RCM Nuts, bolts,
and questions
Prepared by the
CLAS Finance Committee
CLAS Finance Council
http://www.clas.ufl.edu/gov/comm/finance.html

Kennie Merz







Spanish & Portuguese
Mathematics
David A. Foster


Linguistics
Patrick DeLeenheer

Political Science
David Pharies


History
Caroline Wiltshire

Sociology and Criminology
Michael Martinez


Sociology
Richard Hollinger
Andrea Sterk

Chemistry (Chair)
Monika Ardelt


Geology
Kimberly Browne

Budget Director (ex officio)
RCM Information Session




Trying to educate the faculty on what RCM is
(and is not)
Explain some consequences for CLAS and
Department
Not advocating for or against RCM
Express your concerns to Finance Council and
Dean
Responsibility Center Management
UF Administration response to Board of
Trustees mandate to change budgeting
system
 RCM will come into force Summer B 2010
 For more information see:

 http://cfo.ufl.edu/committees.asp
 http://www.aa.ufl.edu/rcm/
Responsibility Center Management
Decentralizes decisions and financial
authority and responsibility
 Places responsibility for revenue
generation and spending decisions with
the academic units
 Supports growth even when government
funding is limited

Responsibility Center Management
Responsibility Centers

Eg., Colleges, Housing


Receive all Revenue earned
from their activities
Tuition
 Grants
 Entrepreneurial activities


Not Depts and Centers


Support Centers
Are responsible for all direct
expenses
Share costs for support
centers

Eg. Police department,
Information Technology,
Library
Will be funded via
assessments to each
Responsibility Center
CLAS Revenue
State Appropriation
Current Formula
RCM
$92,027,828
$81,891,320
Tuition
61,961,427
(Waivers)
(9,107,718)
(Uncollected Tuition)
Entrepreneurial Activities
Contracts and Grants
Endowment Earnings &
Gifts
Other
Total Revenue
(714,599)
2,288,738
2,288,738
39,699,264
39,699,264
4,415,601
4,415,601
625,433
625,433
$139,056,864
$181,059,465
CLAS Overhead
Current Formula
Info Technology
General Admin
$3,328,104
$447,862
HSC Admin
7,637,773
Facilities (space)
11,917,934
Library
9,254,975
2,574,893
Bond Payment
Total Overhead
8,397,052
---
Student Services Admin
Sponsored Projects
Admin
RCM
2,574,893
383,410
$3,022,754
$43,494,141
CLAS Net Resources
Total Revenue
Total Overhead Costs
Net Resources Available
net increase
Current Formula
RCM
$139,056,864
$181,059,465
$3,022,754
$43,494,141
$136,034,110
$137,565,325
$1,531,215
CLAS Revenues:
Tuition and appropriations allocation
Polisci major taking a
Business course
Journalism major taking a
Polisci course
CLAS Revenues:
Tuition and appropriations allocation
Polisci major taking a
Polisci course
Polisci major taking a
Statistics course
Tuition income varies by level:
Constant class size
Lower
Upper
Grad
7980
Class size
25
25
25
25
Credit
3
3
3
3
Total SCH
75
75
75
75
1.73
2.69
9.02
10.64
BSA*
$32.58
$32.58
$32.58
$32.58
Total
$4,227
$6,573
$22,040
$25,999
Weight
(varies by level
and college)
* Base Student Allocation the value for one SCH with a
weight of 1.0.
UF has $600M state funding to allocate
$600 M = Σ Σ Level Weight * Level SCH * BSA
Tuition income varies by level:
More realistic class sizes
Lower
300
Upper
45
Grad
10
7980
1
3
3
3
9
Total SCH
900
135
30
9
Weight
(varies by level
and college)
1.73
2.69
9.02
10.64
BSA
$32.58
$32.58
$32.58
$32.58
Total
$50,727
$11,831
$8,816
$3,120
Class size
Credit
* Base Student Allocation the value for one SCH with a
weight of 1.0.
UF has $600M state funding to allocate
$600 M = Σ Σ Level Weight * Level SCH * BSA
Questions
Answers
What’s the immediate result of the
implementation of RCM?
No immediate result, as system has been
designed to produce same distribution of
funds as is now the case. Net increase
from tuition results in increase to CLAS of
$1.5 M
It appears that RCM would encourage
teaching larger classes with cheaper
instructors, thus possibly lowering quality.
Yes, there are incentives for this. It will be
up to Deans to insist on retaining quality.
Does implementation of RCM mean CLAS
will have control over faculty lines?
Probably not immediately, because of
budget crisis. Hopefully in medium to long
run, but Tigert will probably retain some
say.
Registrar controls space, so doesn’t this
limit the flexibility of colleges to lower their
exposure to charges for space?
Yes, but RCM gives Deans a strong
incentive to push for change in classroom
assignment process, since they will be
paying for space.
To what extent will RCM be extended to the
departmental level?
No direct application, since some
departments are more expensive to
operate. However, College will monitor
increases or decreases in SCHs at
department level.
Questions
Answers
How is CLAS charged to support the
Library? Who else is charged?
( http://www.aa.ufl.edu/rcm/ )
Allocations are based on weighted students
Headcount and weighted faculty FTE
Main library cost is shared by Fine Arts,
DCP, CLAS, Latin American Studies,
Business, Journalism, Law, Education,
Engineering, HHP, Agriculture, DOCE, and
the E&G State Funded Centers.
Marston is shared by Agriculture,
Engineering, and CLAS.
HSC Library is shared by Health Center
Colleges or Health Center State Funded
Centers.
Law Library is only the Law School.
Questions
Answers
Does CLAS have an incentive for us to
teach more students?
Yes, but only if those students come from
other colleges. More Polisci, less History is
a zero-sum for CLAS.
However, CLAS may benefit from shifting
from over-utilized courses (Polisci, Psych)
to under-utilized (Physics, Religion).
If RCM is not going to be directly applied,
how should CLAS allocate budgets to
departments and centers?
???
Summer budgets will no longer be
separately allocated to Colleges (and will
be rolled into base). How much should
CLAS pay per course?
Option A. Percentage of salary (~11%) with
floor (~$5K) and cap (~$10K).
Option B. Flat rate per course (~$7500)
Option C. Stratified flat rate by rank.
Same/Diff rates for adjuncts and TAs?
Your questions and concerns