Understanding the UMass Boston Budget

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Understanding the UMass Boston Budget

• February 2009

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Revenue
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State Appropriation and Tuition Fees Are 2
Largest Sources of Revenue

• FY08 Revenue from All Sources Totaled 274.7M.

0.5
0.6
0.7
0.7
3.3
19.3
39.8
35.1
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Over Time, UMass Boston Has Become Increasingly
Dependent upon Tuition Fees
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Understanding Our Revenue SourcesState
Appropriation vs. Tuition and Fees

• As the graph on the previous page illustrates,
  over time, UMass Boston has become increasingly
  dependent upon tuition and fees to fund its
  operations.
• The FY08 state appropriation represented about
  40 of UMass Bostons total revenue, a decrease
  of 35 compared to FY85.
• This change is the result of previous state
  budget cuts and the fact that, even in good
  times, the state appropriation has grown more
  slowly than our salary expenses.
• Recent budget reductions accelerate this process.
• As a result, although historically, people have
  preferred to have the salaries for their
  departments on the state appropriation rather
  than soft source of trust funds, the reality is
  that trust funds are becoming a more reliable
  funding source than the state appropriation.

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Fees Retained on Campus To Support Operations
Gross, excludes waivers
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expenses
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UMass Boston Operating Budget by Expense Type

• Over 60 of UMass Bostons operating expenses are
  for personnel.

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Fall 2008 FTEs by Executive Area
Source OIRP
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Breakout of FY09 Expense Budget by Executive Area
Includes grants contracts, state-funded
fringe benefits, tuition discounts excludes
depreciation capital spending
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Breakout of FY09 Academic Affairs Budget by Major
Category
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FY09 Budget by College
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FY10 Budget Challenge
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Preliminary Estimate of Size of FY10 Budget
Challenge
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Even Significant Growth Cannot Completely Solve
FY10 Budget Problem

• An additional option to help close the gap would
  be a fee increase. UMass Boston commits to using
  20 of any fee increase for financial aid.

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Process To Close FY10 Budget Gap

• The FY10 process will include a rigorous review
  of base budgets for consistency with the
  Strategic Plan, not merely focus on requests for
  new resources.
• The Vice Chancellors will develop 2 scenarios to
  reduce their base budgets
• 6 reduction
• 9 reduction.
• We are requesting these scenarios to be able to
  understand the implications of major spending
  cuts on our academic enterprise and campus
  operations. Reductions in base budgets can also
  provide resources to redirect to new initiatives
  aligned with the strategic plan.
• In addition to expense reductions, we are
  examining revenue options.
• FY10 budget process will be all funds.
• Personnel
• We will expand position budgeting to cover
  positions supported by trust funds.
• We will continue use of the newly instituted
  controls over hiring of non-benefitted employees,
  including for part-time faculty.

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FY10 Budget ProcessUpdated Key Events Timeline
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FY10 Budget Decision-Making Framework

• UMass Board of Trustees
• Establishes broad policy for the 5 campuses
• Approves fees and annual budgets for all campuses
• Presidents Office
• Directs and coordinates fee-setting and budgeting
  planning for all campuses

• Strategic plan goals will drive FY10 budget
  decisions
• During the FY10 budget process, the various UMass
  Boston committees and groups shown here will all
  participate in and contribute to the FY10 budget
  process.

Reporting relationship

• Revenue Advisory Committee
• Will help to develop campus FY10 multi-year
  revenue strategy

• Growth Planning Committee
• Will help UMass Boston to understand and plan
  for the resources necessary to accommodate future
  growth

• Chancellor Exec Staff
• Establishes strategic priorities for UMass Boston
• Approves operating budget for campus consistent
  with UMass Bostons strategic priorities
• Deans
• Work with faculty to develop and implement
  academic vision for their colleges
• Work with their departments to develop budget
  requests consistent with UMass Bostons strategic
  priorities and goals for their college

• BLRPC
• Represents Faculty Council in operating budget
  process
• Provides input on budget process, on budget issues

• AF/Office of Budget Financial Planning
• Manages UMass Bostons annual budget process and
  supports the effective allocation and use of the
  campus financial resources

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Conclusion

• Despite severe financial constraints, the FY10
  budget process will focus on the goals of the
  strategic plan
• Increase student access, engagement and success
• Attract, develop, and sustain highly effective
  faculty
• Create a physical environment that supports
  teaching, learning, and research
• Enhance campus community engagement through
  improved organizational structure.
• We know that budget cuts can be painful, and that
  even the smallest reductions have impacts.
• We also know that we must plan for continued
  enrollment growth and provide high-quality,
  reasonably priced higher-education services to
  current and future students.
• We pledge to have a transparent, participatory
  process to ensure that the campus community works
  together during these uncertain economic times.
• Overcoming these obstacles will require all of us
  faculty, students, and staff to pitch in, and
  to keep our eyes on our goal of making the
  University of Massachusetts Boston a great
  student-centered, urban public research
  university.