UNIVERSITY OF CINCINNATI
UNDESIGNATED GENERAL FUNDS
UPTOWN CAMPUS
OVERVIEW
The Uptown Campus budget is the “core” university budget, comprising about 42% of
the total. Given its size and impact, the Uptown budget sets the basic direction for the
entire all-funds budget. For example, the Uptown Campus budget determines the tuition
policy for the vast majority of students, as well as the compensation policy for staff. The
primary income sources for the Uptown budget are tuition income and State Share of
Instruction (SSI) from the State of Ohio, which is based on our student complement.
To address our fiscal condition, the university adopted a three-pronged, short-term
budget strategy that brought increased financial stability during FY 2007. First, we
changed our business practices to promote fiscal discipline and responsible planning. We
made key personnel changes and consolidated two major administrative divisions into the
Division of Administration and Finance. In addition, we realized significant cost savings
by offering an early retirement incentive plan, abolishing over 100 positions, freezing
salaries for administrative staff, reducing our energy consumption, restructuring
employee benefits, and halting major building projects.
Second, we established a budget process based on realistic revenue and expense
assumptions – especially on tuition assumptions. For the first time in many years, FY
2007 tuition projections came remarkably close to our target, which made current year
adjustments unnecessary. The same held true on the expense side. For example, the FY
2007 utilities budget included the proper level of inflation, so expenditures stayed within
budget. The result is that the FY 2007 Uptown budget will close with a small amount
available for budget reserves. Furthermore, the budget corrections made in FY 2007 will
have positive effects in FY 2008 and beyond.
The final prong of the short-term strategy was the implementation of our cash policy,
approved by the Board of Trustees in November 2006. The policy requires UC to build
its operating cash to a level appropriate for an institution of our size and complexity
according to industry standards. We are now creating internal business practices and
policies that will prohibit overspending of approved budgets and will help us contain
costs and enhance efficiencies, while complying with all government regulations. In
addition, we have developed payback plans to address negative funds balances. As an
immediate measure to improve our cash position, a temporary transfer of administrative
quasi endowment funds was completed in spring quarter.
In addition to these short-term strategies, the university has developed a toolbox of
practices that will help us achieve increases in revenue going forward. An essential tool
in the toolbox is UC’s transparent and participatory decision-making process, which is
structured around key committees with multiple constituencies. These committees have
been active in developing and approving the FY 2008 budget. Among these committees
