[PPT] - UWM Budget Model Development Update UNIVERSITY OF PowerPoint Presentation

SLIDE 1

UNIVERSITY OF WISCONSIN–MILWAUKEE

UWM Budget Model Development Update

SLIDE 2

Budget Model Update

Update Outline

Overview of Current Budget Model
Need and Development Project Plan
Requirements & Campus Input
Review of New Budget Model Desired Features
Review of BMWG Recommended Model Adjustments
Overview of Model Testing Process
Summary of Results of Testing Model & Lessons Learned
Key Implication
Next Steps?

SLIDE 3

Overview of Current Model

Why a New Budget Model Current incremental budget model unable to effectively respond to:

Changes in the higher education landscape:
Shrinking state support
Growing reliance on tuition revenue
Declining or stagnant enrollments
Emerging opportunities for UWM
New initiatives: e.g. Fresh Water Sciences and

Public Health

Partnerships with the business community
Expansion of campus physical footprint

SLIDE 4

Overview of Current Model

Establish guiding principles Requirements gathering: campus input Review and evaluation of alternate approaches to resource allocation Define a basic resource allocation approach Develop budget model changes that will become the framework for new a resource allocation approach

Budget Model Working Group Budget Model Working Group Consultant BMST Budget Model Working Group Consultant BMST Budget Model Working Group

Develop, test and propose budget model Campus leadership approves a conceptual framework

Budget Model Working Group Budget Model Working Group Consultant BMST

Budget Model Working Group Approve a working budget model for presentation and review by campus community Budget Model Working Group Develop an implementation plan for approved budget model Budget Model implementation Team BMST Lead Role Supporting Role Phase 1: Data Gathering Phase 2: Develop basic Framework Phase 3: Model Testing Phase 4: Implementation BMST

Phase 1: Requirements and Best Practices Data Gathering Phase 2: Development and Approval

f the Resource Allocation

Framework Phase 3: Testing the Proposed Model

(Where we are today)

Phase 4: Implementation of the New Mode

Project Plan

SLIDE 5

“Spaghetti Model” - Flow Chart

f Current Resource Allocation

Current Model Concerns:

1. Not responsive enough to overall

enrollment declines

2. Developed piecemeal without regard

to an overall strategy

3. Provides insufficient incentives to

grow

4. Complicated and hard to understand
5. Difficult to link activities and their

related costs

Overview of Current Model

SLIDE 6

DESIRED FEATURES OF THE MODEL

A New Model should be:

Flexible enough to adjust to the evolving landscape of

higher education and the evolving needs of the UWM campus community

Predictive to allow campus units to anticipate their future

resource allocations and, subsequently, set long term goals.

Simple and easily understood by the campus community
Incentivizing for desired behaviors and outcomes
Inclusive of the viewpoints of campus leadership and

governance groups

Strategic in nature

SLIDE 7

Summary of Changes

#1 Distinguish between the flow of state appropriations and tuition revenue. Use state appropriations to primarily fund non-academic support functions #2 Create a Subvention fund to:

a. Support Academic Units
b. Help fund Support units
c. Help soften the impact of sudden enrollment

downturns

d. Provide means for exploring new strategic
pportunities

#3 Subvention Pool Funding:

1. 20% of unrestricted Tuition revenue to subvention

Pool, 80% distributed to Schools and Colleges.

2. 80% of Federal Indirect cost recoveries should flow

back to school/colleges and 20% into the subvention pool

3. 100% of unrestricted State Appropriations to

subvention pool #3 Pool and Distribute undergraduate tuition & academic fee revenue based on:

credit-granting school/college
degree majors
degrees awarded

#4 Di t ib t d t t iti b d100%

Recommended Adjustments

SLIDE 8

1. All Funds Approach

Model Testing Process

Fund Category Fund # Fund Description GPR 101 General Program Operations: Doctoral Universities 104 General Program Operations: University Extension 109 General Program Operations: Energy Costs 110 General Program Operations: Principal Repayment & Interest 402 General Program Operations: Minority and Disadvantaged Programs 403 General Program Operations: Advanced Opportunity Program 406 General Program Operations: Lawton Minority Undergrad Retention Grant Program Tuition 131 General Program Operations: Academic Student Fees & Differential Tuition 189 General Program Operations: Extension Student Fees, Special Course Fees & Fees in Lieu of Tuition Auxiliary 128 User Fees, Special Course Fees & Student Segregated Fees 228 Debt Service General Ops 136 Other Operating Receipts. Examples: ESL, Remedial, etc. Fed Indirect 150 Federal Indirect Costs Reimbursement Other 123 Principal Repayment (Debt Service) 132 General Operations Receipts: Non-Credit Outreach 181 Program Revenue: Great Lakes Studies 184 Program Revenue: License Plate Scholarship Program Restricted 133 Non-Federal Grants and Contracts 134 Gifts-Student Loans 144 Federal Grants and Contracts 145 Federal Aid- Work Study 161 Trust Fund Income 190 Solid Waste Research & Experiments 233 Gifts - General 100

