This page provides information, resources, and tools to help CoE staff understand the CoE and UM budget processes. We will continue to update the page, so be sure to check back from time to time to see what’s new.
College of Engineering Budget and Planning Process
CoE follows a multi-step process to develop department/unit budgets and objectives for each fiscal year, as summarized in the planning timeline below. In addition to the initial FY budgeting process, departments/units receive quarterly budget updates. Details about each of the budgeting phases are available below.
Annual Planning Timeline for Department/Unit Budgets
Each department/unit meets with the Dean to discuss financial and programmatic directions for the coming year.
CoE salary programs are announced and merit increases are determined. Departments/Units are advised of the Dean’s decisions regarding:
|July||College receives final FY budget from the Provost’s office.|
CoE departments receive approved operating budgets from the Dean’s office.
Preparing for Meetings with the Dean
In the spring of each year, the chair and administrator from each department/unit receive an informational packet to assist them in preparing for their upcoming budget/planning meeting with the Dean. The packet includes the following:
- Templates for reporting on current fiscal year objectives and providing new objectives for the coming year.
- A set of planning questions to guide the budget/planning meeting discussions.
- A set of indicators to provide the department with an overview of its activity and resources using a variety of measures.
- Instructions for requesting new funds for base, capital, and strategic purposes.
- A template for reporting on the instructional activity and research offset undertaken by department faculty during the current academic year.
- Instructions for requesting new/replacement faculty positions (if applicable)
- The starting point for the new fiscal year budget.
About CoE Department/Unit Operating Budgets
The College provides each department with 95% of the academic year salary for each faculty member; 100% for holders of endowed chairs; 100% for new assistant professors for their first two years; and 100% for new professors and associate professors for their first year. The incentive to each department is to encourage faculty to offset their academic year salary by greater than 5% by funding their appointments with sponsored research. The offset funds are then retained by the department for discretionary use.
Operating allocations for staff salaries and non-salary expenses are generally a simple carry forward from the previous budget year with an increase for salary merit programs.
The College provides variable funding to each department for:
- Supplemental Instruction (formula-based allocation)
- Departmental Equipment (formula-based allocation)
- Graduate Fellowships
- Faculty Start-Up
- Research Incentive Programs (formula-based allocation)
- Cost Sharing
- Faculty Awards (formula-based allocation)
Step 1/2: Initial Starting Point
The final budget allocation for the current year is used as the starting point for the next fiscal year budget. Non-recurring and variable funding allocations are removed from the budget and adjustments are made to annualize salaries and benefits to reflect changes in staffing, faculty departures and retirements, and newly hired faculty.
Step 3/4: Approved Operating Budget
A revised fiscal year budget incorporating merit increases, funding for new faculty, any approved funding requests, and formula allocations for supplemental instruction, departmental equipment and faculty awards is distributed to departments/units in July when the College receives its final approved budget from the Provost.
Step 5/6: Quarterly Updates
Throughout the year, the department/unit receives quarterly updates to their budgets. The updates include items such as the transfer of cost sharing, compensation due to a change in sabbatical or retirement plans, and research incentive program allocations.