Carry Forward Policy

The university recognizes the importance of a carry-forward policy that provides unit leaders with the necessary one-time funding to prioritize needs and deploy resources in the most strategic and prudent manner possible. The carry-forward policy strives to strike a balance between unit level reserves and campus level reserves.

Carry-forward policy effective beginning in fiscal year 2021:

• 75% of the annual budget surplus is retained by the unit (exemptions apply**)
• 25% of the annual budget surplus is transferred to the Strategic Initiative Reserve

The proposed policy and reserve balances will be re-evaluated on a regular basis to ensure the university carries adequate reserve levels to financially protect the university and also provide campus units with financial flexibility to address unit level goals and strategic plans.

(**) Exemptions include faculty and research-related chartfields as well as certain funding agreed to in advance, deemed extraordinary, and mission critical by senior leadership.

Policy owned by: Business Affairs
Last revised: March 3, 2026