State Funds and Tuition Revenue
Initial Budget Model Definition of “Provost Allocation”
The state funds and tuition revenue funding referred to as “Provost Allocation” is made up of distinct components that increase and decrease for different reasons and at different rates. The Provost Allocation is made up of State support, both the amount predating the budget model as well as growth since then, increases in allocations to cover salary and benefit cost increases, and incremental leadership investment decisions (typically as a result of decisions made through the annual budget process). The use of the term “Provost Allocation” for this collection of fund types obfuscates the more discrete funding streams in this source and often focuses only on the incremental investment decisions, when in fact the historical State funding and fixed costs increases make up a substantial portion of the Provost Allocation.
Options Under Consideration
Similar to the 2012 “recoloring” of base 19900 funds into Tuition and Provost Allocation, clarifying what is in the Provost Allocation and describing the components separately moving forward will increase transparency around the budget decision process and its interaction with the budget model. Beginning with the 2019-20 budget, the campus will identify the distinct components currently collectively referred to as the Provost Allocation: specifically, historic state funds, fixed cost increases, and incremental campus investments, as shown below. Note that no budgets will change as a result of this decision; the only change is to the language we use to describe unit budgets.
*Includes campus share of the tuition revenue pool.
When viewed through this lens, it is clearer that a large part of 19900 funds are generally not subject to change, and a significant portion of the “Provost Allocation” goes out to units on a relatively predictable formula basis for Employee Compensation Adjustments. The Leadership Decisions are a comparatively small portion of 19900 budgets.
The Provost has endorsed this approach to redefining and clarifying the component of the budget model known as the “Provost Allocation.” BIA has had initial conversations with Assistant Deans and the Senate Committee on Planning and Budget about this approach. BIA is now seeking feedback from the campus community as to whether this recharacterization of the state funding and tuition component of the budget model helps clarify funding available to units, the mechanisms by which it is allocated, and the underlying stability of this source. This paper fully describes the recharacterization of these funding streams.
For more information, contact the Budget Office.