This page provides a conceptual overview of how the budget model works. It is intended to explain the logic and structure—not finalize specific formulas or outcomes.
Core Building Blocks
1. Revenue Sources
University resources come from multiple sources, including:
- Tuition and fees
- State appropriations
- Research funding
- Gifts and endowment support
- Auxiliary operations
The model defines how these revenues are categorized and understood.
2. Expense Categories
Expenses are grouped into major categories such as:
- Instruction and academic support
- Research
- Student support
- Administrative and central services
- Facilities and infrastructure
Clear definitions help ensure consistency and transparency.
3. Funds Flow
“Funds flow” describes how revenues move through the institution to support activities.
The model documents:
- Which revenues support central services
- Which revenues are attributed to units
- How shared costs are recognized
This clarity is essential for understanding tradeoffs and incentives.4. Central vs. unit responsibilities
4. Central vs. Unit Responsibilities
Some costs are best managed centrally; others are managed at the unit level.
The budget model:
- Clearly distinguishes these responsibilities
- Makes central services visible rather than implicit
- Supports informed discussions about service levels and costs
5. Incentives and Tradeoffs
Every budget model creates incentives—intentionally or unintentionally.
Design considerations include:
- Enrollment growth and mix
- Research activity
- Space and facilities usage
- Administrative efficiency
The goal is to align incentives with institutional priorities.
6. Decision Support (Not Decision-Making)
The model provides tools to:
- Test scenarios
- Understand impacts before decisions are made
- Support leadership and governance discussions
It does not replace judgment, governance, or academic leadership.
What Comes Next
As the initiative progresses, this page will be updated with:
- Examples and visuals
- Clarified definitions
- Summaries of agreed-upon principles