What if we had stayed with Incremental budgeting?
2018
2019
2020
All Colleges If Incremental
Budget
Budget
Budget
$ $ $ $ $
58,506,713 57,854,807
$ $ $ $ $
60,123,787 59,883,774
$ $ $
62,972,615 63,817,150
Activity Based Budget
Difference All Colleges
(651,906)
(240,013)
844,535
Actual
Actual
Actual
Unspent Funds (Fund 149) Unspent Funds (Fund 148)
1,669,312
252,997 (202,169)
TBD TBD
(93,732)
The existence of unspent funds might indicate that the colleges were able to manage their budgets well enough, even though in the aggregate there was 1.1-percent less budget than there would have been under incremental. This is particularly the case in FY18, just as the non-college divisions were able to manage a 2.0 percent cut that year. To complicate the matter, three of the colleges were asked to set aside up to 2.5 percent for what was effectively a forced (or at least strongly encouraged) savings plan, to be used only if needed. In the end there were no requests to tap into the savings plans and this represents almost $1 million of the underspend of about $1.7 million in fund 149 in FY18. It is also noteworthy that in FY18 we missed our revenue budget by about $1.0M. Had we stayed on incremental budgeting that year, there likely would have been a mid-year, across-the-board budget cut, and the colleges’ proportionate share of the cut would have been roughly $500,000. As it turned out, the $1 million mid-year cut was absorbed by the non-college units and the equipment funds. If we dive deeper into this data, we can see that not all the colleges have received less funding under ABB compared to incremental. The chart below shows the annual difference by college, and what the difference was between incremental allocation and the actual ABB allocation.
Incremental vs. ABB allocations By College
2018
2019
2020
College
More/(Less)
More/(Less)
More/(Less)
Arts & Humanities
$ $ $ $ $
(541,340) (295,243) (117,042) 301,719 (651,906)
$ $ $ $ $
(651,559)
$ $ $ $ $
622,649 285,310 (479,578) 416,154 844,535
Education & Professional Studies
33,467
Business Sciences
(202,392) 580,471 (240,013)
Difference
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