new budget model third year results. prior budget system featured central control and fixed budgets...

New Budget ModelThird Year Results

• Prior budget system featured central control and fixed budgets

• New budget system is variable with decentralized decision-making

• New system began in July 2005

• This report summarizes results for the third year under the new system.

Note: Prior agreements for special programs, fees and carry forward policy are incorporated into the new

budget model.

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Regular Tuition Special Program Tuition

Fee Revenue Regular Tuition Special Program Tuition

Fee Revenue Regular Tuition Special Program Tuition

Fee Revenue

FY06 FY07 FY08

College of Arts & Sciences

Actual Revenue Budgeted Revenue

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$1M

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$4M

Regular Tuition Special Program Tuition

Fee Revenue Regular Tuition Special Program Tuition

Fee Revenue Regular Tuition Special Program Tuition

Fee Revenue

FY06 FY07 FY08

School of Education & Human Services

Actual Revenue Budgeted Revenue

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$1M

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$6M

$7M

Regular Tuition Special Program Tuition

Fee Revenue Regular Tuition Special Program Tuition

Fee Revenue Regular Tuition Special Program Tuition

Fee Revenue

FY06 FY07 FY08

School of Health Professions & Studies

Actual Revenue Budgeted Revenue

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$6M

Regular Tuition Special Program Tuition

Fee Revenue Regular Tuition Special Program Tuition

Fee Revenue Regular Tuition Special Program Tuition

Fee Revenue

FY06 FY07 FY08

School of Management

Actual Revenue Budgeted Revenue

Note: The special revenue agreement for NetPlus ended in FY07, resulting in the reallocation of both actual and budgeted tuition revenue from Special Program Tuition to Regular Tuition in FY08.

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$1.5M

Regular Tuition Special Program Tuition

Fee Revenue Regular Tuition Special Program Tuition

Fee Revenue Regular Tuition Special Program Tuition

Fee Revenue

FY06 FY07 FY08

Office of Extended Learning

Actual Revenue Budgeted Revenue

FY06: 3%FY07: 5%FY08: 9%

FY06 FY07 FY08

Tuition Settlement (One-Time Funds) $0.40M $0.72M $0.84M

Total Base Budget + Fee Allocation $15.44M $16.22M $17.30M

If Incremental (Old) System Were Used $15.44M $16.07M $16.72M

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College of Arts & Sciences

How has the new budget model impacted available funding as compared to the old system?

FY06: 14%FY07: 14%FY08: 10%

How has the new budget model impacted available funding as compared to the old system?

FY06 FY07 FY08

Tuition Settlement (One-Time Funds) $0.36M $0.20M -$0.02M

Total Base Budget + Fee Allocation $2.59M $2.86M $3.12M

If Incremental (Old) System Were Used $2.59M $2.68M $2.83M

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$6M

School of Education & Human Services

FY06: 7%FY07: 13%FY08: 25%

How has the new budget model impacted available funding as compared to the old system?

FY06 FY07 FY08

Tuition Settlement (One-Time Funds) $0.27M $0.47M $0.88M

Total Base Budget + Fee Allocation $3.99M $4.19M $4.68M

If Incremental (Old) System Were Used $3.99M $4.13M $4.43M

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$6M

School of Health Professions & Studies

FY06: 5%FY07: 1%FY08: 0%

How has the new budget model impacted available funding as compared to the old system?

FY06 FY07 FY08

Tuition Settlement (One-Time Funds) $0.21M $0.28M $0.06M

Total Base Budget + Fee Allocation $4.30M $4.50M $4.85M

If Incremental (Old) System Were Used $4.30M $4.73M $4.92M

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$6M

School of Management

FY06: -4%FY07: -8%FY08: -12%

How has the new budget model impacted available funding as compared to the old system?

FY06 FY07 FY08

Tuition Settlement (One-Time Funds) -$0.05M -$0.05M -$0.10M

Total Base Budget + Fee Allocation $1.10M $1.35M $1.41M

If Incremental (Old) System Were Used $1.10M $1.40M $1.49M

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$5M

Office of Extended Learning

FY06: 0%FY07: 1%FY08: 3%

How has the new budget model impacted available funding as compared to the old system?

