Preliminary 2014 budget

Below is the University’s preliminary 2014 budget. It shows how the Federal Government’s cuts, combined with the other pressures discussed at the budget solutions forums, will be distributed across the University. These budget allocations were worked on by the University Executive and College Deans.

The figures are indicative only – the University’s 2014 budget will not be approved until November. The numbers include the budget solutions package; the funding cuts and the cost of the voluntary early retirement program, as well as projected increases in income through growth in student numbers, increases in international fees and changes to parking.  

These budget numbers are a reflection, by area, of announcements made at the all staff forum on 2 July.

Area 2014 budget Difference from
2013 projection
Cost of
salary increases
CAP 50,226,168 -686,178 -1,439,824
CASS 55,659,300 -859,865 -1,462,273
CBE 42,864,968 1,318,513 -955,893
CECS 25,025,940 547,907 -509,281
COL 22,790,017 -77,288 -624,426
CPMS 67,367,102 37,217 -1,477,767
CMBE 83,829,365 -1,041,348 -1,707,756
JAG     -419,189
All Colleges 347,762,860 -761,042 -8,596,409
Central administration areas 118,046,545 -3,692,513 -3,037,598
University wide total 465,809,405 -4,453,556 -11,634,006

Notes:

  • These figures include the budget solution package, updates for semester two enrolments and updates for research performance based block grants. Enrolments in 2014 can still  positively or negatively effect these figures.
  • This table shows how the savings required by the budget solutions changes will be shared across the University.  It does not include non-recurrent funds such as trading revenues, research grants and consulting activities.
  • JAG is jointly funded by CPMS and CMBE.

 

Questions

 

Will these figures change before the budget is finalised?

Yes – it is likely there will be some movement in these figures. The calculation is based on a projection of both our expenses and our income. If there are changes to either, such as a higher than projected growth in student numbers or further changes in Federal Government funding, then we will see some changes before the final budget. We don’t anticipate any large variation at this stage.

Could our financial position get worse?

Yes. We don’t know yet what the outcome of the Federal election will be, but we do know that the incoming government will face tougher economic conditions. We don’t know for certain our funding will remain the same. Getting the University onto a sound financial footing as quickly as possible and improving our administrative processes and structures will ensure we are in a better position to handle potential future challenges.

Why do some areas have an increase in their budget and others a decrease?

The budget allocations are calculated on a formula where colleges receive income from their student enrolments, research funding and other sources. The Vice-Chancellor explains the transparent budget model in the video below. Some colleges, such as CBE and CECS, have had an increase in their student enrolments, and subsequently an increase in the money they have earned. If there is growth in student enrolments or research income to a college, its budget position will change.

Why are the central administration areas taking such a big cut?

The majority of professional staff are employed in the central administration areas, so this is where the majority of professional staff reductions will be.

If my area has to make savings does that mean I’ll be forced to retire?

No. The early retirement scheme is entirely voluntary. We are optimistic about meeting the reduction of 230 professional staff via the early retirement scheme. Interest in the scheme has been very high, but acceptances will not occur evenly across the University, and we will need to transfer staff to balance departures against areas.  We will soon announce the details of the staff renewal scheme that will help manage these changes.

What happens if not enough professional staff retire in my area?

We understand that the early retirement acceptance levels will be different in different areas.  This will create opportunities for staff to seek new roles through the professional staff renewal scheme.

The staff renewal scheme will be aimed at making sure we fill essential positions, by giving staff an opportunity to move into new areas.  We have established a central fund of $1 million for retraining, redeployment and change management, to help manage this.  It will also include funding to assist with the development of new skills. 

How will we manage the work with less staff?

We know that the period of time while the reduction in staffing occurs will be difficult. We have to implement a range of administrative improvements as quickly as possible so we end up with fewer layers of bureaucracy for professional staff, and a reduction in duplication between service divisions, colleges and schools. Many of the priority changes were announced by the Vice-Chancellor on 2 July. We’ve undertaken a survey of administration, which will be released shortly, and are undertaking other work to identify and remove duplication.

Why did the University decide to pay a two per cent pay rise if we have a big budget problem?

It is important to recognise and invest in our staff, even in constrained times. ANU has become what it is today because of the quality of people we have been able to attract, and the commitment of our community to building something great. The suggestion that we put a freeze on salary increases was made in almost every staff forum. But a pay freeze is only a temporary measure and can’t solve the immediate problem.

We believe the two per cent pay rise in 2013 and a further two per cent in 2014 was a timely and appropriate measure to recognise the ongoing contribution of staff.

Because of the funding environment, areas have to fund the pay rise from their budgets. 

I heard we’ve got $1 billion in our investment portfolio and a big surplus. Why can’t we just take money from there to cover the impact of the Federal Government cuts?

We won’t have a surplus this year. We expect to post a loss of $8 million in 2013 and $32 million in 2014. We are hoping to get back to a balanced budget by 2015.

The $1 billion is not money we can access – it covers things like staff leave liabilities, CSS superannuation obligations, philanthropic endowments and research accounts.. Read the full explanation of our financial situation.

Want to know more about the implementation of the budget solutions package?

Come along to a budget solutions implementation forum:

12.30-2pm Friday 6 September Innovations Theatre, Eggleston Road, Building 124

12-1.30pm Tuesday 17 September Law Link Theatre, Law Courtyard, Building 5

You can also email questions and suggestions to suggestions@anu.edu.au

Updated:  20 September 2013/ Responsible Officer:  Executive Director Administration & Planning/ Page Contact:  SCAPA