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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Tahoma",sans-serif">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Tahoma",sans-serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b>From:</b> Ratje, Jeffrey M - (jmratje) <jmratje@arizona.edu>
<br>
<b>Sent:</b> Tuesday, November 10, 2020 5:01 PM<br>
<b>To:</b> Antin, Parker B - (pba) <pba@arizona.edu>; Davis, James M - (jdavis1) <JDavis@ag.arizona.edu>; Hingle, Melanie D - (hinglem) <hinglem@arizona.edu>; Mclain, Jean - (mclainj) <mclainj@arizona.edu>; Silvertooth, Jeffrey C - (silverto) <Silver@ag.arizona.edu>;
Limesand, Kirsten H - (limesank) <limesank@arizona.edu>; McCarthy, Fiona M - (fionamcc) <fionamcc@arizona.edu>; Mcclaran, Mitchel P - (mcclaran) <mcclaran@arizona.edu>; Rahr, Matt - (rahr) <rahr@ag.arizona.edu>; Ratje, Jeffrey M - (jmratje) <jmratje@arizona.edu>;
Rutherford, Janis KM - (jmathias) <jmathias@arizona.edu>; Rutledge, Bethany S - (rutledge) <rutledge@cals.arizona.edu>; Staten, Michael E - (statenm) <statenm@arizona.edu>; Barton, Kina - (kina) <kina@arizona.edu>; Krogsgaard, Bethina - (bethinak) <bethinak@arizona.edu>;
Oden, Belinda K - (belindaoden) <belindaoden@arizona.edu>; Shevchuk, Darren S - (shevchuk) <shevchuk@arizona.edu>; Sowerby, Samantha Blair - (sbsowerby) <sbsowerby@arizona.edu>; Stevens, Amanda M - (amanda84) <amanda84@arizona.edu>; Teres, Kevin K - (kteres)
<kteres@arizona.edu>; Chorover, Jon - (chorover) <chorover@arizona.edu>; Farrell-Poe, Kathryn L - (kittfp) <kittfp@arizona.edu>; Going, Scott B - (going) <going@arizona.edu>; Jenks, Matthew - (jenksm) <jenksm@arizona.edu>; Scaramella, Laura V - (scaramella)
<scaramella@arizona.edu>; Stock, S. Patricia - (spstock) <spstock@arizona.edu>; Tabashnik, Bruce E - (tabashnb) <BruceT@cals.arizona.edu>; Thompson, Gary D - (gdthomps) <GaryT@ag.arizona.edu>; Torres, Robert M - (rtorres1) <rtorres1@arizona.edu>; Van Leeuwen,
Willem J - (leeuw) <leeuw@arizona.edu>; Brierley, Paul E - (paulbrierley) <paulbrierley@arizona.edu><br>
<b>Subject:</b> Summary of Revised FY21 Budget Allocation<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt">11am participants,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">Recap of our discussion this morning. Two parts to the budget allocation.<o:p></o:p></span></p>
<ol style="margin-top:0in" start="1" type="1">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l1 level1 lfo3"><b><span style="font-size:12.0pt">RCM Reduction</span></b><span style="font-size:12.0pt">: ($2.9M) due to the university’s less net tuition revenue and increased taxation<o:p></o:p></span></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l1 level1 lfo3"><b><span style="font-size:12.0pt">Reallocation of Base Budget</span></b><span style="font-size:12.0pt">: ($3M) loaned to other colleges using the Senior Leadership Team’s “<a href="https://view.comms.arizona.edu/?qs=064c7f0c978fea8b82ae5e3ae9a524fd7e57725ecf23e3ccb302bc3d07b74586cc2b8d62197e0e20d66b92247ce5e4437c790e7d50068a85ea899f47e4a1e6f264ec715d502c258f1ce1d845522cd79a">Guiding
Principles</a>”<o:p></o:p></span></li></ol>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:12.0pt">RCM Reduction<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:12.0pt">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:12.0pt">Reallocation of Base Budget<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:12.0pt">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">University support units are implementing significant budget reductions (page 2 of PDF). Service levels from central admin will probably decline.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><i><span style="font-size:9.0pt">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!</span></i></b><span style="font-size:9.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt"><b><span style="font-size:14.0pt;color:#0C234B">Jeffrey Ratje</span></b><span style="font-size:10.0pt;color:#767676"><br>
</span>Associate Vice President, Finance Admin Operations<br>
Division of Agriculture, Life and Vet Sciences & Cooperative Extension<br>
THE UNIVERSITY OF ARIZONA<span style="font-size:10.0pt;color:#767676"><br>
<br>
Forbes, 314c<br>
PO Box 210036 | Tucson, AZ 85721<br>
Office: 520-621-1468</span><span style="font-size:9.0pt;color:#767676"><br>
</span><a href="mailto:jmratje@email.arizona.edu"><span style="color:#767676;text-decoration:none">jmratje@email.arizona.edu</span></a><br>
<b><a href="https://www.compass.arizona.edu/"><span style="color:#8B0015;text-decoration:none">www.compass.arizona.edu</span></a></b><span style="font-size:10.0pt;color:#767676"><o:p></o:p></span></p>
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