Finance Division

State Budget Process

The fiscal year of the State of South Carolina and Clemson University is July 1 through June 30. A preliminary budget request is due to the state on or about August 15 each year for the fiscal year beginning the following July 1. The Educational and General budget requests from institutions of higher education are submitted through the Commission on Higher Education (CHE) which makes a request to the State Budget and Control Board for all higher education funded by the state. Clemson University's budget requests for Public Service Activities are submitted separately directly to the State Budget and Control Board.

The state budget process involves communicating to the CHE, the State Budget and Control Board, and the state legislature the institution's plans and associated fiscal needs. Approximately one year in advance of the applicable fiscal year, statistical information (e.g., data on enrollment, expenditures on externally sponsored research and public service, square footage of campus facilities, costs of utilities, costs of employee fringe benefits, etc.) is provided to the CHE.

The CHE conducts budget hearings relative to the preliminary budget requests submitted by the state colleges and universities including the technical education system. Institutions are permitted to appear before the CHE to discuss individual requests and needs. The CHE then submits to the State Budget and Control Board, a consolidated request for funding all state supported higher education in South Carolina. Unless state economic conditions dictate otherwise, the State Budget and Control Board conducts hearings on budget requests received from the various state agencies. The CHE represents institutions of higher education before the State Budget and Control Board. After the budget hearings are completed, the State Budget and Control Board gives the CHE an allocation for higher education in total. The CHE distributes the funds to each college and university.

After receiving an allocation of projected funding from the CHE, a detail budget request must be submitted to the State Budget and Control Board. The detail budget request is due about the middle of September each year. Clemson University must estimate and include federal and other non-state funded revenues and expenditures. In addition to the process associated with the Educational and General budget, separate preliminary and detail budget requests for Clemson University Public Service Activities are submitted directly to the State Budget and Control Board. Generally, there are no limitations, other than reasonableness, of the increase that can be requested in the preliminary budget request for the programs funded through Clemson University Public Service Activities. However, after budget hearings, the state funded portion of the detail request must equal the allocation received from the State Budget and Control Board. Federal and other non-state funded revenues and expenditures must be included in the detail budget request.

The State Budget Division of the Budget and Control Board, using the budget request received from state agencies, prepares a state budget that is submitted to the state legislature by the State Budget and Control Board. The legislature may act upon the budget recommended by the State Budget and Control Board, modify it, or develop its own budget. As the budget moves through the General Assembly, it is modified

and revised based on updated revenue forecasts and other considerations. Once the appropriation bill is passed, the amounts approved for each agency becomes its authorized level of spending for all fund sources, including federal and other (non-state) fund sources. If an agency generates federal and other funds in excess of estimates reflected in the detailed budget requests submitted to the state, an additional request to increase the authorized level of spending must be approved by the state before expending the additional funds. Therefore, it is very important for federal and other fund sources to be estimated as accurately as possible when preparing the detail budget requests to the state. Further, the most recent internal budget is used as a base from which to prepare Clemson University's budget requests to the state. Consequently, it is very important for departments and the University in total to accurately estimate and budget funds expected to be available and expended each fiscal year. The University generally knows its state appropriations in June for the fiscal year beginning July 1. The amount of the appropriation is maintained for the year, unless shortfalls between the state's revenue estimates and revenues collected cause the State Budget and Control Board to impose budget cuts during the fiscal year.

Permanent FTE positions are authorized to each state agency through the appropriation process. New permanent positions requested should be included in the preliminary budget request, listed separately, and submitted with the detail budget request. New permanent positions recommended by the State Budget and Control Board will be included in the budget it submits to the legislature. Positions not recommended by the State Budget and Control Board must be added and approved by the General Assembly in order to be authorized. This applies to all permanent positions, regardless of the funding sources.

Each state agency has a fixed number of permanent positions authorized by the state, regardless of the source of funding. Permanent positions are those established for more than six months, excluding sponsored projects positions that may be established for the length of a sponsored project. These temporary sponsored projects positions are not counted as permanent positions.

The total number of permanent positions is authorized by funding source, i.e., how many are state, federal or other. Changes in the distribution of the funding sources of permanent positions must be approved by the state. The state legislature must authorize increases in the number of permanent positions allocated to each state agency. Requests for additional permanent positions must be included as part of the detail budget request submitted to the state each year.

Each year in August the total number of permanent positions authorized must be established and reconciled with the state Office of Human Resources Management. According to the appropriations bill, permanent positions may be eliminated by the state "(a) upon request by the agency, (b) when anticipated federal funds are not made available, (c) when the Budget and Control Board, through study or analysis, becomes aware of any justifiable excess of positions in any state agency, (d) when a position has been vacant for nine months, except in the case of an academic position at an institution of higher education when such position has been vacant for eighteen months."

The Budget Director reviews the several versions of the appropriations bill as it is updated during the legislative session each year. Changes significantly impacting Clemson University are noted and communicated as considered appropriate. Efforts are made to change or delete provisos adversely affecting Clemson University and higher education. Liaison is also maintained with the University Public Affairs Office and others in state government to stay abreast of legislation applicable to state agencies and Clemson University specifically.