ASL Budget Forum

February 28, 2017

Today’s AgendaWhere we left off

Core Principles

Feedback overview

Key changes

College Case Study – CAH

Next Steps

Questions/Comments

Fall RCM Model1. Pay Overhead (academic support +

institutional support) expenses first – not an overhead rate

2. Remaining revenues shared by four colleges based on allocation formula:• 80% Student Credit Hours• 10% Majors• 5% Pre-majors• 5% Graduation Ratio

3. Create Expense Budgets

Rolling three year average

Some Known Issues

3 Year Rolling average

• Intended to protect in downturn, takes too long in growth

Can encourage silos

• Rearranging the deck chairs

May not reward investments in new programs

• Not enough direct linkage between programs and SCH

What Else?

Core Principles (Faculty Senate)

As faculty, we value:

The success of our students The quality of our academic programs and the

student experience. Our identity as a comprehensive university Effective student-faculty interactions Interdisciplinarity, in both teaching and research. Diversity among students, faculty, and staff The whole of faculty life

Additional Feedback

• Three year rolling average

• Premajors/Majors

• College vs. Department level

• Education

• Research/Grants

• Supporting new programs

Key Changes (1 of 3)Model Element Fall Model New Model

Lookback Period Three Years One Year

SCH 80% - Proportionate Share 100%70% to College of Instruction30% to Admin. College (major)

Pre-Major 5% - Proportionate Share Not used

Major 10% - Proportionate Share Not used

Graduation Ratio 5% - Proportionate Share Not used

Graduate vs Undergrad

Not used Grad & Undergrad consideredindependently (70/30 split)

Tuition Waivers Not used Waiver follows student (70/30 split)

Allocation precision Departmental level College level

Key Changes (2 of 3)Model Element Fall Model New Model

State Funding Included Included

Academic Support &Institutional Overhead

Pay fixed costs first, remainder to Colleges

All revenues go to colleges, support & overhead allocated

Facilities costs Fixed cost, off the top Allocated based on control and usage

Reserves Not considered Included - Instructional Equipment- Instructional Technology- Desktop Replacement- Institutional Reserve

Key Changes (3 of 3)

Model Element Fall Model New Model

Funds Included Included only Fund 149 (state/tuition)

Includes both Fund 148 (summer/fees) and Fund 149 (state/tuition)

Efficiency Targets Not considered (only implied)

Explicit – both ASL and Overhead

Provost Subvention 90% rule Provost discretion

Dean Subvention Dean Dean, budget committee

Over/Under allocated revenues (mid-year)

100% to Provost 100% to Provost

Carryforward (unspent funds)

Colleges retain up to 5% of budget.Provost & President share remainder (62/38)

Same, but College carryforward plan required

Incentive elementsNew Program Fund

• $500k replenishing startup fund (Provost)

• Formal proposal required – new SCH only

• 2 year relief from cost allocations

Grant & Research Incentive

• Provost indirect revenue growth over 2016 baseline split between Provost and the Colleges driving the growth

CAH Case Study – RevenueDraft – For Discussion Purposes Only

FY18 RCM

Revenue ModelCollege of Arts &

Humanities

Academic Unit

Total

Revenues

Grad Tuition (Gross) 614,446$ 5,368,481$

Grad Tuition Waivers (511,189) (2,603,269)

Grad Tuition Net 103,257 2,765,212

Undergrad Tuition (Gross) 14,370,879 66,983,166

Undergrad Tuition Waivers (3,088,142) (12,485,493)

Undergrad Tuition Net 11,282,737 54,497,673

Tuition Backfill 2,290,118 10,844,640

Total State Allocation 10,494,347 49,695,000

Total State & Tuition Revenue 24,170,460 117,802,525

Blended Revenue % 20.52%

CAH Case StudyAcademic Support Allocation

Draft – For Discussion Purposes Only

Cost AllocationsCollege of Arts &

Humanities

Academic Unit

Total

ACADEMIC SUPPORT

Includes:

Provost/Assoc Provost

University Centers

Student Success

Graduate Studies & Research

Library

International Programs

Less: Efficiency Target (69,885) (340,609)

Total Academic Support Allocation 3,424,386 16,689,848

Total Academic Support Allocation 3,424,386 16,689,848

17,030,457 3,494,271

CAH Case Study Overhead Allocation

Draft – For Discussion Purposes Only

Cost AllocationsCollege of Arts &

Humanities

Academic Unit

Total

INSTITUTIONAL OVERHEAD

Includes:

President's Division

Operations Division (excl. Facilities)

Facilities

Enrollment Mgmt Division

Business & Fin Affairs Division

Central Budgets

Administrative Fee

Less: Efficiency Target (183,039) (892,099)

Total Institutional Overhead Allocation 8,858,159 41,712,875

Total Indirect Allocations 12,282,544 58,402,723

42,604,975 9,041,198

CAH Case StudyRevenue Summary

Draft – For Discussion Purposes Only

Revenue SummaryCollege of Arts &

Humanities

Academic Unit

Total

Total State & Tuition Revenue 24,170,460

Less: Instructional Equipment Reserve - 1,000,000

Less: Instructional Technology Reserve - 1,000,000

Less: Desktop Replacement Reserve - 750,000

Less: Institutional Reserves - 700,000

Net Revenue Alloc.- State/Tuition (149) 11,887,916 55,949,802

Net Revenue Estimate - Self Support (148) 2,006,818 10,933,270

Total Available Resources 13,894,734 66,883,072

CAH Case Study – ExpensesDraft – For Discussion Purposes Only

Income Statement SummaryCollege of Arts &

Humanities Total

Total Available Resources 13,894,734 66,883,072

2016 Actual Expenses - Self Support (148) (1,853,377) (10,169,620)

2018 Estimated Expenses - State/Tuition (149) (13,359,320) (58,245,364)

Less: Efficiency Target (combined) 347,368 1,758,327

Net before subvention (970,595) 226,415

Less: Provost Subvention 970,595 -

Net (Revenue minus estimated expenses) (0) 226,415

Benefits of RCM

Transparency

• Open college-wide conversations about the budget

• Increased college-wide efficiency

• Mission clarity

College unity/less siloing

Innovations

• Emphasis on leveraging strengths and creativity

Strategies Going Forward

Efficiencies

• Curricular review

• Class capacity and right-sizing

• Maximize schedule

• Space usage

New programs

• Interdisciplinary, leverage strengths, partnerships

Discussion

Next Steps• Remaining Winter Quarter forums

– See www.cwu.edu/budget/overview

• Submit questions or feedback to newbudgetmodel@cwu.edu

• Spring Forums

– Rollout of final model

– Formation of Governance structure

• Budget Summit