8.2 Annual Budget Request
Each year, Fiscal Affairs at the BOR develops the annual budget request for the University System. The budget request is in accordance with instructions from the governor’s Office of Planning and Budget (OPB). The annual budget request generally has four components:
- Formula Earnings
- Enhancement Request
- Prioritized Program Budget Request
- Capital Budget Request
8.2.1 Formula Earnings
The primary USG funding mechanism is the funding formula. The funding formula generates funds for various factors such as enrollment, maintenance for new facilities, continuing education, and fringe benefits.
All USG institutions use the Curriculum Inventory Reporting System (CIRS) to report enrollment data for each semester. The Office of Strategic Research and Analysis at the Board of Regents provides a report of credit hours for each institution and the University System Fiscal Affairs. The report categorizes credit hour information in various groupings as required by the funding formula. The funding formula calculates the change in funding required for faculty, staff, and support expenditures caused by the change in credit hours. This is referred to as enrollment earnings/losses or workload adjustment.
Operation and Maintenance of New Facilities
The funding formula provides a specific dollar amount/per square foot for maintenance of all new space. To determine the total new square footage each year, the starting point is the report FRPT 60A that is provided to Fiscal Affairs in May. The report includes all changes that institutions have made in the facilities inventory reporting system in the fall and spring of each year. The report lists the buildings and square footage at each institution for resident instruction and auxiliary/other use.
Fiscal Affairs sends each institution a copy of its FRPT 60A, along with instructions and a form to add or delete square footage for resident instruction. If a building is expected to be in operation in the fiscal year for which the funding is being requested, and has not been included in the system, i.e. not reflected in the FRPT 60A, it should be reported separately on the Adjustments to Square Footage form, by June 30th of each year. Later, in the fall, the institution should update the system for the changes made in the adjustments form.
The total resident instruction square footage from FRPT 60 A, along with changes on the Adjustments to Square Footage form, represents the total square footage requested. The difference between this total and the total reported to OPB in the prior year’s formula is the incremental change in square footage.
Note: Please refer to Section 18.0 for information on major repair and rehabilitation funds.
There are two components to the fringe benefits request: retiree benefits and rate changes. In June of each year, Fiscal Affairs requests all institutions to submit their fringe benefits request for retirees. The request details the number of retirees in the current year, the number of projected retirees, and current and projected expenditures for health insurance and life insurance premiums for the employer’s contribution. The difference between the current and the projected expenditures is the basis for the fringes request for retirees in the formula.
In addition, any projected rate changes for health insurance, life insurance, and retirement premiums and payments are factored into the formula as well. In October, the Board of Regents approves the employer and employee rates for the new calendar year. If there are any rate changes, Fiscal Affairs requests each institution to submit the amount required for the rate change. Each institution submits the number of covered employees in December and January for each plan/option, and actual expenditures for the two months for each plan. The difference is the incremental funds required to fund a rate change.
The funding formula includes a component for continuing education, which comprises funding for a select number of public service institutes, minimal staffing support, and a dollar amount generated per continuing education unit (CEU) generated. Each year, institutions must report their CEU production to Fiscal Affairs according to the schedule established by the Vice Chancellor for Fiscal Affairs.
8.2.2 Enhancement Request
The instructions from the OPB will usually indicate to what extent each agency can request additional funds beyond workload funds through the formula and continuing special funding initiatives, research consortium and lottery funds. The Chancellor’s Presidential Advisory Group is instrumental in obtaining feedback from other USG presidents and prioritizing strategic needs for the system as a whole.
8.2.3 Prioritized Program Budget Request
All USG units that are designated as “other organized activities” have to complete the Prioritized Program Budget request each year. OPB furnishes the formats, forms and instructions to be used in developing and submitting these requests. Each unit’s request includes among other items information on the past two fiscal years of actual expenditures, current fiscal year budgeted expenditures, and a projected budget for the funding year of the request. As discussed earlier, the state directly appropriates funding to each unit or line item within the “other organized activities” group.
8.2.4 Capital Budget Request
The Office of Real Estate and Facilities maintains a master plan for capital development of each institution. The development and maintenance of such plans involve continuous study by the office of the University System of Georgia chief facilities officer under the supervision of the Chancellor and the respective institutions. Based on the needs and priorities of the University System, the Regents select projects to be included in the capital request.
8.2.5 Board Approval of Budget Request
The Vice Chancellor for Fiscal Affairs, along with senior staff in the University System Office (USO), presents the operating and capital budget request to the Board. The Board reviews and approves the annual budget request which is subsequently submitted to OPB by the OPB deadline date (usually September).