2009-10 Budget Forum

Charles W. SorensenChancellor

University of Wisconsin -Stout

Definitions

Three Cuts

Guidelines for Handling Reductions

Draft Model for Distributing Reductions

Questions / Comments

Some cuts are “Base” and others are “Lapses”:

Base Cut – Permanent reduction. Anticipate that funding will be cut once and lost dollars are never restored.

Lapse – Temporary reduction. Anticipate that funding will be cut for a specified period of time, and then lost dollars will be restored.

102 – General Program Operations State funded - primary source of funds is tax revenue and tuition.

128 – AuxiliarySelf-supporting revenue and expenditure activities. Required to meet operating expenses through self-generated revenue

Examples: Housing, Dining, Study Abroad, Special Course Fees

131 – Academic Student Fees Proceeds are deposited from collection of academic student fees. Examples include:

― Access to Learning― Customized Instruction

136 – Other Operating Receipts Revenue and expenditure activities not directly related to the costs of providing goods and services. Examples include: camps, conferences, e-Scholar program

Operations Budget Reduction - Reduces state tax support by $100 million over next two years―Mixed cut – both lapse and base

1% across-the-board cut for non-federal funds for all state agencies―$49 million for UW System― This is a base cut

Auxiliary Transfer to Financial Aid - $25 million

Operations Budget Reduction―$2,450,500

1% across-the-board cut for non-federal funds for all state agencies

―$754,409Auxiliary Transfer to Financial Aid – $25 million

―$1, 142,250

Managed enrollment growth

Wisely continued with filling critical positions

Substantial growth in Customized Instruction students

Continued academic program planning

Authorized differential tuition, Access to Learning, to supplement instruction

E-Scholar laptop program

Continuing commitment to the strategic plan and university priorities.

Budget reductions shared broadly across the university.

Flexibility for Division & unit administrators

UW-Stout values its employees and will abide by contracts, policies and procedures.

All recommendations that maintain student-centered education and focus on Stout’s mission considered.

Budget reductions need to be proportional

Identify budget priorities using participatory processes, guided by the mission statement and strategic planning.

Fund activities that are central to the mission, add value, or are required.

Protect the integrity of the undergraduate and graduate mission.

Protect the integrity of services supporting the central university mission

Maintain flexibility at all levels of the organization.

Reallocate resources and redesign functions to provide funding for high priority strategic initiatives.

Ensure near-term allocations decisions complement longer term planning.

Manage operations within allocated resources.

Make informed budget decisions through the use of data, analyses and projections.

Three sources of funds: Regular Tuition Revenue ―$800,000

Customized Instruction Revenue ― $1.2 M

Distribution to Divisions/Colleges/Facilities Maintenance ―$450,000

Other options: Change the mix between categories:―Regular Tuition Revenue

$0-$800,000

―Customized Instruction Revenue $0-$2,450,500

―Distribution to Divisions/Colleges/Facilities Maintenance $0-$2,450,500

Distribution to Divisions/Colleges/ Facilities Maint - $318,118 Student Aid - $1,998 Laboratories - $1,959 Educational Technology - $1,581 Grants for Study Abroad - $660 Minority and Disadvantaged Program - $4,584Advanced Opportunity Program - $1,737 Auxiliary - $278,464Stores - $337 Other Operating Receipts $122,003

Proportionate reduction across 128 accounts, excluding segregated fee operations:

Chancellor’s office―$117,717

Academic and Student Affairs ― $398

Administrative and Student Life Services ―$1,024,135