FY06 FY07 FY08

Tuition Settlement (One-Time Funds) $0.01M $0.03M $0.02M

Total Base Budget + Fee Allocation $2.37M $2.48M $2.48M

If Incremental (Old) System Were Used $2.37M $2.48M $2.44M

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$5M

Chancellor Group

FY06: 2%FY07: 4%FY08: 14%

How has the new budget model impacted available funding as compared to the old system?

FY06 FY07 FY08

Tuition Settlement (One-Time Funds) $0.07M $0.11M $0.38M

Total Base Budget + Fee Allocation $3.91M $4.02M $4.18M

If Incremental (Old) System Were Used $3.91M $3.97M $3.99M

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$1M

$2M

$3M

$4M

$5M

Provost's Administrative Group

Note: The increase in FY08 is due to revenue generated by the Early College program and First Year Experience courses, which are administered by the Provost’s Office.

FY06: 3%FY07: 6%FY08: 6%

How has the new budget model impacted available funding as compared to the old system?

FY06 FY07 FY08

Tuition Settlement (One-Time Funds) $0.10M $0.14M $0.10M

Total Base Budget + Fee Allocation $3.47M $3.78M $4.24M

If Incremental (Old) System Were Used $3.47M $3.70M $4.08M

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$5M

Associate Provost's Group

FY06: 1%FY07: 1%FY08: 1%

How has the new budget model impacted available funding as compared to the old system?

FY06 FY07 FY08

Tuition Settlement (One-Time Funds) $0.02M $0.07M $0.02M

Total Base Budget + Fee Allocation $3.03M $3.06M $3.15M

If Incremental (Old) System Were Used $3.03M $3.11M $3.13M

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$5M

VC for Student Services & Enrollment Mgmt

FY06: 0%FY07: 0%FY08: 0%

How has the new budget model impacted available funding as compared to the old system?

FY06 FY07 FY08

Tuition Settlement (One-Time Funds) $0.00M $0.00M $0.00M

Total Base Budget + Fee Allocation $3.16M $3.48M $3.72M

If Incremental (Old) System Were Used $3.16M $3.48M $3.72M

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$5M

Student Aid

FY06: 1%FY07: 2%FY08: 4%

How has the new budget model impacted available funding as compared to the old system?

FY06 FY07 FY08

Tuition Settlement (One-Time Funds) $0.04M $0.15M $0.06M

Total Base Budget + Fee Allocation $8.38M $8.87M $9.39M

If Incremental (Old) System Were Used $8.38M $8.81M $9.07M

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$6M

$8M

$10M

VC for Administration

FY06: 1%FY07: 1%FY08: 1%

How has the new budget model impacted available funding as compared to the old system?

FY06 FY07 FY08

Tuition Settlement (One-Time Funds) $0.01M $0.04M $0.01M

Total Base Budget + Fee Allocation $1.30M $1.32M $1.36M

If Incremental (Old) System Were Used $1.30M $1.35M $1.35M

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VC for Institutional Advancement

Revenue Targets:• Undergraduate – assumed tuition up 5.9% and enrollment up

2%• Graduate – assumed tuition up 4.9% with varied enrollment

assumptions by program

Change in State Appropriations

Change in Fixed Costs Note: Fixed costs include utilities, debt service payments,

maintenance contracts, business operation and insurance recharges.

Budget Model Worked Well

Level of understanding varies

Results varied by unit

Graduate payouts exceeded targets

Undergraduate payouts exceeded targets

Budget model payouts in line with enrollment

Give top priority to revenue and enrollment growth

Set aside a reasonable reserve, then invest the rest to support increasing enrollment

Consider deployment of available resources to areas with highest growth potential

Work cooperatively with other groups to increase enrollment

VCA Office Dave Barthelmes

Financial Services Jerry GlascoChristy Brownell

Website http://umflint.edu/resources/offices/administration/index/php

How is the budget set for the campus? The budget is set based on assumptions regarding

enrollment and tuition rates, state appropriations, changes in fixed costs and new initiatives.

How is my base budget determined each year? Each unit’s base budget is determined based on its share

of dollars assumed for revenue, state appropriations, fixed costs, and new initiatives.

How is my merit funded?Merit is covered by increases to budgets for a given year.