University of Michigan-Flint

New Budget Model

First Year Results

Introduction 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 first

year under the new system

Objectives of New Budget Model Funding tied to revenue

generated: State appropriation Tuition Special Programs Fees

Facilitates enrollment growth to 8,000 students

Revenue Sources State appropriation Tuition Special programs Fees

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

Settlement Process

• Timing of transfers:• Fees- each semester• Special programs- each

semester• Tuition- end of year

• Updates provided during the year

• Review handout example

Summarized ResultsSummarized Results

TuitionTuition $ 10,948 $ 10,948

Special ProgramsSpecial Programs $ 1,640,019$ 1,640,019

FeesFees $ 2,162,151$ 2,162,151

Total DistributedTotal Distributed $ 3,813,118$ 3,813,118

Summarized Results CAS $ 583,438

SEHS $ 388,792SHPS $ 354,871SOM $ 243,122OEL $ 511,304Total Academic $ 2,081,527

Support Units $ 627,091Gen. Administration $ 1,104,500

Total Distributed $ 3,813,118

Summarized Support Unit ResultsSummarized Support Unit Results

ChancellorChancellor $ 8,778$ 8,778

ProvostProvost $ 70,248$ 70,248

Associate ProvostAssociate Provost $ 278,828$ 278,828

SSEMSSEM $ 118,903$ 118,903

VCAVCA $ 139,812$ 139,812

VCIAVCIA $ 10,522$ 10,522

Total Support UnitsTotal Support Units $ 627,091$ 627,091

Summarized General Summarized General AdministrationAdministration ResultsResults

MS-CIS revenue (5%) $ 3,280

MA-Ed Tech revenue (5%) $ 5,190

MAC revenue (5%) $ 19,521

NetPlus revenue (10%) $ 138,807

Credit Option revenue (40%) $ 36,169

Online Course fee revenue $ 56,633 ($3 of the $43 charged)

Registration fee revenue (100%) $ 844,900

Total General Administration $ 1,104,500

Setting FY 07 BudgetSetting FY 07 Budget

Revenue targets:Revenue targets:Undergraduate- assumed tuition up 7.9% and Undergraduate- assumed tuition up 7.9% and enrollment down 2%enrollment down 2%

Graduate- assumed tuition up 4% with varied Graduate- assumed tuition up 4% with varied enrollment assumptions by programenrollment assumptions by program

Change in State AppropriationChange in State Appropriation

Change in Fixed CostsChange in Fixed Costs

Review handout exampleReview handout example

FY 07 Undergraduate FY 07 Undergraduate Revenue TargetsRevenue Targets

CASCAS $ 22,693,096$ 22,693,096 SEHSSEHS $ 2,977,971$ 2,977,971 SHPSSHPS $ 3,034,158$ 3,034,158 SOMSOM $ 2,664,500$ 2,664,500 OELOEL $ 396,274$ 396,274

Total RevenueTotal Revenue $ 31,765,999$ 31,765,999

Lessons Learned

Budget model worked well Level of understanding varies Results varied by unit Graduate payouts exceeded target Undergraduate payouts somewhat

disappointing Budget model payouts in line with

enrollment

How to Benefit from New Model• Give top priority to revenue and

enrollment growth• Set aside a reasonable reserve,

then invest the rest to support increasing enrollment

• Consider deployment of limited resources to areas with highest growth potential

• Work cooperatively with other groups to increase enrollment

ResourcesResources

VCA OfficeVCA Office Dave BarthelmesDave Barthelmes

Financial ServicesFinancial Services Jerry GlascoJerry Glasco

WebsiteWebsite

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

Questions

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