What is our current budget model?
UT currently operates under an incremental budgeting model. This model results in incremental base budget changes from a unit’s prior year base budget with limited revenue sharing.
Why are we changing to a new budget model?
Incremental budgeting provides little incentive to grow revenue or become more efficient with spending as there is no link between historical allocations and level of activity. The new Budget Allocation Model will align resources with university strategy, promote transparency and provide necessary information for responsible fiscal stewardship. The model aims to provide an enhanced tracking of how revenues and costs are generated across our campus units.
Who is on the Steering Committee?
Do we have an external party helping us with this transition?
Huron Consulting Group has been engaged to assist us with the budget model redesign and implementation. They have experience and expertise in helping large universities undertake budget planning and sustainability and will support the steering committee by analyzing data, modeling budgets, sharing best practices and examining case studies.
What is the implementation timeline?
Have other universities done this?
Many universities, both private and public, use incentive-based budget models, including:
Will new reporting tools be available?
The university has issued an RFP for budget, financial planning and reporting software to provide information for decision makers to determine how to achieve strategic goals within their units.
How are the Institute of Agriculture and the Oak Ridge Institute treated in this model?
No decisions have been made at this time as the governance structure has not been determined.
How can I learn more about the Budget Allocation Model?
An open forum is scheduled on October 22nd from 9:00am to 10:00am in the Student Union Ballroom 272C. An additional forum will be held in late January (TBD). Huron will engage with the steering committee, Deans, faculty senate and campus fiscal officers throughout the duration of the project. We encourage associates to provide feedback to these parties or submit questions through this site.