NEW BUDGET MODEL

Provost Kent FuchsVice President Elmira Mangum

CAMPUS WIDE FORUMS December 12 & 20, 2012

New Budget Model Principles

• Consistent distribution of revenues and costs• Distribute revenues to units• Units pay for all the costs associated with their programs

• Eliminate the “General Purpose” budget • Central Costs

• Expose costs• Allocate central costs to units based on cost drivers

• University Support Pool (USP)• Used for initiatives and subventions• Funded by• Unrestricted central resources• Portion of Tuition from Colleges and Schools, e.g., 10%

Major Categories of Revenues & Expenses to be Distributed

RevenuesUndergraduate Tuition and FeesGraduate Tuition and FeesNew York State Appropriation Philanthropy Endowment Payout (including endowed professorships) F&A from external grants (indirect cost return)

ExpensesCentral Administrative Costs (Allocated Costs)Central Initiatives and Subventions (USP)Undergraduate Financial Aid Graduate Financial AidFacilities & Utilities CostsDebt

All Units

Sources UnitsGifts Endowment Income Sponsored / Federal

Facilities & Administrative Enterprise

/ Other

Undergraduate + Professional

Tuition

GraduateTuition

State Appropriation

CentralUnrestricted Gifts + Investment Income

Administrative Units

Colleges + Academic Units

Contract Colleges + Facilities

True-Up

Provost Allocation

Tuition Pool

USP/

Allocated Costs

Undergraduate Tuition & Financial Aid All academic year undergraduate tuition revenue pooled The pool includes a payment from the NYS Allocation (true

up) USP tax deducted from the pool Remaining tuition pool returned to

the home college in which the student is enrolled college where instruction occurs

Financial Aid The undergraduate financial aid office will package students

using centrally held endowments and grants to reduce the amount distributed to units.

Remaining unmet need is pooled and distributed across all colleges proportional to the tuition they receive. Colleges will be able to use their own financial aid endowments to fund costs.

Financial aid associated with on-campus Housing and Dining

Graduate Tuition & Financial Aid

Graduate Tuition flows directly to Colleges/Schools

Professional student tuition subject to USP (Provost tax)

Research student tuition not subject to USP

Colleges will be responsible for tuition aid

The Graduate School will continue to provide fellowships (stipends and health insurance)

State Appropriation

Equalize in-state undergraduate tuition (true-up)

Support contract colleges

Facilities & Administrative Revenues(indirect cost)

Facilities and Administrative charges (F&A) on grants will primarily be distributed to the college/school expending the research dollars

2% returned to PI

Central research costs will be distributed proportional to external research funding. Research initiative pool managed by SVPR.

Allocated Central Costs

Allocated central costs will be distributed based on the following metrics (proxies for drivers of costs)

Number of graduate and professional students Undergraduate tuition Number of faculty Number of staff Research expenditures Five-year rolling average of gifts received

Central Administration Cost Allocations

Cost Category Distribution Basis

Faculty Proportionate share of academic FTE

Alumni/Development Support Alumni Affairs paid by central resources. Development costs distributed by proportionate share of a five-year rolling average of cash gifts.

Facilities Proportionate share of assigned square footage in all units by category

Utilities Actual billings

Employee Proportionate share of total employee FTE in all units

Research Proportionate share of direct research expenditures

Student Support

All Proportionate share of grad and professional student enrollment and undergraduate student tuition

Undergraduate Proportionate share of undergraduate student tuition

Graduate Proportionate share of graduate and professional student enrollment

Mixed

Students, Faculty, Staff Proportionate share of students, faculty, and staff

Students, Faculty/Academics (Library) Proportionate share of students and faculty and academic personnel

Allocated Central CostsCost Category Amount

Faculty $6,910

Alumni/Development Support $24,586

Facilities $17,431

Utilities -

Employee $15,713

Research $30,589

Student Support -

All $19,799

Undergraduate $28,587

Graduate $12,264

Mixed -

Students, Faculty, Staff $106,527

Students, Faculty/Academics (Library)

$46,512

Total $308,917

Facilities & Utilities

Facilities Operations and Maintenance expenses will be distributed

and paid by all units that have assigned space Charge will reflect averaged costs for the campus based

on classification of space Public facilities will be distributed to all units

Utilities Cost will be paid directly by units

Budget Model Meetings & Forums Finance Officers

November 14 Individual Deans & College Officers

Month of November General Campus Wide Forums

December 12th & 20th Utilities, Maintenance, Building Care, Debt Service

January 8th

Tuition, Enrollment, Financial Aid & State Appropriations January 10th

Allocated Costs, Libraries, University Support Pool (USP) January 17th

Facilities and Administrative Cost (F&A), Research January 24th