GW BUDGET MODEL GW BUDGET MODEL UPDATE TO THE FACULTY UPDATE TO - PowerPoint PPT Presentation

GW BUDGET MODEL GW BUDGET MODEL UPDATE TO THE FACULTY UPDATE TO THE FACULTY SENATE SENATE FORREST MALTZMAN & JOSEPH CORDES May 11, 2018 THE GEORGE WASHINGTON UNIVERSITY THE GEORGE WASHINGTON UNIVERSITY

OVERVIEW OVERVIEW NEW BUDGET MODEL NEW BUDGET MODEL ▸ The new budget model is an alternative way of distributing resources to open unit schools. ▸ Our consolidated university budget includes Open Schools, Closed Schools, and Central Operations. ▸ Open Schools: 7 schools operate under the new budget model ▸ CCAS, CPS, ESIA, GSEHD, GWSB, SEAS, SON ▸ Closed Schools: 3 schools are self-funding ▸ GWSPH, LAW, SMHS ▸ Central Operations ▸ Development and Alumni Relations, External Relations, OVPR, EVP&T, Libraries, Provost, Student Affairs THE GEORGE WASHINGTON UNIVERSITY THE GEORGE WASHINGTON UNIVERSITY 2 | OFFICE OF THE PROVOST

NEW BUDGET MODEL NEW BUDGET MODEL PRIMARY OBJECTIVES PRIMARY OBJECTIVES ▸ Ensure that revenue growth benefits academic units (e.g. schools) ▸ Recognize that enrollment (particularly graduate) and research requires significant investment on the part of schools in reputation building faculty, state-of-the-art recruitment in graduate enrollment approaches, graduate aid, and academic infrastructure located within schools ▸ Enhance undergraduate cross-disciplinary flexibility and mobility ▸ Recognize that UG enrollment largely depends upon central decisions and will likely require more aid in foreseeable future Ø Enable development of joint school programs at the graduate level ▸ Enhance predictability, transparency, and accountability ▸ Ensure all schools have ability to meet original costs (“held harmless”) THE GEORGE WASHINGTON UNIVERSITY THE GEORGE WASHINGTON UNIVERSITY 3 | OFFICE OF THE PROVOST

NEW BUDGET MODEL NEW BUDGET MODEL TUITION PARAMETERS TUITION PARAMETERS ▸ Undergraduate Tuition Revenues ▸ FY18 Fixed Rate: $330/UG student credit hour taught during the academic year ▸ Summer (Undergraduate Tuition) ▸ 70% retained by the school ▸ Graduate Tuition Revenues ▸ On-Campus (1) : 70% retained by the school by school of enrollment ▸ Off-Campus: 80% retained by the school by school of enrollment ▸ Online: 85% retained by the school by school of enrollment ▸ Cross-School (2) : 45% retained by each school (1) Since ¡2002, ¡university ¡fees ¡have ¡been ¡included ¡as ¡part ¡of ¡the ¡on-­‑campus ¡graduate ¡tui>on ¡rate. ¡These ¡fees ¡are ¡5.1% ¡of ¡published ¡graduate ¡tui>on ¡ (2) In ¡FY19 ¡for ¡cross-­‑over ¡graduate ¡programs, ¡when ¡an ¡open-­‑school ¡student ¡takes ¡a ¡closed-­‑school ¡course ¡or ¡vice ¡versa, ¡each ¡school ¡receives ¡45% ¡of ¡tui>on ¡revenue ¡regardless ¡of ¡school ¡of ¡ enrollment ¡and ¡central ¡receives ¡10%.. ¡There ¡are ¡intra-­‑school ¡collabora>ve ¡revenue-­‑sharing ¡agreements ¡for ¡jointly-­‑developed ¡programs ¡between ¡open ¡schools ¡(i.e., ¡Global ¡Communica>ons). ¡ THE GEORGE WASHINGTON UNIVERSITY THE GEORGE WASHINGTON UNIVERSITY 4 | OFFICE OF THE PROVOST

NEW BUDGET MODEL NEW BUDGET MODEL RESEARCH AND OTHER PARAMETERS RESEARCH AND OTHER PARAMETERS ▸ Supplemental Instructional Payment ▸ Recognizes that differential costs of instruction and operations among schools. ▸ Recognizes that different schools have different infrastructure obligations. ▸ Research Incentive based on Indirect Cost Recovery ▸ Continue Practice: 18% REIA to PI’s 14% REIA to Departments ▸ New Budget Model: 15% Budget allocation to schools ▸ Total Research Support: 27% THE GEORGE WASHINGTON UNIVERSITY THE GEORGE WASHINGTON UNIVERSITY 5 | OFFICE OF THE PROVOST

