BUDGET MODEL
Historical Context:
Before the implementation of the budget model, units received 19900 funds, which combined State funds and Tuition without clear distinctions. This lack of differentiation made it difficult to track how funds were allocated and utilized.
Transition to the Current Model:
To establish a more transparent and incentivized approach to budget distribution, the first step was to clarify the breakdown of 19900 funds into:
- Tuition Revenue – Funds allocated based on workload or headcount formulas.
- Subvention – A blend of Tuition and State funds distributed for fixed cost increases or based on strategic decisions.
Under this model:
- Academic units received funding both from Tuition (formula-based) and Subvention.
- Administrative units were funded solely through Subvention.
Key Budget Components:
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Revenue Distribution
- Tuition revenue is distributed based on enrollment growth of undergraduate and graduate students.
- State funds are allocated through Subvention for fixed cost increases and any surplus is for strategic priorities.
- F&A is distributed to various stakeholders to incentivize research growth
- Summer session incentive to schools and colleges to incentivize summer teaching
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Funding for Fixed Cost Increases
- Includes adjustments for salary increases, benefits, and inflationary costs tied to ongoing commitments.
- These costs must be factored into budget planning to ensure financial sustainability.