1 / 10

Update on 5% Reduction Plans

Update on 5% Reduction Plans. On February 12 th UT System advised that the proposal to mitigate the 5% reduction with TRB appropriations (debt savings) was not an optimal strategy. Would have relieved campuses of $41.4M UT System recommended the entire reduction be shown (to LBB) in FY2011

margaret-donovan
Download Presentation

Update on 5% Reduction Plans

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Update on 5% Reduction Plans • On February 12th UT System advised that the proposal to mitigate the 5% reduction with TRB appropriations (debt savings) was not an optimal strategy. • Would have relieved campuses of $41.4M • UT System recommended the entire reduction be shown (to LBB) in FY2011 • LBB intends to lapse amounts shown in FY 2010

  2. Update on 5% Reduction Plans • Does not mean we can’t save FY 2010 funds towards our potential reduction. • Plans published to UT System Website: http://www.utsystem.edu/cont/Reports_Publications/UT_5-Percent-Reduction-Plan.html

  3. Update on 5% Reduction Plans • Legislature must pass a bill to reduce our budget. • They will not convene until January 2011 • Any FY 2010 money lapsed for potential reduction will no longer earn interest for the campus/agency • On March 15th LBB emailed agencies to notify all that the next process would be to set aside FY 2010 reduction amounts by August 2010. • Only 1 UT Campus allocated FY10 funds: UT PB $32,603

  4. Other Texas Universities’ Plans for FY11 Merit

  5. FY 2011 Resources & Requirements • Review Handout • Projections of Semester Credit Hours • Discussion re: Award of $1.6M • April 21 Meeting: • Finalize awards of $1.6M • Review of how each area spent funds allocated in FY 2010 (both base budget and one time funding) • Template will be provided

  6. FY 2011 Operating Budget Instructions • Each President is required to: • “examine the resources used at the institution and, where possible, redirect resources towards high priority mission activities, strategic competitive investments and reserves in preparation for potential future financial shortfalls.”

  7. FY 2011 Operating Budget Instructions • “Use of prior year balances should be limited to critical items, unique opportunities, or projects funded from prior year income committed for that purpose. Generally, balance usage should be reserved for nonrecurring activities.” • No balance usage can be recommended in the budget to the BoR without the consent of the Chancellor, EVC and AVC-Controller / Budget Officer.

  8. FY 2011 Operating Budget Instructions • Requested that each campus maintain and preserve 2 to 3 months of operating reserves. • FY 2009 AFR Operating Expense Coverage Ratio = 4.2 • Coverage continues to decrease as balances are spent, e.g Multifunction Office Building; Parking Garage, etc.

  9. FY 2011 Operating Budget Instructions • Chancellor and Board Chair strongly urge cost containment and reductions in academic and administrative overhead

  10. FY 2011 Budget Hearing • April 8th with UT System • Questions/assignments sent to each VP with responses due March 31st • Draft Budget due to UT System May 10th • Final Budget due June 1st • Board of Regents consider/approve Annual Operating Budgets August 12th

More Related