Prioritizing the visibility and impact of actions is a key tool in meeting the challenges to your institution’s financial future, arising from an unforeseen threat like the coronavirus. In addition to the financial model, BTE Macro Trends Budgeting™ uses processes like prioritizing actions based on their visibility and impact on improving your institution’s finances. The BTE Macro Trends Budgeting™ process and model uses a five-year planning tool to identify the impact of programmatic and policy initiatives, and unforeseen challenges – like the coronavirus - on your institution’s financial future. The BTE Macro Trends Budgeting™ model and process is designed to help budgets, over time, to look like the second graphic on the right – a place where revenues rise at a faster rate than expenses. This and other macro trends make budgeting a challenging process. However, discount rates can, when they reach certain levels, eliminate many of the income gains hoped for by increasing tuition. Some Examples of Macro Trendsįor example, over the past thirty years higher education institutions have seen a gradual increase in the average discount rate used to attract students. Macro Trends also often take at least three years to see clearly. Macro trends are revenue and expense trends that have recurring and sustained effects on your institution. BTE Macro Trends Budgeting™ is a five-year budgeting plan that helps identify and incorporate into your budget macro trends that affect your institution. Traditional budgeting does not incorporate macro trends into budgets. These recurring budget cutting exercises, when graphed, look like the graphic on the right. Traditional budget planning sometimes results in our having to manage, every year or two, a situation where expenses exceed revenues, forcing us to engage in cost cutting exercises. BTE Macro Trends Budgeting™ is both a financial modeling tool and a way of thinking about managing financial challenges. BTE Macro Trends Budgeting™ is, a unique and powerful tool and approach for planning an institution’s financial future using a five-year planning horizon.

It budget planning tool