[CED/CD/EAT] FW: Summary of Revised FY21 Budget Allocation

Tue Nov 10 17:27:26 MST 2020

FYI... this is all CALS but some points from Provost pertain to CES budget management as well, particularly wrt standing or "stagnant" balances in accounts.

From: Ratje, Jeffrey M - (jmratje) <jmratje at arizona.edu>
Sent: Tuesday, November 10, 2020 5:01 PM
To: Antin, Parker B - (pba) <pba at arizona.edu>; Davis, James M - (jdavis1) <JDavis at ag.arizona.edu>; Hingle, Melanie D - (hinglem) <hinglem at arizona.edu>; Mclain, Jean - (mclainj) <mclainj at arizona.edu>; Silvertooth, Jeffrey C - (silverto) <Silver at ag.arizona.edu>; Limesand, Kirsten H - (limesank) <limesank at arizona.edu>; McCarthy, Fiona M - (fionamcc) <fionamcc at arizona.edu>; Mcclaran, Mitchel P - (mcclaran) <mcclaran at arizona.edu>; Rahr, Matt - (rahr) <rahr at ag.arizona.edu>; Ratje, Jeffrey M - (jmratje) <jmratje at arizona.edu>; Rutherford, Janis KM - (jmathias) <jmathias at arizona.edu>; Rutledge, Bethany S - (rutledge) <rutledge at cals.arizona.edu>; Staten, Michael E - (statenm) <statenm at arizona.edu>; Barton, Kina - (kina) <kina at arizona.edu>; Krogsgaard, Bethina - (bethinak) <bethinak at arizona.edu>; Oden, Belinda K - (belindaoden) <belindaoden at arizona.edu>; Shevchuk, Darren S - (shevchuk) <shevchuk at arizona.edu>; Sowerby, Samantha Blair - (sbsowerby) <sbsowerby at arizona.edu>; Stevens, Amanda M - (amanda84) <amanda84 at arizona.edu>; Teres, Kevin K - (kteres) <kteres at arizona.edu>; Chorover, Jon - (chorover) <chorover at arizona.edu>; Farrell-Poe, Kathryn L - (kittfp) <kittfp at arizona.edu>; Going, Scott B - (going) <going at arizona.edu>; Jenks, Matthew - (jenksm) <jenksm at arizona.edu>; Scaramella, Laura V - (scaramella) <scaramella at arizona.edu>; Stock, S. Patricia - (spstock) <spstock at arizona.edu>; Tabashnik, Bruce E - (tabashnb) <BruceT at cals.arizona.edu>; Thompson, Gary D - (gdthomps) <GaryT at ag.arizona.edu>; Torres, Robert M - (rtorres1) <rtorres1 at arizona.edu>; Van Leeuwen, Willem J - (leeuw) <leeuw at arizona.edu>; Brierley, Paul E - (paulbrierley) <paulbrierley at arizona.edu>
Subject: Summary of Revised FY21 Budget Allocation

11am participants,

Recap of our discussion this morning.  Two parts to the budget allocation.

  1.  RCM Reduction: ($2.9M) due to the university's less net tuition revenue and increased taxation
  2.  Reallocation of Base Budget: ($3M) loaned to other colleges using the Senior Leadership Team's "Guiding Principles<https://view.comms.arizona.edu/?qs=064c7f0c978fea8b82ae5e3ae9a524fd7e57725ecf23e3ccb302bc3d07b74586cc2b8d62197e0e20d66b92247ce5e4437c790e7d50068a85ea899f47e4a1e6f264ec715d502c258f1ce1d845522cd79a>"

RCM Reduction
The revised RCM Reduction for CALS is $3M better than the original RCM projection of ($5.9M) from August.  CALS has done well with student enrollment and retention in FY20.  Other large colleges have struggled.  SBS, Science, and Eller, for instance, have severe RCM reductions.  Under RCM, all colleges contribute to a single tuition pool.  If that pool is smaller, all colleges receive a smaller allocation.  Colleges with smaller contributions to the tuition pool are a financial drag on all colleges.

Reallocation of Base Budget
The Reallocation of Base Budget to CALS is due to our large and growing balances (SLT's Guiding Principle #3).  CALS has the largest balance south of Speedway - we stick out.  These balances have been earned through hard work, performing well under RCM and non-RCM, and strategic decisions.  About ¾ of the CALS balances are held within the units or committed to the units.  If units don't invest immediately the balances will continue to draw unwanted attention from central admin.  The reallocation is a tangible cost of not spending quickly enough.

Provost expects us to utilize "cash flow accounting," which means spending money as it is received (churn of ins and outs) rather than amassing a savings account (stagnant) that is rarely used.  Example: spend balances to hire instructional designers and create online courses.  The online courses will expand your mission delivery and generate a new revenue stream to fund a future faculty startup.

University support units are implementing significant budget reductions (page 2 of PDF).  Service levels from central admin will probably decline.

Due to the pandemic, I am working remotely. I am available via email or my office phone, which is forwarded to my cell phone.  Be safe and stay well!

[image0]
Jeffrey Ratje
Associate Vice President, Finance Admin Operations
Division of Agriculture, Life and Vet Sciences & Cooperative Extension
THE UNIVERSITY OF ARIZONA

Forbes, 314c
PO Box 210036 | Tucson, AZ 85721
Office: 520-621-1468
jmratje at email.arizona.edu<mailto:jmratje at email.arizona.edu>
www.compass.arizona.edu<https://www.compass.arizona.edu/>

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