This FAQ will answer the questions below. Click on the question to jump to its answers.
The guiding principles of the Budget Model Redesign Initiative include:
The incremental model was not sufficiently focused on these principles.
The University’s main sources of revenue include tuition, provincial operating grant, and other select sources of revenue. The majority of these revenues are allocated to Academic Units using various drivers. Central Support Unit net operating costs are allocated to Academic Units using a set of allocation variables. The Academic Unit budgets are derived by taking allocated and direct revenues (i.e., targeted fees such as laboratory fees and sport/recreation fees) and then subtracting direct salary and operating expenses and Central Support Unit costs. Ancillary Units are financially self-supporting units and are not directly impacted by the new model.
Academic
Administration
President's Office & External Relations
Facilities
General University
Information Technology
Libraries
Research
Student Services
The model alone will not generate more revenue but the goal is to incent revenue growth by providing a direct budgetary benefit to Academic Units that undertake activities which result in an increase to the University’s net financial results.
One frustration with the current model is that there is no direct connection between what Academic Units do and the funds received. Right now, in the current incremental model resources do not always flow with growth. This is a significant problem.
The intention of this model is to connect funding received more closely with the work that is being done. The incentive is not meant to imply people are not working hard enough; it is to connect growth and funding. It is clear that faculty and staff are working very hard and doing excellent work. This incentive is intended to reward that work.
The new budget model offers a diverse range of access to funds for Academic Units which include tuition and other fees, provincial grant, and other direct revenues. We recognize that some units may consume more resources than they generate; as they do under our current model. The University Fund will be used to smooth out these differences.
Central Support Units will present their annual budget requirements to the Central Unit Allocation Committee (CUAC) and be provided with the opportunity to discuss service area needs and opportunities for new programs and services. The CUAC will consider these requests and provide recommendations to the Executive Budget Committee. As describe above, once approved, Central Unit operating costs will be to Academic Units using a set of allocation variables (see q2).
The University Fund is one of the most critical elements of our decentralized budget model. This Fund will address mission-critical subsidies and University strategic priorities. The Fund is generated in the model by applying a participation rate (i.e., tax) calculated on the tuition (undergraduate, graduate, distance), differential fees, and provincial operating grant revenue allocated to Academic Units. The University’s operating investment income and the Ancillary overhead charge also contribute to this Fund.
You can submit a question to budgetredesign@umanitoba.ca.