Budget Model Frequently Asked Questions

General Revenue (GR) allocations are determined using a data-driven approach that distributes net tuition and state appropriations to colleges based on student credit hour (SCH) activity and full-time equivalent enrollment (FTE). Non-college GR budgets are anchored to prior year funding with adjustments for known contractual obligations. Cabinet will review the approach to setting annual GR allocations to ensure University operating costs and strategic initiatives are appropriately funded. 

Colleges can use $/SCH (dollars per Student Credit Hour) and $/FTE (dollars per Full-Time Equivalent student) as drivers to estimate future revenue tied to enrollment.

For planning beyond FY27, these rates can be applied to projected SCH or FTE levels to generate a baseline revenue forecast. A conservative approach is to hold $/SCH and $/FTE constant, which isolates the impact of enrollment changes. A more realistic approach may be to assume modest annual increases of 2–3% to reflect factors such as inflation and contractual obligations.

These assumptions allow colleges to build multi-year projections and plan for staffing, programming, and other investments. However, both rates will be reviewed and updated each fall, with updated figures typically communicated in November or December.

It’s also important to note that if the university experiences significant revenue declines or an increase in unexpected expenses, $/SCH and $/FTE could decrease. In that case, the Budget Office and Cabinet would communicate changes to the campus as early as possible. 

Budget allocations will follow a structured, cascading approach across the University. The central Budget Office will allocate funds at the Vice President level. From there, each Vice President will distribute budgets within their division. In most areas, this means allocations flow from the Vice President to Associate Vice Presidents (AVPs), and then from AVPs to departments.

In Academic Affairs, the process includes both AVPs and Deans. The Vice President will allocate budgets to AVPs and Deans, who will then distribute resources to the departments under their respective areas.

This approach ensures that budget decisions are aligned with divisional priorities while maintaining clear accountability at each level.

No. The model does not generate new revenues or create savings on its own. Its purpose is to allocate projected revenues in a more structured and transparent manner. While the model itself does not create additional resources, it provides greater visibility into how funds are distributed, which can support more informed decision-making and, over time, encourage more effective use of existing resources.

Progress is not measured by a single metric, but by whether the model is achieving its intended goals—aligning resources with activity, increasing financial stability and transparency, and enabling more informed decision-making. Indicators may include budget-to-actual variance, greater financial awareness and responsiveness at the unit level, increased use of data in decision-making, and more predictable and understandable allocations. Progress is also reflected in how well incentives are aligned with institutional priorities and the extent to which university resources are used strategically and transparently.

If state appropriations or enrollment do not align with projections, Cabinet will review the fiscal impact and discuss how to address the variance.

If revenues are less than projections, strategies may include using alternative fund sources, implementing strategic expense reductions or reducing budgets, utilizing reserves, pursuing strategies to improve enrollment (e.g., spring retention or summer sessions), or Cabinet may choose to make no adjustments based on magnitude of impact.

If revenues are greater than projections, strategies may include implementing additional strategic initiatives, allocating additional funding across campus, contributing funds to reserves, or Cabinet may choose to make no adjustments based on magnitude of impact.

The implementation of Anaplan will enhance budgeting by improving efficiency, transparency, and decision-making. Initial priorities focus on replacing manual, Excel-based processes with automated workflows. This includes streamlining key activities such as quarterly projection reporting and the annual budget allocation process.

The system will enable Vice Presidents, Deans, and AVPs to allocate budgets more efficiently while providing real-time visibility into budgets and projections across their areas. Overall, Anaplan will support more informed, data-driven budgeting practices and reduce reliance on time-intensive manual processes.

Overhead is not tied to a specific service or individual expense. Instead, it supports the core operations of the University that are funded through general revenue. These include facilities, utilities, human resources, technology infrastructure, and other essential services that benefit the entire campus.

A helpful way to think about overhead is like a sales tax. Just as sales tax supports the overall operations of a city or state rather than a single service, overhead supports the University’s shared infrastructure and operating environment that make all programs and activities possible.

For a step-by-step walkthrough of the overhead rate and calculation details, please watch the following videos:

Overhead Rate Overview

Overhead Calculation Overview

Please reference the following videos for more information on how the budget model was developed, how the overhead rate was determined, and the calculation details: 

• Budget Model Overview
• Overhead Rate Overview
• Overhead Calculation Overview