UNIVERSITY BUDGET COMMITTEE
MINUTES OF NOVEMBER 14, 2013 MEETING
I.
II.
Time, Location and Attendance:

10:00AM, Gillham Park Room at Administrative Center

UBC members present: Provost Gail Hackett (Chair), Dave Donnelly,
Maureen Hannoun, Carol Hintz, Tony Luppino, Michael Plamann, Marsha
Pyle, and Wayne Vaught. Absent: Lyla Lindholm, Mel Tyler, Kevin
Truman, and Peggy Ward-Smith.

Others present: Larry Bunce, Sharon Lindenbaum, and Karen Wilkerson.
Preliminary Administrative Matters

III.
The minutes of the September 17, 2013 Committee meeting, in the form last
circulated before the meeting, were approved.
Report on Budget-Related Developments at State & System Level

Provost Hackett reported that UMKC Central Administration representatives
had recently met with UM System President Wolfe and discussed the postBudget Challenge update on UMKC’s FY 14 operating budget projections.
As was discussed with President Wolfe, progress was made through the
recent Budget Challenge, but UMKC is still projecting an operating deficit
for FY 14 (budgeted operating expenses in excess of budgeted operating
revenues) of approximately $6 million ($2 million more of a deficit than for
FY 13). The Provost further reported that among the measures being
instituted to address the need to reduce and hopefully eliminate such deficits
for FY 14 and FY 15 is a new soft hiring freeze and accompanying new
hiring exceptions committee.

Vice-Chancellor Hintz then provided some information regarding the new
hiring freeze and related processes—which included multiple levels of
approval for new hires (but using electronic communications to make that
administrable without undue delays), and very few “exemptions” from the
freeze processes (the exemptions being largely with respect to students in
work-study positions).

Provost Hackett indicated that in the meeting with the Deans, other unit
leaders and UBC members the Chancellor has called for Monday afternoon,
November 18, the Chancellor will further discuss the current budgeting
challenges and the new hiring freeze.
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
IV.
V.
Vice Chancellor Lindenbaum then explained that the tuition rates for FY 15
would be discussed preliminarily by the Curators at their November
meeting, with the Curators then scheduled to take rate-setting action at their
January meeting. Current UM System discussions generally contemplate a
tuition increase limited to increase in the CPI.
Circulation of Reports on FY 13 State Money Holdback and Fund Balances
of Auxiliaries and Service Operations

Karen Wilkerson circulated at the meeting a schedule (attached to these
minutes as Addendum 1) setting forth the utilization of the $5,837,436 of
State Appropriation held back (not assigned to the academic units) when the
FY 13 General Revenue Allocations were established in late spring of 2012.
The holdback was done because of doubt as to whether the Governor would
ultimately free up that much of our State Appropriation. As noted in the
report the figures have not changed since a report presented to the
Committee back in March. UBC Secretary Tony Luppino explained that he
had requested a final report on the holdback for FY 13 because when the last
one was delivered to the Committee he understood from comments made at
that time that it was possible that some additional specific allocations out of
the approximately $5.8 million might occur before the end of the fiscal year.
It turns out no new ones occurred after the March report, and over half of the
money in question then landed in central reserves (technically the
“Campuswide” account held by the Central Administration)—that includes
the last two figures on the report (the $773,406 for strategic initiatives
matches and the “balance” of $2,834,030).

Karen Wilkerson also circulated at the meeting a report on the ending
UMKC Auxiliaries fund balances and Service Operations fund balances for
the last five completed fiscal years. Committee members had a few
preliminary observations and questions regarding certain of the fund
balances, but agreed it was best to take some time to study the report for
possible further discussion at a later date.
Report from Tony Luppino Re: Questions from Faculty Senate

UBC Secretary Tony Luppino, who also serves as Chair of the UMKC
Faculty Senate Budget Committee, discussed some questions and
information requests coming from the Faculty Senate and the Faculty Senate
Budget Committee. His report and related Committee discussion produced
the following:
o A unit-by-unit comprehensive operating fund report for the fiscal
years during Budget Model phase-in completed thus far (FY 09
through FY 13), per the requested form attached hereto as Addendum
2 for academic units (and modified to fit administrative/support
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units) will be prepared and made available to the Committee and
other budgeting constituencies. This project is already underway.
o After discussion of pro and cons of fully implementing the net tuition
“true up” called for under the Budget Model it was decided this
matter should be taken up by the small working group for further
discussion during its ongoing study of the Budget Model.
o The Committee should devote time to study of the financial
circumstances and funding plans for UMKC Intercollegiate Athletics,
with that process starting with a request that the Chancellor describe
to the Committee his strategic planning for UMKC Intercollegiate
Athletics.
VI.
Possible Agenda Items for Upcoming UBC Meetings

In addition to follow-up on Intercollegiate Athletics finances, the Committee
discussed a few other possible items for discussion at upcoming committee
meetings, with the following current conclusions:
o The financing of University College is at this time sufficiently simple
that a special session on that is unnecessary. There was a $500,000
one-time allocation from the approximately $5.8 million of FY 13
State money as described in Addendum 1, some of which remains
available for FY 14 University College funding. Some budgeted
General Revenue attributable to University College (about $180,000)
was separately stated in the FY 14 Budget Model run, but remains
part of the GRA of the College of Arts & Sciences.
o The financial implications of the General Education Program (e.g.,
on sharing of tuition, scholarships, and shares of the General
Overhead Assessment among units involved in undergraduate
instruction) will be studied by the small working group during its
study of the Budget Model, and taken into account in the small
group’s reports/recommendations to the Committee.
o The size of the General Overhead Assessment for FY 15 (it is
$71,741,925 for FY 14) will be discussed as we move forward to FY
15 budgeting, taking into account results on the central
administrative/support units from the Budget Challenge, the hiring
freeze and other relevant circumstances (including expense control
initiatives undertaken over the last several years).
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ADDENDUM 1
Report on Utilization of FY 13 State Appropriation Holdback
ADDENDUM 2 FOLLOWS ON NEXT PAGE
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ADDENDUM 2
Form of Academic Unit FY09-FY13 Operating Fund Items Report
ACADEMIC UNIT: _________________________
BUDGETED AND ACTUAL SIGNIFICANT OPERATING FUND NUMBERS OF ACADEMIC
UNITS (FY09-FY13)
Item
FY 2009
FY 2010
FY2011
FY2012
FY2013
Actual General Revenue Allocation (GRA)
Budgeted Net Tuition
Actual Net Tuition
Budgeted Net Student Fees
Actual Net Student Fees
Budgeted “Other” Operating Revenues1
Actual “Other” Operating Revenues
Actual Transfers In/(Out) Auxiliaries
Actual Transfers In from Gift Funds
Budgeted Instructional Payroll2 Expense
Actual Instructional Payroll Expense
Budgeted Non-Instruct. Payroll Expense
Actual Non-Instruct. Payroll Expense
Budgeted Non-Payroll Expenses
Actual Non-Payroll Expenses
Other relevant items [DESCRIBE]3
Ending Operating Fund Balance
Excludes GRA and student fees, and also excludes “transfers in/(out)” from auxiliaries and gift funds.
Salary + benefits.
3
Include, in addition to any other relevant items, transfers in from Central Administration not included
above.
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2
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