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University of Michigan - Flint

University of Michigan - Flint. New Budget Model Second Year Results. Introduction. Prior budget system featured central control and fixed budgets New budget system is variable with decentralized decision-making New system began in July 2005

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University of Michigan - Flint

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  1. University of Michigan - Flint New Budget Model Second Year Results

  2. Introduction • Prior budget system featured central control and fixed budgets • New budget system is variable with decentralized decision-making • New system began in July 2005 • This report summarizes results for the first and second years under the new system.

  3. Objectives of New Budget Model

  4. Revenue Sources Note: Prior agreements for special programs, fees and carry forward policy are incorporated into the new budget model.

  5. Settlement Process

  6. Summarized Results

  7. Summarized Results

  8. Summarized Results Support Units

  9. Setting FY 2008 Budget • Revenue Targets: • Undergraduate – assumed tuition up 6.5% and enrollment flat • Graduate – assumed tuition up 5% with varied enrollment assumptions by program • Change in State Appropriations • Change in Fixed Costs Note: Fixed costs include utilities, debt service payments, maintenance contracts, business operation and insurance recharges.

  10. Revenue Targets

  11. Lessons Learned • Budget Model Worked Well • Level of understanding varies • Results varied by unit • Graduate payouts exceeded targets • Undergraduate payouts exceeded targets • Budget model payouts in line with enrollment

  12. How to Benefit from New Model • Give top priority to revenue and enrollment growth • Set aside a reasonable reserve, then invest the rest to support increasing enrollment • Consider deployment of limited resources to areas with highest growth potential • Work cooperatively with other groups to increase enrollment

  13. Resources VCA Office Dave Barthelmes Financial Services Jerry Glasco Karen Ruddy Christy Brownell Website http://umflint.edu/resources/offices/administration/index/php

  14. Frequently Asked Questions How is the budget set for the campus? The budget is set based on assumptions regarding enrollment and tuition rates, state appropriations, changes in fixed costs and new initiatives. How is my base budget determined each year? Each unit’s base budget is determined based on its share of dollars assumed for revenue, state appropriations, fixed costs, and new initiatives. How is my merit funded? Merit is not funded. Merit is covered by increases to budgets for a given year. Funds received by units have exceeded the cost of merit.

  15. Questions

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