Collaborative
Budgeting at EvCC
Everett Community College
March 13, 2015
Setting the
scene…
June 2008
And then in fall 2008…
Everett Community College 2008-2009 Budget Reduction Plan
•
The State Board for Community and Technical Colleges has established a preliminary
reduction target of 2.8% and identified the amount as $626,000 for Everett Community
College.
•
However, based on updated information, that reduction amount will be closer to 5% for
the current fiscal year.
•
Highlights of the first midyear reduction strategy included:
• Restart of boilers (heat) will be delayed; thermostats adjusted by 2 degrees; turn off lights
& computers; no personal refrigerators, fans, heaters as much as possible; All requests for
out-of-state travel approved by the President
And then…
Beginning in February 2009…
Bottom – Up Budgeting
Final budget
Draft 2
Draft 1
Department
budget
meetings
budgets come from
departments;
shared with
campus
Budgets come from
VP, VP Admin &
President revisions;
shared with campus
Preliminary
budget
additional revisions,
based on input, shared
with campus and
publicly with the Board
of Trustees
the last revision of
Preliminary budget,
based on input, shared
publicly with the Board
of Trustees
Initial Budget Training
January meeting with budget authorities, VPs and deans
Topics:
budget assumptions
budget principles
budget development calendar & to do list
the ‘how to’ of budget development
Department meetings
THE METHOD….
•
Scheduled and led by the supervisor
•
Everyone invited including part timers
•
Usually part of regular department
meetings
•
THE MADNESS….
Opportunity for input and questions
•
People don’t always want to get
involved
•
Spreadsheets are scary and confusing
•
If there’s no impact on the budget
proposals, why bother?
Draft 1 budgets
THE METHOD…
•
Department Managers, Directors,
Deans or VPs develop and write
budget
•
Budget is ‘zero based’
(except this year)
Large equipment needs don’t go in
operating budget
VP reviews and signs off on budgets
Draft 1 budgets submitted to budget
office
•
•
•
THE MADNESS…
•
HP system doesn’t cooperate with
EvCC budget system
•
Budgets are submitted on paper
•
Budget team enters LOTS of data.
•
Sometimes Draft 1 budgets appear to
be smoke and mirrors and whimsy.
Campus Share-Outs
THE MADNESS…
THE METHOD…
•
Campus-wide share out
•
VPs present their own budgets
•
Audience questions
•
Big picture overview of changes,
priorities for the next year
•
Transparency may sting a little
•
Questions at times have agendas
•
Explaining complicated budgets at a
high level can create confusion
•
Not everyone is as interested in
budgets as we are
What’s Draft 2?
• Adjustments made based on:
•
Input
•
Changing circumstances
•
Discussions between the President, VP Administrative Services, VP of the area
• Big-picture prioritizing
• “How do the requests for your area fit the college’s strategic plan and move us
forward toward student success?”
• Adjustments made; submitted to the budget office for entry and report-writing
• Second campus-wide meeting
What’s Preliminary?
• Preliminary Budgets are the college’s third iteration in the budget process
• Adjustments made based on:
•
Input
•
Changing circumstances
•
Balancing overall budget numbers (revenue and expenditures)
•
Usually includes an assumption of earmarks that are more likely than not to be
provided by SBCTC
• Adjustments made; submitted to the budget office for entry and report-writing
• Third campus-wide meeting
• Preliminary budget shared with the Board Audit committee and with the Board in its
May public meeting
What’s Final?
• The last few tweaks are made based on:
•
input
•
changing circumstances
•
balancing overall budget numbers
• Because changes are usually minimal at this point, it’s not shared in a
campus meeting.
• The Board of Trustees takes action on this version in their June public
meeting.
EvCC communicates…
PROVIDING INFORMATION
RECEIVING INPUT
1. Campus wide meetings
1. Campus wide meetings
2. Intranet web page
2. Anonymous or identified comments
3. Emails
3. Initial department meetings
4. Board reports and Board Audit
Committee
4. Board meetings
5. Emails, calls, office visits to VP,
President.
And a few other ideas
• Visit every department and explain budgeting.
• Form a subcommittee of the Faculty Senate and the VPI and VPA to dig
deeply into college budgeting.
• Survey the whole campus about how to save money.
• Have all the VPs respond to every single idea from the campus survey on
how to save money.
• Require all exempt employees to spend three late afternoons working in
small groups to generate ideas to save money.
Full disclosure……
Here are copies of the documents we use.
See handouts for better understanding of the document.
BUDGET ASSUMPTIONS
1.Budget figures are estimates until the legislature takes action to approve a budget.
2.It is unlikely tuition will increase in 2014/2015.
3.State allocation will be reduced by approximately $300,000 to cover CTC link development costs.
4.There may be additional funding reductions in state allocation which may require commensurate reductions
in expenditures.
5. The allocation will be adjusted to accommodate WFSE negotiated salary increases.
6. State funding for the “1,000 FTEs” will likely continue near the same level as 14/15.
7.An increased emphasis on STEM may require reprioritization of funding for personnel.
8.EvCC will target some programs as “self-support”. Most classes will be “state support” which will generate
FTE to ensure EvCC meets its state target.
9.EvCC will continue to grow and innovate, with particular attention to student success and completion.
BUDGET PRINCIPLES
1.EVCC will specifically align budget priorities with the strategic plan.
2.Grant acquisition will continue to financially supplement EVCC programs. Sustainability of continuing grant
activities beyond the life of the grant will be considered in budget development.
3.EVCC will follow its policy regarding fund balance and reserves. Fund balance and reserves will not be used
for on-going expenses.
4.The College will develop an annual budget, based on statistical data including historical and ongoing state
revenue forecasts, enrollment trends, program and operational reviews, and consideration contained in the
institution's Long Term Financial Plan.
Discussion/questions
Contact information:
Jennifer Howard
jhoward@everettcc.edu