How will the campus ensure these targets are met?

The Chancellor and the Provost will explain plans for measurement and accountability throughout the budget process; we don't have details to share at this point. 

How will additional requested exclusions be handled?

Please bring your requests for unit-specifc exclusions not captured in the high-level target model  to February's EVCPs small group budget meetings. The EVCP will allow for adjustments to individual targets, if warranted. 

Is the budget target a permanent budget reduction?

The target is not a permanent budget reduction; it's specifically for FY2017-18 to facilitate the campus reaching OP's in-year deficit reduction goal. Since your unit can meet the target either through revenue generating programs or cost saving activities, the amount won't be taken out of the permanent budget. That said, while the target is focused on a specific goal in FY2017-18, it is expected that every division will submit a balanced budget (i.e., zero or positive change in total net assets) with their submission every year ongoing. 

How can we allocate our target accordingly to each of our departments and units based upon the campus target methodology? In particular, how were all of the exclusions derived?

FY2016-17 Operating Budget Expenses (Final Current Funds excluding Contracts & Grants) are the base for the target. The targets were built using a high-level methodology, with specific exclusions, in order to apply a consistent approach across campus. The intent is not for DFLs to replicate this methodology when applying the targets within their divisions, but rather for DFLs to use their local knowledge of performance, legal restrictions, and departmental needs when planning their budget. DFLs should employ the following strategic principles when cascading the targets within their divisions: 
  • Incorporate a combination of metric-­based financial information (e.g., revenue growth, expense growth, profitability, etc.) and operational data (e.g., student credit hours) 
  • Develop a methodology simple enough to allow for straightforward communication and ensure the rationale of the methodology is made transparent to the entire campus 
  • Provide effective data and tools to confront difficult decisions (e.g., shrinking or merging academic and nonacademic units, laying off staff, etc.) 
  • Consider cross-campus interdependencies with an eye toward how budget reductions in one unit might affect other units and the campus as a whole