Fiscal year 2019, which ended in October, marks the first year of a planned three-year rollout of UAB’s new responsibility center management (RCM)-based budget model. In FY2019, 95% of university revenue and expenses were budgeted based on the historic model, with 5% of historic budget funds — and all new revenue — flowing through the RCM model. Those percentages shifted to 85% historic / 15% RCM for FY2020, with a planned 70% historic / 30% RCM split for FY2021.

This phased rollout, announced in May 2018, included a formal evaluation process midway through. In December 2019, an interdisciplinary RCM Review Committee was appointed to accomplish this task. The RCM Review Committee is charged with identifying any substantive issues or unintended consequences that have appeared during the first full year of using the RCM model. The committee will recommend refinements to the model and its metrics if necessary. The university is fully committed to the increased transparency and efficiencies offered by the RCM approach; returning to the historic budget model is not an option that will be considered.

The committee includes senior leadership (dean or fiscal officer) from each UAB school and the College of Arts and Sciences, along with a representative of the Faculty Senate. The committee is co-chaired by Eric Jack, Ph.D., dean of the Collat School of Business, and Melanie Talbot, assistant dean for Administrative and Fiscal Affairs in the School of Health Professions. It has been meeting weekly since mid-December and is scheduled to provide recommendations to the Budget Advisory Committee by the end of February 2020.