RCM Project:
GenEd Analysis
Honors Managerial Accounting:
Dr. Gaffney
Project by Rachael Voluck, Heather O'Donnell,
Nate Clark, Christopher Dempsey, and Clinton
Tustin
RCM Defined
• Decentralized
• Responsibility to Schools
• Increase in cost effectiveness
• Driver of revenue
o Incentives
Current Budgeting System
•
Centralized
•
Budget changes based off credit hours
o
•
Increase or decrease of 1% from prior year
Time lag between generating revenue and
receiving funds
RCM at Temple University
•
•
•
•
Decentralized Budget Model (DBM)
Goal:
"To decentralize both the authority and
responsibility that has typically been held
with revenue decisions at the center of
the university."
Support centers to promote
efficiency
Financial resolution to decreases in
state funding
Potential Advantages for
GenEd
• Great professors and classes.
• Less turnover of faculty.
• Classes are similar from year to year.
• More classes offered.
Potential Advantages for
GenEd
• GenEd remains important.
• RCM combined with GenEd helps keep all
schools connected, so all students have
similar class experiences.
Potential Disadvantages
for GenEd
• In housing of Gen Ed
•
•
•
o Lower quality classes
Need Budget Manager
Deans, President,
Provost should collaborate
Increased responsibility
at lower level
Potential Disadvantages
for GenEd
• New Deans being introduced
•
o Media and Communications
o Health and Social Work
o Science and Tech
o Library
Poor funding to common
goods
RCM Results in the Past
•
Indiana University
o
o
•
Perceived as successful for
students and faculty
Despite concerns few
problems surfaced with
maintaining common goods
The University of Michigan
o
o
Common good academic
units with central budget
Modest results to decline in
use of common goods, not
Future Recommendations
•
•
Determine a cost driver
Require strong support from
President/Provost
o Protect the program
•
•
o Require foundation courses to be
taken in GenEd
Maintain collegiality of the University
Build strong, dynamic leadership
and mission planning
Conclusion
•
•
•
•
Temple needs a transparent, data-driven
budget to allocate resources
Colleges will be taxed for use of
standardized GenEd programs
Exact repercussions for GenEd are still
unclear at this time
No programs will be penalized in the first
year of implementation