Summary of the NC System Budget Process1

At WCU, budget recommendations are primarily generated via feedback processes within divisions from the lowest possible administrative unit (departments) up through the organizational structure to the Executive Council. Budget proposals are reviewed by department heads, deans, directors, vice chancellors and the chancellor as part of the process of developing a campus-wide budget proposal for consideration by the UNC-system president and Board of Governors.

WCU and its budget process follow the procedures outlined in the State Executive Budget Act that was passed as part of the Higher Education Reorganization Act of 1971. The UNC Finance Division, as directed by the Board and the President of the UNC-system, has principle responsibility for creating the unified budget in coordination with the individual campuses and administering the University System's financial affairs. Ultimate decision-making on the campus budgets lies with Board of Governors, as advised by the system President and campus chancellors.

The first stage in the budget process includes the UNC-system President receiving general instructions from the Governor’s Office via the State Budget Office. The UNC-system President’s Office convenes several meetings and workshops conducted separately with the President’s Cabinet, Chancellors, and Board of Governors. The overriding emphasis in these discussions is that the budget request must be linked to key planning priorities and strategic directions.

Following the discussions/decisions reached at the budget workshops, instructions are provided to the campuses for preparation of their institutional budget requests. These instructions denote key information as it pertains to budget continuance requests, academic salary increase requests, and requests for appropriations to address expansion and improvements. The part of the budget that focuses on “expansion/improvement” requires the constituent campuses break these items down relative to priority-areas. Currently, the priority areas include: Increases in enrollments; New and expanded programs; Capital improvements; Increases to remedy deficiencies.

In addition, the Statute also prescribes the manner by which General Assembly can appropriate funds. It breaks the appropriation framework into three broad categories -

  1. Continuing Operations (direct to constituent institution);
  2. Academic Salary Increases (lump sum to Board for allocations to institutions); and
  3. Expansion/Improvements (lump sum to Board and allocated to institutions according to Board’s Schedule of Priorities and any directives from Legislature).

The Chancellor at each constituent campus is responsible for the preparation of budget requests for the institution and describing their relationship to institutional and system priorities. The Chancellor at each campus appoints delegates to work with members of the UNC Office of the President on each strategic priority and come to resolution on the scope of the request. The budget review process commences upon receipt of request at the UNC-system and Institutional budgets are then reviewed in the following manner:

  1. Continuation Budget is reviewed by the Vice President of Finance.
  2. Academic Salary Increases are reviewed by the Senior Vice President for Academic Affairs and the Vice President of Finance.
  3. The Expansions and Improvements section is reviewed by an internal review committee that is headed by the Senior Vice President of Academic Affairs and other members of the President’s cabinet.
  4. The President confers with the Chancellors and finalizes budget recommendations.

The Vice President of Finance then prepares recommendations for the Board and its Budget and Finance Committee. The full Board attends a budget workshop and following this process the Budget and Finance Committee recommends the adoption of the budget to the Board. The Board of Governors will then present “A single, unified recommended budget for all of public senior higher education” to the General Assembly.2 The General Assembly plays a pivotal role in determining the budget of the university system (and therefore each campus) by modifying the budget relative to the state funding made available by the Legislature for higher education. The biennium budget initial submission takes place in November and in the second year of the biennium the submission takes place in March/April.

The General Assembly convenes during the long session (odd years) in January and the short session (even years) in May. The higher education budget is included on a slate of issues for consideration. By mid-June, the higher education community has developed a sense of budget parameters for the coming year - with the final signing of the Bill usually completed mid-Summer. When final adoption does not happen until October or November, a continuing resolution is approved to maintain operations at the current levels. Once approved, the Board of Governors will establish an annual budget with each of the constituent campuses.

For more information on the UNC system budgeting calendar, go to http://planning.wcu.edu/budgeting/Budget_Calendar_8_1_ 06.pdf.


1The narrative in the Summary of the NC System Budget Process was adapted from a PowerPoint found on the UNC-system website entitled "Budget Development Process Presentation, March 2003", http://intranet.northcarolina.edu/docs/finance/projects/budget_devel_process.pdf .

2UNC Budget Development Process Presentation, March 2003, slide 3 .

 

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