1. RCM Nuts, bolts, and questions Prepared by the CLAS Finance Committee

2. CLAS Finance Council http://www.clas.ufl.edu/gov/comm/finance.html Kennie 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 information see:  http://cfo.ufl.edu/committees.asp  http://www.aa.ufl.edu/rcm/

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 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 Support Centers Eg. Police department, Information Technology, Library Will be funded via assessments to each Responsibility Center

7. CLAS Revenue Current FormulaRCM State Appropriation$92,027,828$81,891,320 Tuition61,961,427 (Waivers)(9,107,718) (Uncollected Tuition)(714,599) Entrepreneurial Activities2,288,738 Contracts and Grants39,699,264 Endowment Earnings & Gifts 4,415,601 Other625,433 Total Revenue$139,056,864$181,059,465

8. CLAS Overhead Current FormulaRCM Info Technology$3,328,104 General Admin$447,8628,397,052 HSC Admin--- Student Services Admin7,637,773 Facilities (space)11,917,934 Library9,254,975 Sponsored Projects Admin 2,574,893 Bond Payment383,410 Total Overhead$3,022,754$43,494,141

9. CLAS Net Resources Current FormulaRCM 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 LowerUpperGrad7980 Class size25 Credit3333 Total SCH75 Weight (varies by level and college) 1.732.699.0210.64 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 LowerUpperGrad7980 Class size 30045101 Credit 3339 Total SCH 900135309 Weight (varies by level and college) 1.732.699.0210.64 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. QuestionsAnswers 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. QuestionsAnswers How is CLAS charged to support the Library? Who else is charged? ( http://www.aa.ufl.edu/rcm/ )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.

16. QuestionsAnswers 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? Option A. Percentage of salary (~11%) with floor (~$5K) and cap (~$10K). Option B. Flat rate per course (~$7500) Option C. Stratified flat rate by rank. Same/Diff rates for adjuncts and TAs? Your questions and concerns