Test Environment

SLIDE 9

Organization of Affected Units

Central Admin Support 01 - General Educ Admin 02 - Finance & Admin Affairs 40 - UITS Student Affairs 03 - Student Affairs Campus Wide Functions 98 - Unitwide Academic Affairs

05 - Academic Affairs 34 - Office of Research 35 - Graduate School 50 - Library 97 - Academic Support 10 - Health Sciences 11 - Architecture & Urban Planning 12 - Business 17 - Education 19 - Engineering 21 - Arts 25 - Freshwater Sciences 48 - Letters & Science 51 - Information Studies 65 - Nursing 70 - Public Health 86 - Social Welfare 90 - Continuing Education

Test Environment

Model Testing Process

SLIDE 10

Current State: 1. Fiscal Year 2013-14 Data (Total = $516M) 2. State Appropriation & Tuition are Combined into the GPR/Fee Pool ($234M), i.e. Fund 101 3. ‘Tuition’ consists of a. 189 Revenue ($34M) b. 131 Tuition not Included in the GPR/Fee Pool – Fund 101 ($38M) 4. Tuition Distribution Reflects Marginal Tuition Distribution Model 5. ‘Hold Harmless’ all campus units

Model Testing Process

Test Environment

SLIDE 11

Summary - All Funds FY 2013-14 Actual Modified Unrestricted Restricted Total Division GPR Tuition Auxiliary General Ops Fed Indirect Other Current 13-14 Central Admin Support 01 - General Educ Admin 7,266,971 1,305,129 48,500 129,230

378,272

9,128,102 02 - Finance & Admin Affairs 35,551,266

7,913,250

(1,289,563) 933,292

863,724

43,971,969 40 - UITS 7,656,394 1,451,500 1,351,344 1,161,167 109,305

11,259

11,740,969 Total - Central Admin Support 50,474,631 2,756,629 9,313,094 834 1,042,597

1,253,254

64,841,039 Student Affairs 03 - Student Affairs 4,283,884 5,361,942 70,387,357 1,724,313 4,606 4,924 2,944,283 84,711,310 Total - Student Services 4,283,884 5,361,942 70,387,357 1,724,313 4,606 4,924 2,944,283 84,711,310 Academic Affairs 05 - Academic Affairs 10,223,651 1,668,706 2,283,473 1,287,666 84,108 4,373 3,235,139 18,787,116 34 - Office of Research 2,391,595

(63,179)

538,669

(69,326)

2,797,758 35 - Graduate School 3,633,009

139,229

1,552,418

890,722

6,215,378 50 - Library 7,916,495

88,097

222,914

333,616

8,561,123 97 - Academic Support 3,671,100

3,671,100

Total - Academic Support 27,835,850 1,668,706 2,283,473 1,451,813 2,398,109 4,373 4,390,151 40,032,475 10 - Health Sciences 8,804,818 2,067,651 6,230 208,615 252,956 177,338 1,861,408 13,379,016 11 - Architecture & Urban Planning 3,696,415 845,802 3,390 73,824 42,385 19,900 375,337 5,057,052 12 - Business 12,056,480 2,029,990

2,285,690

213,331

966,787

17,552,277 17 - Education 8,571,587 2,858,011 19,535 486,194 248,052 61,470 3,603,343 15,848,192 19 - Engineering 12,272,224 1,523,398

232,655

528,966

7,084,608

21,641,851 21 - Arts 9,778,226 2,404,004 224,906 516,091 171,442 133,668 428,030 13,656,366 25 - Freshwater Sciences 2,532,815

182,700

276,834 48,983 4,485,087 7,526,419 48 - Letters & Science 37,712,350 24,872,962 113,338 2,189,234 2,327,041 (839) 21,766,420 88,980,506 51 - Information Studies 2,663,259 1,913,504

