playing ball in tough economic times impact of budget reductions on your campus masfap fall 2005...
TRANSCRIPT
Playing Ball in Tough Economic Times Impact of Budget Reductions on Your Campus
MASFAP Fall 2005 Conference
November 7, 2005
Presenter: Dan Mann
University of Illinois at Urbana-Champaign
Understand the Budget Reduction Process
• Understand who is going through this exercise.• Understand what budget reduction scenarios are
being considered.• Understand when the budget reductions are
scheduled to occur and whether they are temporary or permanent reductions.
• Understand why the budget reductions are being considered or mandated.
• Know the politics involved in this process.
Understanding “Who”
• All units/some units
• All levels/some levels
• Academic/non-academic
• Mandated (core) functions/non-mandated (discretionary) functions
Understanding “What”
• Differential/across-the-board reductions
• Operating/program/both
• Salaries/other-than-salaries
• Programs/services/activities
Understanding “When”
• Timing of cuts- Now (this fiscal year)- Next fiscal year- Over multiple years
• Permanent (base)/temporary
Understanding “Why”
• External reductions (state or federal shortfalls)
• Endowments not earning enough
• Enrollment decline
• Downsizing/rightsizing
• To provide funds for new/other priorities
• Understand the politics
Know and Understand the University’s Priorities
Most universities want budget reduction
plans that do the following:
• Maintain consistency with the university’s mission statement and strategic plan.
• Protect programs, activities and services that are central to the academic mission.
• Reflect commitment to diversity.
Assess Office Priorities Against the University’s Priorities
• How does your office’s mission statement and strategic plan compare to the university’s mission statement and strategic plan?
• What are your strengths, weaknesses, opportunities and threats?
Gather Data!
• Budget detail
• Personnel data
• Compilation of programs, services and activities provided
• Office data
• Information from peer schools
Know Your Operating Budget
What is the source of your operating budget?
• State funds
• Tuition funds
• Federal administrative allowance funds
• Short term loan funds
• JLD funds
• Foundation/Other funds
Know Your Operating Budget
• By income/expenses• By function• By activity• By service• Personnel (by
category)• Postage• Printing/duplicating
• Data Processing• Telecommunications• Travel• Professional
development• Contractual services• Commodities• Equipment
Know Your Financial Aid Program (Awards) Budget
What is the source of your program budget?
• State funds
• Tuition
• Institutional/Foundation scholarships
• Institutional loans
• Institutional grants
• Institutional employment
Know Your Personnel Data
• Number and cost of staff
• Full-time/part-time staff
• Graduate assistants
• Student employees
• Union/non-union
• Exempt/non-exempt
• Professional/clerical
Compile An Inventory of Programs, Activities & Services
• Develop a comprehensive inventory of what your office does.
• Prepare a spreadsheet to analyze this inventory.
• Analyze the inventory by cost (if available), number of staff involved, mandated or discretionary, university’s priorities, etc.
Other Data About Your Office
• Know how many students you serve.
• Know the number of dollars and number of programs administered.
• Share student survey results.
• Share program review results.
• Share student success stories.
• Use your financial aid advisory committee.
Gather Information From Peer Schools
• Organizational charts
• Number of staff
• Office budgets
• Functions/services provided
• Dollars administered
• Students served
• Benchmarking data
Review Data
• Determine who should be involved in this review (all staff, committee, management staff, director only, financial aid advisory committee, other university colleagues, external efficiency experts).
• Develop some guidelines for review and determine what restraints (if any) should be employed.
Things to Consider
• Customer service/customer-driven changes
• Streamlining/reorganizing/combining
• Office inefficiencies/duplication of effort
• Workflow processes- 90% of problems are process, 10% people- Attack processes, not people
• Technology-driven or people-driven
• Staffing (full-time/part-time)
Things to Consider
• Know what other colleagues are doing
• Outsourcing
• Transfer functions to other offices
• Travel/professional development
• Telephones/long distance phone calls
• Office supplies
Consider Options
• Do you have uncommitted resources?• Be creative! Think outside the box!• Determine impact of each option realizing
both the short-term and long-term impact.• Realize that long-term reductions may require
higher short-term expenditures.• Staffing (organizational staff/current
personnel)
Consider Options
• Technology improvements may require students to conduct more of their business online and have less human contact.
• Public perception of office may change.
• Staff workloads may change.
• Workflow processes will likely change.
• Organizational structure may need changes.
Determine Plan
• Be careful what you propose, it may happen!
• Market (sell) your office and make sure that the impact and ramifications are made known.
• Determine how to share the plan with your staff.
Don’t Strike Out!
• When the University gives you lemons, make lemonade! Try to be positive and view this as an opportunity to improve your operation and service to students.
• These are difficult decisions. You will likely not make any new friends during this process! Be creative! Try to do the right thing(s)! Good luck!
Contact Information
Dan Mann
Director of Student Financial Aid
620 East John Street
University of Illinois at Urbana-Champaign
Champaign, IL 61820-9420
phone: 217/244-2024