Understanding the Budget Process

We operate using a high-level balanced budget formula. In this formula, revenue will ideally equal or surpass expenses. 

Revenue is composed of comprehensive fees, fundraising budget, and the endowment draw minus financial aid.

Expenses involve compensation expenses, non-compensation expenses, and capital investments.

Operating Budget

The operating budget is comprised of four Smith designated funds.

SD-00001

Departmental Operating Budget

SD-00002

Central Salary Budget

SD-00003

Direct-to-Budget Operating Support

SD-00008

Faculty Salary Pool

Although departmentally-held restricted funds are not included in the operating budget, the budget team works with departments to find ways to spend down current-use gifts and endowments to offset operating budget expenses.

Annual Budget Proposals

Also referred to as the “strategic initiatives” process, President’s Team members have the opportunity to present their budget plans for the next fiscal year, including the following components:

  • Mission and vision
  • Organizational and funding summary
  • Assessment of current operations
  • Strategic Plan key initiatives and funding needs
  • Operating investments
  • Budget reductions and resource alignment
  • Capital and/or technology investments

Budget Call

During the budget call process, President’s Team members, managers, or their designees receive Excel worksheets containing the following data for the area(s) they are responsible for:

  • Cost Center
  • Ledger Account Type (Income/Expense)
  • Ledger Account
  • Revenue/Spend Category
  • Activity Code
  • Base Budget Amount
  • Current Year
  • Next Fiscal Year
  • $ Change from Current Year to Next Fiscal Year

Contact the Budget Team

College Hall 204
Smith College
Northampton, MA 01063