The Budget Recommendation Committee met Friday to discuss the development of a University Planning and Budget Advisory Committee and improve budget processes.
Metropolitan State University of Denver budget and finance teams have worked closely with consultants for several months to develop a new, streamlined budget process. The most significant change to result from this effort is the establishment of the University Planning and Budget Advisory Committee, which will no longer include the Senior Leadership Team.
“The senior leaders will instead work directly with their teams to identify the specific budget priorities for their areas based on the University’s Strategic Plan and President (Janine) Davidson’s guidance,” said George Middlemist, Ph.D., associate vice president for Administration and chief financial officer.
The team focused first on governance structure, with specific roles for the University’s primary leadership groups and budget professionals:
Trustees
- Establish policy, set strategic focus, approval of budget plan.
President
- Set institutional priorities to be considered during the budget process.
- Recommend to the board annual operating and capital budgets and other plans reflective of the priorities of the institution.
- Manage board-approved budgets and plans.
Senior Leadership Team
- Develop, maintain and manage budgets for respective branches.
- Advise the president on University budget strategy, planning and policy.
University Planning and Budget Advisory Committee
- Review planning assumptions.
- Provide perspective on budget proposals and policy and other University planning for the president’s consideration.
CFO/Budget Office
- Establish, maintain and manage the financial budget.
The University Planning and Budget Advisory Committee is twofold:
To keep key constituencies (faculty, staff, students) informed regarding the University’s budget and planning and any issues that affect the budget. Represent the perspectives of respective constituencies, provide informed advice, make suggestions and identify any issues for the president and Senior Leadership Team to consider before making decisions on budget and planning.
As an advisory group to the president and Senior Leadership Team, the committee will review planning assumptions, provide perspective on budget programming and policy, monitor budget execution and enhance transparency and accountability. Members will receive robust training on budget terms, processes and important considerations.
As the University implements Workday, the budget process will be revised to leverage this new tool.
Recommended membership of the University Planning and Budget Advisory Committee includes:
- Representative from each branch:
- Academic Affairs
- Student Affairs
- Advancement
- Finance and Administration (CFO)
- Strategy
- Diversity, Equity and Inclusion (VP/chief diversity officer)
- Office of the President (chief of staff)
- Faculty Senate representative
- Staff Senate representative
- Student (The Student Advocacy Council) representative
- Department chairs representative
- Director, Data & Analytics – ex officio
- COO (Senior Leadership Team liaison) – ex officio
- Chief strategy officer – ex officio
“We see the process flowing down from the president and back up to this group to the Senior Leadership Team and the president,” Middlemist said.
New budget timeline
The UPBAC will also engage in a multiyear strategic budget-planning process that will focus on the present while also considering longer-term needs, looking up to five years out.
Fiscal Year I:
- Budget plan execution
- Current year
Fiscal Year 2:
- Budget-planning year
- Next fiscal year
Fiscal Years 3-5:
- Strategic multiyear budget priority-setting and projections
- Strategic focus and guidance from the board
Budget-planning year – high-level processes
Considering a July-June fiscal year, the process will generally proceed as follows:
July-August: Trustees and president will approve planning assumptions and budget priorities.
September-December: Senior Leadership Team will develop and deliver budget proposals, considering the state’s economic and revenue forecasts.
January: Colorado’s General Assembly convenes for hearings; Senior Leadership Team submits budget proposals to the UPBAC.
February-March: Senior leaders will present their budget proposals to the UPBAC; members will consider tuition rate and fees as well as rollover projections.
April-May: The Colorado legislature will pass the Long Bill; MSU Denver trustees will approve tuition, fees and compensation (meaning compensation change would now take effect July 1); the UPBAC will submit feedback on budget proposals; the president will approve final operating-budget proposals and submit to the board.
June: Board will approve final operating budget, which will take effect July 1.