419,500

46,193 25,000 233,208 5,300,664 65 - Nursing 6,674,860 1,352,661 159,560 439,597 175,621

1,506,102

10,308,401 70 - Public Health 2,394,167 15,284

32,535

88,623

1,329,086

3,859,695 86 - Social Welfare 3,537,431 369,760 8,920 274,054 270,919 28,900 4,885,939 9,375,923 90 - Continuing Education 3,035,450 127,892 313,200 123,821 38,490 3,857,417 1,323,874 8,820,143 Total - Schools & Colleges 113,730,082 40,380,919 849,079 7,464,510 4,680,851 4,351,836 49,849,228 221,306,505 Total - Academic Affairs 141,565,932 42,049,625 3,132,552 8,916,323 7,078,960 4,356,209 54,239,379 261,338,980 Campus Wide Functions 98 - Unitwide 77,831,349 21,583,353 3,782,247 93,966 1,619,214 26,724 (28,121) 104,908,732 Total - Campus Wide Functions 77,831,349 21,583,353 3,782,247 93,966 1,619,214 26,724 (28,121) 104,908,732 Grand Total 274,155,796 71,751,549 86,615,250 10,735,436 9,745,378 4,387,857 58,408,796 515,800,061

Model Testing Process

SLIDE 12

Summary of Test Results

Treatment of GPR/Fee Pool – What We Learned

Redbook GPR/Fee Total (All Funds) = $274M

Of this $122M is State Tax Appropriation
$152M is Tuition Revenue

Distribution of the $122M State Tax Appropriation Of the $82M - $66M is budgeted for GPR Fringe Benefits (restricted)!

Leaving only $16M in general purpose (unrestricted) State Appropriations!

$122M GPR (All Funds) budget

$2M Fund 104 – Special Purpose – University Extension (restricted)
$12M Fund 109 – Special Purpose - Utility Funds (restricted)
$18M Fund 110 – Special Purpose - Debt Service (restricted)
$2M Fund 403 – Spec. Purpose - Advanced Opportunity Program (restricted)
$2M Fund 406 – Spec. Purpose – Minority Retention Grants (restricted)
$3M Fund 402 – Spec. Purpose – Minority & Disadvantaged Prog. (restricted)
$481K Fund 150 – Historic Swap (restricted)

$82M Fund 101 – General Operating Funds

SLIDE 13

Distribution of Fringe Benefit Funding & Expenses

Distribution of the Funds 101

& 402 Fringe Benefit Pool

Distributing $61M of the

budgeted $66M

$5M is retained in Unit Wide

for end of year reconciliation

Historically managed by

Central Administration as part

f the ‘Unit Wide’ account
Not originally contemplated

but done in the spirit of ‘transparency’

Summary of Test Results

Summary - All Funds 101 GPR Fringe Benefit Allocations 402 GPR Fringe Benefit Allocations Modified Unrestricted Modified Unrestricted Division GPR GPR Central Admin Support 01 - General Educ Admin 2,975,878 47,545 02 - Finance & Admin Affairs 8,250,460

40 - UITS

2,604,028

Total - Central Admin Support

13,830,366 47,545 Student Services 03 - Student Affairs 756,040 113,949 Total - Student Services 756,040 - 113,949 Academic Functions 05 - Academic Affairs 2,372,997 447,139 34 - Office of Research 647,704

35 - Graduate School

428,561

50 - Library

1,599,994

97 - Academic Support

291,244

Total - Academic Support

5,340,501 447,139 10 - Health Sciences 2,777,959

11 - Architecture & Urban Planning

1,384,358

12 - Business

4,491,728

17 - Education

3,062,766 4,669 19 - Engineering 4,035,719 42,887 21 - Arts 3,518,951

25 - Freshwater Sciences

940,511

48 - Letters & Science

13,332,219 186,335 51 - Information Studies 984,125

65 - Nursing

2,418,050

70 - Public Health

811,702

86 - Social Welfare

1,298,975

90 - Continuing Education

406,897 1,222 Total - Schools & Colleges 39,463,960 235,113 Total - Academic Functions 44,804,461 682,252 Campus Wide Functions 98 - Unitwide 988,410 3,998 Total - Campus Wide Functions 988,410 - 3,998 Grand Total 60,379,276 847,744

