Preparing for the Resource Management Model Implementation

1
Preparing for the Resource Management Model
Implementation

• World Languages and Cultures Department
• Elizabeth Hoffman, Provost
• September 13, 2007

2
Recent Trends in Public University Public and
Private Budgets

• Declining reliance on state funding
• Tuition increasing faster than CPI
• Record private fundraising
• Increasing reliance on federal funding
• Student aid
• Research funding
• Earmarks
• More corporate funding

3
State Appropriations to Higher Education
4
Resident Tuition and Required Fees
5
Comparison of Trends in Tuition and Appropriations
6
Higher Education RD Revenues
7
Higher Education Revenues by Source
8
Benefits of Public Funding

• Faculty and staff more likely to look inward to
  institution than outward toward external
  competition
• General predictability of funding
• Low tuition, easier access for students
• More faculty time for teaching and reflection

9
Risks of Public Funding

• Political intrusion into faculty composition or
  research content
• Dont anger agricultural commodity groups
• Culture wars past and present
• Who will be faculty?
• What will they teach?
• What is acceptable research?
• Funding linked to political views about taxation

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Risks of Public Funding that the Model Can Address

• Possibility of low expectations
• Salaries
• Research funding and publications
• Funding in general
• Lack of competition
• For students
• For research dollars
• For faculty and staff

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Risks of Market-Driven Funding and the Model

• Possible overemphasis on competition at the
  expense of institutional cooperation
• Possible emphasis on money over quality
• University priorities may be driven by money or
  the demands of outsiders rather than by academic
  excellence
• Uncertainty of funding streams
• Possible erosion of institutional culture

12
Benefits of Market-Driven Funding and the Model

• Enhanced control over each units destiny
• Better service to students results in more
  tuition revenue
• More successful grant proposals result in more
  indirect cost revenues
• More successful fundraising results in more funds
  for faculty, staff, students, and programs
• Units dont beg for funds, they can plan
  strategies to enhance funding
• Delaying spending allows multi-year planning

13
Benefits of Market-Driven Funding and the Model

• Possible change in institutional culture from a
  constrained view of what is possible to planning
  for revenues, expenses, and quality enhancement
  over the long run
• Costs and benefits of hiring more faculty and
  staff of a particular type internalized to units
• Costs and benefits of adding or deleting programs
  or service lines internalized to units
• Moves in direction of all-funds budgeting

14
The Importance of Transparency Under the Resource
Management Model

• Distribution of Tuition Revenues
• Distribution of Indirect Cost Revenues
• Payments for Essential Services
• Creation of Institutional Excellence Fund
• Distribution of State Funds

15
The Importance of Core Values Under the Resource
Management Model

• Recognizing the importance of our people
  faculty, staff, and students
• Minimizing internal competition for faculty,
  staff, and students
• Maintaining the integrity of the curriculum
• Maintaining interdisciplinary programs and
  emphasis
• Maintaining ethical behavior

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Steering the Ship Under the Resource Management
Model

• Make Essential Services a Part of the Cost of
  Doing Business
• Library
• Student Recruitment and Student Services
• Space
• Human Resources
• Operations
• Maintenance

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Steering the Ship Under the Resource Management
Model

• Adjusting State Funding
• Account for new funds generated from tuition rate
  increases
• Allocate new salary funds
• Respond to extreme cost increases
• Respond to state budget cuts
• Respond to performance
• Strategic investments

18
Steering the Ship Under the Resource Management
Model

• Institutional Excellence Fund
• Recruiting and retaining a high quality, diverse
  faculty, staff, and student body
• Making sure there is sufficient startup money to
  recruit the best faculty in disciplines requiring
  significant startup
• Partner accommodation to assist in recruiting a
  high quality diverse faculty and specialized staff

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Steering the Ship Under the Resource Management
Model

• Institutional Excellence Fund
• Nurture Interdisciplinary Education and Research
• Cost matches for center and institute grants
• Interdisciplinary undergraduate and graduate
  programs
• University-wide competitions for seed funding

20
Maintaining Ethical Behavior Under the Resource
Management Model

• Rules for Proprietary Research
• Academic Freedom
• Protection of Graduate Students and Junior
  Faculty
• Faculty, Staff, and Student Conduct Policies
• Protection of Need-Based Financial Aid
• Build in Rewards for Cooperative Behavior
• Curriculum Oversight to Prevent Poaching

21
World Languages and Cultures Department and the
Resource Management Model

• Maintain or increase SCH
• Languages and Cultures for Professions
• Develop or expand on-line programs or summer
  programs
• Identify potential donors and raise private funds
• Participate in interdisciplinary centers and
  institutes and hiring for university-wide
  initiatives.

22
World Languages and Cultures Department and the
Resource Management Model

• Make sure department recruits and rewards faculty
  who participate in high quality interdisciplinary
  education and research
• Take advantage of university initiatives in star
  faculty recruitment, diversity and partner
  accommodation as a way to increase faculty
• Encourage and reward faculty who apply for
  research grants that generate full indirect cost

23
Distribution of Indirect Cost Under the Resource
Management Model

• 20 to General Facilities Fund
• 15 to PI Incentive Fund
• 10 to Unit Administering GrantFunds Distributed
  to Resource Responsibility Center
• 10 to VPR Office to Support Interdisciplinary
  Research
• 45 to Resource Responsibility Centers in
  proportion to PI Incentive Distribution (can be
  modified)

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Resource Responsibility Centers

• Colleges Agriculture and Life Sciences,
  Business, Design, Engineering, Human Sciences,
  Liberal Arts Sciences, Veterinary Medicine
• Office of Research and Economic Development
• Office of Extension and Outreach
• Experiment Station
• Revenue-generating service units and auxiliaries
  within the Office of President and Provost,
  Business and Finance, Student Affairs

25
The World Languages and Cultures Department and
the Resource Management Model

• Further Thoughts and Discussion