FY'09/10 BUDGET GUIDING PRINCIPLES:

• The current unfavorable economic environment has worsened and will persist into the 2010 fiscal year. Strategies to respond to the situation will need to change as more information about reductions is forthcoming to sustain the university’s progress toward achieving our strategic plan goals and priorities.

• Decisions on budget reductions will reflect the university mission, strategic plan, and priorities. University priorities take precedence over all other priorities as they benefit the whole.

• The university’s budget strategy will ensure near-term decisions complement longer term planning.

• High priorities in upcoming difficult financial decisions include minimizing potential effects on employees and their families, maintaining budget flexibility, taking a university-wide approach to budget reductions and continuing investment in those areas that are essential to maintaining the momentum of the university.

• All areas will be prepared to meet vice presidential area targets for state budgets. In FY 2009 these reductions can include both base and one-time funds. For FY 2010 new, lower base budgets at the targeted amounts will be budgeted.

• Travel expenditures must show reductions.

• In addition to the local FY09 beginning balances that will be swept to provide $1 million of one-time funds, targeted local accounts will be assessed additional sweeps.

• Increasingly, the university will manage its operations on an “all funds” basis.

• This means that the senior administrator at each level (president, vice presidents, college deans, department chairs, unit directors, etc.) will appropriately use all state and local accounts to accomplish the university’s goals.

• Some local accounts, such as class fee accounts, can be used only for purposes that reflect Arizona or Arizona Board of Regents’ policies, but other revenue-generating accounts will be regarded as potential sources of funds for department, college, vice presidential area and university priorities.

• There will be scrutiny of expense transfers from local funds to state, and units should be prepared to justify and to absorb expenses locally if necessary.

• Decisions on budget reductions will reflect the university mission, strategic plan and university priorities. University priorities will take precedence over all other priorities as all resources benefit the whole. Vice presidential priorities will take precedence over all college and unit priorities.

• The university will need faculty and staff to handle the enrollment growth of the last several years and expected future growth. Academic Affairs will use creative strategies, as well as critically needed new positions, to staff sufficient sections.

• The university will use creative strategies and entertain new approaches that allow it to maintain a commitment to the goals of providing an accessible, learning-centered environment for students.

• NAU continues to be committed to improving faculty and staff salaries within available resources. The university’s commitment to its current employees and their well-being is a high priority.

• Some new initiatives will continue to be funded, as NAU is committed to moving the institution forward. Some new initiatives with funding implications, including capital items, will be (or have been) postponed. Planning for other initiatives may continue within available resources.

• The university will explore initiatives to increase revenues such as outsourcing, public/private partnerships and new business processes.

• The university will endeavor to provide complete information on the university’s budget and budget decisions. Vice presidents, divisions, units, governance groups and individuals should inform themselves about the budget complexities, flexibilities, restrictions and plans, and ask questions as issues or concerns arise.

FY 2009 Personnel Reduction Guidelines

• A freeze has been established on all searches; exceptions can be granted by the president for critical needs.
• Vice presidential areas must show reductions in state-funded positions.