Memorandum
DATE:
3 March 2013
TO:
Vice Chancellors, Deans and Community Campus Directors
FROM:
Bear Baker, Provost and Vice Chancellor of Academic Affairs
Bill Spindle, Vice Chancellor, Administrative Services
SUBJECT:
Strategic Guidance and FY14/FY15 Operating Budget Development Process
A. Introduction.
1. The purpose of this memorandum is to provide the principles, assumptions, guidelines, and
timelines for the FY14/FY15 operating budget development process.
2. We are moving into an increasingly uncertain and potentially challenging fiscal environment.
We do not expect significant increases in general fund support for academic programs for FY14.
Revenue increases will come principally from tuition.
3. Based on current information, we estimate that our total unrestricted revenue will fall short of our
total MAU requirement to maintain current service levels by approximately $4M in FY14. It is
possible that revenue from tuition and other sources may reduce this shortfall somewhat. Major
Budget Units should be advised, however, that current enrollment projections are at best flat.
4. At this time, the statewide system has not yet issued guidance for building the FY15 budget
request. We do not expect that the total statewide FY15 request will exceed that for FY14 in real
terms.
B. Process.
1. The Major Budget Units (MBUs) that will be required to submit FY14/15 operating budget
requests include Community Campuses (including Kenai Peninsula College, Kodiak College, MatSu College, and Prince William Sound Community College), administrative divisions headed by a
Vice Chancellor, Provost’s Office (including ANSEP, University Honors College, Health Programs
Development, Institutional Effectiveness and Engagement, Office of International Affairs, and
Research and Graduate Studies), the Consortium Library, College of Arts and Sciences, College of
Health, College of Education, College of Business and Public Policy, Community and Technical
College, and the School of Engineering.
2. The MBU operating budget requests will be submitted to the Planning and Budget Advisory
Council (PBAC) in hearings scheduled for 18-19 April 2013. The schedule for these hearings is in
Attachment I.
3. For ease of presentation and to facilitate discussion, it is requested that each budget unit:






