[CED/CD/EAT] FW: subject: HEADSUP | action: DIGEST: SPBAC + PROV COUNCIL | time: 2020.10.07 | priority: NORMAL

[Silvertooth, Jeffrey C - (silverto)]

FYI…

Jeffrey C. Silvertooth, Ph.D.
Associate Dean
Director for Extension & Economic Development
Division of Agriculture, Life, & Veterinary Sciences, and Cooperative Extension
Forbes 301, Bldg. #36
University of Arizona
Tucson, AZ       85721-0036
520-621-7205

From: prov_heads_2-request at list.arizona.edu <prov_heads_2-request at list.arizona.edu> On Behalf Of Miller, Robert J - (millerr)
Sent: Wednesday, October 7, 2020 12:18 PM
To: heads at list.arizona.edu
Cc: Helm, Sabrina V - (helm) <helm at arizona.edu>; Brummund, Barry T - (brummund) <brummund at arizona.edu>
Subject: [heads] subject: HEADSUP | action: DIGEST: SPBAC + PROV COUNCIL | time: 2020.10.07 | priority: NORMAL

digest
Strategic Planning and Budget Advisory Committee (SPBAC)
Provost’s Council
2020.10.07
SPBAC and Provost’s Council covered similar territory today.
budget update
The Senior Leadership Team (SLT) has developed a revised DRAFT budget for FY 21 and is in the process of getting advisement from Shared Governance groups. The Draft Budget itself is confidential, so cannot be shared.

SPBAC and Provost’s Council were asked to provide a recommendation to SLT (by Friday, but may roll into next week). A final budget release is anticipated within 2-3 weeks.

Current Net Tuition Revenue (NTR) projections are 40% better than the Moderate Case scenario; NTR is now projected to be down $55M rather than $96M. Online and Distance enrollments are up, offsetting some of the losses from the drop in campus activity.

revenue-producing units
Executive Decision Adjustments to the colleges are being re-adjusted to take into account programs that have grown, cash reserves in the colleges, and other internal impacts.
Colleges are generally doing better than expected (averaging -10.9%, rather than -17% under the Moderate Scenario, relative to FY20), prior to Adjustments and use of reserves.

support units
The Support Units, which do not participate in RCM, are facing greater challenges (averaging -14.9% relative to FY20).
Losses in Marketing and Communications have been offset (keeping funding roughly equivalent to FY20) to keep recruiting and enrollment support as strong as possible.

Furlough revision
The Draft Budget proposes an early end to the Furlough proportional to the improved forecast for Net Tuition Revenue (NTR) relative to FY20 (i.e., scaled to the 40% improvement over the Moderate Scenario). The timing of an early Furlough end, along with related implications, is under advisement:
>The earlier the end to the Furlough, the less help comes to unit budgets.
>Units with high salaries received more help from the Furlough than those with lower salaries.
>Support units rely more on the Furlough for relief than do the colleges.
Equitably balancing the trade-offs is complex and not facilitated by current university structure. (For example, centrally-sponsored support operations, like IT, are being cut more than similar operations that are supported in the colleges due to their status as support units.
RCM (Provost’s Council only)
The formulation of RCM is being reconsidered.
The 2018 report on RCM prepared by the UA RCM 3-YEAR REVIEW COMMITTEE was never released, but soon will be.

Robert Miller, AIA
Executive Director, HeadsUp
millerR at arizona.edu<mailto:millerR at u.arizona.edu>

copy
Sabrina Helm, Co-Chair SPBAC
Barry Brummond, Co-Chair SPBAC

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