Overview
For fiscal year 2027, the Position Management process will involve a one-time, in-year pullback of general fund budgets associated with fully-fringed positions to a central index. The following information will help guide the flow of funds.
General Fund Position Vacancies and Hires
- If a position is vacant as of July 1, the Budget & Planning Office will pull these funds as a one-time adjustment after the initial budget load. Additional transactions throughout the fiscal year will distribute any funds for backfilling the vacated position (from any approved requests, based upon classification).
- All vacant, generally funded position S&W + Fringe (salary) savings from fully-fringed positions in the current fiscal year will revert to a central fund managed by the University Budget & Planning Office. The department that recognizes the vacancy will be left with funding to cover all incurred salary along with payouts of vacation time. The Budget & Planning Office will perform two budget adjustments; one to transfer the remaining unencumbered salary savings into a centrally managed index and one to return any funds needed for vacation payouts after the vacation payout is made.
- Once a determination is made that there is a need to repost the position, the department impacted can request a portion of the remaining unencumbered wages. These funds can be used towards backfilling duties required to be performed until the vacant position is filled. Detailed justification regarding the planned use of the funds will be required.
- If a new hire is made prior to the close of the current fiscal year, the Budget & Planning Office will return any remaining funds needed for the newly encumbered salary.
Funding of One-time Costs Associated with Recruiting/Termination
The associated college, department, or division that is recruiting/terminating is responsible for covering any one-time expenses from its existing operating resources (with the exception for vacation payouts). These units should look to existing discretionary funds that often come from a Dean or Vice President’s discretionary funds. In rare cases, central administration may fund specific strategic initiatives, such as high-level executive recruitment (E.g., University President or Vice Presidents) where the hire serves a broader institutional goal.
Potential Funding Sources
- Departmental Operating Budgets: Costs can be charged from the "supplies and services" budget of the specific department.
- Michigan Tech Fund, Designated, or Auxiliary Funds: Departments often use these funds if restrictions allow.
- Discretionary Funds: Payments may come from a Dean or Vice president’s discretionary resources.
- Sponsored Research Funds: Relocation costs can sometimes be charged to a grant or contract, but only if the sponsor grants prior written approval and the cost directly benefits the program.
- Central Administration: In rare "supplemental" cases for hard-to-fill or executive roles, central funds may supplement standard departmental funding.