University of Minnesota, Morris
Campus Resources and Planning Committee Minutes

November 17, 2000

Members Present:         Margaret Kuchenreuther (chair), Annie Olson, Lowell Rasmussen, Pam Gades, Bryan Herrmann, Maddy Maxeiner. Mary Elizabeth

Absent:                              Jim VanAlstine, Ken Crandall, Ferolyn Angell, Norrine Ostrowski, Joe Timmerman, LeAnn Dean, Prince Amattoe, Bryan Welle

Guests:                              Sam Schuman, Gary Strei

(In this minutes:  Presentation regarding UMM budget process by Gary Strei, Interim Vice Chancellor Finance; Campus Compact process)

Minutes from 10/27/00 and 11/3/00 approved on a motion by Herrmann, second by Bezanson.

UMM Budget Process

Kuchenreuther introduced Gary Strei and thanked him for leading the committee through the mysteries of UMM finances.

Strei responded that he appreciated being given the opportunity to talk the committee and distributed a handout describing the budget process for UMM.  He noted that first of all, the president of the University of Minnesota is the one who sets the direction the University is heading, therefore, the budget direction starts there.  There are primarily three phases in the budget process:

Phase I -- This phase is to establish our base spending levels for the next fiscal year.  This includes taking the previous yearăs allocation and subtracting out the non-recurring items and adding any new recurring items.  We usually receive these instructions in September.

Phase II -- The U of M Budget Office send us the breakdowns of the following information:  the Enterprise Tax and IRS tax rates, compensation information, estimated tuition revenues, what is being added to the budget for the increased cost of utilities, how much additional funds are being added for salary and fringe benefits increases, etc.

This is the most interactive phase between UMM and the Budget Office.  In this phase, we determine what tuition rate to charge, and what the fees will be for the coming year.  The V.C. for Finance submits the revised figures tot he Budget Office to become part of the final allocation.

Strei explained the following tax percentages that we have no control over:  Enterprise Tax - 1.25% of our salaries goes to support the PeopleSoft system.  IRS (Institutional Revenue Sharing) tax rates - 3.25% of all self-supporting operations.  In addition, we are also taxed 2.25% of total revenues.   He added that Sam has tried to make the case that coordinate campuses should not have to pay the 2.25% for snow removal, etc. on the Twin Cities campus when we have to pay for our own snow removal.  His plea has fallen on deaf ears.  Last year, the 2.25% that UMM had to pay amounted to $200,389.

Phase III -- The final allocation figures are sent to the UMM V.C. for Finance.  Meetings are then scheduled with each area manager and department head to discuss their individual budgets.  After each of these meetings, the budgeted items are entered into CUFS budget prep tables.  Once all the amounts have been entered in, the V.C. for Finance compares the totals to the final allocation and makes the necessary adjustments.  If there are changes made to individual budgets from what was approved initially, the V.C. for Finance should inform those affected regarding the changes.

Ultimately, the Budget Office reviews our budgets and verifies that we match our allocation amount.  Once this is done, they forward this to the Board of Regents for their approval.

Strei added he would be available to come to another meeting to address further questions.

Compact Process

Schuman talked briefly about the campus compact and explained that this process begins with a preliminary conversation with central administration regarding our continuing priorities.   They will include:

1. Increased scholarships and financial aid.
2. Research funds that focus on both students and faculty.
3. Additional SE&E for operating budgets.
4. Position in External Relations to increase institutional visibility.

Our continuing priorities that we will mention, but not ask for additional dollars, include:
facilities needs; strengthening the faculty with undergraduate initiatives; and competitive faculty salary increases.

Meeting adjourned at 9:05 a.m.

Submitted by Carrie Grussing