Date:      March 1, 2002

 

To:          Pat Kenner and Pat Arkema

From:      Michael D. Wichman

 

Subject:  2000/2001 Staff Council Budget Committee Final Report

 

The Staff Council Budget Committee generally met on a monthly basis separately and with Vice President True, Associate Vice President and Human Resources Director Foldesi. During the initial committee meeting for the 2000/2001 fiscal year, the committee/s purpose and scope were reviewed and approved as written. The committee dealt primarily with three issues during the 2000/2001 fiscal year:

 

q       State appropriation budget cuts

q       Salary policy

q       Staff Council involvement in unit reviews

q       Distribution of Coca-Cola® funds

 

On August 29, 2000, University President Mary Sue Coleman appointed a joint Budget Planning Advisory Committee (BAPC) consisting of staff and faculty currently serving on Staff Council and Faculty Senate budget committees. BPAC submitted a report to President Coleman on January 25, 2002. The charge and recommendations developed by that committee are included in this report.

                In July, 2000, the committee discussed and formally requested that another workshop be provided to both the Staff Council and Faculty Senate budget committees. That workshop was provided to members of the BPAC in September and included discussion about the Current Environment led by Vice President True and Mark Braun, the current budget request, development, and reallocation process led by Vice President True, Provost Whitmore, and Vice President Skorton, criteria utilized and previous unit reviews led by Sue Buckley, and a presentation by Deans Linda Maxson and Gary Fethke regarding the reallocation process. A substantial information document was provided to all attending the workshop that included 1) FY 2002 and FY 2003 budget request, 2) total university and general fund distribution pie charts, 3) FY 2001 budget allocations and reallocations by strategic planning goals, 4) tables listing source and application of new revenues and source and application of reallocations for FY2001, 5) FY 2001 budget narrative and reallocation narrative, 6) FY 2001 budget by organizational unit, 6) the Criteria for Institutional Enhancements and Reductions guidance document 7) examples of previously completed unit reviews (Oakdale, Treasurer’s Office, Vending, and Library), 8) comparative information on funding support and indirect cost rates, 9) salary and fringe rate information, and finally 10) letter regarding Staff Council’s role in unit reviews.

           

State Appropriations

            The committee immediately dealt with the fact that state appropriations for FY2001 were between $9-10 million dollars less than requested. These cuts were in addition to previous cuts to the base budget in January, 2000. To accommodate these cuts in state support, the university reduced allocations for building repair, carefully reviewed hiring but did not implement a hiring freeze, deferred capital projects, and offset cuts by utilizing revenue generated by tuition and indirect cost recoveries. In developing the budget for the FY2002 request to the Regents and subsequently the state, the university focused primarily on full funding of salaries and benefits, the College of Public Health initiative, and assuring quality education for Iowa students which included library acquisitions, instructional equipment and building opening expenses. The committee ended the year in a similar manner to the beginning, dealing with a proposed 6% cut in state appropriations to the university. The committee reviewed principles for developing FY-2001 budgets and provided input for development of potential guiding principles for the FY-2002 budget.

 

Salary Policy

            Despite the decrease in state appropriations, the committee supported the university’s commitment to support a policy of a 4% salary increase. General fund positions were provided a 3.75% increase provided centrally with the remaining 0.25% to be provided internally by the unit or college. As with state appropriations, the budget committee ended the year considering how to fund salaries. Although Governor Vilsack had approved “full funding” of salaries, other factors had to be considered including insurance cost increases in excess of that supported by the salary request and what final salary support the legislature would approve for FY02.

 

Staff Council Involvement in Unit Reviews

            Although not strictly a budget issue, the fact that Staff Council is not actively involved in unit reviews when appropriate was a discussion issue in both the budget and executive committees in FY2001. Involvement of staff is not a formal, documented consideration when review committees are formed. At the request and intervention of President Coleman, Staff Council ahs been asked to provide a representative to serve on these review committees when she believed that was appropriate. Staff Council simply believes that this should be formalized and that Staff Council should routinely provide a representative to serve on appropriate administrative review committees.

 

Distribution of Coca-Cola® Funds

            Throughput the year funds provided to the Staff Council from revenues generated by the university contract with Coca-Cola® were distributed to support activities in four areas, professional development, outreach, family services, and recognition and reward. The committee agreed early in the year to continue to allocate 75% of the funds to professional development (50% for professional development and 25% for scholarships), 10% in support of outreach, 10% to support family services, and the final 5% to support recognition and reward. A total of $42,025 was allocated to support professional development including $13,500 for the Mary Jo Small Fellowship and $21,025 to support staff scholarships (including $6,500 for the 2000 summer term). Additional allocations included $3,699 to support outreach, $10,934 in support of family services, and $3,750 to support recognition and reward. The committee began the fiscal year with $99,580 based on $50,000 new allocation and $49,580 carryover from prior years. Total allocations in FY01 amounted to $60,408 leaving $39,771 to carryover into FY02.

            In addition to the $13,500 provided from Coca-Cola® funds to support the Mary Jo Small fellowship for staff, $1,500 was requested by the budget committee from both the Vice President for Research and the Provost. Both agreed to provide the additional support and along with the $1,500 provided by interest from the fund established by the University Foundation, a total of $18,000 was available to support Mary Jo Small fellowships.