Budget Status as of 9/12/07
Current Year Budget FY 2007-2008
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The fiscal year runs from July 1, 2007 through June 30, 2008 for FY 2007-2008 current
year budget.
The FY 2007-2008 budget had been approved by the legislature and appropriated to the
universities and community colleges, however, the Council of Revenues met recently
regarding the anticipated decline in the actual projections for total state income
compared to original income projections
The Council of Revenue reduced their revenue projections for this year and next by .3%.
To put this in perspective, for every 1% reduction, there is approximately $40 - $45
million of reduced state income. The reduction is fairly small, when looking at it
compared to overall state budget.
The Governor’s office has not communicated to us yet, regarding the reduction in
revenue projections for the year and their response to those reductions.
Currently, we are only allocated ¼ of our annual appropriations for the year and are
limited to spending only that. This puts constraints on such things as construction
contracts and other large service contracts in which we have to encumber funds for the
year and do not have it allocated by the state yet. It makes it difficult for planning for
the year.
We are hoping that we hear something very soon from the State Department of Budget
and Finance, as far as an overall statement regarding spending levels.
In the meantime, we are being conservative, as there are possibilities of restrictions
taking place this year, by State Department of Budget & Finance and Governor’s Office.
Restrictions could be in a variety of forms.
For UHH budget
o Our UHH enrollment projections, for budget purposes, are on target. At this
point, we do not anticipate additional income from enrollment this year
o Tentative allocations were based on last year’s budget base, bargaining unit
salary increases including benefits, approved PCR increases including the PCR’s
submitted for tuition and fee increases
o All additional revenues for this year were tentatively allocated out, leaving very
little flexibility in the budget for campus wide budget issues
o Salary savings, both from the budget base and from one time savings, are
decentralized out to the Vice Chancellors and the Deans. This funding source is
the only true flexibility within the budget. When the change was made to
decentralize these dollars to the various areas, it was agreed that the areas
would be responsible for budget items that would come up during the year with
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these funds. This was because it took the central pot of money that used to be
available and decentralized that control to the VC level.
Requests for additional resources are being pushed back to the various VC and
Deans to be addressed within their areas, as agreed when the salary savings was
decentralized
It seems as if the campus has not been made aware of the current process for
budget allocation and what budget authority the VC’s and Deans have in that
regard.
With the 137 vacant positions within the budget this year, this salary pot is
significant source of funds available to take care of base and one time issues
Tracking the salary savings at the vice chancellor and deans levels seems to be
difficult and the decision to have those funds at that level is being reviewed
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Supplemental Budget Status (FY 2008-2009 Supplemental Operating and CIP’s):
o The process for supplemental budget is not a formalized one and has changed
this year at the system level
o The supplemental PCR’s for operating budget and CIP has already been turned
into the vice chancellors by the various departments, compiled, prioritized, and
submitted to the UH system with very short time frame for the process
o UH System President is responsible for submission to the BOR;
o Chancellors do not know how the individual campus submittals are being
prioritized at system level and do not have the combined system
recommendations that will be going to BOR yet
o It is anticipated that by 9/20, which is the date in which the BOR submittals are
due, that communication to the chancellors regarding system proposal being
recommended to the BOR will have taken place
o The BOR will review the supplemental budgets for their approval at the
September 27 and 28th board meeting
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For UHH Budget Process for next biennial budget :
o Budget (PCR) Submittal Process – faculty, division chairs, deans/directors, vice
chancellors discuss, review, prioritize requests
o Communication regarding what process will be
o Discussion and instructions regarding PCR process and electronic forms for
improved ability to do a PCR
o Communication regarding what happens to PCR’s after departments complete
them
o System stocktaking process
o System Prioritization process
o BOR approval
o Submit to the Governor
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Submit to the Legislators; present to the legislators; clarification and
justifications required from legislators
Regular budget information and updates on process will be provided until state
legislative approvals take place
Any new budget information that we may have regarding state budget, UHH FY 20072008 budget, or Supplemental Budget will be communicated
We will begin the stocktaking and budget process for next biennium (FY 2009-2011)
soon
Start thinking about the PCR process and what you may begin to request
Watch for PCR instructions and budget updates