FY2023 budget prioritization and development process
Nov. 30, 2021
As communicated by emails and in various presentations since July, our goal continues to be to engage our institution in a transparent budget prioritization and development process. The timeline and process provided opportunities for each level of the institution to engage, and it required leadership to communicate prioritization decisions at each stage of the process – from departmental and unit discussions in August to prioritization decisions at the college, major unit, and divisional levels, to the submission of our FY2023 documents to the University System Office on November 18. To that end, we have completed the FY2023 budget prioritization and recommendations and have provided the following document links via the MyGeorgiaSouthern Portal in the title called “Performance Excellence,” under the heading of FY2023 Budget Planning Documents:
- FY2023 Budget Narrative.
- FY2022 Budget Data Sheets (includes Enrollment Trends, Academic & Financial Aid Data, Financial Trends, Employee Data, Auxiliary & Student Accounts).
- FY2023 Education & General Budget Planning (includes the new fund budget prioritization detail, the budget redirection detail and the identified savings to students).
As you remember from previous communications, we realized a $14.2 million recurring reduction in the state budget allocation in response to realized and projected state revenue losses from COVID-19 for FY2021. We should continue to assume that no restoration toward previous state formula funding levels is forthcoming for FY2023. Fortunately, due to enrollment and credit hour production increase from FY20 to FY21, Georgia Southern will have a nominal recurring formula funding allocation increase beginning FY 2023. With continued modest growth this past fall semester 2021, budget stabilization is confirmed and allows us to formalize this conservative investment plan.
Our budget priorities, as represented in the template for FY 2023, were a) the funding of lines/positions deemed critical to achieving our strategic goals and b) recurring funding of salary market equity (with an updated market equity salary study to be completed by Segal in April of 2022). An essential part of our FY2023 strategic budget process was the internal direction of resources to strategic priorities. Finally, our process required review and cross divisional collaborations of resources (people, functions, and shared funding) that helped resolve and fulfill the prioritized needs and thus are not listed in these current priorities. In addition, will not be requesting any new or additional fee increases for FY 2023. Our request as presented would be funded by new formula allocation based on growth and any new revenue realized in this current fiscal year that would conservatively be projected into FY 2023.
In result, we identified 21 faculty and staff (10 faculty and 11 staff) positions totaling $1,959,977; $61,190 in recurring operational expenses; and $1,000,000 in salary market equity increases for a total FY 2023 request of $3,021,167 recurring. The positions requested align directly with our expansion of our nursing program and cohort size, our public impact research agenda supporting graduate student support/services, research support and administration, specific faculty positions in academic programs demonstrating growth, and faculty positions that will enhance student research opportunities in strategic designated sectors such as logistics technology and innovation, water quality, holistic health and wellness, and community impact. In addition, positions that are critical for student support services are requested to return position funding to E&G that were temporarily funded through auxiliaries due to the FY 2021 reduction in state formula funding and one additional staff member to support EOC and Title IX case investigations to ensure timely processes. Finally, we are committed to the recruitment and retention of an ever-competitive workforce in requesting and implementing continuous improvement in our market salary equity plan. The salary study will be completed in spring 2022 (Segal Consulting) and will provide new and recurring market salary benchmarks with our peer institutions. We see this as a multi-year plan with dedicated recurring resources as each budget year allows.
These identified budgetary priorities will be determined once we have a clearer picture of the FY 2023 landscape and benchmarking enrollment progress for fall 2022. Remember, there are only three possible sources for new recurring funding for new priorities: redirection of current resources, enrollment growth (which we did have) and/or a nominal tuition increase request for FY 2023 (this is ultimately a Board of Regents decision and not likely for FY2023).
We will be providing presentations to faculty, staff and students at their senate, council and association meetings over the next several months. The final FY 2023 budget will not be realized until the end of the legislative session late March and allocated in April of 2022 for implementation July 1, 2022. We will keep everyone up to date as there are other variables that will affect our FY 2023 recurring budget, including our current enrollment growth and state of Georgia revenue collections/estimates, which affect the overall state budget and could impact formula funding and fringe benefit funding support.
Questions specific to any of these reductions or new funding prioritizations should be addressed within your divisional leadership. I want to thank everyone who engaged in our budget prioritization process that evidenced strategic and transparent decision-making. It is refreshing to not just prioritize reductions but actually begin investing in our priorities!
Last updated: 4/2/2022