Substantively rely on the information in the submission for the presentation. Avoid the use
of Powerpoint or other electronic means of presentation.
Present each request for FY14/FY15 budget increment, including fixed cost increases.
Summarize the process the MBU will implement in the event a 2-5% cut to general fund is
distributed across-the-board in FY14.
Allow about ten minutes for discussion.
Limit the written narrative to no more than five pages, exclusive of attachments.
Your submission will be electronically distributed to PBAC members. However, please
bring 5 additional copies for other attendees.
4. This budget development process will be guided and managed by the UAA Office of Budget,
principally by Kelly Thorngren. This office will also be responsible for summarizing and analyzing
all submissions. As such, any questions and requests for clarification, technical assistance, or
consultation should be directed to Kelly. All materials will be due electronically to Kelly by
April 10, 2013.
C. Instructions for Preparing Submissions.
1. In this PBAC cycle, each Major Budget Unit is asked first to address these key questions using
Attachment II:
a) Taking into account any anticipated changes in demand, what is the additional budget
necessary to maintain current service levels in FY14? This estimate should include and
identify your estimate of fixed cost increases over and above the estimated increases for
wages and benefits. Are non-general fund sources available to cover the increase?
b) If you currently use restricted or “soft” funds to support your operation, (i.e., Foundation
funding, unreserved fund balance), what is the current status and future availability of these
funds?
c) If you are in receipt of TVEP funds, how do you plan to address the expected decline of
this source of funding?
d) What prioritization process would you use to implement a potential cut to general fund?
e) What cost saving and efficiency measures have been implemented in FY13?
2. In addition, each MBU is requested to provide a status report for each special project or initiative
allocation of internal, legislative, or statewide funding for FY13. Please use Attachment(s) III for
this purpose. A listing of FY13 awards is provided at Attachment IV for your convenience.
3. Because the prospects for growth in general funds are so limited, MBUs are advised to confine
requests for FY14/15 increments to a few of the highest priority items, including requests to meet
one-time needs. Requests must fit within the framework of the UAA Cabinet Strategic Guidance
(provided at Attachment V) and the associated Accreditation Core Themes.1 Those supported by
internal MBU re-allocation will be afforded highest consideration. Requests are to be submitted in
priority order using Attachment(s) VI. Please make it clear in Attachment VI if you are requesting
one-time funds or general funds. Requests will first be considered for internal UAA FY14
reallocations, and if not funded by UAA, considered for FY15 submission to the BOR/State
legislature budget request.
D. Other Principles, Assumptions, and Considerations.
UAA will:
1. continue the practice of using a separate allocation process for the Community Campuses for
FY14. (Note: UAA receives a separate line-item allocation for each community campus.)
Community Campuses are advised, however, that changing fiscal conditions may require a reexamination of this management model.
2. continue the practice of allowing all major budget units to carry forward all prior or current fiscal
year balances to next fiscal year. However, in order to allow flexibility for university-wide
priorities, a portion of carry-forward balances may be reallocated at the Chancellor’s or
President’s discretion. As a guideline, the President’s recommended carry forward balance for
the MAUs is 2% to 6% of the unrestricted budget. At UAA, 2% to 4% is the recommended
target for each MBU.
3. maintain the 80/20 tuition revenue sharing practice of the last several years. Schools and colleges
will retain 80% of the tuition revenue, including 80% of any increases over the FY14 target.
That target is the sum of FY13 tuition receipts plus the approved BOR rate increase of 2%.
Tuition-producing MBUs are advised that units that do not meet the tuition target will have to
absorb the shortfall in FY14 and may face reductions in FY15.
4. cover annual wage/benefit increases consistent with mandates, obligations and directives
approved by the Board of Regents.
E. List of Attachments
Attachment I contains the dates and times for each major budget unit to make its presentation to
PBAC.
Attachment II is the form on which MBUs are to submit their estimated current services budget.
Attachment III is the form to be used in evaluating allocations received for FY13.
Attachment IV is a listing of allocations received for FY13.
Attachment V is the UAA Cabinet’s Strategic Guidance for this year’s planning and budgeting
cycle.
1
Year One Report: Mission, Core Themes, and Expectations, Section III.
http://www.uaa.alaska.edu/accreditation/2017/upload/UAA-Year-One-Report-9-15-11.pdf.
Attachment VI is the form in which requests for FY14/FY15 budget increments are to be submitted.
Attachments
Cc:
Chancellor Tom Case
Members of PBAC
Budget Director Kelly Thorngren
ATTACHMENT I
Schedule of FY14 Budget Presentations
(Hearing location: Commons 107)
Thursday, April 18, 2013:
PBAC Discussion of Presentation Process
1.
Consortium Library
2.
Kenai Peninsula College (via video)
Break
3.
Mat-Su College
4.
College of Business and Public Policy
Lunch
5.
Kodiak College
6.
Vice Chancellor for Administrative Services
Break
7.
Vice Chancellor for Student Affairs
8.
Provost
8:15 – 8:30
8:30 – 9:15
9:15 – 10:00
10:00 – 10:15
10:15 – 11:00
11:00 – 11:45
11:45 – 12:30
12:30 – 1:15
1:15 – 2:00
2:00 – 2:15
2:15 – 3:00
3:00 – 3:45
Friday, April 19, 2013:
9.
10.
11.
12.
13.
14.
15.
University Advancement
School of Engineering
Break
College of Health
Community and Technical College
College of Arts and Sciences
Lunch
College of Education
Prince William Sound (cancelled, will not present)
8:00 – 8:45
8:45 – 9:30
9:30 – 9:45
9:45 – 10:30
10:30 – 11:15
11:15 - Noon
Noon – 12:30
12:30 – 1:15
1:15 – 2:00
ATTACHMENT II
Current Services Budget
FY14
In the event that incremental funding or internal reallocations from central funds are not available in FY14,
information is requested on the current services provided and what will be required to maintain the same
level of service while meeting fixed costs, unavoidable commitments, and anticipated changes in demand.
Do not include compensation adjustments for FY14 wages/benefits.
1.
Description of Current Services. (Using the categories contained in UAA 2017 and in the UAA
Accreditation Profile, what services/products/outputs does your MBU currently provide?)
2. Incremental Cost to Maintain Current Services. (Taking into account anticipated changes in
