UWM Budget Model Development Update UNIVERSITY OF - PowerPoint PPT Presentation

UWM Budget Model Development Update UNIVERSITY OF WISCONSIN–MILWAUKEE

Budget Model Update Update Outline • Overview of Current Budget Model • Need and Development Project Plan • Requirements & Campus Input • Review of New Budget Model Desired Features • Review of BMWG Recommended Model Adjustments • Overview of Model Testing Process • Summary of Results of Testing Model & Lessons Learned • Key Implication • Next Steps?

Overview of Current Model Why a New Budget Model Current incremental budget model unable to effectively respond to:  Changes in the higher education landscape: • Shrinking state support • Growing reliance on tuition revenue • Declining or stagnant enrollments  Emerging opportunities for UWM • New initiatives: e.g. Fresh Water Sciences and Public Health • Partnerships with the business community • Expansion of campus physical footprint

Overview of Current Model Project Plan Budget Model Budget Model Budget Model Budget Model Budget Model Budget Model Lead Working Working Working Working Working Working Role Group Group Group Group Group Group Review and Develop budget evaluation of model changes that Campus Establish Requirements Define a basic alternate will become the leadership guiding gathering: resource allocation approaches to framework for new approves a principles campus input approach resource a resource conceptual allocation allocation approach framework Supporting Consultant Consultant Consultant BMST BMST BMST Role Develop, test and Budget Model propose budget Working Group Phase 1: Phase 2: BMST model Data Gathering Develop basic Framework Approve a Phase 1 : Requirements and Best working budget model for Practices Data Gathering Budget Model presentation and Working Group review by Phase 3: Phase 2 : Development and Approval campus Model community Testing of the Resource Allocation Framework Develop an BMST Budget Model implementation implementation Phase 3 : Testing the Proposed Model plan for approved Team Phase 4: budget model Implementation (Where we are today) Phase 4: Implementation of the New Mode

Overview of Current Model Current Model Concerns: 1. Not responsive enough to overall enrollment declines 2. Developed piecemeal without regard to an overall strategy 3. Provides insufficient incentives to grow 4. Complicated and hard to understand 5. Difficult to link activities and their related costs “Spaghetti Model” - Flow Chart of Current Resource Allocation

DESIRED FEATURES OF THE MODEL A New Model should be: • Flexible enough to adjust to the evolving landscape of higher education and the evolving needs of the UWM campus community • Predictive to allow campus units to anticipate their future resource allocations and, subsequently, set long term goals. • Simple and easily understood by the campus community • Incentivizing for desired behaviors and outcomes • Inclusive of the viewpoints of campus leadership and governance groups • Strategic in nature

Recommended Adjustments Summary of Changes #1 Distinguish between the flow of state appropriations and tuition revenue. Use state appropriations to primarily fund non-academic support functions #2 Create a Subvention fund to: a. Support Academic Units b. Help fund Support units c. Help soften the impact of sudden enrollment downturns d. Provide means for exploring new strategic opportunities #3 Subvention Pool Funding: 1. 20% of unrestricted Tuition revenue to subvention Pool, 80% distributed to Schools and Colleges. 2. 80% of Federal Indirect cost recoveries should flow back to school/colleges and 20% into the subvention pool 3. 100% of unrestricted State Appropriations to subvention pool #3 Pool and Distribute undergraduate tuition & academic fee revenue based on: • credit-granting school/college • degree majors • degrees awarded #4 Di t ib t d t t iti b d100%

Model Testing Process Test Environment 1. All Funds Approach Fund Category Fund # Fund Description 101 General Program Operations: Doctoral Universities 104 General Program Operations: University Extension 109 General Program Operations: Energy Costs 110 General Program Operations: Principal Repayment & Interest GPR 402 General Program Operations: Minority and Disadvantaged Programs 403 General Program Operations: Advanced Opportunity Program 406 General Program Operations: Lawton Minority Undergrad Retention Grant Program 131 General Program Operations: Academic Student Fees & Differential Tuition Tuition General Program Operations: Extension Student Fees, Special Course Fees & Fees in 189 Lieu of Tuition User Fees, Special Course Fees & Student Segregated Fees 128 Auxiliary 228 Debt Service General Ops 136 Other Operating Receipts. Examples: ESL, Remedial, etc. Fed Indirect 150 Federal Indirect Costs Reimbursement 123 Principal Repayment (Debt Service) 132 General Operations Receipts: Non-Credit Outreach Other 181 Program Revenue: Great Lakes Studies 184 Program Revenue: License Plate Scholarship Program 133 Non-Federal Grants and Contracts 134 Gifts-Student Loans 144 Federal Grants and Contracts 145 Federal Aid- Work Study Restricted 161 Trust Fund Income 190 Solid Waste Research & Experiments 233 Gifts - General 100

