New Budget Model Presentation

Current Budget Model

(Historical – Incremental Model)

• 3 of the 7 Town Hall Presentation/Conversations• Weekly meetings with leadership team including deans • Weekly meetings with KU budget team• Several meetings with Senate Leadership and Exec • Over 100 small group and individual meetings• Faculty/Staff assembly and/or Chairs from most Schools• 9 Stakeholder Advisory Boards (Internal and External)

How Did We Get to Today?

Hundreds of Hours of Campus Discussions/Work Sessions

How Did We Get to Today?

Revisions to the Model

Hours of Staff Time for Research & Visiting with Other Universities

New Budget Model

5

Some Key Definitions

Some Key Definitions• Subsidy: Funds provided annually outside of unit allocation

model to particular academic units, based on:- Cost of their core activities (instruction, research)- Foundational importance to KU- Other inherent limitations for a unit within a budget model

Student Credit Hours (SCH) – 65%• Undergraduate

- 75% of SCH assigned to instruction unit vs. 25% for major- Students with more than one major are split between the units

• Graduate - SCH are weighted at 1.5 to support higher cost of instruction - Graduate SCH are defined by the level of the student, not by the level

of course taken. - 75% of SCH assigned to instruction unit vs. 25% for major

* Includes traditional, KU online & Everspring SCH** Does not include KU Edwards, Leavenworth or USD 497 SCH

Research – 20%• Grant Expenditures (8-10%)

- All direct and indirect costs from external funding

• Grant Efforts and Spread (2%)- % of faculty a) submitting a grant and b) with active funding

• Products (4-5%)*- Counts of all works from a disciplinary lens

Impact (4-5%)*- Aggregate faculty visibility (e.g., citations) and unit rankings

* Scored by an evaluation committee on a 1-5 scale based on school specific metrics

Research – 20%METRICS SUBMETRICS PERCENT

*Uses an evaluation committee with a score from 1-5 for each metric

Research – 20%

*Uses an evaluation committee with a score from 1-5 for each metric

METRICS SUBMETRICS PERCENT

Research Grants/Contracts External Direct/Indirect Costs 8-10%

METRICS SUBMETRICS PERCENT

Research Grants/Contracts External Direct/Indirect Costs 8-10%

Grant Efforts/Success% Faculty Submitting Proposals (External)

2%% Faculty with Active Awards (External)

Research – 20%

*Uses an evaluation committee with a score from 1-5 for each metric

METRICS SUBMETRICS PERCENT

Research Grants/Contracts External Direct/Indirect Costs 8-10%

Grant Efforts/Success% Faculty Submitting Proposals (External)

2%% Faculty with Active Awards (External)

Research ProductsJournal Articles, Books, Chapters, etc

2%Creative/Scholarly/Legal WorksInvention Disclosures/Patents Issued

Research – 20%

*Uses an evaluation committee with a score from 1-5 for each metric

METRICS SUBMETRICS PERCENTResearch Grants/Contracts External Direct/Indirect Costs 8-10%

Grant Efforts/Success% Faculty Submitting Proposals (External)

2%% Faculty with Active Awards (External)

Research ProductsJournal Articles, Books, Chapters, etc

2%Creative/Scholarly/Legal WorksInvention Disclosures/Patents Issued

Research Impact

Awards/Recognition

4-5%Citations/Citation Index

Invited PresentationsEditorships (Editor or Associate Editor)

National/Disciplinary RankingSocietal and Economic Impact

Research – 20%

*Uses an evaluation committee with a score from 1-5 for each metric

Student Success – 10%• Degrees Awarded (2%)

• Time to Degree (2%)- Starting from major at 60 hours

• Placement Post-KU (2%)

• Teaching and Mentoring Quality (2%)*- Individual indicators as well as unit-level efforts/advancements

• Experience at KU (2%)*- Efforts to expand learning outside classroom (e.g., research, study abroad, internships)

* Scored by an evaluation committee on a 1-5 scale based on school specific metrics

Student Success – 10%METRICS SUBMETRICS PERCENT

*Uses an evaluation committee with a score from 1-5 for each metric

Student Success – 10%

*Uses an evaluation committee with a score from 1-5 for each metric

METRICS SUBMETRICS PERCENTGraduation Rates Degrees Awarded 2%

METRICS SUBMETRICS PERCENTGraduation Rates Degrees Awarded 2%Time to Degree Time from Junior Level 2%

Student Success – 10%

*Uses an evaluation committee with a score from 1-5 for each metric

METRICS SUBMETRICS PERCENTGraduation Rates Degrees Awarded 2%Time to Degree Time from Junior Level 2%

Student Experience at KU Participation in High Impact Experiences 2%

Student Success – 10%

*Uses an evaluation committee with a score from 1-5 for each metric

METRICS SUBMETRICS PERCENTGraduation Rates Degrees Awarded 2%Time to Degree Time from Junior Level 2%

