Budget Model Home
UCCS is engaging in a budget model redesign initiative to better align its resource allocation processes with its strategic mission and goals.
The UCCS 2030 Strategic Plan contains core strategies to “fuel the future” of the University, including:
- Intentional revenue viability– expanding revenue sources to strengthen UCCS’ financial sustainability
- Supporting the growth of the university
- Providing greater services to students from all backgrounds
An Incentive-Based Model will:
- Allocate resources in alignment with strategic priorities.
- Provide a pool of funds to be directed toward strategic investments.
- Result in a budget allocation model that is consistent and transparent.
Incentive-based budgeting, commonly referred to as Responsibility Center Management (RCM), is a management philosophy which aligns budget allocations with the University’s strategic mission. The University’s budget authority and financial and operational responsibilities are delegated to schools and colleges, divisions, and other units.
These decentralized models result in increased transparency and empower local leadership to make data-driven decisions.
In an incentive-based budget model a framework is created to direct funding to the units generating the revenue, then charges are assessed to cover the unit’s share of centrally borne expenditures like administrative and common service and support.
The primary goal of this initiative is to create a budget model that is transparent, data-driven, supports entrepreneurship, innovation, and collaboration, and aligns resources needed for the University’s strategic mission. Units are empowered take greater ownership over their revenues and expenses to drive tactical growth and spur innovation.
While our current, incremental, budget model has served us well through a period of sustained enrollment growth, a new model is needed as we seek to better align resources with strategic priorities. The budget model, and associated budget process, should:
- offer greater transparency and insight into resource allocation decisions,
- create incentives for Deans to be more entrepreneurial,
- and provide a pool of resources which will help support campus-wide strategic initiatives.