The Daily Iowan, IA
08-30-06
UI reworks budget process
Andrea Waterfield - The Daily Iowan
Like fellow regent school Iowa State University, the UI has redesigned its budgeting process. Among other changes, the numerous colleges within the UI should now receive a greater proportion of funds based on merit rather than traditional methodology, officials said on Monday.
In a presentation at the annual Faculty Council retreat in August, UI Provost Michael Hogan said the university has put a series of strategies in motion to get away from allocating revenue to colleges based on historical distribution. The school will now employ a model for dispersal of general-fund money, based on current performances and contributions, he said.
Don Szeszycki, a UI associate vice president, said a major source of funding for the colleges and their various departments - approximately $5 million of the annual overall revenue - comes from the general fund. Additionally, this fund represents a portion of the budget not given directly to other organizations, such as the UI Hospitals and Clinics, the parking department, the dorm system, and the athletics department.
"This is a piece of the UI budget that directly affects the students," Szeszycki said.
Typically, general-fund revenue from tuition and other sources has been distributed based on proportions used in years prior. Under the new plan, to be instituted in fiscal 2007, undergraduate enrollment for the colleges will carry substantially more weight in determining how much money is dispersed.
Officials hope the revamped budgeting system will help the university's colleges trailing others in terms of competitive faculty salaries and support colleges that contribute large amounts of money to the general fund through both revenue and indirect cost returns.
"The change is over a year in the making," Szeszycki said. "We want to continue in this direction, well into the future."
Reactions from UI department heads were mixed; some officials were confused about or ignorant of the new process, while some said they're accepting it wholeheartedly.
"We've heard mentions of it happening but not any specifics, yet," said Dennis Austin, the budget director in the UI Business Office.
"We're OK with [the budget change]," said Mike Sullivan, the assistant to the dean of the College of Pharmacy. "But we're not entirely sure of how it's going to affect our budget. They will be entirely changing the criteria by which the budget is allocated."
Linda Maxson, the dean of the College of Liberal Arts and Sciences, said she's pleased some of the budget reallocation reflects the relative contributions of each college to the total teaching at the university.
"It is definitely positive, as the changes [Hogan] put in place recognize the major contributions of [the liberal-arts school] to the teaching and research mission of the university," she said.
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