July 1, 2004

Divisional Budget Policy Addendum

Divisional Annual Budget Process

The Student Affairs division has developed a budget process mirroring the University budget process regarding State General Funds.

The Vice President meets regularly with the Student Affairs Directors, forming a team that develops divisional mission, values and annual goals. The Directors will consult with the staff and departments requesting input and feedback to the drafted divisional goals and objectives. With the feedback from the staff and departments, the goals will be modified and finalized by the team of Directors and VPSA. Divisional budgetary priorities will be established in support of the annual divisional goals and departmental objectives. The Student Affairs division will make public a listing of annual goals and objectives, including any requests or modifications for funding.

Base Budgeted Position Salary and Benefit Funding

Annual Salary and Benefit Costs

Assuming that the University appropriately and sufficiently transfers personnel expenses and benefit funds, the Student Affairs division will then manage the annual salary and benefit costs associated with base budgeted positions. In order for the divisional funding pool to cover state-wide negotiated salary and benefit cost increases, and/or CSU mandated personnel benefit cost increases, the base general fund allocation to the division must be increased accordingly by the University.

Examples of items covered in this category include state authorized salary increases, service salary increases, approved reclassifications, approved in-range-progressions, and approved new positions. In all cases where additional salary and benefit costs are needed, it is the responsibility of the Director through the Vice President to secure appropriate approval for funding prior to the hiring process.

A cost center may be asked by the Director and/or Vice President to self-fund all or part of the salary and benefit costs associated with their augmentation request.

Annual Salary and Benefit Savings

Any and all non-restricted General Fund salary and benefit savings within the division will return to the divisional pool, held centrally in the VPSA office. A Director through the goal setting and prioritization process can request access to salary and benefit savings for goal achievement, the good of the program, new initiative or extra-ordinary need. The request will be reviewed by the team of Directors, with final approval resting with the VPSA.

The purpose of recapturing the salary and benefit savings is to create a contingency addressing increase in salary and benefit costs, budget reductions, new hires and new initiatives. Approved changes to personnel and budgeted position salary/ benefit funding caused by employee turnover or the need for a new or modified position shall be funded from the divisional funding pool.

Current Year Salary and Benefit Funding

The difference between the funding requirements in a current year vs. the annual base for a position is simply timing. For example, a position hired six months into a year would require the divisional; major budget unit within a division; cost center to provide just half of the annual salary and benefit costs for the current year. Similarly, a position vacated half way through the year, and not refilled in the current year, would accrue half the annual salary and benefit in position savings.

Current Year Salary and Benefit Costs

The divisional funding pool will cover the annual salary and benefit costs associated with base budgeted positions. In order for the divisional funding pool to cover state-wide negotiated salary and benefit cost increases, and/or CSU mandated personnel benefits cost increases, the base general fund allocation to the division must be increased accordingly by the University.

Examples of items covered in this category include state authorized salary increases, service salary increases, approved reclassifications, approved in-range-progressions, and approved new positions. In all cases where additional salary and benefit costs are needed, it is the responsibility of the department/ cost center to secure appropriate approval for funding prior to the hiring process.

The Vice President may ask the department/cost center to self-fund all or part of the salary and benefit costs associated with their augmentation request. However, the department/cost center will be notified in advance of the implementation timeline of their responsibility to self-fund an augmentation.

Current Year Salary and Benefit Savings

The departments/cost centers will return annual salary and benefit savings associated with base budgeted positions to the SA Divisional funding pool. Position savings would typically accrue during employee turnover, retirements, or reduction in term of appointment for the position. The primary purpose of recapturing the current year salary and benefit savings is to use this savings to fund temporary or part-time replacement faculty, staff, or administrators to backfill duties until permanent replacement can be recruited or to fund one-time salary augmentations.

A Director may provide a written request use of these funds for one-time initiatives.

Contingency Reserve

The division must responsibly plan for unforeseen funding initiatives that come up throughout the year despite best planning efforts. It is prudent planning to expect that a division should have a base budgeted contingency reserve of approximately two (2%) percent as a planning buffer for a margin of uncertainty. This goal must be a high, long-term priority for the division. In the short-term, the pool may largely be created from one-time roll forward funds.

Unexpended Year End Budget Balances

The division will create a contingency reserve by collecting non-restricted unallocated funds, fund balances, salary savings, and a percent of roll forward balances. The dollar and percent amounts will be discussed with the Directors who will advise and recommend to the VPSA.