The following email was sent to all UAB faculty and staff on May 18, 2018

 

Dear colleagues,

Over the past year-plus, a great deal of work and conversation across campus has been invested in preparing a new budget model for UAB. This new model, known as responsibility center management, or RCM, addresses limitations of our previous budget process, particularly the desire for more campus participation in the process, increased transparency and clear incentives for innovative and entrepreneurial programs.

Changing the budgeting model at an institution as complex as UAB is no easy task. As the implementation committees worked through the process, it became clear that a phased transition to RCM makes more sense than the initial 100 percent transition to RCM planned for fiscal year (FY) 2019.

What you need to know:
UAB’s new budget model will be phased in over three years, starting in FY2019 (which begins Oct. 1, 2018).

During that time, budgeting will done on a split basis, from 95 percent historic/5 percent RCM in FY2019, to 70 percent historic/30 percent RCM in FY2021. Additionally, incremental funding each year from state appropriations, tuition and indirect expense recovery will be allocated based on the RCM model. See details.

What are the benefits of phased implementation?

  • substantially smooths the financial transition for both schools and central units.
  • respects UAB’s commitment to shared governance, taking into account feedback from town halls, meetings with schools and leadership, website forum comments and one-on-one meetings with constituents.
  • creates the multi-year planning horizon requested by the deans.

 

Learn more:
See a detailed list of questions and answers on budgeting history and process (and the rationale for implementing a new budget model) in the FAQs on the RCM site.

See the membership of the Budget Governance committees.

See a visual breakdown of the proposed transition timeline.