| Budget Development | ||||
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| UNIVERSITY BUDGET DEVELOPMENT | At Boise State University | |||
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Updated - August 2005 OVERVIEWThe operating budget at Boise State University is the result of processes external and internal
to the university. The external process that drives budget development is the Idaho state budget
process. As an institution of Idaho state government, Boise State University is inextricably
linked to the state budget cycle. Internal processes must be coordinated to adjust and align
unit budgets and also to allocate new resources among competing university needs. PREPARATIONOn the state level, the budget preparation process for the university’s operating budget begins
twelve to fourteen months prior to the time it will be implemented. As an example, the budget
request for the 2009 fiscal year must be submitted by September 1, 2007. Annual Budget and
Planning preparations generally begin six to nine months prior to this deadline. GUIDELINESBudget guidelines are prepared by the State Board of Education and coordinated with the Governor’s
Division of Financial Management, the Legislative Budget Office and the Financial Vice Presidents
of Idaho’s college and universities. BUDGET CATEGORIESIn preparing budget requests, there are two broadly defined categories of increases that are
considered. The first category is Maintenance of Current Operations (MCO), which is intended to
sustain existing programs by providing funds to offset inflation. The second category is Requests
Above Maintenance of Current Operations, often referred to as Enhancement Requests, which are
anticipated costs of new programs, expanded services or non-recurring projects. MAINTENANCE OF CURRENT OPERATIONS (MCO)Funds for Maintenance of Current Operations are funds needed to continue existing levels of services.
MCO funding is usually determined by applying a percentage increase that is associated with inflation
for a category of expense. The MCO increase to maintain competitive salaries is referred to as Change
in Employee Compensation (CEC). Other MCO funding may be provided for fringe benefit cost increases
(primarily health care insurance costs), utility cost increases, increases in insurance premiums,
library acquisitions, equipment and general operating costs. Also included in the category are funds
for Enrollment Workload Adjustment (EWA). The Enrollment Workload Adjustment is intended to
provide additional funding to offset the costs of growth. REQUESTS ABOVE MAINTENANCE OF CURRENT OPERATIONSThe Requests Above Maintenance of Current Operations (previously called ‘Enhancements’ and recently
renamed ‘Line Items) are prepared by the Vice Presidents, based on budget request information from
their respective Deans and department heads. Their recommendation is sent to the President. When
the president has reviewed the recommendations and approved the final budget request, it is then
submitted to the State Board of Education. STATE BOARD BUDGET APPROVALSThe State Board of Education reviews the budget requests of the college and universities at its
August or September meeting. After the Board reviews and approves the requests, they are submitted
to the Division of Financial Management and the Legislative Budget Office so that they may prepare
the Governor’s Budget Recommendation and the Legislative Budget Analysis. The Governor presents his
budget recommendations to the Legislature when it convenes in January. The legislative session
generally runs until the end of March. The college and universities appropriation is very large,
and so it is often one of the last to be approved. One lump sum for the college and universities
is appropriated to the State Board of Education. The Legislature may recommend that some of the
funds be allocated for specific needs or special programs, or it may impose restrictions on the use of the funds.
BOARD ALLOCATIONSThe allocation of funds to each institution has historically been decided at the March or April
meeting. The basis for the allocation depends on whether any restrictions or recommendations have
been placed on the funding approved by the Legislature, such as salary guidelines, specific program
allocations, etc. The Board may also target specific allocations or impose additional restrictions.
IMPLEMENTING THE OPERATING BUDGETWhen the allocation for Boise State University has been approved, the university’s Vice Presidents make recommendations to the President for allocations of any new or additional resources. Continuity of the requests is maintained through the Annual Budget and Planning process that links budgets with strategic initiatives. After the President’s approval, the Budget Office calculates and assembles departmental budgets. Upon completing this exercise, the entire document is submitted to the State Board for final approval at the June meeting. The budget goes into effect on July 1 – the start of the fiscal year. For more information please contact: |