SLIDE 14

Summary of Test Results

Treatment of GPR/Fee Pool – What We Learned Of the $122 in State Appropriation, $106 is allocated as restricted with

nly $16 was available for

the Subvention Fund

SLIDE 15

Model Testing Process

Distribution of Restricted Funding

Division

Restricted GPR

Other Restricted Central Admin Support 01 - General Educ Admin 3,148,542

378,272

02 - Finance & Admin Affairs 20,420,555

863,724

40 - UITS 2,604,028

11,259

Total - Central Admin Support 26,173,125

1,253,254

Student Services 03 - Student Affairs 3,441,953 4,924 2,944,283 Total - Student Services 3,441,953 4,924 2,944,283 Academic Functions 05 - Academic Affairs 4,032,363 3,499 3,235,139 34 - Office of Research 647,704

(69,326)

35 - Graduate School 2,353,461

890,722

50 - Library 1,599,994

333,616

97 - Academic Support 291,244

Total - Academic Support

8,924,766 3,499 4,390,151 10 - Health Sciences 2,777,959 141,870 1,861,408 11 - Architecture & Urban Planning 1,394,234 15,920 375,337 12 - Business 4,491,728

966,787

17 - Education 3,087,157 49,176 3,603,343 19 - Engineering 4,187,394

7,084,608

21 - Arts 3,518,951 106,934 428,030 25 - Freshwater Sciences 940,511 48,983 4,485,087 48 - Letters & Science 14,024,252 (671) 21,766,420 51 - Information Studies 984,125 20,000 233,208 65 - Nursing 2,445,704

1,506,102

70 - Public Health 811,702

1,329,086

86 - Social Welfare 1,298,975 23,120 4,885,939 90 - Continuing Education 2,713,844 3,085,933 1,323,874 Total - Schools & Colleges 42,676,535 3,491,265 49,849,228 Total - Academic Functions 51,601,301 3,494,764 54,239,379 Campus Wide Functions 98 - Unitwide 25,386,430

1,338,990

Total - Campus Wide Functions 25,386,430

1,338,990

Grand Total 106,602,810 3,499,688 59,775,907

SLIDE 16

Treatment of GPR/Fee Pool – What We Learned

Of The $224M

$41M Goes into Subvention Pool
$182 is distributed to Schools/Colleges

Tuition Revenue Budgeted in GPR/Fee Pool – Fund 101 $152M Other 131 Tuition Revenue $38M 189 Tuition Revenue $34M All Tuition Revenue $224M

Summary of Test Results

SLIDE 17

Distribution of Facilities & Administrative Costs Recovery

80% of Federal Indirect cost recoveries should flow back to school/colleges and 20% into the subvention pool.

$2M into Subvention Pool
$8M distributed to Schools

and Colleges

Summary of Test Results

SLIDE 18

Distribution of Auxiliary Revenues and General Operations (Miscellaneous) Revenues

Tax into subvention pool based

n historically set amounts.
$4M into Subvention Pool
$79M to Non-Academic Support

& Campus Overhead

$3M to Academic Support
$11M to Schools & Colleges w

Continuing Ed

Summary of Test Results

SLIDE 19

Summary

f Funding

Allocation s

Pre-

Subventio n Allocation s

$453M in

Base Distributions

Summary of Test Results

Summary - All Funds New Model Unadjusted Allocations (+ GPR Fringe Allocations) Modified Unrestricted Restricted Total Division GPR Tuition Auxiliary General Ops Indirects Other Base - New Model Central Admin Support 01 - General Educ Admin 3,148,542

48,500

129,230

378,272

3,704,544 02 - Finance & Admin Affairs 20,420,555

7,913,250 (1,289,563)
863,724 27,907,966

40 - UITS 2,604,028

1,351,344 1,161,167
11,259

5,127,798 Total - Central Admin Support 26,173,125

9,313,094

834

1,253,254 36,740,308

Student Services 03 - Student Affairs 3,441,953

70,387,357 1,724,313

12,284 4,924 2,944,283 78,515,115 Total - Student Services 3,441,953

70,387,357 1,724,313

12,284 4,924 2,944,283 78,515,115 Academic Functions 05 - Academic Affairs 4,032,363

2,283,473 1,287,666

224,289 3,499 3,235,139 11,066,428 34 - Office of Research 647,704

(63,179)
(69,326)

