3110  SPECIAL FUNDS BUDGETING PROCEDURES

The Special Funds budget process is similar to that of the General Fund.  It is 
intended to provide maximum budgetary flexibility and campus 
involvement in the descisional process and, through computerization, is 
designed to keep required campus workload to a minimum.

Since all Special Funds budgets are self-supporting and must be funded from 
revenue generated, accurate revenue estimates are essential.  Revenue 
projections are based on the data supplied by the campuses.  Concurrent with 
estimates of revenue, BPA projects expenditures, including inflationary 
factors for the budget year.  The projections of revenues and expenditures are 
used to produce computer reports for each campus for each fund which will 
serve as the basis for development of the campus' Program Maintenance 
Proposal (PMP) budget.

The PMP projection provided to each campus includes all personnel costs 
budgeted for the current year.  This base is calculated at current-year salary 
and benefit rates.  The projected salary and benefits increases for the current 
and budget years, as well as estimated full-year funding, turnover, and merit 
salary adjustments are included in a separate salary and benefits increase 
reserve.  The projection also includes the current-year Operating Expense and 
Equipment base.  An initial price increase projected for the budget year is 
incorporated in a price increase reserve.

Fixed costs, such as debt service requirements, reserve requirements, and any 
required surpluses, are added to these estimated costs, and total projected 
expenditures are then compared to the anticipated revenue to derive the total 
dollar amount by which the campus should increase or decrease its 
expenditure program.  Increases and decreases both are to be implemented in 
the campus Program Maintenance Proposal (PMP) submission.  At this time, 
the campus may also adjust line-item detail to more accurately reflect needs.  
Any deviations from the projected total expenditures or revenue levels or 
from the general guidelines should be justified as Program Change Proposals 
(PCP).

As indicated above, the PMP computer projection indicates the change in 
expenditure level to be implemented.  Implementation changes to the 
projection is done in detail on preprinted Schedule 2 forms.

These forms serve as the source from which budget detail is keypunched, and 
the resulting data cards are submitted by Remote Job Entry (RJE) to the State 
University Data Center for production of a fully costed Schedule 2 that can be 
adjusted or corrected prior to submission to BPA.

The procedure for PCP requests differs from the PMP process in that PCP 
detail is not keypunched, but is presented on Schedule 2 pages attached to 
each PCP request and justification.

When all PMP and PCP budget actions have been completed, the results are 
submitted to the Chancellor's Office for review by Budget Planning and 
Administration and the appropriate program area.  Submission must be 
transmitted by either the campus Business Manager or Budget Office.

SUAM Appendix BA 3912-BPA should be used as a guide to the timing and 
workload involved in preparing the Special Funds budgets.  Notice that the 
schedule has been arranged to involve the campuses early in the year to 
avoid fiscal year-end activities, Schedules 8 and 7A, and computer scheduling 
problems.  It is important that each campus meet the due dates for revenue 
projection data as required by the program areas, because BPA will not be able 
to prepare any PMP projections until all campuses have responded.

Detailed guidelines for implementing the increases or decreases are provided 
in the following section.