Post on 28-Sep-2020
ASL Budget Forum
February 28, 2017
Today’s AgendaWhere we left off
Core Principles
Feedback overview
Key changes
College Case Study – CAH
Next Steps
Questions/Comments
Fall RCM Model1. Pay Overhead (academic support +
institutional support) expenses first – not an overhead rate
2. Remaining revenues shared by four colleges based on allocation formula:• 80% Student Credit Hours• 10% Majors• 5% Pre-majors• 5% Graduation Ratio
3. Create Expense Budgets
Rolling three year average
Some Known Issues
3 Year Rolling average
• Intended to protect in downturn, takes too long in growth
Can encourage silos
• Rearranging the deck chairs
May not reward investments in new programs
• Not enough direct linkage between programs and SCH
What Else?
Core Principles (Faculty Senate)
As faculty, we value:
The success of our students The quality of our academic programs and the
student experience. Our identity as a comprehensive university Effective student-faculty interactions Interdisciplinarity, in both teaching and research. Diversity among students, faculty, and staff The whole of faculty life
Additional Feedback
• Three year rolling average
• Premajors/Majors
• College vs. Department level
• Education
• Research/Grants
• Supporting new programs
Key Changes (1 of 3)Model Element Fall Model New Model
Lookback Period Three Years One Year
SCH 80% - Proportionate Share 100%70% to College of Instruction30% to Admin. College (major)
Pre-Major 5% - Proportionate Share Not used
Major 10% - Proportionate Share Not used
Graduation Ratio 5% - Proportionate Share Not used
Graduate vs Undergrad
Not used Grad & Undergrad consideredindependently (70/30 split)
Tuition Waivers Not used Waiver follows student (70/30 split)
Allocation precision Departmental level College level
Key Changes (2 of 3)Model Element Fall Model New Model
State Funding Included Included
Academic Support &Institutional Overhead
Pay fixed costs first, remainder to Colleges
All revenues go to colleges, support & overhead allocated
Facilities costs Fixed cost, off the top Allocated based on control and usage
Reserves Not considered Included - Instructional Equipment- Instructional Technology- Desktop Replacement- Institutional Reserve
Key Changes (3 of 3)
Model Element Fall Model New Model
Funds Included Included only Fund 149 (state/tuition)
Includes both Fund 148 (summer/fees) and Fund 149 (state/tuition)
Efficiency Targets Not considered (only implied)
Explicit – both ASL and Overhead
Provost Subvention 90% rule Provost discretion
Dean Subvention Dean Dean, budget committee
Over/Under allocated revenues (mid-year)
100% to Provost 100% to Provost
Carryforward (unspent funds)
Colleges retain up to 5% of budget.Provost & President share remainder (62/38)
Same, but College carryforward plan required
Incentive elementsNew Program Fund
• $500k replenishing startup fund (Provost)
• Formal proposal required – new SCH only
• 2 year relief from cost allocations
Grant & Research Incentive
• Provost indirect revenue growth over 2016 baseline split between Provost and the Colleges driving the growth
CAH Case Study – RevenueDraft – For Discussion Purposes Only
FY18 RCM
Revenue ModelCollege of Arts &
Humanities
Academic Unit
Total
Revenues
Grad Tuition (Gross) 614,446$ 5,368,481$
Grad Tuition Waivers (511,189) (2,603,269)
Grad Tuition Net 103,257 2,765,212
Undergrad Tuition (Gross) 14,370,879 66,983,166
Undergrad Tuition Waivers (3,088,142) (12,485,493)
Undergrad Tuition Net 11,282,737 54,497,673
Tuition Backfill 2,290,118 10,844,640
Total State Allocation 10,494,347 49,695,000
Total State & Tuition Revenue 24,170,460 117,802,525
Blended Revenue % 20.52%
CAH Case StudyAcademic Support Allocation
Draft – For Discussion Purposes Only
Cost AllocationsCollege of Arts &
Humanities
Academic Unit
Total
ACADEMIC SUPPORT
Includes:
Provost/Assoc Provost
University Centers
Student Success
Graduate Studies & Research
Library
International Programs
Less: Efficiency Target (69,885) (340,609)
Total Academic Support Allocation 3,424,386 16,689,848
Total Academic Support Allocation 3,424,386 16,689,848
17,030,457 3,494,271
CAH Case Study Overhead Allocation
Draft – For Discussion Purposes Only
Cost AllocationsCollege of Arts &
Humanities
Academic Unit
Total
INSTITUTIONAL OVERHEAD
Includes:
President's Division
Operations Division (excl. Facilities)
Facilities
Enrollment Mgmt Division
Business & Fin Affairs Division
Central Budgets
Administrative Fee
Less: Efficiency Target (183,039) (892,099)
Total Institutional Overhead Allocation 8,858,159 41,712,875
Total Indirect Allocations 12,282,544 58,402,723
42,604,975 9,041,198
CAH Case StudyRevenue Summary
Draft – For Discussion Purposes Only
Revenue SummaryCollege of Arts &
Humanities
Academic Unit
Total
Total State & Tuition Revenue 24,170,460
Less: Instructional Equipment Reserve - 1,000,000
Less: Instructional Technology Reserve - 1,000,000
Less: Desktop Replacement Reserve - 750,000
Less: Institutional Reserves - 700,000
Net Revenue Alloc.- State/Tuition (149) 11,887,916 55,949,802
Net Revenue Estimate - Self Support (148) 2,006,818 10,933,270
Total Available Resources 13,894,734 66,883,072
CAH Case Study – ExpensesDraft – For Discussion Purposes Only
Income Statement SummaryCollege of Arts &
Humanities Total
Total Available Resources 13,894,734 66,883,072
2016 Actual Expenses - Self Support (148) (1,853,377) (10,169,620)
2018 Estimated Expenses - State/Tuition (149) (13,359,320) (58,245,364)
Less: Efficiency Target (combined) 347,368 1,758,327
Net before subvention (970,595) 226,415
Less: Provost Subvention 970,595 -
Net (Revenue minus estimated expenses) (0) 226,415
Benefits of RCM
Transparency
• Open college-wide conversations about the budget
• Increased college-wide efficiency
• Mission clarity
College unity/less siloing
Innovations
• Emphasis on leveraging strengths and creativity
Strategies Going Forward
Efficiencies
• Curricular review
• Class capacity and right-sizing
• Maximize schedule
• Space usage
New programs
• Interdisciplinary, leverage strengths, partnerships
Discussion
Next Steps• Remaining Winter Quarter forums
– See www.cwu.edu/budget/overview
• Submit questions or feedback to newbudgetmodel@cwu.edu
• Spring Forums
– Rollout of final model
– Formation of Governance structure
• Budget Summit