515,199 35 - Graduate School 2,353,461

139,229

9,560

890,722

3,392,972 50 - Library 1,599,994

88,097

11,478

333,616

2,033,185 97 - Academic Support 291,244

291,244

Total - Academic Support 8,924,766

2,283,473 1,451,813

245,327 3,499 4,390,151 17,299,029 10 - Health Sciences 2,777,959 12,680,652 6,230 208,615 280,934 141,870 1,861,408 17,957,668 11 - Architecture & Urban Planning 1,394,234 4,778,029 3,390 73,824 19,692 15,920 375,337 6,660,425 12 - Business 4,491,728 27,743,920

2,285,690

35,548

966,787 35,523,673

17 - Education 3,087,157 13,207,657 19,535 486,194 386,806 49,176 3,603,343 20,839,867 19 - Engineering 4,187,394 10,904,947

232,655

1,559,726

7,084,608 23,969,330

21 - Arts 3,518,951 13,151,702 224,906 516,091 3,844 106,934 428,030 17,950,459 25 - Freshwater Sciences 940,511 177,382

182,700

722,933 48,983 4,485,087 6,557,596 48 - Letters & Science 14,024,252 77,707,765 113,338 2,189,234 3,594,777 (671) 21,766,420 119,395,115 51 - Information Studies 984,125 6,662,836

419,500

3,180 20,000 233,208 8,322,849 65 - Nursing 2,445,704 7,870,596 159,560 439,597 182,280

1,506,102 12,603,839

70 - Public Health 811,702 387,115

32,535

209,662

1,329,086

2,770,101 86 - Social Welfare 1,298,975 6,866,113 8,920 274,054 435,872 23,120 4,885,939 13,792,992 90 - Continuing Education 2,713,844 (173,122) 313,200 123,821 103,438 3,085,933 1,323,874 7,490,988 Total - Schools & Colleges 42,676,535 181,965,592 849,079 7,464,510 7,538,691 3,491,265 49,849,228 293,834,901 Total - Academic Functions 51,601,301 181,965,592 3,132,552 8,916,323 7,784,018 3,494,764 54,239,379 311,133,929 Campus Wide Functions 98 - Unitwide 25,386,430

1,338,990 26,725,420

Total - Campus Wide Functions 25,386,430

1,338,990 26,725,420

Grand Total 106,602,810 181,965,592 82,833,003 10,641,470 7,796,302 3,499,688 59,775,907 453,114,772

SLIDE 20

Summary of Funding Allocations

Pre-Subvention

Allocations

$453M in Base Distributions
a. $294M to Schools &

Colleges and Continuing Ed

b. $17M to Academic

Support

c. $142M to Non-Academic

Support & Campus Overhead

Summary of Test Results

SLIDE 21

Base Allocation to Schools and Colleges

Tuition Revenue

A. Undergrad Tuition Revenue - Pool

and Distribute undergraduate tuition & academic fee revenue based on:

70% credit-granting

school/college

20% degree majors
10% degrees awarded
B. Distribute graduate tuition revenue

based100% on school/college of enrollment

Division Tuition Distribution 10 - Health Sciences 12,680,652 11 - Architecture & Urban Planning 4,778,029 12 - Business 27,743,920 17 - Education 13,207,657 19 - Engineering 10,904,947 21 - Arts 13,151,702 25 - Freshwater Sciences 177,382 48 - Letters & Science 77,707,765 51 - Information Studies 6,662,836 65 - Nursing 7,870,596 70 - Public Health 387,115 86 - Social Welfare 6,866,113 90 - Continuing Education (173,122) Total - Schools & Colleges 181,965,592

Summary of Test Results

SLIDE 22

Base Allocation to Schools and Colleges

Summary of Test Results

Summary - All Funds New Model Base Allocations (+ GPR Fringe Allocations) Modified Unrestricted Restricted Total Division GPR Tuition Auxiliary General Ops Indirects Other Base Allocations 10 - Health Sciences 2,777,959 12,680,652 6,230 208,615 280,934 141,870 1,861,408 17,957,668 11 - Architecture & Urban Planning 1,394,234 4,778,029 3,390 73,824 19,692 15,920 375,337 6,660,425 12 - Business 4,491,728 27,743,920

2,285,690

35,548

966,787

35,523,673 17 - Education 3,087,157 13,207,657 19,535 486,194 386,806 49,176 3,603,343 20,839,867 19 - Engineering 4,187,394 10,904,947

