Budget Update for FY20

Dear Members of the University Community,

I am pleased to announce that the budget recommendations received from the University Resources Commission (URC) for fiscal year 2020 have been implemented. As we move into a new biennium, it is important that we act with diligence to responsibly align all our internal resources to our strategic priorities, while promoting enrollment growth. The FY20 budget includes additions to recurring base budgets and funding for one-time items.

A total of $2,802,402 in new funding was available for allocation to recurring base budgets. This includes $1,500,000 of new Institutional Enhancement funding approved by the state legislature. Of the total, $1,726,898 was allocated to the University's divisions:

• Academic Affairs - $850,580
• Business Affairs - $281,328
• Enrollment Management - $276,347
• Student Affairs - $194,408
• Advancement and External Relations - $124,235

These allocations are used predominantly to hire new faculty and staff to support the University's growth. In addition, just over $1 million of the new Institutional Enhancement funds will be allocated to strategic initiatives.

A total of $2,881,952 was available to fund one-time requests. $1,719,348 was allocated for approved requests:

• Academic Affairs - $625,580
• Business Affairs - $310,328
• Enrollment Management - $222,637
• Student Affairs - $203,708
• Advancement and External Relations - $357,095

The remaining funds are being retained to fund other one-time expenses throughout the year.

Finally, as was announced previously, a merit raise pool of 1.5 percent ($588,411) was included in the FY20 budget. This is contingent on reaching our aggressive enrollment growth goal. While we did not reach that goal, we have seen significant growth in our undergraduate enrollment and in the number of semester credit hours students are taking. In recognition of these successes and your hard work, I am very pleased to announce that we will proceed with awarding merit raises, effective in March 2020.

As a reminder, the merit award process is based on the recently completed performance review cycle. It is designed for managers to have some flexibility in determining the process for distribution of merit award amounts. This will also determine which performance ratings will qualify employees for awards within their respective units. If you have general questions about performance reviews and ratings, the Merit Award Plan or eligibility, please contact Human Resources.

Looking ahead, I have charged the URC and the Vice Presidents, over the course of the coming year, with various responsibilities relating to on-going budget management and review. They have also been charged with making recommendations for modifications to our budget processes and methodologies. Among these charges are ensuring we are appropriately budgeting for strategic priorities (enrollment, pedagogy, student success, etc.) and technology priorities; reviewing allocation methodologies for student fees; utilizing available revenues from all funds and sources; and ensuring appropriate one-time funding sources are available to implement the campus master plan as required to support campus growth.

The University will hold an open budget forum in November to discuss the budget decisions noted above. Please visit the URC website to see more details or contact a URC member for further details or questions.

Warm regards,

Cynthia Teniente-Matson