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

2. 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)

3. 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

4. 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

5. 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

6. 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

7. 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.

8. 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

9. 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

10. CLAS Revenues: Tuition and appropriations allocation
Polisci major taking a Business course
Journalism major taking a Polisci course

11. CLAS Revenues: Tuition and appropriations allocation
Polisci major taking a Polisci course
Polisci major taking a Statistics course

12. 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

13. 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

14. 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.

15. Questions
Answers
How is CLAS charged to support the Library? Who else is charged?
( )
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.

16. 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