Healthy universities require stable funding during periods of turbulence and growth.

Yet, budgets are regularly battered and busted by enrollment growth, decreases in external funding, rising expenses and the need to fund strategic priorities and protect the core mission.

A budget model that better enables academic and administrative units to plan, prepare and support university activities is needed, and evidence demonstrates the institutions that have adopted responsibility center management (RCM) have been more successful doing that by giving each unit control over the income it generates and the expenses it incurs.

The advantages of RCM are that it encourages revenue generation and cost-effectiveness, promotes entrepreneurial thinking, aligns authority with accountability, improves responsiveness to change, enhances the ability to plan and increases revenue transparency.

It does that by providing structure that our existing budget model does not:

  • A conceptual model for funding institutional support needs
  • A clear incentive program to reward visionary planning and production
  • A systematic approach for handling interdisciplinary studies
  • Consistency in funding construction, maintenance and operations

Between now and the beginning of fiscal year 2019, UAB will implement a more comprehensive approach to budgeting that will align activity, responsibility and accountability with the goal of supporting decision-making that moves the mission of the entire institution forward.

Follow our progress here.