Everett Community College

March 13, 2015

Collaborative Budgeting at EvCC

Setting the scene…

June 2008

And then in fall 2008…

Everett Community College 2008-2009 Budget Reduction Plan

• The State Board for Community and Technical Colleges has established a preliminary reduction target of 2.8% and identified the amount as $626,000 for Everett Community College.

• However, based on updated information, that reduction amount will be closer to 5% for the current fiscal year.

• Highlights of the first midyear reduction strategy included:• Restart of boilers (heat) will be delayed; thermostats adjusted by 2 degrees; turn off lights

& computers; no personal refrigerators, fans, heaters as much as possible; All requests for out-of-state travel approved by the President

And then…

Department budget meetings

Draft 1 budgets come from departments; shared with campus

Preliminary budget additional revisions, based on input, shared with campus and publicly with the Board of Trustees

Final budget the last revision of Preliminary budget, based on input, shared publicly with the Board of Trustees

Draft 2

Budgets come from VP, VP Admin & President revisions; shared with campus

Beginning in February 2009…

Bottom – Up Budgeting

January meeting with budget authorities, VPs and deans

Topics:

budget assumptions

budget principles

budget development calendar & to do list

the ‘how to’ of budget development

Initial Budget Training

THE MADNESS….

• People don’t always want to get involved

• Spreadsheets are scary and confusing

• If there’s no impact on the budget proposals, why bother?

THE METHOD….

• Scheduled and led by the supervisor

• Everyone invited including part timers

• Usually part of regular department meetings

• Opportunity for input and questions

Department meetings

THE MADNESS…

• HP system doesn’t cooperate with EvCC budget system

• Budgets are submitted on paper

• Budget team enters LOTS of data.

• Sometimes Draft 1 budgets appear to be smoke and mirrors and whimsy.

THE METHOD…

• Department Managers, Directors, Deans or VPs develop and write budget

• Budget is ‘zero based’ (except this year)

• Large equipment needs don’t go in operating budget

• VP reviews and signs off on budgets

• Draft 1 budgets submitted to budget office

Draft 1 budgets

THE MADNESS…

• Transparency may sting a little

• Questions at times have agendas

• Explaining complicated budgets at a high level can create confusion

• Not everyone is as interested in budgets as we are

THE METHOD…

• Campus-wide share out

• VPs present their own budgets

• Audience questions

• Big picture overview of changes, priorities for the next year

Campus Share-Outs

• Adjustments made based on:• Input

• Changing circumstances

• Discussions between the President, VP Administrative Services, VP of the area

• Big-picture prioritizing• “How do the requests for your area fit the college’s strategic plan

and move us forward toward student success?”

• Adjustments made; submitted to the budget office for entry and report-writing

• Second campus-wide meeting

What’s Draft 2?

• Preliminary Budgets are the college’s third iteration in the budget process

• Adjustments made based on:• Input

• Changing circumstances

• Balancing overall budget numbers (revenue and expenditures)

• Usually includes an assumption of earmarks that are more likely than not to be provided by SBCTC

• Adjustments made; submitted to the budget office for entry and report-writing

• Third campus-wide meeting

• Preliminary budget shared with the Board Audit committee and with the Board in its May public meeting

What’s Preliminary?

• The last few tweaks are made based on:• input

• changing circumstances

• balancing overall budget numbers

• Because changes are usually minimal at this point, it’s not shared in a campus meeting.

• The Board of Trustees takes action on this version in their June public meeting.

What’s Final?

RECEIVING INPUT

1. Campus wide meetings

2. Anonymous or identified comments

3. Initial department meetings

4. Board meetings

5. Emails, calls, office visits to VP, President.

PROVIDING INFORMATION

1. Campus wide meetings

2. Intranet web page

3. Emails

4. Board reports and Board Audit Committee

EvCC communicates…

And a few other ideas

• Visit every department and explain budgeting.

• Form a subcommittee of the Faculty Senate and the VPI and VPA to dig deeply into college budgeting.

• Survey the whole campus about how to save money.

• Have all the VPs respond to every single idea from the campus survey on how to save money.

• Require all exempt employees to spend three late afternoons working in small groups to generate ideas to save money.

Here are copies of the documents we use.See handouts for better understanding of the document.

Full disclosure……

BUDGET CALENDAR: JANUARY – JUNE 2015

DATE ACTIVITY TOPIC LOCATION TIME AUDIENCE JAN 15 Meeting Budget Prep Instructions Jackson

Senate 10 AM Budget authorities

& VPs JAN 15 -FEB 13

Meetings VPs ensure department-level budget meetings are held to involve all employees in the budget process

various various All Campus by department

FEB 13 – FEB 27

Drafting Departments develop DRAFT 1 budgets & present them to area VP

various various Departments & budget authority

FEB 27 DUE DATE DRAFT 1 due to the budget office by 4PM Oly 110 By 4PM VPs MAR 16 Presentation VPs share DRAFT 1 department budget

proposals Jackson Wilderness

2:30-4 PM

All Campus

MAR 23 -APR 8

Meetings VPs, VPA & President develop DRAFT 2 budget various various VPs, VPA & President

APR 13 DUE DATE DRAFT 2 budget due to the budget office by 4PM

Oly 110 By 4PM VPs

APR 21 Discussion Budget status discussion with the Board of Trustees at their work session

TBA 5PM All Campus

APR 22 Presentation Summary report to campus of DRAFT 2 budget proposals

GW 286 2 PM All Campus

APR 23 – May 1

Meetings VPs & President develop PRELIMINARY budget

various various VPs & President

May 1 DUE DATE PRELIMINARY budget due to the budget office by 4PM

Oly 110 By 4PM VPs

MAY 7 Presentation Summary report to campus of PRELIMINARY budget proposals

GW 166 2 PM All Campus

MAY 19 Presentation PRELIMINARY Budget goes to Board of Trustees

Jackson Senate

5PM All Campus

JUNE 16 Presentation FINAL Budget goes to Board of Trustees Jackson Senate

5PM All Campus

BUDGET ASSUMPTIONS1.Budget figures are estimates until the legislature takes action to approve a budget. 2.It is unlikely tuition will increase in 2014/2015.3.State allocation will be reduced by approximately $300,000 to cover CTC link development costs.4.There may be additional funding reductions in state allocation which may require commensurate reductions in expenditures.5. The allocation will be adjusted to accommodate WFSE negotiated salary increases.6. State funding for the “1,000 FTEs” will likely continue near the same level as 14/15.7.An increased emphasis on STEM may require reprioritization of funding for personnel.8.EvCC will target some programs as “self-support”. Most classes will be “state support” which will generate FTE to ensure EvCC meets its state target.9.EvCC will continue to grow and innovate, with particular attention to student success and completion.

BUDGET PRINCIPLES1.EVCC will specifically align budget priorities with the strategic plan.2.Grant acquisition will continue to financially supplement EVCC programs. Sustainability of continuing grant activities beyond the life of the grant will be considered in budget development. 3.EVCC will follow its policy regarding fund balance and reserves. Fund balance and reserves will not be used for on-going expenses.4.The College will develop an annual budget, based on statistical data including historical and ongoing state revenue forecasts, enrollment trends, program and operational reviews, and consideration contained in the institution's Long Term Financial Plan.

Contact information: Jennifer Howardjhoward@everettcc.edu

Discussion/questions