��������Ƶ

The new model is most closely aligned to incentive-based budgeting. It flows funds to colleges and schools based on quantitative factors including student credit hours and student retention and graduation as well as qualitative factors based on campus-wide priorities.

Our previous model allocated funding to colleges, schools, and campus support units using an incremental model. Budgets for colleges, schools and campus support units were based on what they had received the previous year, plus or minus a small amount depending on whether campus revenues increased or decreased.����

The new budget model will provide increased transparency and flexibility, and better reflects our values and priorities as a comprehensive public teaching and research university.����

Key differences between the old and new model include the following:��

• Unlike our previous budget model, the new model includes a Strategic Fund that will allow the campus to meaningfully invest in campus-wide priorities.����
• Our new model will be reviewed regularly for effectiveness and will include a consistent budget request process (still in development). This will ensure that we are able to make changes to best meet university needs.��
• The new model includes elements that enable the university to better support retention, graduation, and diversity, equity and inclusion goals.����
• The new model is an incentive-based model, whereas the current model is an incremental model.��

The main components of the model include:����

• A Strategic Fund to support campus-wide priorities��
• Core Fund Allocations to schools and colleges based on quantitative��student credit hour, retention and graduation metrics ��
• A Supplemental Fund for schools and colleges based on more qualitative measures and designed to ensure that we meet our comprehensive teaching and research mission, including campus diversity, equity and inclusion goals��
• Allocation Pools through which campus support units are funded, including a shared pool that will be used in part to support diversity, equity and inclusion goals��

See the interactive flow chart and�� the��Final Budget Model Recommendations for details on each of these components.��

The new budget model will begin July 2022 for fiscal year 2022-23 in what’s known as a “hold harmless” year.��

“Hold harmless” means that colleges, schools and campus support units will receive at least as much funding in fiscal year 2022-2023 as they did in the previous year while the new model is implemented. This approach creates budget stability while also allowing us to see how the model works and to adjust as needed.��

No. Budget models, in and of themselves, do not generate new resources. A budget model is simply a revenue allocation method.��

The design of ��������Ƶ Boulder’s budget model focuses on net tuition; net tuition is graduate and undergraduate tuition less financial aid, refunds, tuition remission (the portion not covered by departments) and bad debt. Tuition is ��������Ƶ Boulder’s largest revenue source.��

No. The budget model is not changing the current allocation methodology for ICR funds (including Department Allocation of Indirect Cost Recovery, DAICR).������

No. Over the last decade, direct state funding has ranged between 2% and 8% of ��������Ƶ Boulder’s total budget. While an important source of funding for campus, state funding is not included in the model due to its lack of predictability.

No. Revenue generated by auxiliary units that generate their own revenues to support distinct activities (including Housing and Dining, Parking Services, the ��������Ƶ Book Store, and Continuing Education) is not included in the budget allocation model.

Net tuition revenue from summer session will be integrated into the new model according to the same percentage splits as fall and spring semester net tuition revenue. It is at the discretion of each school/college how this revenue is then in turn allocated to specific departments and programs.������

Yes. The new budget model recognizes differential tuition as well as double majors and minors. Details are included in the Final Budget Model Recommendations.

Support for campus diversity, equity and inclusion goals will be provided in a few different areas: the Strategic Fund (including a $1M allocation to the Chancellor’s Diversity Fund scheduled for FY23), the Supplemental Fund (including but not limited to the Critical Needs Hiring Program) and in the shared pool of funding in the campus support unit allocation pools.��

Funding will be allocated to the school or college. How a school or college in turn allocates funding to specific departments, programs, or divisions is a school/college decision.��

APA funding is included in the 65% of net allocable tuition going to schools and colleges. Distribution of funds from the college level to the department or program level is a school/college decision.

In preparation for redesigning the budget model, the project team conducted interviews with deans, shared governance bodies, finance officers, and other stakeholders. These interviews indicated a widespread desire for school/college budgets to be tied more explicitly to college of instruction and college of record than is the case in our current budget model. Tying school/college budgets more explicitly to student credit hours enables schools and colleges to respond to enrollment shifts.

No. We also heard a desire for SCH-related metrics not to be the sole feature of a quantitative tuition allocation formula. The new model includes additional quantitative factors such as undergraduate student retention and graduation and qualitative methods via the Strategic and Supplemental Funds to allocate funding.��

A nominal portion of school/college budget allocations were tied to SCH through formulas such as the undergraduate enrollment growth formula and professional master’s revenue sharing agreements, but the bulk of school/college budgets were not tied to SCH-related metrics in our former incremental-based budget model.

No. During the “hold harmless” year, the Office of the Provost will partner with Boulder Faculty Assembly to develop a campus policy and process regarding course duplication so that student credit hours are allocated fairly, the disciplinary expertise of academic units is respected and maintained, and the budget model’s SCH-related metrics work in concert with other components of the model to support the university’s mission as a comprehensive public teaching and research institution.

Not all mission-critical activities at ��������Ƶ Boulder generate sufficient revenue to be self-supporting. The Supplemental Fund represents our commitment to ��������Ƶ Boulder’s comprehensive teaching and research mission and provides a qualitative aspect that complements the quantitative metrics of student credit hours, retention and graduation.

In the first year, the supplemental fund will be used to ensure that schools and colleges are “held harmless” and receive at least as much funding as in fiscal year 2021-2022. The supplemental funds amount was calculated to ensure we can meet the goal of “hold harmless.”��

After the first year, the core funds allocation formula will be applied, but the distribution of supplemental funds will be held constant for a total of three years (inclusive of the held harmless year, and assuming sufficient revenue). This will enable guidelines, principles and processes for supplemental funds to be developed. It also allows schools/colleges to have time to plan for possible shifts in supplemental funds. It is anticipated that incremental amounts of supplemental funding will still be available for allocation during this time.

See “How was the model built” to learn about the project governance structure and for a list of committee members.

Yes. First and foremost, the new budget model was designed and developed for ��������Ƶ Boulder by ��������Ƶ Boulder. Huron Consulting Group was engaged to assist ��������Ƶ Boulder budget model governance committees with designing the new model via data analysis, budget modeling, peer institution benchmarking, examining case studies and sharing best practices. The principles and practices embedded within the model were created by budget model governance committees, with input from campus stakeholders.

There are lots of resources available on this website, including the full model recommendation, an interactive flow chart, and videos. We invite you to send questions to budgetmodel@colorado.edu and will do our best to respond within five business days. We also encourage you to attend Coffee & the Campus Budget presentations in the fall and spring semesters.

Engagement with stakeholders across ��������Ƶ Boulder included:��

• 40+ stakeholder interviews and listening sessions��
• 6 thematic listening sessions��
• 9 “Coffee and the Budget” sessions��
• 23 town hall meetings for faculty and staff in individual schools and colleges����
• 3 meetings with each individual school/college dean to review budget model details��
• Ongoing updates to shared governance – Boulder Faculty Assembly (BFA), Academic Affairs Budget Advisory Committee, BFA Budget and Planning, Staff Council, etc.��
• Bi-weekly Strategic Alignment Committee open office hours��
• Various presentations to Finance Leaders Council and other university groups��
• Participation of over 50 university members on project committees��
• University-wide updates in ��������Ƶ Boulder Today and through videos and related materials on the Budget and Fiscal Planning