232,655

1,559,726

7,084,608

23,969,330 21 - Arts 3,518,951 13,151,702 224,906 516,091 3,844 106,934 428,030 17,950,459 25 - Freshwater Sciences 940,511 177,382

182,700

722,933 48,983 4,485,087 6,557,596 48 - Letters & Science 14,024,252 77,707,765 113,338 2,189,234 3,594,777 (671) 21,766,420 119,395,115 51 - Information Studies 984,125 6,662,836

419,500

3,180 20,000 233,208 8,322,849 65 - Nursing 2,445,704 7,870,596 159,560 439,597 182,280

1,506,102

12,603,839 70 - Public Health 811,702 387,115

32,535

209,662

1,329,086

2,770,101 86 - Social Welfare 1,298,975 6,866,113 8,920 274,054 435,872 23,120 4,885,939 13,792,992 90 - Continuing Education 2,713,844 (173,122) 313,200 123,821 103,438 3,085,933 1,323,874 7,490,988 Total - Schools & Colleges 42,676,535 181,965,592 849,079 7,464,510 7,538,691 3,491,265 49,849,228 293,834,901

SLIDE 23

Distribution of Subvention Funds – What we Learned

Recall Model Test

Environment: HOLD ALL UNITS HARMLESS

Use Subvention Fund to return

all units to their actual FY14 Funding Levels

Subvention need for specific

School/Colleges = $7.4M

Summary of Test Results

Summary - All Funds Total FY14 Actual Budget Subvention Need Division Base Allocations (+Fringes) (Under) 10 - Health Sciences 17,957,668 16,156,975 11 - Architecture & Urban Planning 6,660,425 6,441,409 12 - Business 35,523,673 22,044,006 17 - Education 20,839,867 18,915,627 19 - Engineering 23,969,330 25,720,457 1,751,127 21 - Arts 17,950,459 17,175,318 25 - Freshwater Sciences 6,557,596 8,466,930 1,909,334 48 - Letters & Science 119,395,115 102,499,061 51 - Information Studies 8,322,849 6,284,789 65 - Nursing 12,603,839 12,726,451 122,612 70 - Public Health 2,770,101 4,671,398 1,901,297 86 - Social Welfare 13,792,992 10,674,897 90 - Continuing Education 7,490,988 9,228,261 1,737,273 Total - Schools & Colleges 293,834,901 261,005,578 7,421,643

School/Colleges Allocations

SLIDE 24

Distribution of Subvention Funds – What we Learned

Recall Model Test

Environment: HOLD ALL UNITS HARMLESS

Use Subvention Fund to return

all units to their actual FY14 Funding Levels

Subvention need for the

Academic Support Units = $28.5M

Summary of Test Results

Summary - All Funds Total FY14 Actual Budget Subvention Need Division Base Allocations (+Fringes) (Under) 05 - Academic Affairs 11,066,428 21,607,253 10,540,825 34 - Office of Research 515,199 3,445,463 2,930,264 35 - Graduate School 3,392,972 6,643,939 3,250,967 50 - Library 2,033,185 10,161,116 8,127,931 97 - Academic Support 291,244 3,962,344 3,671,100 Total - Academic Support 17,299,029 45,820,116 28,521,087

Academic Support

SLIDE 25

Distribution of Subvention Funds – What we Learned

Recall Model Test

Environment: HOLD ALL UNITS HARMLESS

Use Subvention Fund to return

all units to their actual FY14 Funding Levels

Subvention need for the Non-

Academic Support Units = $67M

Summary of Test Results

Summary - All Funds Total FY14 Actual Budget Subvention Need Division Base Allocations (+Fringes) (Under) Central Admin Support 01 - General Educ Admin 3,704,544 12,151,525 8,446,981 02 - Finance & Admin Affairs 27,907,966 52,222,429 24,314,463 40 - UITS 5,127,798 14,344,997 9,217,199 Total - Central Admin Support 36,740,308 78,718,951 41,978,643 Student Services 03 - Student Affairs 78,515,115 85,581,299 7,066,184 Campus Wide Functions 98 - Unitwide 26,725,420 44,674,119 17,948,699 Total Non-Academic Support 141,980,842 208,974,368 66,993,526

Non-Academic Support

SLIDE 26

Distribution of Subvention Funds – What we Learned

Recall Model Test Environment:

HOLD ALL UNITS HARMLESS

Use Subvention Fund to return all units

to their actual FY14 Funding Levels

Total Subvention Fund Needs:
Select Schools/Colleges = $7M
Academic Support = $28M
Non-Academic Support = $67M
Total Subvention Need = $102M
Calculated Subvention Pool = $63M!
Not Enough to Cover all Needs! Need

additional $40M.

