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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black">Jeffrey C. Silvertooth, Ph.D.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black">Associate Dean<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black">University of Arizona<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black">Tucson, AZ 85721-0036<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black">520-621-7205<o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> prov_heads_2-request@list.arizona.edu <prov_heads_2-request@list.arizona.edu>
<b>On Behalf Of </b>AADV FacultyAffairs<br>
<b>Sent:</b> Thursday, August 13, 2020 12:49 PM<br>
<b>To:</b> heads@list.arizona.edu<br>
<b>Cc:</b> Blakely, Colin Greene - (cblakely) <cblakely@arizona.edu><br>
<b>Subject:</b> [heads] SPBAC Special Meeting Notes<o:p></o:p></span></p>
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<p class="MsoNormal"><i><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">The following message is sent on behalf of Colin Blakely.<o:p></o:p></span></i></p>
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<hr size="3" width="100%" align="center">
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Hi Everyone,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Hope preparations for fall semester are going ok. Below are notes from yesterday's special meeting of SPBAC which I attended as Rob’s substitute.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Best,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Colin<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in"><span style="font-size:13.5pt;font-family:"Calibri",sans-serif">SPBAC Special Meeting</span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">8-12-20<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in;text-indent:-.25in;vertical-align:middle">
<span style="font-size:10.0pt;font-family:Symbol">·</span><span style="font-size:7.0pt"> </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Sabrina Helm (SPBAC Co-Chair) opened the meeting by expressing thanks to the General Faculty
Financial Advisory Committee (GFFAC) for the thorough work they did generating their report. The primary purpose of the meeting is to discuss the college and support unit budget allocations recently released by the provost's office.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in;text-indent:-.25in;vertical-align:middle">
<span style="font-size:10.0pt;font-family:Symbol">·</span><span style="font-size:7.0pt"> </span><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">FY21 Budget Allocations. </span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Liesl
reviewed the guiding principals for these budget allocation decisions<o:p></o:p></span></p>
<p class="MsoListParagraph" style="margin-left:.6in;text-indent:-.25in;mso-list:l0 level1 lfo2;vertical-align:middle">
<![if !supportLists]><span style="font-size:10.0pt;font-family:"Calibri",sans-serif"><span style="mso-list:Ignore">•<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Do no irreparable harm. We hope and assume this budget crisis will have a distinct beginning and end. We want to avoid cuts that will create long-term issues.<o:p></o:p></span></p>
<p class="MsoListParagraph" style="margin-left:.6in;text-indent:-.25in;mso-list:l0 level1 lfo2;vertical-align:middle">
<![if !supportLists]><span style="font-size:10.0pt;font-family:"Calibri",sans-serif"><span style="mso-list:Ignore">•<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Buy time for academic and support units to adjust their size and scope. One year re-allocations along with furlough savings provide short-term mitigation of the full
budget ramifications. However, units need to be prepared for the expiration of that support.<o:p></o:p></span></p>
<p class="MsoListParagraph" style="margin-left:.6in;text-indent:-.25in;mso-list:l0 level1 lfo2;vertical-align:middle">
<![if !supportLists]><span style="font-size:10.0pt;font-family:"Calibri",sans-serif"><span style="mso-list:Ignore">•<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Consider fund balances. Reserve funds vary from unit to unit. Though reserves are often already committed, their presence to larger or lesser degrees across different
units is one indicator of that units ability to absorb short-term budget shortfalls.<o:p></o:p></span></p>
<p class="MsoListParagraph" style="margin-left:.6in;text-indent:-.25in;mso-list:l0 level1 lfo2;vertical-align:middle">
<![if !supportLists]><span style="font-size:10.0pt;font-family:"Calibri",sans-serif"><span style="mso-list:Ignore">•<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Support reputation and highly ranked programs<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in;text-indent:-.25in;vertical-align:middle">
<span style="font-size:10.0pt;font-family:"Courier New"">o</span><span style="font-size:7.0pt"> </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Point of clarification - What does reputation and highly ranked program mean? President
Robbins responded that it is information that can be looked up. He mentioned Science, Environmental Studies, and Eller. Health Sciences are down right now but have been highly regarded in the past- they need some attention and support. Follow-up question-
how do you identify highly ranked colleges? Most rankings are by program, not colleges and all our colleges have highly ranked programs and less strong programs within them. President Robbins indicated that there are indeed college rankings (which are ultimately
an amalgam of program rankings).<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in;text-indent:-.25in;vertical-align:middle">
<span style="font-size:10.0pt;font-family:Symbol">·</span><span style="font-size:7.0pt"> </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Lisa Rulney reviewed the broad principals of our underlying activity-based budget model<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in;text-indent:-.25in;vertical-align:middle">
<span style="font-size:10.0pt;font-family:"Courier New"">o</span><span style="font-size:7.0pt"> </span><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Activity units</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">-
SCH and majors are the primary measures of activity for our model. When student mix changes and the university collects less net tuition per student, the revenue that goes back to the colleges for each major or student credit hour drops, meaning budget can
actually decrease, even if activity remains stable. This is the environment we are in now: Revenue per SCH in FY19 was $300, FY20 was $280, and FY21 is $226.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in;text-indent:-.25in;vertical-align:middle">
<span style="font-size:10.0pt;font-family:"Courier New"">o</span><span style="font-size:7.0pt"> </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">The current change to metrics has been so drastic this year that we needed to move from
a lagging activity-based budget to a real time one, ie unit budgets will be determined by <i>this</i> year's activity, and thus budgets might change mid-year if activity doesn't match current predictions.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in;text-indent:-.25in;vertical-align:middle">
