The Budget Process

University of Wisconsin System – A State Entity

The University of Wisconsin System, as a Wisconsin state agency, participates in the biennial state budget process, which starts with the following actions:

• The release of Wisconsin Department of Administration (DOA) guidelines in the spring of even numbered years.
• UW System planning and approval of a budget proposal at the August Board of Regents meeting.
• The UW System budget proposal is submitted to the DOA in the fall.
• Budget planning at the state level with release of the governor’s budget in February, of odd numbered years, and after public and legislative consideration.
• Finally, approval of the budget in summer of the odd numbered year.

This is a public process and substantial stakeholder engagement is the norm. UW-Madison engagement is led by the chancellor, provost, vice chancellor for finance and administration, and the vice chancellor for university relations.

Budget Authority

The budget authority assigned to UW System is an authorized appropriation. UW System assigns budget authority to UW-Madison (and other UW institutions) using a hybrid allocation model. Most of the funding is allocated on a “base-plus” model that begins with the previous year’s base, includes cost-to-continue considerations, and is then adjusted based on executive, legislative and/or Board of Regents action, and changes in enrollments that generate a sustainable increase in tuition revenue. A portion of funding is allocated using an outcomes-based budget model, as directed in the 2017-19 budget.

UW-Madison’s annual budget process starts in December with a critical and strategic look at the current state of each unit’s financial, operational and workforce metrics. This close examination provides campus leaders and decision-makers a foundation for planning the next year’s operating budget and fiscal imperatives. Accomplishments are shared along with obstacles, national trends, fund balances, and peer comparisons. A robust round of meetings are held with leadership from each division on campus, when meetings have concluded, aggregated strategic decisions are made regarding the upcoming fiscal year’s budget. Commitments and directives are decided and the technical budget entry ensues.

The Madison Budget Office coordinates the technical aspects of budget development to ensure compliance with campus, UW System and State of Wisconsin policies, and budgetary decisions made by campus leadership. Financial managers enter their budgets using two online systems, one for salaries and compensation (CAT), and the other for non-salary budget items (PlanUW). In 2019, UW System implemented the Oracle’s Planning and Budgeting Cloud Service (PBCS). The PBCS PlanUW tool allows for improved functionality for annual budgets, forecasting, fund balance reporting, rate setting, and multi-year strategic planning. Currently, the campus is working to implement best-in-class technology with the Administrative Transformation Program to support the university’s essential functions, including the finance area that will replace the current tools.

UW-Madison operates on a hybrid-budget framework that includes metric-based models and an incremental “base-plus” model. The main metric-based model applies to the academic schools/colleges. This academic unit budget model was developed in 2014 through a process overseen by a governance-appointed committee of faculty, staff and students. This budget model was implemented in 2015-16 to make budget allocations more transparent, support some resource shifts based on levels of academic activity, and provide incentives for enrollment growth. In addition, schools/colleges also have an opportunity to capture a share of tuition revenues generated by summer term enrollments and from non-traditional professional programs.