demand, what is the additional funding over and above increases in wages and benefits necessary to
maintain the current levels of service? For example, have fixed costs increased, such as
subscription services or lease costs?)
3. NGF Contribution. (Are non-general funds available to contribute towards this incremental cost?
From what sources in what estimated amounts?)
4. Soft Funds in Support of Current Operations. (If you use restricted or “soft” funds to support
current operations, (i.e., Foundation funding), what is the current status and future availability of
these funds?)
5. TVEP Funding. (If you are in receipt of TVEP funds, how do you plan to address the requirement
to reduce amounts for older continuation items?)
6. Reduction to General Fund. (Summarize the prioritization process the MBU will use in the event a
2-5% across-the-board cut to general fund is implemented in FY14.)
7. Cost Savings and Efficiency Measures. (List steps taken in FY13 to decrease on-going costs,
reorganize units, implement electronic solutions, sharing of resources, recycling, etc… Do not
include temporary salary savings due to delays in replacing positions.)
ATTACHMENT III
Project/Initiative Status Report
FY13
Project/Initiative Title:
$ Awarded:
Org #:
Contact:
E-mail:
This document is intended to provide basic assessment information for each special project or initiative
program funded in FY13 (identified in Attachment IV). This includes priority program funding from the
Legislature, base funding through the UAA internal reallocation process, or one-time funds received. This
evaluation will be used to assess the effectiveness of funded projects and programs and as part of the
internal scan for the upcoming accreditation process.
Please provide a brief paragraph on each question, with the total document totaling no more than two pages.
1. What were the original objectives of this initiative? (Include goals, expected outcomes, what you
hoped to accomplish.)
2. What was accomplished? (What actually happened? Include personnel hiring, status of funds
spent, and any changes to original plans, goals, or objectives. What goals were met? Include
specific outcomes of the project or initiative.)
3. What has been the impact? (How has UAA benefited from this initiative? Were additional courses
offered or students served? What research was completed, what knowledge gained? What are the
indicators that point to the impacts? How do the results further the strategic objectives of UAA
2017? How has the initiative affected UA Performance Measures?)
4. What are the expected future outcomes of this initiative? (Where is this initiative going next?
How will this initiative continue to benefit UAA and its constituents? What is the anticipated future
impact on UA Performance Measures?)
5. Amount Spent. (As of month end: ________________)
Expense Category
Personnel
Non-personnel
YTD Expense
Total
Projected Expense
Unspent Balance
ATTACHMENT IV
Project/Initiative Awards
FY13
Department
CAS
CAS
CTC
CTC
CBPP
CBPP
COH
COH
Engineering
Library
Library
Library
Provost
Provost
Provost
Provost
Provost
Provost
Provost
Provost
Advancement
Advancement
Student Affairs
Student Affairs
Student Affairs
Student Affairs
Student Affairs
Admin Services
Admin Services
Admin Services
Admin Services
KPC
MSC
MSC
Project
Cellular Developmental Biologist
New Dean’s Priorities
Eagle River/Aviation Lease
Dietetics & Nutrition Faculty
Ctr for Econ Development
ISER CAEPR (one-time)
COH Reorganization
Graduate Nursing Faculty
Accreditation Requirements
Inflationary Costs
AK Moving Image Preservation
LibQUAL Survey Response
Honors Support
Honors Admin Assist
Physical Therapy Careers
R&GS Finance Director
R&GS Innovate Program
ANSEP
Faculty Svcs Upgrades
Honors 49th State Fellows
Advancement Reorganization
2 Staff Positions
Advising/Mapworks
Title IX Implementation
Veterans Military Coordinator
Care Team Coordinator
Career Cluster/Educ Pathways
IT Fixed Costs
IT Information Security Officer
Police Dispatcher
Police Officer
Process Technology
VCAL Facility Coordinator
Campus Security Initiative
Legislative
Funding
Internal Base
Reallocation
100,000
160,600
32,900
116,000
250,000
One-time
Funding
110,000
250,000
250,000
100,000
389,900
300,000
152,000
175,000
178,300
100,000
66,000
350,000
153,000
100,000
100,000
271,000
46,500
65,000
95,400
155,000
354,900
191,100
85,000
97,400
4,500
104,000
146,000
57,000
73,400
375,000
70,200
70,000
ATTACHMENT V
UAA Cabinet Strategic Guidance
Spring 2013
I.
Introduction
This edition of the Cabinet Strategic Guidance is an updated summary of the assessment of current
strategic conditions, assumptions, and priorities by Chancellor Case and his Cabinet as of Spring
2013. It is informed by Cabinet conversations with administrative and governance leadership and
the on-going UA statewide Strategic Direction Initiative (SDI)
II. Strategic Context
A. As we look ahead, we will focus on the strategic points of emphasis that have emerged from the
statewide SDI process and have been endorsed by the Board of Regents2
1.
2.
3.
4.
Student Achievement and Attainment (SDI 1)
Productive partnerships with Alaska’s schools (SDI 2)
Productive partnerships with Alaska’s public and private industries (SDI 3)
Research and development to help build and sustain Alaska’s economic growth and
enhance communities (SDI 4)
5. Accountability to the people of Alaska (SDI 5)
B. We must also be mindful of significant challenges:
1. Growth in state general fund appropriations is likely to be limited due to expected
reductions in state revenues from a declining oil production base
2. Student headcount and credit hours are estimated to remain relatively flat or to decline
slightly
3. Increased regulation and ever-growing demands for accountability from the public, from
government, and from our accreditors, both regional and programmatic are expected
4. Flattening or declining federal support in many areas is likely
III. Operational Priorities and New Investment
A. Increases in Fixed Costs are the first charge on our marginal resources. These include such
things as increases in salaries and benefits, utilities, licenses, and new building operating costs. The
Legislature has indicated that, at best, it will provide general funds for only 50% of salary and
benefit increases
B. Other institutional commitments are the second charge on resources. These include such items
as unfunded mandates, program matches, accreditation recommendations and requirements, onetime reorganization costs, seed money for important initiatives, and backfills for expired soft
funding in high priority areas
1
28 September 2012.
C. Consistent with the statewide Strategic Direction Initiative, our mission and the 2017 Strategic
Plan, it is necessary to focus on the following strategically important priorities for the near term
1. Resources (SDI 5)