Summary of Test Results

Summary

SLIDE 27

Distribution of Subvention Funds – What we Learned

Recall Model Test

Environment: HOLD ALL UNITS HARMLESS

Use Subvention Fund to

return all units to their actual FY14 Funding Levels

The additional needed

funding ($40M) resides with the schools/colleges

Summary of Test Results

Summary - All Funds Total FY14 Actual Budget Base Allocation Over Division Base Allocations (+Fringes) Actual Budget 10 - Health Sciences 17,957,668 16,156,975 1,800,693 11 - Architecture & Urban Planning 6,660,425 6,441,409 219,016 12 - Business 35,523,673 22,044,006 13,479,667 17 - Education 20,839,867 18,915,627 1,924,240 19 - Engineering 23,969,330 25,720,457 21 - Arts 17,950,459 17,175,318 775,141 25 - Freshwater Sciences 6,557,596 8,466,930 48 - Letters & Science 119,395,115 102,499,061 16,896,054 51 - Information Studies 8,322,849 6,284,789 2,038,060 65 - Nursing 12,603,839 12,726,451 70 - Public Health 2,770,101 4,671,398 86 - Social Welfare 13,792,992 10,674,897 3,118,095 90 - Continuing Education 7,490,988 9,228,261 Total - Schools & Colleges 293,834,901 261,005,578 40,250,966

SLIDE 28

Summary of Test Results

Option A

Key Implication

Recall Model Test

Environment: HOLD ALL UNITS HARMLESS

Contemplated methods for

making all units whole

Provost (and advisors) uses

additional $40M allocated to the 8 schools and colleges to:

Subsidize those schools needing

additional funds

Fund the Academic Support

Functions

Provide subsidy to Non-

academic support functions

SLIDE 29

Key Implication

Recall Model Test

Environment: HOLD ALL UNITS HARMLESS

Contemplated methods for

making all units whole

Increase the size of the subvention

pool by raising tax on tuition revenue to 40%

Subvention Pool grows to $109M

to meet all subvention needs

Tuition Pool for Schools/Colleges

shrinks from $182M to $137M

More schools/colleges will need

subvention funding (from $7M in need to $12M in need)

Summary of Test Results

Option B

SLIDE 30

Key Implication

Recall Model Test

Environment: HOLD ALL UNITS HARMLESS

Contemplated methods for

making all units whole

Establish 3 ‘Taxes’ on Tuition

Revenues

1. Tax to Help Fund Subvention

Fund for Schools/Colleges needing help and future strategic initiatives

2. Tax to help fund Academic

Support Functions (~13% or $27M)

3. Tax to help fund Non-Academic

Support Functions (~22% or

Summary of Test Results

Option C

SLIDE 31

Remaining Decision

Summary
Recall Model Test

Environment: HOLD ALL UNITS HARMLESS

Contemplated methods

for making all units whole

Summary of Test Results

Option A Option B Option C

Provost retains additional $40M allocated to the 8 schools and colleges to

a. Provide funding to

the Schools/Colleges needing support

b. Provide funding to

Academic Support functions

c. Provide subsidy to

Non-academic support units Increase the size of the taxes on Tuition to Create a Subvention Pool large enough to meet all subvention Needs. Have 3 Taxes 1- Fund to support Schools and Colleges needing additional support beyond base allocation and future strategic initiatives 2- Funding for Academic Support Units 3- Funding for Non- Academic Support Units

SLIDE 32

Next Steps

Action Due Date

Presentation of Proposed Model to UWM Campus

Community for Input Summer & Fall 2015

Reconvene BMWG to Review Campus Input and Draft

Final Recommendation for Chancellor Fall 2015

Chancellor Reviews Proposed Model and Approves or Not-

Approves Winter 2015

If Approved, Parallel New Resource Allocation Model with

Current Model for FY2017 Budget Development Cycle Winter 2016 & Spring

1st Meeting of Campus Leadership to Plan Resource

Allocations for the FY2018 Budget Summer 2016

Full Implementation of New Resource Allocation Model

for Building of FY2018 Budget Fall 2016 & Winter 2017

UWM Under New Resource Allocation Model

Summer 2017