key operational plans

Finance and Budgeting Plan

2007 Update

The Finance and Budgeting Key Operational Plan continues to focus on identifying and managing the multiple revenue streams available to the University of Wisconsin Oshkosh. The executive team at the University, normally comprised of the Chancellor’s staff and academic college deans, has continued to discuss and resolve issues as they come to the forefront and will continue the process of open discussion with the campus as new issues and developments arise.

The 2007-2009 state of Wisconsin biennial budget has been finalized by the Legislature. Therefore, new and continued state GPR resources will be available as planned. Allocation of those resources will be discussed by the campus leadership groups as 2008-2009 annual budget planning gets underway. Meanwhile, the campus resource situation is healthy, and we are ready to move forward with new initiatives and investments based on solid enrollments.

Accomplishments
Assessment

Financial Services continues to identify ways to implement new electronic services for students and staff in order to provide faster, better access to resources as well as assure security of all identities (e.g. Social Security numbers). Assessment of satisfaction and effectiveness of services is an area that needs to be addressed. During the next 12 months, finance and budget personnel will seek to identify ways to assess progress toward the plan’s goals and then develop action steps to carry out those findings

Executive Summary 2005
Introduction and Preliminary Understandings

This Finance and Budgeting Plan for the University of Wisconsin-Oshkosh is one part of a larger set of planning documents and other materials relating to the University’s broader strategic and operational planning process.

This plan addresses various financial issues associated with the provision of financial resources to support the University’s mission.  This broader fiscal environment is a cyclical process that is concurrent with the frequency of the state’s fiscal year and the associated state biennial budget planning process.  Recognizing the recurring nature of those fiscal planning environments, this document shall be reviewed and updated every two years, with major revisions and adjustments being made to reflect the fiscal conditions and opportunity inherent in that always-changing operational environment.

The initial plan was written to provide direction and guidance for the 2005-06 academic year, as that year was a part of the first-year of the 2005-07 biennial budget process.  Experience gained during the 2005-06 academic year influenced the conditions and assumptions used for the 2006-07 academic year.  In a broader sense, the experience gained over the course of the 2005-07 biennium has and will influence the conditions and understandings that are part of the budget development, review and planning process that will take place for the 2007-09 state budget.

The University’s overall finance and budgeting plan shall look from within the framework of the current fiscal year (and biennium) and provide focus and direction for actions taking place over the course of the next two biennia.  Viewed in this manner, and assuming that the plan is revised and updated every two years, this document will provide a six-year planning horizon to guide the present efforts and future course of direction for the University of Wisconsin Oshkosh.

Visual Depiction of the Fiscal Environment for the UW Oshkosh Finance and Budgeting Plan

Introduction

The people of the state of Wisconsin have established the University of Wisconsin System to help advance the mission and to serve the cause of higher education.  As one of thirteen UW System universities, the University of Wisconsin Oshkosh provides a broad array of educational programs and services primarily to the people and the communities of the greater Fox River Valley Region of northeastern Wisconsin as well as to other parts of the state.

As a state-created institution of higher education, UW Oshkosh operates within a fiscal environment that receives some targeted funding 28% of the operating budget, from the State’s stream of general tax dollars, or General Purpose Revenue (GPR).  An additional significant stream of revenue, 30% of the operating budget, that the University receives is in the form of student fees and tuition.  UW Oshkosh also benefits from various federal grants and aids and other private funds that are raised through gifts and grants.  The University’s auxiliary operations (i.e., residence halls, bookstore, parking, etc.) also provide significant revenues in support of the University’s total operational budget.

The Chancellor directly oversees all aspects of the University’s fiscal affairs, and has shared that responsibility through the appointment of the Vice Chancellor for Administrative Services, who provides specific leadership and coordination while overseeing budgeting and acting as the University’s Chief Business Officer.

This finance and budgeting plan provides an overview of the major considerations associated with the University’s fiscal environment.  This plan is consistent with the fifth-stated strategic direction in the University’s Governing Ideas, which provides:  “We will be broad, open and inclusive in governance process and will align our human, physical and financial resources to meet our established priorities.”

Summary of Major Provisions

This plan sets forth considerable detail descriptive of the present fiscal context of current operations.  This plan also outlines the significant organizational challenges that have been caused by reductions in the level of state GPR support for University operations.  (For example, reductions in state GPR contributions have resulted in relatively high increases in the level of student tuition and fees paid to support enrollment.)

This plan highlights the importance of efforts to increase the level of private support provided to the University, primarily through the University’s independent foundation.  Private gifts and contributions not only help support student enrollment, through scholarships and other support, but these funds also help make possible improvements and enhancements in support of faculty and in the University’s physical plant and educational facilities.

Having noted these fiscal conditions and limitations, this plan sets forth a series of guidelines that should help govern the University’s finance and budgeting plan in the future.  An essential precondition for the success of these efforts is the University’s ability to effectively articulate its mission, vision, values, strategic direction and associated goals to both internal and external constituencies.  Success in that endeavor involves motivating others to work aggressively and cooperatively to provide public and private investment at levels necessary and essential to advance the University’s stated purposes.

Resource allocation decisions will determine the direction of an institution.  Because needs are unlimited but funds are not, institutions must plan and prioritize, and blend strategic planning and budgeting functions.

With the proceeding noted as key requirements, some of the additional major provisions include:

  1. Having an open and understandable budgetary and fiscal control process that provides regular and meaningful opportunities for broad levels of public understanding and input on key fiscal policy decisions and issues.
  2. Working aggressively and in partnership with others to develop and pursue proposals for external funding in the form of government grants, private gifts and grants, and other targeted fundraising appeals or efforts to support targeted objectives.
  3. Creating collaborative academic programs that will either enhance existing partnerships or create new partnerships targeting the development of high demand, innovative and self-supporting academic programs.
  4. Supporting the processes of shared governance by establishing appropriate planning and oversight structures and procedures to ensure representation, participation and involvement by all key internal constituencies in the process of setting the University’s operational budget.
  5. Setting clear objectives or priorities to provide direction to both budgetary enhancements and to guide any required budgetary reductions.
  6. Providing strong and effective public advocacy to raise the level of state GPR support and to reduce the proportionate burden that is shouldered by students and parents in the form of tuition and fees.
  7. Working effectively and in partnership with others to improve the level of federal financial aid provided to students and in support of other public and private efforts intended to reduce the cost of attendance for lower-income students and students from disadvantaged backgrounds.
  8. The control of the annual operating budget is a decentralized model.
    • A “decentralized” management style allows for:
      • positive attitudes – senior administrators have greater flexibility and authority to manage resources
      • day-to-day management decisions are in the hands of those who are most
        • fiscal responsibility resides at a lower level
        • a more creative use of resources
        • reduced demand on centrally held reserves
        • increased interest in budget control
    • On the opposite side it—
      • provides less flexibility centrally reducing the ability to reallocate funds between divisions
      • provides less flexibility to meet University-wide strategic initiatives.
      • inhibits a University-wide staffing plan, since available FTE and salary dollars may or may not be in a unit that needs additional staff.

The importance of having a transparent operational environment cannot be overstated.  When individuals can see and understand the operative fiscal environment, this helps to engender a sense of confidence and commitment to the advancement of key purposes.  It helps external parties see the need – and the value – of providing additional resources to supplement those provided by state tax dollars, student tuition and fees, or other external grants and gifts.  An open environment like this shows how private investment can be a good personal or business decision as the donated resources are then used for important and high visibility efforts that provide a measure of excellence for the University of Wisconsin Oshkosh.