QUESTION #29: THE "USE-IT-OR-LOSE-IT BY THE END OF THE YEAR" POLICY WITH REGARD TO THE BUDGET (EXCLUDING RESTRICTED FUNDS) THAT I MANAGE DOES NOT EXACTLY PUSH ME TOWARD FISCAL DISCIPLINE. I'VE ALSO NOTICED THAT IF I SLIGHTLY OVERSPEND, NO ONE COMES AFTER ME ABOUT IT. I HESITATE TO BRING THIS UP, BUT SHOULDN'T THE INCENTIVES BE REVERSED HERE?
It is essential that the overall budget of the College balance, i.e., expenses not exceed revenues. The goal is for us to think as a team. Every year, there are those who exceed their budgets and others who underspend their budgets. If you are under-budget in a given year, you should expect that the resources you did not use will help cover those budgets that went over. Similarly, if you are over-budget in a given year, you can anticipate help from others. In light of this, you should spend what you realistically need within your budget but not exhaust your entire budget just for the sake of exhausting it.
