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<p class=MsoNormal style='line-height:18.0pt;background:white'><font size=1
color=black face=Georgia><span lang=EN style='font-size:7.5pt;font-family:Georgia;
color:black'><a href="http://lqp.arizona.edu"><font color="#003366"><span
style='color:#003366;text-decoration:none'><img border=0 width=302 height=52
id="_x0000_i1025" src="cid:image001.jpg@01CAFCC9.C5AC2620" alt="Low Que Pasa"></span></font></a><o:p></o:p></span></font></p>
<p class=MsoNormal style='line-height:18.0pt;background:white'><font size=1
color="#999999" face=Georgia><span lang=EN style='font-size:7.5pt;font-family:
Georgia;color:#999999;display:none'><a href="http://lqp.arizona.edu/"><font
color="#999999"><span style='color:#999999;text-decoration:none'>Home</span></font></a><o:p></o:p></span></font></p>
<h1 style='mso-margin-top-alt:3.0pt;margin-right:0in;margin-bottom:3.0pt;
margin-left:0in;line-height:18.0pt'><b><font size=2 color="#003366" face=Arial><span
lang=EN style='font-size:9.5pt'>Colleges' Share of Tuition to be Tied to
Enrollment, Teaching in Budget Redesign<o:p></o:p></span></font></b></h1>
<p class=byline1 style='line-height:18.0pt;background:white'><font size=2
face="Times New Roman"><span lang=EN style='font-size:9.5pt'>Alexis Blue<br>
The University of Arizona is moving forward on a new budgeting system that will
change the way tuition dollars are distributed in an effort to provide
increased incentives for teaching activities. <o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
line-height:18.0pt;background:white'><font size=1 color=black face=Georgia><span
lang=EN style='font-size:7.5pt;font-family:Georgia;color:black'>Currently, the
UA gives all tuition dollars to the state. The state then returns them to the
University as part of the state appropriation, which consists of about half
tuition dollars and half general funds. In the past, the entire state
appropriation was distributed to colleges and service units based primarily on
their prior years' budgets. <o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
line-height:18.0pt;background:white'><font size=1 color=black face=Georgia><span
lang=EN style='font-size:7.5pt;font-family:Georgia;color:black'>With the new
system, undergraduate tuition funds will flow more directly to colleges, based
on the amount of teaching they do, the number of majors they have and the
number of degrees they award. All graduate tuition dollars will flow directly
to the students' colleges of enrollment. <o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
line-height:18.0pt;background:white'><font size=1 color=black face=Georgia><span
lang=EN style='font-size:7.5pt;font-family:Georgia;color:black'>The new budget
system will begin in a "budget neutral" state. That is, each
college's budget allocation for 2010-2011 will include information about the
proportion of the budget that would be supported by undergraduate tuition
dollars if those dollars had been distributed based on the number of student
credit hours taught, number of majors enrolled and number of degrees awarded by
a college, said Leslie Eldenburg, who co-chairs the University's Budget
Redesign Committee with Ed Frisch, associate vice president for academic
resources, planning and management. <o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
line-height:18.0pt;background:white'><font size=1 color=black face=Georgia><span
lang=EN style='font-size:7.5pt;font-family:Georgia;color:black'>Any incremental
changes in student credit hours, majors and degrees awarded by a college during
the academic year will result in incremental budget changes for 2011-2012,
Eldenburg said. An increase in those areas will lead to an increase in the
college's tuition appropriation, while decreases in those areas will lead to
decreases in the tuition appropriation. <o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
line-height:18.0pt;background:white'><font size=1 color=black face=Georgia><span
lang=EN style='font-size:7.5pt;font-family:Georgia;color:black'>After the
tuition distribution system has been phased in, a "cost allocation
system" for support services, such as the library, student services, and
information technology, will be implemented. Colleges will divide the cost of
commonly used services on campus and changes in college activities, such as
increases in the number of majors or faculty members in a college that use
those services, will lead to incremental changes in college budgets, with
larger colleges likely paying a greater share. <o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
line-height:18.0pt;background:white'><font size=1 color=black face=Georgia><span
lang=EN style='font-size:7.5pt;font-family:Georgia;color:black'>"I think