NEW BUDGET MODEL NEW BUDGET MODEL UNDERGRADUATE REVENUE DISTRIBUTION UNDERGRADUATE REVENUE DISTRIBUTION ▸ Undergraduate EXAMPLE ▸ Schools receive $330/credit hour TOTAL COST OF A TOT AL COST OF ATTENDANCE TTENDANCE for instructional costs, plus a 31 CREDITS @ $330/CREDIT HOUR FY18 TUITION = $53,435 Supplemental Instructional Payment to account for differential costs of instruction across open 20% (1) schools. ▸ Central administration pays 100% 38% of student aid. 42% Central Operations Financial Aid School (1) ¡Schools ¡receive ¡$10,230 ¡per ¡student ¡(exclusive ¡of ¡the ¡Supplemental ¡Instruc>on ¡ Payment). ¡ ¡ ¡ THE GEORGE WASHINGTON UNIVERSITY THE GEORGE WASHINGTON UNIVERSITY 6 | OFFICE OF THE PROVOST

NEW BUDGET MODEL NEW BUDGET MODEL GRADUATE REVENUE DISTRIBUTION GRADUATE REVENUE DISTRIBUTION ▸ Graduate EXAMPLE ▸ Schools pay instruction costs and TOT TOTAL COST OF A AL COST OF ATTENDANCE TTENDANCE vast majority of aid & university ON-CAMPUS MASTER’S PROGRAM (CCAS) 18 CREDITS @ $1655/CREDIT HOUR fees, receiving tuition revenues based upon enrollment incentives: ▸ On-Campus: 70% ▸ Off-Campus: 80% 30% (1) ▸ Online: 85% 49% (2) ▸ Central retains small graduate aid budget to incentivize various enrollment goals (e.g. Diversity Doctoral Packages; Tuition Support 21% for graduate research assistants; etc.) Central Ops School-based Aid School (1) Includes ¡central-­‑based ¡aid ¡ (2) Schools ¡receive ¡$14,895 ¡per ¡student ¡ THE GEORGE WASHINGTON UNIVERSITY THE GEORGE WASHINGTON UNIVERSITY 7 | OFFICE OF THE PROVOST

NEW BUDGET MODEL NEW BUDGET MODEL RESEARCH AND OTHER PARAMETERS RESEARCH AND OTHER PARAMETERS ▸ Cumulatively, the five components of the model are designed to cover the costs of operations and to reward units for reputation building, teaching excellence and research contributions THE GEORGE WASHINGTON UNIVERSITY THE GEORGE WASHINGTON UNIVERSITY 8 | OFFICE OF THE PROVOST

NEW BUDGET MODEL NEW BUDGET MODEL PLANNED NEW DEVELOPMENTS FOR FY19 PLANNED NEW DEVELOPMENTS FOR FY19 Ø GWSPH Participation: GWSPH undergraduates are now included in the new budget model Ø Graduate Cross-Over Revenue Alignment: In FY19, when an open-school student takes a closed-school course or vice versa, each school receives 45% of tuition revenue regardless of school of enrollment and central receives 10%. There are intra-school collaborative revenue-sharing agreements for jointly-developed programs between open schools (i.e., Global Communications). THE GEORGE WASHINGTON UNIVERSITY THE GEORGE WASHINGTON UNIVERSITY 9 | OFFICE OF THE PROVOST

CONSOLIDATED UNIVERSITY BUDGET CONSOLIDATED UNIVERSITY BUDGET FY 2018 APPROVED EXPENSE BUDGETS FY 2018 APPROVED EXPENSE BUDGETS ▸ Schools account for 62% of university expenses ▸ Central accounts for 38% of university expenses Category Budget Open ¡Schools $ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ 311,614 Closed ¡Schools $ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ 298,964 Central $ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ 371,420 TOTAL $ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ 981,998 Open ¡Schools ¡ Central ¡ 32% ¡ 38% ¡ Closed ¡Schools ¡ 30% ¡ THE GEORGE WASHINGTON UNIVERSITY THE GEORGE WASHINGTON UNIVERSITY 10 | OFFICE OF THE PROVOST