Campus Reserve Policies

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Summary

ÃÛÌÒ´«Ã½Æƽâ°æÏÂÔØ is in the process of drafting campus-wide reserve policies which will establish clear expectations for reserve levels and ensure that financial resources are appropriately aligned with campus priorities.Ìý

The reserve policies, slated to enter a formal review process in early 2027, are part of the largerÌýFinancial Stewardship Initiative, a collaborative effort designed to modernize and strengthen the university's long-term financial health.Ìý

The thirteen projects that make up the Financial Stewardship initiative share a common goal: improve transparency while supporting institutional flexibility and strategic investments; all in service to our teaching, research and public service mission.Ìý

Key Details

What reserve policies are

A coordinated approach to managing reserve funds that supports unit-level activities as well as campus-wide priorities.Ìý

Why ÃÛÌÒ´«Ã½Æƽâ°æÏÂÔØ needs them

Currently, ÃÛÌÒ´«Ã½Æƽâ°æÏÂÔØ has a multitude of reserve policies that have evolved over time in independent colleges, institutes and departments.Ìý

Recent disruptions to higher education revenue sources across the country underscore the importance of strong, coordinated financial planning and institution-wide resilience.Ìý

A coordinated approach to reserve management - alongside clear funding responsibilities - willÌý allow campus to achieve faster results when it comes to caring forÌýcampus-wide priorities.ÌýÌý

Strength for the long term:ÌýÃÛÌÒ´«Ã½Æƽâ°æÏÂÔØ is in a relatively strong financial position. The aim of the Financial Stewardship Initiative is to maintain, enhance and preserve this position for generations to come even as we face potential increasing costs and plateauing revenue. Reserve policies are one piece of this broader effort.Ìý

Institutional agility:ÌýA more consistent framework can provide units with clearer expectations while ensuring institutional agility that enables ÃÛÌÒ´«Ã½Æƽâ°æÏÂÔØ to deploy resources where they are most needed and respond to unexpected funding disruptions.Ìý

How will the policies actually work?

After over 50+ meetings with deans, campus leaders, institute directors, faculty, budget and finance leaders, and other campus partners, the project team leaders identified a phased approach to developing and implementing campus-wide reserve policies:

First: Campus will establish starting thresholds for colleges and schools, institutes, support units and auxiliary units based on their unique positions.Ìý

Next: Reserve policies will be phased in starting with fiscal year 2025-26 ending balancesÌý

Then: Final thresholds will be implemented for fiscal year 2027-28 ending balances, and sustained for future years.ÌýÌý

Some important notes:

  • Thresholds willÌýnot include existing faculty start-up or retention funds, campus-required reserves, or restricted funds such as gift funds, student fees and internal service centers.Ìý
  • Use of reserve funds that exceed thresholds will be guided by an advisory group and reported on annually.Ìý

Here is an example of what the phased-in policies could look like:

phased in approach - auxiliary funds
phased in approach - support units
phased in approach - institutes
phased in approach - college/school

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2026 Campus Budget Town Hall

Mark your calendar for November 10 at 2:00 p.m. and join us for a virtual campus budget town hall. This session will provide updates on the campus budget and offer an opportunity to learn more about upcoming priorities and ask questions.

Use your identikey@colorado.edu email address when registering. We hope you'll join us.

Project Timeline

  1. March 2025

    Benchmarking

    Peer benchmarking completed. View the peer benchmarking chart.

  2. May 2025

    Development

    Development of campus reserve policies selected as a Financial Stewardship project.

  3. January 2026

    Review

    Review of campus account codes and balances for initial draft completed.

  4. February - May 2026

    First draft

    First draft of policies shared with solicitation for feedback with deans, unit leaders, institute directors, BFA chairs and other key campus partners.Ìý

  5. July - September 2026

    Revised draft/Socialization

    Revised draft incorporating feedback socialized with deans, unit leaders, institute directors, Boulder Faculty and other campus partners.Ìý

  6. Thru November 2026

    Phase one

    Final draft socialized with wider campus and CU System audiences; implement phase one threshold.

  7. Thru May 2027

    Governance

    Establish implementation technical working group and Advisory committee; review and refine related business processes; enhance and clarify funding responsibilities.

  8. July 2027

    Phase two

    Implement phase two threshold.

  9. July 2028

    Phase three

    Implement phase three threshold.

FAQs

Institutional reserves are university resources. While units may manage these funds, they are part of the university’s overall financial position and must be stewarded to support both unit needs and broader campus priorities.

These funds will support operational stability and strategic investments aligned with campus priorities. Specific use of the reserve funds that exceed established thresholds will be guided by an advisory group and reported on annually.ÌýÌý

  • The consolidated campus reserves will fulfill
    • Emergency reserve requirements
    • Debt service obligations
    • Campus contingency and continuity reserves
  • The newly established Excellence Fund, which supports one-time and strategic investments aligned with campus priorities, including:
    • Academic and student success
    • Scaling excellence in research and creative work
    • Sustainability
    • The campus’s Big Ideas initiative
    • Infrastructure and operational needsÌý

The campus intends to maintain a minimum of 10% of the campus operating budget in non-committed reserves to ensure institutional stability and continuity. This requirement includes the regent-mandated emergency tuition stabilization plan equal to 4% of the general fund budget.

Higher education institutions nationally are facing increasing financial uncertainty related to inflation, federal funding changes, enrollment trends and operational costs.Ìý

While ÃÛÌÒ´«Ã½Æƽâ°æÏÂÔØ is in a relatively strong financial position, we are not immune to these pressures and must actively work to strengthen long-term financial health of the campus while supporting institutional flexibility.Ìý

Acting now supports stronger long-term planning, improved coordination, responsible financial stewardship and increased transparency.

The policies do not directly change the university’s existingÌýbudget allocation processes for colleges, schools or campus units. They are intended to establish clear expectations for reserve management and long-term financial planning. As such, Colleges and Schools may need to incorporate reserve planning and reserve thresholds into future budget and financial planning discussions.