Model Testing Process Test Environment Organization of Affected Units Academic Affairs Central Admin Support 05 - Academic Affairs 01 - General Educ Admin 34 - Office of Research 02 - Finance & Admin Affairs 35 - Graduate School 40 - UITS 50 - Library 97 - Academic Support 10 - Health Sciences Student Affairs 11 - Architecture & Urban Planning 03 - Student Affairs 12 - Business 17 - Education Campus Wide Functions 19 - Engineering 21 - Arts 98 - Unitwide 25 - Freshwater Sciences 48 - Letters & Science 51 - Information Studies 65 - Nursing 70 - Public Health 86 - Social Welfare 90 - Continuing Education

Model Testing Process Test Environment Current State: 1. Fiscal Year 2013-14 Data (Total = $516M) 2. State Appropriation & Tuition are Combined into the GPR/Fee Pool ($234M), i.e. Fund 101 3. ‘Tuition’ consists of a. 189 Revenue ($34M) b. 131 Tuition not Included in the GPR/Fee Pool – Fund 101 ($38M) 4. Tuition Distribution Reflects Marginal Tuition Distribution Model 5. ‘Hold Harmless’ all campus units

Model Testing Process Summary - All Funds FY 2013-14 Actual Modified Unrestricted Restricted Total Division GPR Tuition Auxiliary General Ops Fed Indirect Other Current 13-14 Central Admin Support 01 - General Educ Admin 7,266,971 1,305,129 48,500 129,230 - - 378,272 9,128,102 02 - Finance & Admin Affairs 35,551,266 - 7,913,250 (1,289,563) 933,292 - 863,724 43,971,969 40 - UITS 7,656,394 1,451,500 1,351,344 1,161,167 109,305 - 11,259 11,740,969 Total - Central Admin Support 50,474,631 2,756,629 9,313,094 834 1,042,597 - 1,253,254 64,841,039 Student Affairs 03 - Student Affairs 4,283,884 5,361,942 70,387,357 1,724,313 4,606 4,924 2,944,283 84,711,310 Total - Student Services 4,283,884 5,361,942 70,387,357 1,724,313 4,606 4,924 2,944,283 84,711,310 Academic Affairs 05 - Academic Affairs 10,223,651 1,668,706 2,283,473 1,287,666 84,108 4,373 3,235,139 18,787,116 34 - Office of Research 2,391,595 - - (63,179) 538,669 - (69,326) 2,797,758 35 - Graduate School 3,633,009 - - 139,229 1,552,418 - 890,722 6,215,378 50 - Library 7,916,495 - - 88,097 222,914 - 333,616 8,561,123 97 - Academic Support 3,671,100 - - - - - - 3,671,100 Total - Academic Support 27,835,850 1,668,706 2,283,473 1,451,813 2,398,109 4,373 4,390,151 40,032,475 10 - Health Sciences 8,804,818 2,067,651 6,230 208,615 252,956 177,338 1,861,408 13,379,016 11 - Architecture & Urban Planning 3,696,415 845,802 3,390 73,824 42,385 19,900 375,337 5,057,052 12 - Business 12,056,480 2,029,990 - 2,285,690 213,331 - 966,787 17,552,277 17 - Education 8,571,587 2,858,011 19,535 486,194 248,052 61,470 3,603,343 15,848,192 19 - Engineering 12,272,224 1,523,398 - 232,655 528,966 - 7,084,608 21,641,851 21 - Arts 9,778,226 2,404,004 224,906 516,091 171,442 133,668 428,030 13,656,366 25 - Freshwater Sciences 2,532,815 - - 182,700 276,834 48,983 4,485,087 7,526,419 48 - Letters & Science 37,712,350 24,872,962 113,338 2,189,234 2,327,041 (839) 21,766,420 88,980,506 51 - Information Studies 2,663,259 1,913,504 - 419,500 46,193 25,000 233,208 5,300,664 65 - Nursing 6,674,860 1,352,661 159,560 439,597 175,621 - 1,506,102 10,308,401 70 - Public Health 2,394,167 15,284 - 32,535 88,623 - 1,329,086 3,859,695 86 - Social Welfare 3,537,431 369,760 8,920 274,054 270,919 28,900 4,885,939 9,375,923 90 - Continuing Education 3,035,450 127,892 313,200 123,821 38,490 3,857,417 1,323,874 8,820,143 Total - Schools & Colleges 113,730,082 40,380,919 849,079 7,464,510 4,680,851 4,351,836 49,849,228 221,306,505 Total - Academic Affairs 141,565,932 42,049,625 3,132,552 8,916,323 7,078,960 4,356,209 54,239,379 261,338,980 Campus Wide Functions 98 - Unitwide 77,831,349 21,583,353 3,782,247 93,966 1,619,214 26,724 (28,121) 104,908,732 Total - Campus Wide Functions 77,831,349 21,583,353 3,782,247 93,966 1,619,214 26,724 (28,121) 104,908,732 Grand Total 274,155,796 71,751,549 86,615,250 10,735,436 9,745,378 4,387,857 58,408,796 515,800,061