Questions and Answers
Below you will find answers to questions that have been asked about the new budget model. Please feel
free to submit additional questions to Ken Kline (kennethkline@boisestate.edu)
1. How will appropriated, local, and auxiliary budget be incorporated into the model?
The committee will recommend specifically how each of these budgets will be affected. One goal of the
new budget model is to incorporate most, if not all, resources available to an area into decision making.
In similar implementations of these types of models, auxiliary budgets are typically not affected other
than potential changes in how their administrative service charge to cover central services is calculated.
2. How does differential tuition factor in?
In most implementations of similar models, differential tuition is provided to the area that is charging
the differential tuition. A related question is how differences in cost of instruction are accounted for in
these types of models. There are a number of approaches to managing these differences such as
utilizing weighting factors and providing cross-subsidies. The committee will recommend the best
approach for Boise State University.
3. How to balance short-term and long-term thinking specifically with student enrollment as a driver?
The specific drivers for Boise State have not yet been determined, however, generally a factor related to
student enrollment is utilized to ensure departments receive budget to support the cost of instructing
their student. While departments may focus on short-term objectives, one of the goals of the budget
model is to allow departments to assess the financial viability of longer-term investments such as a
student retention initiatives that require an up-front investment that pays off in the long-term. In
addition, other factors are included in most models such as the number of graduates a unit produces
and some measure of research activity. A central pool of funds will be available for longer-term
investments as well.
4. How are departments that don’t / can’t generate revenues factored into the model?
The committee will recommend specifically how these departments will be factored into the model.
Some departments may be grouped with revenue generating departments, such as those that are part
of a College. to create an overall budget for the College. Other departments will receive a budget either
through a central allocation or through some form of chargeback mechanism.
5. How will this budget model affect research activity?
The committee will evaluate ways to incorporate research incentives into the budget model. Many
research institutions are currently on this budget model and have not experienced a decline in research
activity. We do not anticipate significant challenges incorporating our research objectives into the
budget model.
6. One of the reasons given for changing from an incremental budget model are “inconsistent
negotiated agreements” and “unintended incentives”. How can these be addressed?
Many of these agreements were created to direct new tuition revenue to areas that implemented new
or expanded programs. One of our objectives is for the new budget model to take the place of these
types of agreements because tuition revenue will be allocated through the model rather than through
an agreement. Existing agreements will have to be evaluated by the committee to determine how they
fit with the new model.
7. Could a potential side effect of the model be increased competition, less cooperation between units
(departments) so they compete for students and student credit hour production? What can be done
to guard against this?
Under the new budget model, departments will clearly see how increases in components of the model
will translate into additional monies for their area. In some instances, this will increase cooperation as
departments can see the benefit of partnering with other departments to offer innovative academic
programming. In other instances, departments may be inclined to offer courses that increase student
credit hours at the expense of other departments. In order to guard against this, the curriculum
committee will play a larger role in ensuring the courses that Boise State offers are appropriate. In
addition, central funds may be used in ways that promote cooperation rather than competition.
8. Will the foundation (and scholarship) office be involved in the conversation? As departments work
towards smart growth and better retention, more scholarships will be needed.
The committee will recommend how foundation funds and scholarships are factored into the model.
The new budget model will provide a better framework for evaluating the university’s scholarship
strategy and facilitate conversations regarding the level of scholarships the university offers.
9. How does Bronco Budget 2.0 connect with program prioritization?
The institutions that we are aware of that have implemented these types of budget models have not
tied their budget model to any program prioritization initiatives. The committee will have to determine
what the best approach is for Boise State.
10. What will happen to self-support programs? And to programs created under the new online funding
model?
With the implementation of the new budget model, the new online funding model will likely change
since these online revenues that reside in the appropriated budget will be allocated directly to academic
units. For self-support programs that reside in the local budget, he committee will make a
recommendation in regards to how these fit into the overall budget model.
11. How can we encourage support units to be innovative? How do we incentivize them?
The committee will examine approaches to providing budgetary incentives for support units and
determining if they should be incorporated into the budget model. In general, these type of budget
models incorporate more accountability into the budget process rather than specific budgetary
incentives for administrative units.
12. Can the shadow “year” be modeled or drawn from a data period that is greater than 1 year?
Multiple years of data will be examined during the budget model development period as the committee
developed and refines the recommended model. The shadow “year” will replicate the budget for that
year only. However, data used in the model for allocations may include multiple years of data, such as
an average of degrees over a 3 year period rather than just the current year’s graduates.
13. As budget planning and management devolves from central administration to colleges, will budget
staff also move to facilitate that now decentralized activity?
These discussions will occur during the implementation phase of the initiative once the new budget
model has been finalized. The budget model will likely require new budget planning and management
activities that are not being done today at the university. A determination will need to be made as to
where these activities will occur. In addition, new tools will likely be required to support the budget
development process which may require a different level of resources than exists today.