RCM Nuts, bolts, and questions Michael D. Martinez Dept of Political Science CLAS Finance Council member

CLAS Finance Council http://www.clas.ufl.edu/gov/comm/finance.html Ken 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 info http://cfo.ufl.edu/committees.asp http://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 Support 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 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 Contracts and Grants 39,699,264 Endowment Earnings & Gifts 4,415,601 Other 625,433 Total Revenue $139,056,864 $181,059,465 Entrepreneurial Activities, Contracts and Grants, Endowment Earnings & Gifts, and Other are the same in both models.

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 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 allocation Polisci major taking a Business course Journalism major taking a Polisci course

CLAS Revenues: Tuition and appropriations allocation Polisci 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 Credit 3 Total SCH 75 Weight (varies by level and college) 1.73 2.69 9.02 10.64 BSA* $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 9 Total SCH 900 135 30 Weight (varies by level and college) 1.73 2.69 9.02 10.64 BSA $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? College Faculty Council proposal: 12.5% of salary with a cap at 80th percentile of salary (effectively capped at $12,200 for summer 2010) Your questions and concerns