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Guidelines for preparation of the Academic Year 2003 Budget for Administrative and Basic Science departments are now available. Please click on the links below to read the guidelines: Academic Year 2003 Budget Guidance - Administrative Departments Only Academic Year 2003 Budget Guidance - Academic, Basic and Social Science Departments Only Academic Year 2003 Fringe Rates
Guidelines
for preparation of the Academic Year 2003 Budget: Administrative
Departments Only
For example, regulatory changes in federal reimbursements of research infrastructure (formerly Indirect Cost Reimbursement, or IDC, which is now called Facilities & Administrative Reimbursement) mean that our overhead rate will be dropping. We now collect at 72%. We have just completed the extensive cost analysis study that is the basis for our periodic renegotiation of this rate. We will be proposing a rate to the government of 65%, but expect that figure to be lowered during negotiation. There are important segments of our community who have been significantly under-compensated. Examples include graduate students, custodial and security workers, We also will need to make significant investments in new programs to maintain the excellence of our research and educational missions. The launch of the Academy and the construction of the New Research Building are key examples. With this backdrop, we are projecting financial deficits beginning in AY03 and accelerating thereafter. We are counting on the Office of Resource Development to meet substantial fundraising goals in a very short timeframe. In addition, we have a number of initiatives that have the potential to raise additional revenue or to reduce expenses. Unfortunately, even with success on all these fronts, we still expect a shortfall. Clearly, the
time has come to take action relative to the financial challenges
we face. Therefore, the Dean has approved a program of administrative
cost reduction to be implemented with the AY03 budget. The AY03
budget proposals from the administrative units must be submitted
at a level 5% below the current AY02 budget. Note that this reduction
must incorporate the AY02 compensation increase program so, in effect,
depending on the mix of staffing and non-salary expenses in the
unit, this limit may translate to an 8% cost reduction.
Guidelines
for preparation of the Academic Year 2003 Budget: Academic, Basic
and Social Science Departments Only
For example,
regulatory changes in federal reimbursements of research infrastructure
(formerly Indirect Cost Reimbursement, or IDC, now called Facilities
& Administrative Reimbursement) mean that our overhead rate
will be dropping. We now collect at 72%. We have just completed
the extensive cost analysis study that is the basis for our periodic
renegotiation of this rate. We will be proposing a rate to the government
of 65%, but expect that figure to be lowered during negotiation. There are important segments of our community who have been significantly under-compensated. Examples include graduate students, custodial and security workers, as well as animal care technicians. We also will need to make significant investments in new programs to maintain the excellence of our research and educational missions. The launch of the Academy and the construction of the New Research Building are key examples. With this backdrop, we are projecting financial deficits beginning in AY03 and accelerating thereafter. We are counting on the Office of Resource Development to meet substantial fundraising goals in a very short timeframe. In addition, we have a number of initiatives that have the potential to raise additional revenue or to reduce expenses. Unfortunately, even with success on all these fronts, we still expect a shortfall. Clearly, the time has come to take action relative to the financial challenges we face. Therefore, the Dean has approved a program of administrative cost reduction to be implemented with the AY03 budget. The AY03 budget proposals from the administrative units subject to the cuts must be submitted at a level 5% below the current AY02 budget. Because this reduction must incorporate the AY02 compensation increase program, this limit translates to an 8% cost reduction. While the mission
of your program is such that you are not to be subjected to this
budget cut, please keep the general budgetary context in mind as
you develop your AY03 budget proposal. Please pursue any economies
you can achieve without undermining the effectiveness of your unit.
Requests for new funding will be evaluated in the context of the
general budget picture.
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