Timing of Budget Model Process

The call to develop a new budget model was shared with campus leadership in midspring 2018, about two months before a significant budget reduction as announced. The two activities, sometimes confused, are separate. A budget reduction lessens the amount of overall funds allocated across units, whereas the budget model changes how the allocation of those funds across units is determined. Importantly, a budget model does not cause an overall budget reduction and in fact, a well-designed budget model should prevent future budget reductions, or at least lessen their severity in extreme financial times.

Hundreds of hours of campus discussions, work sessions, research and collaboration with other institutions, model testing and review have been put into developing the new model for KU Lawrence. Interim Provost Carl Lejuez has led:

• 4 town halls/campus conversations on the new budget model
• Weekly meetings with leadership team, including deans
• Weekly meetings with the Budget Model Working Group.
• Regular meetings with University Governance senates, leadership, and executives
• More than 100 small group and individual meetings around campus
• Faculty/staff assemblies and chairs meetings
• Nine stakeholder advisory board meetings, both internal and external.

A look at the budget model development and implementation process includes a look at what has already transpired and a look toward what remains to be implemented. As KU implements portions of the Priority Centered Management model, it will be informed by an annual calendar characterized by major recurring administrative activities.

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Annual Calendar

January

• Metrics Analysis
• Prep for Presentations

February

• Metric Presentations
• Phase 1 of Budget Prep Due (PBCS)

March

• Draft Budgets Received by 3/1
• Performance Evaluations Due
• Final Budgets Received by 3/15
• Course fee changes due by 3/25

April

• Phase 2 of Budget Prep Due (PBCS)
• Tuition Proposal to KBOR

May

• KBOR Tuition Proposal — First Read

June

• KBOR Tuition Proposal — Second Read
• Fiscal Year End

July

• Fiscal Year Start
• Carryforward Meetings

Fall

• Centrally generated metrics available

The budget model will eventually develop into a sustained cycle of activites related to data collection, evaluation and budget-setting activities. During the beginning years of the PCM budget model roll-out, the timeline of allocation-related activities will look different as new portions of the PCM budget model are enacted.

Longer-range

The Budget Office and senior leadership will continue to monitor the Priority Centered Management Model for effectiveness and its ability to achieve expected outcomes. Over time, the academic unit formula as well as the support unit formula are expected to reach a state of balance that will allow the guardrail step to be discontinued.

The amount set aside for subsidy will be reviewed regularly and may be decreased as more academic units are able to respond more nimbly to changing conditions and needs within their disciplines.