Linking Planning and Budgeting Under UIC’s Modified

Linking Planning and Budgeting Under UIC’s Modified Responsibility Centered Management

(RCM) Budget Model

Frank Goldberg Vice Provost for Resource Planning and Management

April 11, 2012

2012 BRINGING ADMINISTRATORS TOGETHER CONFERENCE


UIC 2010

Strategic Vision

And

Strategic Plan

Diversity Vision

& Emerging

Strategic Plan

IT Governance

Planning

Master

Plan

Capital

Planning

Research

Planning

FY 2004

Administration & Academic Support Medicine$128M $282M

Eastside Colleges$176M

Other Health Colleges$153M

Auxiliaries, Athletics & Financial Aid

- Self-Supporting ($965M)

- Grants/Contracts, Gifts & Institutional ($386M)

$90M

$320MHospital

Source: FY 2004 Budget Summary for Operations, excluding Campus General, Utilities, VC Health Afrs and Division of Spec Care for Children.

- Income Fund and GRF ($472M)

UIC's Budget$1,149M

Patient Care & MD Training

Basic & Clinical Research

Practice & Self-Supporting Funds

Cha

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4

FY 2005 College Earnings & Commitments (Shown as a percentage of the College’s total F&A earnings)

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

Earnings @ 36.5% Campus Commitments

36.5% 36.5%

53.9% 65.9%

55.8%

36.8% 55.6%

55.4%

116.2%

57.4%

70.8% N/A

46.0%

$ in Millions

ICR Distribution Timeline

Colleges 30% 36.5% 50% 47.5%

Provost 35% 28.5% 15% 12.5%

VCR 2.7% 2.7% 2.7% 7.7%

Others 32.3% 32.3% 32.3% 32.3%

FY 2004

FY 2005

FY 2006

FY 2011

UIC Expense Matrix (Transition from cost study to Campus Organization)

Unit NameGen.

Admin.Dept.

Admin.

Spon. Prog.

Admin.Equip. Dep.

Dept. O & M

Leased Space

VCAS Facilities Utilities

Build. Dep.

Build. Interest Library

Cost Study Attribution

Distribution $Cost Study

Attribution %

Colleges $17,084.8 27.6%

VC Admin. Svcs. $9,429.3 15.2%

VC Research $5,686.3 9.2%

Library $2,310.9 3.7%

UA $4,320.0 7.0%

Campus Wide Admin. $2,569.3 4.1%

Provost Discretionary $20,599.4 33.2%

Total $62,000.0 100.0%

ADMINISTRATION FACILITIES

What’s next?

$ in Millions

Cost Study Attribution

Unit Name Amount% of Total

Colleges $17.1 27.6%

Provost Discretionary $20.6 33.2%

VCAS $9.4 15.2%

VCR $5.7 9.2%

Library $2.3 3.7%

Campus Wide Admin. $2.6 4.1%

UA $4.3 7.0%

Total $62.0 100.0%

@ 50.0%

Share% of Total

$33.1 53.4%

$10.0 16.2%

$6.6 10.7%

$3.6 5.8%

$1.8 2.9%

$2.5 4.1%

$4.3 7.0%

% $62.0 100.0%

Existing FY 06 Commitments & a Percent Share

FY 2012 College Earnings

$ in Millions

$0$2$4$6$8

$10$12$14$16$18$20

ICR Earnings

FY 2006 Comparison of State Appropriations and Tuition Revenue

0%

25%

50%

75%

100%

125%

Pharmacy Nursing Dentistry App Hlth Medicine Pub Hlth

Tuition State Appr

Methodology – Attribute Tuition Base Differential

Undergraduate 3 year average, student credit hr & headcount, weighted 80/20

actual net revenue - 1 year

Graduate actual net revenue - 1 year actual net revenue - 1 yearProfessional

"Campus Tax" Base DifferentialUndergraduate 25% 25%Graduate 25% 15%Professional

actual net revenue - 1 year

15%

FY 2011 Comparison of State Appropriations and Tuition Revenue

General Campus Health Science Colleges

0%

25%

50%

75%

100%

CBA LAS A&A JACSW ENG EDUC CUPPA0%

25%

50%

75%

100%

PHARM DENT CAHS NURS MED SPH

Tuition State Approp

FY 2012

Administration & Academic Support Medicine$172M $436M

Eastside Colleges$240M

Other Health Colleges$227M

Auxiliaries, Athletics & Financial Aid$162M

$574MHospital

- Grants/Contracts, Gifts & Institutional ($386M)