Student Experience at KU Participation in High Impact Experiences 2%

Placement Post-KUPlacement Rates

2%Career Counseling

Student Success – 10%

*Uses an evaluation committee with a score from 1-5 for each metric

Student Success – 10%METRICS SUBMETRICS PERCENT

Graduation Rates Degrees Awarded 2%Time to Degree Time from Junior Level 2%

Student Experience at KU Participation in High Impact Experience 2%

Placement Post-KU*Placement Rates

2%Career Counseling

Placement Post-KU*

Pedagogical Advances

2%

Awards to Faculty/StaffAssessment of Teaching

AdvisingClassroom Focus

Bottleneck Courses

*Uses an evaluation committee with a score from 1-5 for each metric

Other Strategic Priorities (OSPs) – 5%• DEI (1%)*

• Faculty/Staff Development (1%)*

• Collaboration: Internal, Local, and Global (1%)*

• Fundraising and Alumni Engagement (1%)*

• Efficiency (1%)*

*OSPs scored by an evaluation committee on a 1-5 scale based on School/College specific metrics

Other Strategic Priorities – 5%

METRICS SUBMETRICS PERCENT

*Uses an evaluation committee with a score from 1-5 for each metric

Other Strategic Priorities – 5%

METRICS SUBMETRICS PERCENT

Faculty/Staff Development* School Specific 1%

*Uses an evaluation committee with a score from 1-5 for each metric

Other Strategic Priorities – 5%

METRICS SUBMETRICS PERCENT

Faculty/Staff Development* School Specific 1%

Diversity, Equity, & Inclusion (DEI)* School Specific 1%

*Uses an evaluation committee with a score from 1-5 for each metric

Other Strategic Priorities – 5%

METRICS SUBMETRICS PERCENT

Faculty/Staff Development* School Specific 1%

Diversity, Equity, & Inclusion (DEI)* School Specific 1%

Collaboration: Internal, Local, & Global* School Specific 1%

*Uses an evaluation committee with a score from 1-5 for each metric

Other Strategic Priorities – 5%

METRICS SUBMETRICS PERCENT

Faculty/Staff Development* School Specific 1%

Diversity, Equity, & Inclusion (DEI)* School Specific 1%

Collaboration: Internal, Local, & Global* School Specific 1%

Fundraising/Alumni Engagement* School Specific 1%

*Uses an evaluation committee with a score from 1-5 for each metric

Other Strategic Priorities – 5%

METRICS SUBMETRICS PERCENT

Faculty/Staff Development* School Specific 1%

Diversity, Equity, & Inclusion (DEI)* School Specific 1%

Collaboration: Internal, Local, & Global* School Specific 1%

Fundraising/Alumni Engagement* School Specific 1%

Efficiency* School Specific 1%

*Uses an evaluation committee with a score from 1-5 for each metric

Some Key Definitions• Subsidy: Funds provided annually outside of unit allocation

model to particular academic units, based on:- Cost of their core activities (instruction, research)- Foundational importance to KU- Other inherent limitations for a unit within a budget model

• Smoothing: Funds provided to a particular unit in a given year to offset any unexpected/large budget reduction for that unit

Service Unit Allocation• Service Responsibilities (100%)

- 3-10 primary responsibilities in supporting the mission of KU- These convey the goals and activities of each unit - Benchmark cost drivers

• Performance in Meeting Service Responsibilities (+/- X%)- Based on metrics set by the unit - One metric must be linked to overall performance with KU priorities

- Research- Student Success- OSPs (Fac/staff Dev, DEI, Outreach, Fundraising, Efficiency)

Service Responsibilities

Services a unit provides to fulfill

its mission Strategic Plan/Objectives Performance Metrics

Benchmark Cost Drivers with Peers Unit Allocations 100%

+/- X%

• Variable when increased/decreased, impacts cost of providing service

• Defined by VPs and Provost with support from Finance & AIR

• Significant changes will be phased in over a period of time

• Set by unit with approval from Provost

• One metric must address KU priorities: Research, Student Success, Efficiency, etc

• Goals established to improve or expand services

Graphic of Service Unit Allocation

Timing of Annual Budget Allocation

• FY21 (1st Budget with New Model) based on performance in CY19- We have the details of the model in place but need CY19 data to determine FY21 budget

• FY20 (Upcoming Budget – Old Style) based on performance in CY18 - We have SCH but no other metrics for CY18 so FY20 is a shadow year- We have to wait until the summer to learn about state appropriation and tuition increase- Once we have all information we will seek to balance investment in Foundational Priorities

(e.g., merit raises) and allocation to units, with strategic investments where possible

Jan ’19 Dec ’19

MeasureCY19 Performance

Jan ’20 Feb ’20

Evaluate CY19 Performance

Feb ’20 Mar ’20

Propose/FinalizeFY21 Budget

July ’20

FY21 Begins with New Budget

Some Key Definitions• Subsidy: Funds provided annually outside of unit allocation

model to particular academic units, based on:- Cost of their core activities (instruction, research)- Foundational importance to KU- Other inherent limitations for a unit within a budget model

• Smoothing: Funds provided to a particular unit in a given year to offset any unexpected/large budget reduction for that unit

• Contingency: Funds used in a given year to limit most budgetary impacts for all units from unexpected external budget reductions

• Finalize unit-defined metrics

• Define rubrics for evaluation committee

• Further flesh out the mechanics of smoothing

• Establish phase-in of model for years FY21 and beyond

• Establish a regular cycle and procedure for sharing budget information with KU Community

Final Next StepsImplementation Items for 2019-2020

The End