<span style="font-size:10.0pt;font-family:"Courier New"">o</span><span style="font-size:7.0pt"> </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">The Executive adjustments included in the model are loans- they are expected to be paid
back to those units who received executive reductions by FY24. In addition, these are one-year, one-time adjustments. There were many considerations that went into this, including trying to keep budget cuts below 15% for any given college. Fund balances were
also important, as they provide evidence of a colleges ability to bridge the current situation. There was an acknowledgment that some of those funds are already committed, but in at least some instances those commitments can be re-negotiated (delaying faculty
start-up packages, etc). There was an open acknowledgment that this is not always easy (and in some cases may be all but impossible), but the situation we are in does not provide easy solutions. Unfortunately, we do not have an institutional-level commitment
module to fully understand commitments that have been made at the local level- commitments are currently managed internally at the unit level. Such a university-wide module needs to be part of our future financial management system.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in;text-indent:-.25in;vertical-align:middle">
<span style="font-size:10.0pt;font-family:Symbol">·</span><span style="font-size:7.0pt"> </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Point of clarification- will colleges receiving "subsidies" be explicitly asked to pay back
those subsidies? No- they are an institutional commitments to pay back the "borrowed" funds. No individual unit will be held responsible for paying back positive adjustments received this year.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in;text-indent:-.25in;vertical-align:middle">
<span style="font-size:10.0pt;font-family:Symbol">·</span><span style="font-size:7.0pt"> </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Point of clafication: are the weightings still in place for different colleges (0.8, 1.0,
1.2)? Yes, we considered whether to keep them, but decided that with the scope of current changes to the model, changes to the multiplier would only confuse things more.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in;text-indent:-.25in;vertical-align:middle">
<span style="font-size:10.0pt;font-family:"Courier New"">o</span><span style="font-size:7.0pt"> </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">SPBAC expressed a high level of support for the decisions made around the executive adjustments.
However, it was pointed out that communication around these decisions is of critical importance. Currently, people are receiving mixed messages. Maybe a communications plan provided to deans for messaging out to units.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in;text-indent:-.25in;vertical-align:middle">
<span style="font-size:10.0pt;font-family:Symbol">·</span><span style="font-size:7.0pt"> </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Lisa acknowledged the importance of messaging that keeps people focused on the overall health
of the university. We are in a difficult place right now as an organization. Keeping people focused on institutional health and how they can contribute is important in our current moment.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in;text-indent:-.25in;vertical-align:middle">
<span style="font-size:10.0pt;font-family:"Courier New"">o</span><span style="font-size:7.0pt"> </span><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Support Units</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">-
these budgets are not determined based on activity metrics<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in;text-indent:-.25in;vertical-align:middle">
<span style="font-size:10.0pt;font-family:Symbol">·</span><span style="font-size:7.0pt"> </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Using the same principles as for Responsibility-Centered Units (RCUs), executive decisions
were made with respect to re-allocations for support units, though to a lesser extent when compared to the RCUs.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in;text-indent:-.25in;vertical-align:middle">
<span style="font-size:10.0pt;font-family:Symbol">·</span><span style="font-size:7.0pt"> </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Question- Why do support units have fund balances at all? Because they have multi-year commitments
just like the activity-based units.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in;text-indent:-.25in;vertical-align:middle">
<span style="font-size:10.0pt;font-family:Symbol">·</span><span style="font-size:7.0pt"> </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">How were decision for executive re-allocation approached differently than for activity-based
units? There was an analysis done on funding levels for support units compared to peers. Some are woefully underfunded compared to peers (Marketing and Communications was used as an example). <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in;text-indent:-.25in;vertical-align:middle">
<span style="font-size:10.0pt;font-family:Symbol">·</span><span style="font-size:7.0pt"> </span><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">FY21 Outlook. </span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">How
does overall enrollment look for fall semester? It is down overall (~5,000 students) and the number of enrolled units per student is down. That having been said, the current numbers are actually better than anticipated. However, there is real concern about
enrollment melt- there are no financial disincentives to students dropping their enrollment prior to August 24. We are in an unprecedented time, and can't be entirely sure how enrollment will progress, but will have a better picture in the coming weeks.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Respectfully submitted by Colin Blakely (substituting for Robert Miller)<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.1in"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><img width="180" height="42" style="width:1.875in;height:.4375in" id="_x0000_i1026" src="http://art.arizona.edu/wp-content/uploads/sites/2/UA_CFA_RGB_Art_Primary.png" alt="http://art.arizona.edu/wp-content/uploads/sites/2/UA_CFA_RGB_Art_Primary.png"><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;color:#D0292B;letter-spacing:.75pt">COLIN BLAKELY</span></b><span class="apple-converted-space"><span style="font-size:10.0pt;color:#0B234B"> </span></span><span style="font-size:10.0pt;color:#0B234B"> | Director
&<br>
Associate VP for Strategic Initiatives<br>
520.621.7000 | </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><a href="http://art.arizona.edu/"><span style="font-size:10.0pt;font-family:"Times New Roman",serif;color:purple">art.arizona.edu</span></a><o:p></o:p></span></p>
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