Unlike the public schools, and somewhat unlike the community colleges, and because the SUS is a "state agency," the SUS submits a detailed request for funding of the Educational and General operations and BOR Office to the Governor and Legislature. Contracts and Grants, Auxiliaries, and Local Funds are not appropriated annually by the legislature in the General Appropriations Act.
The process includes two avenues, one for operations and one for facilities.
The requests for operational funding is considerably more standardized.
Agencies have the discretion to request resources to meet their identified priorities.
Agencies must, however, present the request in a specified format with certain detail as directed by the Governor’s Office and the Legislature.
The budget system is automated, all state agencies, the Governor’s Office, and the Legislature use the system.
Information is electronically transferred in machine readable form.
A hard copy document is also produced and distributed.
It is an incremental/decremental system which uses the current year budget base as the starting point.
Specific issues are then developed which either add or subtract budget for the impending fiscal year.
The issues are presented in groups.
Cost to continue current programs
Other Personal Services (OPS) and Operating Capital Outlay (OCO) are zero-based and needs readdressed each year
Current year salary and benefit increases are annualized
Future salary increases
Price level increase for inflation
Workload - enrollment and new space
Enrollment growth issue reflects the BOR approved enrollment plan.
New Space issue reflects the costs of operating and maintaining renovated or new facilities
Phased-in programs
Improved Programs
New Programs
The continuation issues of enrollment growth, phased-in programs, and any issues for improved or new programs should particularly be influenced by the SUS Strategic/Master Plan.
The budget documents, a series of exhibits and schedules, build the budget request providing narrative and fiscal detail and summary information by issue, program component, expenditure category, and in total. Fund source and detail position information are also provided.
The SUS legislative budget request for operations is developed in conjunction with the universities and is approved by the BOR and State Board of Education (SBE).
Initially each year, the BOR staff will, from historical data, determine what portion of the state budget has normally been appropriated for the SUS.
BOR staff obtain the current revenue projections for the next budget year and then estimate an amount that the SUS can reasonably expect to be appropriated.
In concert with the SUS Strategic/Master Plan, the BOR staff recommends, universities review, and the BOR determines generally for what purposes (issues) the funds requested for improved and new programs will be used.
Universities develop specific plans for the institutional expenditure of the requested resources for improved and new programs.
A final legislative budget request is approved by the BOR and SBE and submitted to the Governor and Legislative.
The Governor reviews the request and makes his formal recommendations to the Legislature.
The Legislature responds by passing a general appropriations act.
Process for requesting facility funding is not as extensive.
There are specific statutory provisions that require the submission of a SUS Five Year Capital Improvement Program and a Three Year PECO Project Priority List.
The Five Year Capital Improvement Program is remitted directly to the Governor.
The Three Year PECO Project Priority List is submitted through the Commissioner of Education to the Governor and Legislature in a format and with information prescribed by DOE.
Unlike the legislative budget request for operations, there is no statewide automated budget request system for the facilities request.
Hard copy documents are produced and submitted.
The universities develop, in concert with the SUS Strategic/Master Plan and their individual institutional space needs, a university Five Year Capital Improvement Program.
The Five Year Capital Improvement Program is a planning document that is not constrained by a dollar amount and should reflect institutional needs.
Included in priority order are projects for renovations and remodeling as well as projects for new space.
Funding for projects is normally requested in three phases: planning/construction/equipment.
BOR staff from the Budget Office, Capital Programs Office, and Academic Programs Office review proposed projects for space needs, cost estimates, conformity with master plan and conformity with approved Academic Programs.
There is a SUS Capital Construction Committee, made up of university representatives and BOR staff, that reviews each institutional Five Year Capital Improvement Program relative to the SUS Strategic/Master Plan, institution’s priorities, and cost estimates. Additionally, system issues like fire code corrections, asbestos abatement, and deferred maintenance are addressed.
A consolidated, system-wide Five Year Capital Improvement Program is created which is approved by the BOR and submitted to the Governor and Legislature.
The Three Year PECO Project Priority List is the SUS Legislative Budget Request for Academic and Support facilities.
The Commissioner of Education, from the PECO funds available, is required by law to allot an amount for each year of the Three Year PECO Project Priority List to the SUS (based on the SUS average percentage of prior year appropriations).
BOR staff, utilizing the information available from the submission of the institutions’ Five Year Capital Improvement Programs and from the Capital Construction Committees meeting, recommends a Three Year PECO Project Priority List.
From the Five Year Capital Improvement Program, projects in priority order advance to the Three Year PECO Project Priority List.
Additionally, system issues such as fire code corrections, asbestos abatement, and deferred maintenance may be included on the Three Year PECO Project Priority List and allocated off the top funding.
The universities review the recommended Three Year PECO Project Priority List and BOR approves it for submission to the Commissioner of Education and subsequently to the Governor and Legislature.
The legislative budget request for facilities also may include request for:
Facility Challenge Grant Program resources from Non-PECO funds.
Appropriations for non-academic, student activities related projects funded from the $4.76 per credit hours Building and Capital Improvement Trust Fund fees.
Authority to construct facilities funded from private sources.
Authority to issue revenue bonds to finance auxiliary facilities such as dormitories and parking garages.
