Florida Atlantic University Overview of Operating Budget Process

1. Florida Atlantic UniversityOverview of Operating Budget Process Presentation to the Florida Atlantic University Foundation, Inc. Board of Directors February 6, 2007

2. Florida Atlantic UniversityOverview of Operating Budget Process • The budget process consists of four major components: • State University System Legislative Budget Request • Governor’s Budget Recommendations • Legislative Budget Appropriations • Florida Atlantic University Budget Construction

3. Florida Atlantic UniversityOverview of Operating Budget Process State University System Legislative Budget Request • Guidelines and Coordination through Board of Governors • Process begins one year in advance • University / Board of Governors Legislative Budget Request is need-based and linked to SUS Strategic Goals: Goal 1: Access to and production of degrees Goal 2: Meeting statewide professional and workforce needs Goal 3: Building world-class academic programs and research capacity Goal 4: Meeting community needs and fulfilling unique institutional responsibilities

4. Florida Atlantic UniversityOverview of Operating Budget Process State University System Legislative Budget Request • FAU’s Legislative Budget Request is: • Linked to University Strategic Goals and Objectives • A collaborative process developed through Academic and Support Units and the BOT Committees (Academic and Student Affairs, Audit and Finance, and Strategic Planning) • Approved by the Board of Trustees in June • SUS Budget Request is approved by the Board of Governors in August • Approved SUS Budget Request is submitted to the Governor for consideration in Governor’s Recommended Budget

5. Florida Atlantic UniversityOverview of Operating Budget Process Governor’s Budget Recommendations • Recommended budget integrates agency requests into a unified, consolidated budget • Comprehensive budget to address State of Florida Priorities • $70 billion budget reflects a balance between projected State revenues and planned expenditures for over 30 different agencies • Key components are education, health care, transportation, natural resources, and corrections • Budget Recommendations are submitted to the Legislature 30 days before the start of the Legislative session

6. Florida Atlantic UniversityOverview of Operating Budget Process Legislative Budget Appropriations • Legislature reviews Governor’s budget recommendations prior to start of Legislative session • Legislative session begins “first Tuesday after the first Monday in March” (March 6, 2007) and lasts for up to 60 days • Appropriations process begins with budget recommendations from both the House and Senate, with a comprehensive budget developed through a joint conference committee and approved by both the House and Senate (General Appropriations Act) • Governor has line item veto power, and once exercised, signs the General Appropriations Act into law

7. Florida Atlantic UniversityOverview of Operating Budget Process FAU’s Budget Construction • Process begins at the time the Legislative Budget Request is developed -- one year in advance • During the spring, FAU’s proposed budget request is refined to reflect projected appropriations, university needs, and consistency with FAU’s Strategic Goals and Objectives • FAU’s Strategic Goals: Goal 1: Providing increased access to higher education Goal 2: Meeting statewide professional and workforce needs Goal 3: Building world-class academic programs and research capacity Goal 4: Meeting community needs and fulfilling unique institutional responsibilities Goal 5: Building a state-of-the-art information technology environment Goal 7: Enhancing the physical environment Goal 7: Increasing the University’s visibility

8. Florida Atlantic UniversityOverview of Operating Budget Process FAU’s Budget Construction Major Legislative Funding Appropriations: • Enrollment Growth • Instructional and Research • University Support • Library Resources • Technology Infrastructure • Branch Campus Funding • Student Financial Aid • Student Services • Cost to Continue Prior Year “Partially Funded” Initiatives • Special Request Issues • Tuition Increases

9. Florida Atlantic UniversityOverview of Operating Budget Process FAU’s Budget Construction • Through collaborative processes within departments, colleges and divisions, prioritized budget requests are presented to the Executive Committee by area Vice Presidents and Directors • Requests are discussed and analyzed to ensure efficient and effective allocations of resources that are consistent with FAU’s Strategic Goals • Comprehensive budget recommendations are revised by the BOT Committees over several weeks, resulting in a final budget recommendation to the BOT

10. Florida Atlantic UniversityOverview of Operating Budget Process FAU’s Budget Construction • FAU’s recommended budget consists of these components: • Educational and General • Student Financial Aid • Grants and Contracts • Auxiliary Enterprises • Athletics Local • Student Government • Concessions • FAU’s $500 million operating budget is approved by the BOT prior to July 1