Department Budgets

What is the division’s budget timeline?

February – March: 

  • SABSC continues to monitor financial activity and enrollment projections.
  • SABSC continues to update internal budget models.
  • SABSC updates the budget model/payroll to reflect new DeptIDs.

Late March:

  • USM Board of Regents approves tuition and other rates.
  • SABSC initiates the budget planning process.
  • SABSC provides projected and expense data.
  • SABSC distributes to ELT the budget presentation guidelines and budget model for update.

April: 

  • VPSA identifies budget priorities.
  • DoSA SALT planning and presentations re: budget requests.

Note: The only unknown parameter at this point is state allocation, so a significant portion of the budget can be finalized.

Early/Mid – May: 

  • The Budget Office provides the Control Number (total Fund 1111/State allocation) to VPSA/SABSC
  • The Budget Office distributes budget files to VPSA/SABSC for update.

Mid-May – Mid-June: 

  • DoSA ELT presentations re: budget requests.
  • Budget model/files updated by SABSC to reflect final budget decisions.
  • ELT/VPSA review and approval of final budget model.
  • Incremental Budgeting
    • A traditional model that uses the previous year’s funding levels.
  • Zero-based Budgeting
    • A model that starts each fiscal year with a clean slate.
  • Activity-based Budgeting
    • A model that focuses on the activities and the resources required.
  • Performance-based Budgeting
    • A model based on outcomes like graduation and retention rates.
  • Responsibility Center Management (RCM) Budgeting
    • A decentralized model that gives more control to deans & other units.
  • All Funds Budgeting (AFB)
    • A model that identifies goals and a fiscal strategy to accomplish them.
  • The all-funds model expands the budget from a control mechanism to a strategic management viewpoint.
  • The inclusion of all major revenue sources enhances how financial resources are allocated, integrating the budget with strategic and capital plans.
  • Focus shifts from an “accounting” perspective of balancing the budget to a strategic perspective of ensuring funds are available to meet objectives.
  • If the operating budget is merely incremental and lacks identification of resources required for strategic investment, then while a strategic plan represents substantive change, a strategic gap exists in balancing the budget.

AFB Objectives

  • Enhanced identification and understanding of the prioritization of initiatives.
  • Alignment of strategic and capital plans with budget.
  • Greater understanding of all sources of revenue that support unit budgets.
  • Transparency and equity in the distribution of resources.
  • All material revenues and expenditures are planned and budgeted.
    • Develop a consolidated view of all funds.
    • Align budgeted funds with actuals.
    • Align budget with capital plan/spending.
    • Develop reporting enhancements.