Source: FY 2012 Budget Summary for Operations, excluding Campus General, Utilities, VC Health Afrs and Division of Spec Care for Children.

- Self-Supporting ($965M)

- GRF ($162M)

- Income Fund ($310M)

UIC's Budget$1,811M

Patient Care & MD Training

Basic & Clinical Research

Practice & Self-Supporting Funds

Cha

n., D

ev.,

& V

CE

A

VC A

cade

mic

Af

fairs

VC A

dmin

istr

ativ

e Se

rvic

es &

Fa

cilit

ies

Mai

nt.

VC R

esea

rch

VC S

tude

nt A

frs.

VC

Hum

an R

esou

rces

Libr

ary

Bus

ines

s Ad

min

Educ

atio

n

Engi

neer

ing

Arc

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e &

The

Arts

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Libe

ral A

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Scie

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Soci

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ork

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Budget Comparisons $211M


$112.7M $40.8M $57.6M

- Grants/Contracts, Gifts & Institutional

- Self-Supporting - GRF - Income Fund

Libe

ral A

rts

&

Scie

nces

Den

tistr

y

Scho

ol o

f Pu

blic

Hea

lth

Other centrally-budgeted costs $30.9M Other centrally-budgeted costs $68.3M Utilities $24.7M

Utilities $46.4M

Financial Aid $20.8M

Academic Support & Admin Units $185.4M

Academic Support & Admin Units $177.0M

Colleges (incl Grad & Honors) $257.4M

Colleges (incl Grad, Honors, & SCS)

$326.0M

University of Illinois at Chicago Unrestricted Funds - by Use

FY 2002 FY 2011

$498.4M $639.0M

Space Economy 2012 BRINGING ADMINISTRATORS TOGETHER CONFERENCE

• Facilities Management: $33.8M • Utilities: $41.4M • R&R: $12.9M • Debt Service: $ 6.2M

FY 2012 $17.65 / Sq. Ft.

FY 2013 $0.80 - $1.30 / Sq. Ft. Incremental Change

Budget Decision Principles: •Ensure fiscal integrity – decentralized responsibility and decentralized accountability •Ensure good decision making – assign decision making authority to appropriate entity •Maximize use of resources – include financial, physical and human resources •Balance priorities – balance support for instructional, research, patient care, economic development and service missions of the Campus •Maintain quality – reduce and redirect budgets in a manner that best preserves quality

UIC Budget Model

Budget Units

Tuition Distribution

Salary Program (Admin)

Strategic Initiatives

Hold Harmless

Space Economy

Space Costs

UIC Budget Model

GRF

Tuition Revenue Reallocation

State Budget Reductions UA Central Costs

Multi-variate Budget Modeling

-12.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

Campus Reallocation


-14.00%

-12.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

Space Economy


-18.00%

-16.00%

-14.00%

-12.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

Tuition Revenue


-18.00%

-16.00%

-14.00%

-12.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

Hold Harmless


-18.00%

-16.00%

-14.00%

-12.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

Salary Program

The Chancellor’s Goals 1. Focus on our academic excellence, student access and

student success. 2. Emphasize transformative impact and the social good. 3. Grow our translational, entrepreneurial and engaged

research and discovery enterprise to include many approaches to knowing.

4. Foster diversity and a global perspective. 5. Honor and partner with Chicago and the State to

enhance the human condition of its citizens. 6. Innovate within to build greater efficiencies and future

strengths.


24

Questions?


Documents

Linking Planning and Budgeting Under UIC’s Modified