Budgeting at the U of I - For Class Session on 9/27

PowerPoint on Budgeting Fundamentals - we'll look at slides 6 and 7

Question:  What determines how much revenue a unit has in its budget?

Library Model - Funding off he top
       Responsibility Centered Management - Funding determined by a formula that relates last year's activities and last year's budget to this year's budget.

       Grants and gifts treated differently - those might go directly to the unit, in all or part.

       Tuition surcharge that some colleges charge and graduate student tuition treated somewhat like grants and gifts.

Cost Recovery Model - Unit sells its services to other units on campus.  The revenue from those sales determine the unit's budget.

In times of stability of revenue and activity this year's budget looks remarkably like last year's budget.  When there are dramatic changes in revenues and/or the demand for services, that creates stress on budgets.

New (2016) Report from Campus Budget Advisory Task Force
Graph from page 8 of the report