Develop a sustainable array of programs and services

Improve operational effectiveness and cost containment in all areas

Augment private support of UAA by expanding the professional outreach to individuals,
corporations and foundations to increase participation

Support efforts to energize Alumni and exponentially grow active/involved
constituency

Explore new sources of revenue
o Non-resident revenue, especially international students
o Commercial development of research and other entrepreneurial ideas
 Create sustainable support platform for local entrepreneurs
2. Access, Persistence, Completion (SDI 1 & 2)

Improve the effectiveness and efficiency with which students enter the university,
receive placement and advising, and navigate the many pathways through our
programs to graduation
o Develop new and enhance existing campus life and multicultural student
engagement opportunities which foster curricular and co-curricular learning
o The new Arena represents an unprecedented opportunity for student
development, engagement and learning. As the catalyst, Administrative
Services and Student Affairs will collaborate to develop an even more
dynamic, on campus community, that attracts and retains more residential
and commuter students alike

Effectively align our multi-campus MAU for student success

Develop a balanced and sustainable content delivery system consisting of e-learning
and traditional classroom platforms

Ensure student, faculty and community engagement opportunities for the mutually
beneficial application of knowledge and resources
3. Education for High Demand Jobs (SDI 1, 2, 3, & 5)

Health. As Alaska’s Health University, we must continue to develop and strengthen
our health care education programs to serve the state as a whole, in concert with
our sister UA institutions and our community partners

Engineering. To meet state needs in the Engineering profession, the UA Board of
Regents has set a target for UA to produce 340 Engineering graduates per year, of
which 200 should be at the baccalaureate level

