Academic
Budget Al oca6on Model

August 18, 2016

4 Component Approach
•  Holis6c University Design
–  Speaks to: Strategic Intent, programma6c priori6es (development,
size, resources, support)
•  Produc6vity Guidelines
–  Speaks to: Quan.ty, resource u6liza6on and deployment, strategic
intent (sponsored research, student scholarship, curriculum delivery)
•  Promo6on & Tenure Expecta6ons
–  Speaks to: Quality, faculty incen6ves, strategic intent (faculty
scholarship, curriculum development and delivery, ins6tu6onal and
professional service)
•  Budget Model
–  Speaks to: Resource alloca.on, programma6c incen6ves, strategic
intent (align resource deployment, expand resource base, drive
program development)

Methodology
•  Opera6ng, instruc6onal and research
support wil be allocated based on the
budget model
•  Produc6vity model wil be used to define
academic expecta6ons
•  Faculty lines and adjunct budgets wil be
allocated based on the produc6vity model
•  Outcomes wil be assessed aVer the first
year and adjustments made accordingly
•  Phased, itera6ve approach

Strategic Intent: Quan6ty, Quality,
Resource Al oca6on
•  Ensure and promote equity in delivery of strategic
academic ac6vi6es
•  Build reputa6on
–  Drive growth in thesis based Graduate enrol ment
–  Drive growth in externally funded research
–  Recruit, retain, and promote high quality faculty
–  Promote and reward innova6on
•  Align and expand resource capacity
–  Align resources with strategic ac6vi6es
–  U6lize capacity in summer
–  Drive growth in non-thesis Graduate enrol ment
•  Maintain UG enrol ment at current levels

Budget Model
•  Al ocate opera6ng support, instruc6onal support and
research support through metric-based alloca6on u6lizing
appropriate weigh6ng factors.
•  The budget wil be calculated and allocated at the Col ege
level.
•  Proposed alloca6on is:
–  Opera6ng support (non-labor) $X per student credit hour
–  Instruc6onal support of $14,000 (one student) for every X
student credit hours provided
–  Research support for first year PhD students wil be funded at
50% of the total 3 year rol ing average of PhD graduates in the
department at $33,000 (one student) each
•  Addi6onal incen6ve based funding opportuni6es

Budget Model Al oca6on
Example
Facts
Alloca.on
In Fiscal Year 2015 College A delivers 10,000 weighted student credit hours (WSCH)
Opera6ng (non-labor) support is $5/WSCH Opera6ng (non-labor): $5 x 10,000 =
$50,000
One student (hourly or TA) is provided for Student support: 10,000/500 x $14,000
every 500 WSCH delivered
= $280,000
Over the last three years (2013-2015),
Research support: 10 x 50% x $33,000 =
Col ege A graduated, on average, 10 PhD
$165,000
students each year
Total (non-labor) budget for College A:
$495,000

Summary of Proposed
Incen6ves
Rollforward
Incentive
Proposed
Allowed
Salary to department if class held, if class not held $8,500 of salary to
Chargeout
col ege and balance to department, fringe to university
Yes
Sabbatical
Salary to col ege and al ocated as needed, fringe to university
Yes
Leave without pay
Salary to col ege and al ocated as needed, fringe to university
Yes
35% of gross revenue for overhead; net revenue (after direct
expenses and overhead) split: 60% to department, 10% to the col ege,
Summer (Non-Field)
and 30% to the innovation fund
Yes
Student credit hours flow through regular model and additional
$50/CH is al ocated to the deparment for overal growth in al
programs under that department using a 3-year average of total
student credit hours. All interdisciplinary programs incentives wil be
distributed to those programs directly and wil not be included in
Non-Thesis Masters
deparment al ocations.
Yes
Considera.on of fees TBD

Summer Model
•  Excludes mandatory field courses
•  Shared revenue based on:
–  Department level calcula6ons
–  35% of gross summer revenue to overhead
–  Net revenue (total revenue-less overhead-direct expenses):
•  60% to department
•  10% to col ege
•  30% to innova6on fund
–  Academic year course offering requirements that are met as fol ows:
•  100 - 200 level must be offered in fall and spring
•  300 - 400 and above must be offered in fall or spring
•  New courses and elec6ves are exempt
–  Department surplus/deficits allocated to department
•  Implement Summer I 2017

Summer Model
Example
Facts:
•  Department A delivers 150 student credit hours for qualifying summer courses.
•  Resident tui6on is $523 per credit hour for Summer I 2017
•  Faculty and student support for these courses totals $40,000
Aloca6on:
Revenue

$78,450
Overhead

(27,457)
Direct Costs

(40,000)
Net Revenue

$10,993

Department receives (60% of net) $6,596
Col ege receives (10% of net) $1,099
Innova6on Fund receives (30% of net) $3,298


Masters Non-Thesis Incen6ve
•  Student credit hours flow through regular
model
•  Addi6onal funding provided of $50 per SCH
(= X2 of normal alloca6on) for three-year
rol ing average of SCH enrol ment for ini6al
base alloca6on
•  Annual base adjustments up or down at $50
per SCH for three-year rol ing average change
in enrol ment

Masters Non-Thesis Incen6ve
Example
Department A delivered the fol owing Non-Thesis
Masters student credit hours over the past four
years:

2013
2014
2015
2016
900
878
930
950

Al oca6on:
2015: 902.67 x $50 = $45,134
2016: 919.33 x $50 = $45,967

Produc6vity Model: Intent
Recognize:
•  our central mission is to deliver quality
educa6onal experiences to our students,
•  the prac6cal need for resource genera6on
through effec6ve use of exis6ng staffing,
•  that ins6tu6onal reputa6on is built on strength
of faculty research and graduate mentoring, and
•  there is broad spectrum of individual abili6es,
strengths, and interests that can contribute
toward advancing our ins6tu6onal objec6ves


Produc6vity Model
Instructional Load Target (Student Credit Hours per AY)






Tenured Faculty



Thesis and Dissertation Advisees


(as primary advisor)


≤ 1
2 - 3
4 - 5
>5
h

rc
<$25k
720
660
600
540
sea
ures
$25k - $100k
675
540
440
440
it
$100k - $200k
630
500
360
340
al Re
xpend
$200k - $400k
585
460
330
240
E
Annu
> $400k
540
420
300
180






Tenure-Track Faculty



0 - 2 Years in Position
180



3 - 5 Years in Position
240









Teaching Faculty





840





Implementa6on Specifics
•  Aggregate targets set at Col ege and Departmental levels. Within
these targets, DHs have authority to derive specific faculty targets
•  Student Credit Hours: Al AY courses, 100 through 600 levels
•  Expenditures:
–  Al (direct and indirect) 4- expenditures
–  Al giV expenditures, 6-, with 1200 program code
•  Charge-out at 12.5% AY salary: equals 120 SCH
•  Internal buy-out at cost: equals 120 SCH for course release,
generated SCH for course reassignment
•  Center Directors (>$5M AY expenditures), DHs, considered 50%
with regard to SCH targets
•  Used in determining areas of resource need (e.g., addi6onal faculty
lines, etc.)

Implementa6on
Fiscal Year 2017
–  Hiring decisions considering impact of produc6vity model for
fall 2017 start
–  Develop TA alloca6ons for FY2018
–  Develop summer process
–  Assess model and make adjustments
Fiscal Year 2018
–  First year transi6on (50% implemented) of produc6vity model
and budget model alloca6on
–  Assess model and make adjustments
Fiscal Year 2019
–  Ful implementa6on of produc6vity and budget models
–  Assess model and make adjustments