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12.02 / Shrinkage

Shrinkage is a reduction to the University budget for salaries and fringe benefits as a result of vacancies that occur throughout the fiscal year. It is a reduction imposed by the state on general use funded budgets. The total budget required for salaries and fringe benefits is reduced by a percentage factor as determined through the appropriation process. Absent the shrinkage reduction, University departmental budgets are funded fully for salary and fringe benefit requirements

Shrinkage applicable to the individual departments are centralized according to their respective college or division. Separate shrinkage accounts are established for each college or division at the beginning of each fiscal year with the amount of budgeted shrinkage. It is the responsibility of the budget review officer for each college and division to prepare a plan that details how shrinkage will be covered through unfilled positions.

Effective July 1 of each fiscal year, funds from all vacant positions will be removed from departmental budgets by the University Budget Office and placed in the appropriate shrinkage accounts. Additional funds will flow into and out of the shrinkage accounts and departmental budgets in accordance with established employment, termination, and change of status procedures on budgeted positions. A report detailing the status of all University shrinkage accounts is provided to the president and vice presidents monthly.

Revision Date:
February 13, 2017

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