Career and Technical Education (CTE). With public and private partners, we must
ensure ongoing fiscal support for high demand CTE programs by addressing the
challenges in the current Alaska Technical Vocational Education Program (TVEP)
allocation model
4.
Research (SDI 3, 4, & 5)

To respond to Alaska needs and opportunities, we will strengthen and expand the
research and externally funded public service components of our mission with
emphasis on health and health-related fields; biomedical science; environmental
science; cold regions engineering; and social, economic, and education policy

We will develop an ecosystem that encourages and sustains commercial
development of research
IV. Infrastructure Priorities
We are continuing to invest in our infrastructure to sustain and strengthen our existing facilities
and to grow our physical plant as projected in our Master Plan and the UA Ten-Year Capital Plan
A. Full funding for the new Engineering Building 3
B. Maintenance, and, where necessary, the upgrading, of previous infrastructure investments
1. On-going deferred maintenance and renewal and repurposing (R&R) requirements
2. Information technology with emphasis on security, reliability, and inter-campus network
connectivity to support faculty, staff, and students
C. Full operational cost funding for all new buildings
D. Funding for the design, development, and programming of:
1. The Phase II Health Science Building
The Engineering facility is partially funded. It is necessary to secure funding for the remaining 50%
of estimated costs.
2
2. Doubling the size of residential housing and exploring retail dining, entertainment, and
other services
o Using a mixed retail approach to engage private/public partnership
3. Consolidating, on the Anchorage campus, all student, academic, administrative, and
recreational/athletic services
4. Exploring the rehab and revitalization of the Wells Fargo Sports Complex (WFSC) as hub
of a new student services center
5. Developing a student recreation complex to replace the WFSC and complement the
Arena
6. The new Kodiak College vocational/technical facility
ATTACHMENT VI
Incremental Request Form
FY14/FY15
Title (Provide a brief, unique, and descriptive title.)
MBU Priority Ranking #:
1. Request Description/Strategic Purpose.
a. Provide a detailed narrative of the request. Include the purpose of the request and the market
demand the request is intended to meet. If applicable, include the number of students affected
and specific employer demand met. For research programs, include areas of state needs met and
external funding source (i.e., National Science Foundation.)
b. How does the request advance the strategic priorities stated in the Cabinet Strategic Guidance in
Attachment V?
c. Does the request fill a gap, remedy a problem, or respond to an external requirement (e.g.
accreditation or professional standard)?
2. Internal MBU Reallocation. (Will any funds be reallocated internally to support this effort?)
3. Statewide System Performance Measures.4 What is the anticipated impact of the requested increment on one or
more of the SWS performance measures? If there is no obvious link between the request and an existing SWS Performance
Measure, it is not necessary to fill out this section.
a. For each performance measure related to this request, provide the estimated timeframe for
realization. (Example: This increment will increase student credit hours by FY15, because
FY14 will be used to hire the additional professor. University-generated revenue and student
credit hours will be impacted in FY15 by the additional course offerings provided by the new
professor.)
b. What strategy-specific sub-metric will be used to demonstrate return on investment?
Which strategy specific sub-metric will be used to track intermediate progress. (Example:
Program major enrollment will be tracked as a preliminary indicator of eventual increases
in high-demand graduates.)
4
For reference, please see UAA Performance ‘11, pp 33 ff. at
http://www.uaa.alaska.edu/institutionaleffectiveness/upload/Performance-11_web-version.pdf
c. For this sub-metric, what is the current baseline, the expected change, and the timeframe
for realizing it if the requested funding is received? (Example: In Fall 2010, there were 120
program majors enrolled. This increment would grow enrollment by 20 majors in FY14.
4. Other Output Measures. If no SWS Performance Measure is applicable, what measure will you use
to assess the effectiveness of this investment? What change in the measure, from what baseline, within
what time frame? Provide specific estimates.)
5. Total Amount Requested. (In the table below, list the general funds requested, any non-general
fund revenue that may be generated as a result of new general fund received, and the number of
positions requested. Enter the fiscal year(s) for which the request is being made.)
Request Type
One-time
Base
Fiscal Year
General
Funds
Non-General
Funds
Generated
Number of
Positions