Administration & Finance
100 Morrissey Boulevard
Boston, MA 02125-3393
617-287-5100
617-287-5110
April 1, 2011
MEMORANDUM FOR:
FROM:
SUBJECT:
Distribution List
Katie Hope, Assistant Vice Chancellor Administration & Finance
FY12 Budget Process Update
To ensure that we have the current and accurate data in FAST for departments to use
to prepare their FY12 budget submissions, we have made several updates to the
budget system. We have:
1. Updated position management data. In the March 14, 2011 memo that
described the budget process, we asked departments to review their authorized
benefitted positions in FAST. Based on your feedback, we have updated
authorized benefitted positions for any changes that you gave us as of the close
of business on March 30. In addition, thanks to your good work, we identified a
minor problem with the programming that pulls the position data out of
PeopleSoft to go into FAST. We have worked with UITS to correct that issue,
which affected a very small number of positions, and have updated FAST with
accurate information.
2. Removed RTF (fund 52129) and ESS (fund 51121) from FAST for this part of the
budget process. Although both funds have at least a few authorized benefitted
positions on them, they have their own allocation processes that are separate
from the UMass Boston operating budget process.
3. Excluded the following funds and accounts from the calculation of reduction
scenario targets:
a. Administrative Allowance (fund 52142)
b. PMYR
c. VCAA Buyout.
4. Excluded the central expense items below from the calculation of reduction
scenario targets. The Vice Chancellor Budget Group will review any possible
savings options for these areas through a separate process.
a. Financial Aid
b. Graduate Stipends
c. Utilities
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d. Shuttle Bus
e. Cleaning Contracts.
5. Put adjustments to FAST for Hybrid and non-tenure system faculty on CTF to
bring the total dollar amount for the various units/colleges to the appropriate base
budget. In reviewing these two areas, you should focus on total dollar amount
rather than the accuracy of the individual positions.
In addition to these updates in FAST, I also want to address two other issues.
New Strategic Requests
Any unit making a new strategic request must provide a written document describing
and justifying it, including explaining how that request will advance one or more of
UMass Boston’s strategic goals. Please submit this document in the ZZ subsidiary line
in FAST using the DSU (please see FY12 Budget Job Aid for more information).
Requesting New Positions -- Departments requesting new positions (except for
tenure-system faculty) should do so on a funding source other than state. Because of
the decrease in state support that we have experienced during the past three years and
the increase in FTEs and salary expenses at our campus, UMass Boston’s total salary
expenses far exceed our annual state appropriation. In response to a recent analysis
that estimates that the annual cost of the salaries currently on state exceeds our FY11
state funding by over $12M, we have already begun moving salaries from state to
federal stimulus funding and to CTF. Based on the information that we have about the
state budget, we do not expect state support to increase in FY12.
Putting new position requests on a funding source other than state will highlight the fact
that the cost to UMass Boston of any new positions will include fringe benefits, as well
as salary. For any new benefitted position entered in the budget system, FAST will
automatically calculate the fringe expense. Requests for new positions must also
indicate in what space the new employees will work (e.g., building, floor and room
number). Please put this information in the description/justification document that you
post in FAST using the DSU.
Reduction Scenarios
Every year, we experience some amount of employee turnover. In some cases, the
new incumbent comes in at a higher salary than her/his predecessor, in other cases
lower. However, even when the new employee earns less money than the previous
incumbent, UMass Boston typically incurs expenses such as longevity and accrued
vacation payments, which often more than compensate for the salary difference. In
addition, one of the tactics that we are using to balance the FY12 budget is a vacancy
factor, which we are calculating for UMass Boston overall, rather than for each
individual unit. Consequently, departments should not count savings from faculty and
staff turnover toward their eight-percent reduction scenario. However, if you think that
your department has a special situation, or you have any other questions about the
reduction scenario, please contact me or your Office of Budget and Financial Planning
liaison.
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