Approved Budget Rules

The following rules were approved by the Strategic Direction and Steering Committee on Oct. 28, 2019, they govern revenue allocation, cost allocation, subventions, and University participation assessment, strategic initiatives and renewal/replacement reserves.

Revenue Allocation Work Group

Revenue

  • State appropriation, tuition and course fees to be allocated to the college responsibility units (RU’s) as follows:
    • State appropriation allocated by college of primary program based on head count
    • Undergraduate tuition excluding differential tuition will be pooled and netted with institutional financial aid
      • 72.5% allocated to college of instruction based on student credit hours
      • 27.5% allocated to college of primary program based on head count
    • Graduate tuition allocated to college of program of study
    • Differential tuition allocated to college assessing the tuition
  • Facilities and administrative cost recoveries will be allocated based on the current administration approved guidelines recommended by the Research Policy Council:
    • Colleges –90% (College 70%, Department 10% and Primary Investigator 10%)
    • OVPR research initiatives –10%
  • Assigned Revenues (i.e.: course fees, departmental revenues and auxiliaries) allocated directly to unit

Cost Allocation Work Group

Expense/Assessments

  • Direct Operating Expenses, including responsibility unit specific service and support (i.e.: dean’s office, advising), will be allocated directly to each responsibility unit
  • Costs for space including maintenance, custodial services, utilities purchased and debt service will be allocated based on net assignable square footage unless it is included as a direct expense to a unit
  • General fund service unit expenses (indirect expenses allocation) will be allocated to the college RU’s and auxiliary units as part of the University participation assessment.
    • College RU’s will be assessed on revenues at a rate to cover 98% of general fund service unit expenses
    • Auxiliary units will be assessed on revenues at a rate that will be sufficient to cover 2% of general fund service unit expenses
    • Designated fund activities that currently participate in the annual general fund chargeback model will continue to be assessed at current level until assessments are determined for all funds

Subventions Determined by SDSC

Subventions

  • Year 1 subventions (transition year)—all units (RU’s and Service units) are held harmless from impacts of SRM.This includes auxiliary units that may result in a deficit due to space cost allocations that currently are not assessed.
  • Year 2 and after:
    • Provost to determine method to use to allocate subventions to the colleges within college pool resources
    • The president, with input from the cabinet after the provost has consulted with the deans, will decide how to strategically determine the method to use to distribute to service units any revenue growth or revenue decline allocations to the central pool
    • Auxiliary units that need subvention due to space cost allocations will need to determine a financial plan to cover those costs or submit a request for consideration of on-going subventions. The president and cabinet will determine whether it is a priority for WMU to maintain the auxiliary activity and if the subvention is to be provided.

University Participation Assessment, Strategic Initiatives and Renewal/Replacement Reserves Determined by SDSC

  • College RU’s will be assessed a University participation assessment on total general fund revenue (course fee revenue including enrollment fee will be moved to the general fund) and will be sufficient to cover:
    • General fund service unit expenses
    • Strategic initiatives
    • Renewal/replacement reserves
    • Auxiliary unit subventions
  • University strategic initiatives will be held harmless in times of declining revenues (establishing a $3M minimum) but will be increased as revenue growth occurs in proportionate share of the central pool increase.Initiatives brought forward for funding consideration can be one-time requests, multi-year commitments (ie: program seed money), or permanent funding requests.
  • Academic Affairs strategic initiatives (under the discretion of the provost) will be a separate account from the University strategic initiatives and will be established with a tax increase over 3 to 5 years to build the reserve ($2M target).
  • Renewal/replacement reserve will be a separate account from strategic initiatives and will be established with a tax increase over 3 to 5 years to build the reserve ($4M target). This reserve will be held harmless in times of declining revenues and will be used for both deferred maintenance and technology infrastructure needs.