UT System Board of Regents Rule 20501: Accounting, Operating Budgets, and Legislative Appropriation Requests directs the annual operating budget process.
The following is a representative timeline of the process used to complete the operating budget for each fiscal year. The institution-specific portions of the process vary slightly among institutions and the timeline may adjust slightly depending upon whether or not the budget is adopted in a year in which the Texas Legislature enacts the biennial General Appropriations Act.
Institution Budget Council Meetings (October through completion)
- Analyze data for potential reallocation of resources,
- Review any new cost savings initiatives,
- Review proposed new fees,
- Review other potential income sources or increases,
- Project current income stream,
- Review requests for additional funding, and
- Establish priorities.
UT System Board of Regents (BOR) Approves Budget Preparation Policies and Operating Budget Rules in February
- Budget Preparation Policies adopted by the BOR as required by Regents Rule 20501.
- Directs adherence to the BOR guidelines and the General Appropriations Act.
- Directs that institutions maintain favorable operating margins and minimize use of prior year balances.
- Provides salary guidelines including merit salary increases for faculty and staff.
- Provides high-level guidance on staff benefits including staff group insurance, retirement programs, workers’ compensation insurance, and unemployment compensation insurance as well as other operating expenses.
- Approves the proposed Operating Budget Rules for the upcoming fiscal year as required by Regents Rule 20501.
Institution Budget Councils Meet (February to May)
- Establish salary policy.
- Firm up income projections.
- Send budget instructions to departments.
- Establish timeline for departments to follow.
- Most institutions hold departmental budget meetings.
- Discuss strategic goals and objectives, progress toward attainment, and budget needs.
- Texas Legislature finalizes appropriation bill (late May of odd-numbered years only).
Budget Discussions with System Administration and Detailed Budget Instructions (April through May)
- UT System Office of Budget and Planning (OB&P) issues detailed budget instructions on behalf of the Chancellor as required by Regents Rule 20501 and by the approved Budget Preparation Policies.
- Discuss institutional goals and objectives, progress toward attainment, and budget needs.
- Discuss ongoing resource reallocation process.
- Institutional Budget Councils finalize budget based on recommendations from OB&P.
Review by Office of Budget and Planning (Late June through July)
- Institutions provide budgets to OB&P which follow a review, discussion, and final revision process.
- Institutions Summary level budgets are consolidated for BOR presentation materials.
- Formal budget approved at the August BOR meeting.
Board of Regents Approves Annual Operating Budget (August)
- Formal budget approved at the August BOR meeting.
- OB&P makes finalized budgets available online in accordance with Texas Government Code Sec. 2052.0021 and provides statutorily required budget submissions to oversight agencies.
