Revenue Allocation Work Group Progress

The focus of the Strategic Resource Management Revenue Allocation work group is to develop rules for revenue allocation generated by the responsibility units of the various areas of revenue.  The group's charge is: "In order to attribute income to responsibility units, rules for assigning all fund income to them must be specified." The various areas of revenue that are to be addressed include:

  • State appropriation.
  • Tuition (undergraduate, graduate, differential tuition, Extended University Programs and summer budget model).
  • Course-related fees.
  • Other fee income.
  • Facilities and administrative costs recovery.
  • Contract (research or other) revenue.
  • Gifts and endowment revenue.
  • Auxiliary revenue—dining, residence halls, athletics, parking, etc.
  • Other—new revenues, based upon best practice research.

Progress updates

March/April 2019

The Revenue Allocation work group continued its schedule of meeting every other Friday in the spring 2019 semester. Dr. Ann Tyler was asked to assume the role of work group lead after the departure of Dr. Sherine Obare. The group continued to review information about allocations from other university models, as they prepared to develop rules for the remaining categories of tuition, EUP revenue and state appropriations.

Throughout this process, the Office of Institutional Research and the SRM Core Team provided data and modeled allocation scenarios as requested by work group members. Rules were developed for undergraduate and graduate tuition, with recommendations for allocating revenue splits between the college of instruction and the college of program of study. The recommended rule for Extended University Programs online and regional site revenue allocated distribution according to the rules adopted for main campus undergraduate and graduate tuition. The state appropriations rule was finalized on March 8 at the final meeting of the Revenue Allocation work group. As part of the final discussion about state appropriations, the work group reaffirmed the guiding principles in recommending that these appropriations be held as a subvention pool and for strategic initiatives.

The final set of eight rules stand as recommendations to the Strategic Direction and Steering Committee and will now be modeled by the Core Team. These revenue allocation rules reflect the work group’s commitment to careful consideration of collective data and experience from other institutions, endorsement of the guiding principles, and agreement to err on the side of simplicity.

December 2018 | January 2019

The Revenue Allocation work group has met bi-weekly since September and has focused on understanding the factors that impact the major revenue categories with respect to the various responsibility units in order to develop rules. The work group has carefully reviewed how other institutions that use Responsibility Center Management, or RCM, budget models have developed their rules and how that information can help guide what WMU is aiming to establish.

The general questions and areas of discussion have focused on making sure that the work group has access to revenue data. The group has been provided with the data needed for them to make informed decisions regarding their recommendations. The group has also been conscientious of the guiding principles in all recommendations made. 

To date, rules have been developed for assigned revenue; other general fund revenue, such as fees, the summer budget model, facilities and administrative cost recovery; and graduate tuition. The work group will continue to develop rules for tuition and state appropriations.