Update on UHM budget process Committee on Administration and Budget Subcommittee on Budget Presented to the Faculty Senate University of Hawai ʻ i at Mānoa January 20 th, 2016

Background Purpose of Addressing the Faculty Senate Budget Process Overview Goals (Objectives) Update from Chancellor Pathway Forward for Faculty

Background Interim Chancellor (IC) R. Bley-Vroman requested meeting w/CAB representative, B. Chismar, and K. Cutshaw to discuss collaborative budget reform process. IC requested input from faculty on budget model (ranging from status quo to RCM) and method for allocations from funding pool. Additional work is ongoing with a group of Deans and Directors. CAB formed a subcommittee with first meeting (12/23/15) to begin work. Need to develop communication strategy for input from faculty and engage Deans and Directors ad Administration moving forward.

Purpose of Addressing Faculty Provide update on process and share information. Obtain suggestions on effective methods for information exchange. Engage input from full faculty on CAB’s current efforts and pathway forward. Need methods to maximize engagement between Faculty and Administration.

Administration: Chancellor, VCAFO, Bill Chismar Deans & Directors CAB + SEC UHM Faculty Input The Budget Model Process Overview as it is Unfolding Budget framework is being driven by Administration and Deans & Directors. Faculty input requested by IC on funding pool allocation process. CAB developed budget process goals. CAB developing principles and procedure for allocation of funds from different sources. NEED TO DETERMINE BEST METHOD FOR INPUT/COMMUNICATION TO AND FROM THE FACULTY

1.Determine best overall budget model for UHM. 2.Increase transparency of budget 3.Develop process for G-Fund allocation. 4.Develop process for allocation from funding pool. 5.Develop process for allocation for RTRF from S/C/O to PI as well as incentives for instructional faculty. CAB Objectives:

Input on principles of allocation from funding pool requested by Chancellor CAB ADDITION: Principles for RTRF return. Instructional incentives. CAB developing Faculty driven principles for funding allocation from all relevant funds. (Faculty input needed)

Update from Chancellor 1.Budget model: Combination form of activity based (ABB) and revenue based budgeting (RBB) 2. Transparency: Process and model address transparency. 3.G-Fund allocation: Unit receives G-funds proportional to authorized position salaries ~ 85%. 4.Funding pool: Faculty input on “guidelines/principles/criteria” of allocation is requested. 5.RTRF allocation to PI/Instructional incentives: Comments not received thus far.

Where we are going… Model: Faculty supported Responsibility Centered Management (RCM) model in previous MFS resolution. Continue to support decentralized revenue based approaches. Transparency/ Fund allocations: Request criteria from Administration on how funds will be allocated. Develop Faculty driven principles and procedures for how funds will be allocated. Faculty Input: Request Faculty to complete “Needs Based Assessments” for all units. Develop effective communication method between CAB SEC and Faculty and for obtaining input and exchanging information. FACULTY NEEDS TO VOICE THEIR INPUT ON THIS ISSUE!