Each division will contribute toward the creation of a base budget Strategic Investment Fund by reallocating expenditures from their unrestricted base budget, based on the FY14 University budget of $270.6 million. The results of the academic and administrative review processes will play a role in reallocation decisions. Fundamental principles that will be considered when making decisions for reallocations include:
- Our commitment to quality: What we do, we must do well. It is better to do less and do it well than to spread scarce resources among too many efforts;
- Focusing our efforts around our strengths, our goals in Pacific 2020, and our brand;
- Recognizing that people are our most critical assets, from our faculty to our service staff. We must continue to reward merit performance even as we identify funds to invest in new initiatives;
- Treating anyone whose job is impacted by the reallocation decisions with respect, dignity and as much support as possible (see "Personnel").
All divisions receiving unrestricted funds will be expected to contribute toward the Strategic Investment Fund with the exception of:
- Selected clinical operations required as student teaching and learning sites
- Debt payments
- Liability/casualty insurance
- The McGeorge School of Law in the Academic Division, given the significance of their current budget reductions in response to drops in enrollment. (Note, however, that the law school will review its academic programs and administrative units. It will also be eligible to receive money from the Strategic Investment Fund, once the process has been determined by the Strategic Planning Committee and Cabinet.)
Nearly all divisions will contribute to the Strategic Investment Fund at a rate of 7% of their FY14 unrestricted budget, minus the exclusions listed above. In order to protect the core mission of the University, however, the budgets of the College of the Pacific and the schools will have a lower contribution rate of 6%.
The contributions, based on a set percentage of the University FY14 base budget minus the exclusions above, will be:
-Dugoni Operating Budget
-Provost's Office (Enrollment Management, IT, etc.)
|Business and Finance||$1,460,000|
|Development and Alumni Relations||$480,000|
|External Relations and Athletics||$710,000|
|Residential Life and Housing||$1,510,000|
|Stockton Non-Salary Benefits||$320,000|
The President has identified $2 million in normal base budget allocations to put toward the Strategic Investment Fund ($500,000/year for FY13-FY16), bringing the total the divisions will need to contribute to $13 million.
Reallocations will not be across-the-board; the totals above are required from each division, not from individual units within the division. The reallocations will likely come from a combination of expenditure reductions and scaling back or eliminating programs within a division. It is expected that while most unit budgets will contribute funds toward the reallocation, the amount of the contributions will vary by units within each division depending on the recommended actions from the reviews. Managers/unit leaders will use the results of the academic and administrative review processes to inform their set of recommended sources of funds for reallocation to the Strategic Investment Fund.
Recommendations for budget reductions will be made by the local unit leaders to the Provost or relevant Vice President, then brought to the IPC prior to recommending a reallocation strategy to the President. The President will present her reallocation decision to the Board for final approval as part of their overall approval of the University budget.
A timeline of when specific reallocation decisions will be made will be announced by the end of summer 2013.