what you'll see is a much tighter link between an activity and how that
activity's funded," said UA President Robert N. Shelton. <o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
line-height:18.0pt;background:white'><font size=1 color=black face=Georgia><span
lang=EN style='font-size:7.5pt;font-family:Georgia;color:black'>Shelton said
the change will send a clear message to campus units: "Here are the ways
in which you can fulfill your mission for the University of Arizona and will be
rewarded for it. If you teach more students, we aren't going to just take all
that tuition money away from you. We're going to make sure you see the benefit
of that." <o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
line-height:18.0pt;background:white'><font size=1 color=black face=Georgia><span
lang=EN style='font-size:7.5pt;font-family:Georgia;color:black'>The biggest
advantage of the new "responsibility-centered management model" is
that it rewards colleges for increasing their teaching efforts in a formulaic
way, something the University had no concrete way of doing before, said
Eldenburg, an accounting professor and vice dean of the Eller College of
Management. <o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
line-height:18.0pt;background:white'><font size=1 color=black face=Georgia><span
lang=EN style='font-size:7.5pt;font-family:Georgia;color:black'>"Under the
(current) system colleges have no incentive to increase teaching activities
whatsoever. The incentive is, if anything, to decrease teaching activities
because budgets are unaffected by such reductions," she said. <o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
line-height:18.0pt;background:white'><font size=1 color=black face=Georgia><span
lang=EN style='font-size:7.5pt;font-family:Georgia;color:black'>Some have
expressed concerns that the new budget model will lead to larger class sizes
and the addition of courses simply as a means of revenue generation. However,
Eldenburg said evidence from a number of other universities with
responsibility-centered management budgets shows such problems have not
occurred. <o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
line-height:18.0pt;background:white'><font size=1 color=black face=Georgia><span
lang=EN style='font-size:7.5pt;font-family:Georgia;color:black'>Harvard, Duke,
Iowa State University and the University of California, Los Angeles, are just a
few of many universities that use similar budget models. <o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
line-height:18.0pt;background:white'><font size=1 color=black face=Georgia><span
lang=EN style='font-size:7.5pt;font-family:Georgia;color:black'>The UA began
working on redesigning the budget in summer 2008, when Provost Meredith Hay
requested that a committee begin to study responsibility-centered management
budgeting. A second committee continued the work in the 2008-2009 academic
year. It developed a formula that would allocate undergraduate tuition funds to
colleges based 75 percent on student credit hours and 25 percent on the number
of majors enrolled. <o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
line-height:18.0pt;background:white'><font size=1 color=black face=Georgia><span
lang=EN style='font-size:7.5pt;font-family:Georgia;color:black'>A third
committee, the Budget Redesign Committee, adjusted that flow formula to give 75
percent weight to student credit hours, 20 percent weight to majors and 5
percent weight to the number of degrees awarded by a college, in an effort to
emphasize the importance of awarding degrees, Eldenburg said. <o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
line-height:18.0pt;background:white'><font size=1 color=black face=Georgia><span
lang=EN style='font-size:7.5pt;font-family:Georgia;color:black'>The Budget
Redesign Committee worked throughout the 2009-2010 school year to develop
models, analyze data, create an implementation plan and communicate information
about the redesign to the campus community. Those interested in scheduling a
presentation for their department by the Budget Redesign Committee can e-mail
Sharon Young at <a href="mailto:skyoung@email.arizona.edu">skyoung@email.arizona.edu</a>.
<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
line-height:18.0pt;background:white'><font size=1 color=black face=Georgia><span
lang=EN style='font-size:7.5pt;font-family:Georgia;color:black'>You can also
find information, including background, committee reports, case studies and
more on the <a href="http://www.budgetredesign.arizona.edu"><b><span
style='font-weight:bold'>Budget Redesign</span></b></a> website. <o:p></o:p></span></font></p>
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style='font-size:10.0pt'><o:p> </o:p></span></font></p>
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