Office of Planning & Budgeting

State Funding Policies and Guidelines

Provisos and Special State Appropriated Funds

State budgets often include targeted appropriations to the University for specific purposes, called provisos. In some cases, these are considered “special state appropriated funds,” when the funding source is not the state general fund or associated accounts. State budget requests and outcomes can be found on OPB’s “State Budget Information” page. OPB’s “Briefs” page includes briefs for final compromise biennial and supplemental budgets, which provide a listing of provisos appropriated to the University in each budget. The following resources are available to units receiving these funds:

Spending Rules and Best Practices

The UW Office of Planning & Budgeting (OPB), the Governor’s Office of Financial Management (OFM), and state legislative staff regularly monitor proviso funds for expenditure compliance and fund balances. In addition, provisos are regularly revisited by lawmakers and can be discontinued during any legislative session. Therefore, it is especially important to expend these funds for their intended purpose and in an ethical manner.

Most importantly, proviso funds are state funds and must be spent in accordance with the language outlined in legislation. For example, an allocation to fund a research study may identify the school or college that must conduct the study, industry or agency partners that the University must engage with to develop the study, and/or a requirement to submit a report to the legislature annually or by a certain date. OPB provides relevant budget language to units when funds are appropriated, but units are responsible for their resources and for completing required reports.

It is also important to post expenses as they incur throughout the year. Posting all expenses onto a budget at the end of a fiscal year or biennium will create a variance in the UW’s allotments and will raise red flags for those monitoring spending. In general, it is best practice to use state proviso funds to pay for salaries and benefits for faculty and staff members for the portion of the time they are working on the intended project or initiative. Proviso funds may also be used to purchase equipment, technology, or supplies necessary to carry out the intended project, but only if the proviso language does not prohibit such purchases.

Overall, proviso funds should not be used: for any project or initiative outside of the specific scope of the proviso; for gifts or grants to employees, external agencies, or non-profit groups; to purchase food or beverages; to purchase equipment or supplies beyond what is needed to fulfill the requirements; or for assisting a campaign for election or promoting or opposing a ballot proposition.

Here are some additional resources to help understand the relevant laws, regulations, and guidance regarding the expenditure of state funds, including provisos:

If you have any questions about the proper expenditure of proviso funds, please do not hesitate to contact OPB. Questions can be sent to Jed Bradley.

Expenditure Tracking and Guidelines

This document provides expenditure tracking information relevant to units receiving provisos and special state appropriated funds.

Funding for Teaching Assistant (TA) and Research Assistant (RA) positions

Provisos for enrollment expansions and research projects will often require the employment of one or more TAs or RAs using state appropriated funds. In addition to covering stipends, these targeted state funds should also cover the cost of any tuition waivers offered to students through their appointment. Those waiver transactions do not technically appear as “waivers” (which are typically a contra-revenue transaction), and instead are posted as expenses to the proviso, meaning the student’s receivable is being decreased by a cash-backed source instead of waiving the receivable. The University does not waive tuition for proviso-funded appointments because that would effectively cause the University to cross-subsidize proviso activity with tuition revenue from other units. Please contact OPB with any questions.

 

Other Resources

The following pages are frequently consulted when answering questions relating to state funding:

UW Office of Sponsored Programs (OSP): In some cases, the state budget appropriates amounts to other state agencies for the purpose of contracting with the University. OSP provides guidance and support for projects sponsored by these agencies.

UW Budget: This OPB webpage includes information about the UW’s annual budgets, the UW Budget Manual (on the “About the Budget” page), budget processes, budget policies, fund references, and other information.

Food Approvals: Outlines food approval policies relating to different budget types and numbers, including state budgets.