by more than $500,000.