RCM Nuts, bolts, and questions

Prepared by the

CLAS Finance Committee

CLAS Finance Councilhttp://www.clas.ufl.edu/gov/comm/finance.html

Kennie Merz Chemistry (Chair)

Monika Ardelt Sociology

Richard Hollinger Sociology and Criminology

Michael Martinez Political Science

David Pharies Spanish & Portuguese

Andrea Sterk History

Caroline Wiltshire Linguistics

Patrick DeLeenheer Mathematics

David A. Foster Geology

Kimberly Browne Budget Director (ex officio)

RCM Information Session

Trying to educate the faculty on what RCM is (and is not)

Explain some consequences for CLAS and Department

Not advocating for or against RCM Express your concerns to Finance Council and

Dean

Responsibility Center Management

UF Administration response to Board of Trustees mandate to change budgeting system

RCM will come into force Summer B 2010 For more information see:

http://cfo.ufl.edu/committees.asphttp://www.aa.ufl.edu/rcm/

Responsibility Center Management

Decentralizes decisions and financial authority and responsibility

Places responsibility for revenue generation and spending decisions with the academic units

Supports growth even when government funding is limited

Responsibility Center Management

Responsibility Centers Eg., Colleges, Housing

Not Depts and Centers Receive all Revenue earned

from their activities Tuition Grants Entrepreneurial activities

Are responsible for all direct expenses

Share costs for support centers

Support Centers Eg. Police department,

Information Technology, Library

Will be funded via assessments to each Responsibility Center

CLAS Revenue

Current Formula RCM

State Appropriation $92,027,828 $81,891,320

Tuition 61,961,427

(Waivers) (9,107,718)

(Uncollected Tuition) (714,599)

Entrepreneurial Activities 2,288,738 2,288,738

Contracts and Grants 39,699,264 39,699,264

Endowment Earnings & Gifts

4,415,601 4,415,601

Other 625,433 625,433

Total Revenue $139,056,864 $181,059,465

CLAS Overhead

Current Formula RCM

Info Technology $3,328,104

General Admin $447,862 8,397,052

HSC Admin ---

Student Services Admin 7,637,773

Facilities (space) 11,917,934

Library 9,254,975

Sponsored Projects Admin

2,574,893 2,574,893

Bond Payment 383,410

Total Overhead $3,022,754 $43,494,141

CLAS Net Resources

Current Formula RCM

Total Revenue $139,056,864 $181,059,465

Total Overhead Costs $3,022,754 $43,494,141

Net Resources Available $136,034,110 $137,565,325

net increase $1,531,215

CLAS Revenues: Tuition and appropriations allocationPolisci major taking a Business course

Journalism major taking a Polisci course

CLAS Revenues: Tuition and appropriations allocationPolisci major taking a Polisci course

Polisci major taking a Statistics course

Tuition income varies by level:Constant class size

Lower Upper Grad 7980

Class size 25 25 25 25

Credit 3 3 3 3

Total SCH 75 75 75 75

Weight (varies by level and college)

1.73 2.69 9.02 10.64

BSA* $32.58 $32.58 $32.58 $32.58

Total $4,227 $6,573 $22,040 $25,999

* Base Student Allocation -the value for one SCH with a weight of 1.0.

UF has $600M state funding to allocate$600 M = Σ Σ Level Weight * Level SCH * BSA

Tuition income varies by level:More realistic class sizes

Lower Upper Grad 7980

Class size 300 45 10 1

Credit 3 3 3 9

Total SCH 900 135 30 9

Weight (varies by level and college)

1.73 2.69 9.02 10.64

BSA $32.58 $32.58 $32.58 $32.58

Total $50,727 $11,831 $8,816 $3,120

* Base Student Allocation -the value for one SCH with a weight of 1.0.

UF has $600M state funding to allocate$600 M = Σ Σ Level Weight * Level SCH * BSA

Questions Answers

What’s the immediate result of the implementation of RCM?

No immediate result, as system has been designed to produce same distribution of funds as is now the case. Net increase from tuition results in increase to CLAS of $1.5 M

It appears that RCM would encourage teaching larger classes with cheaper instructors, thus possibly lowering quality.

Yes, there are incentives for this. It will be up to Deans to insist on retaining quality.

Does implementation of RCM mean CLAS will have control over faculty lines?

Probably not immediately, because of budget crisis. Hopefully in medium to long run, but Tigert will probably retain some say.

Registrar controls space, so doesn’t this limit the flexibility of colleges to lower their exposure to charges for space?

Yes, but RCM gives Deans a strong incentive to push for change in classroom assignment process, since they will be paying for space.

To what extent will RCM be extended to the departmental level?

No direct application, since some departments are more expensive to operate. However, College will monitor increases or decreases in SCHs at department level.

Questions Answers

How is CLAS charged to support the Library? Who else is charged?( http://www.aa.ufl.edu/rcm/ )

Allocations are based on weighted students Headcount and weighted faculty FTE

Main library cost is shared by Fine Arts, DCP, CLAS, Latin American Studies, Business, Journalism, Law, Education, Engineering, HHP, Agriculture, DOCE, and the E&G State Funded Centers.

Marston is shared by Agriculture, Engineering, and CLAS.

HSC Library is shared by Health Center Colleges or Health Center State Funded Centers.

Law Library is only the Law School.

Questions Answers

Does CLAS have an incentive for us to teach more students?

Yes, but only if those students come from other colleges. More Polisci, less History is a zero-sum for CLAS.

However, CLAS may benefit from shifting from over-utilized courses (Polisci, Psych) to under-utilized (Physics, Religion).

If RCM is not going to be directly applied, how should CLAS allocate budgets to departments and centers?

???

Summer budgets will no longer be separately allocated to Colleges (and will be rolled into base). How much should CLAS pay per course?

Option A. Percentage of salary (~11%) with floor (~$5K) and cap (~$10K).

Option B. Flat rate per course (~$7500)

Option C. Stratified flat rate by rank.

Same/Diff rates for adjuncts and TAs?

Your questions and concerns