Guiding Principles for a New UWM Budget Model

The new budget model incorporates the following desired features identified by the campus:

  • Flexibility
  • Predictability
  • Simplicity
  • Inclusivity
  • Incentivizes desired activity
  • Strategic in nature

What Was the Process to Produce a New Budget Model?

In late 2011 UWM initiated the process of developing a new resource allocation methodology for UWM. Subsequently, a Budget Model Working Group (BMWG) was established to take up this charge and develop a new university budget model.

The work of the group consisted of four phases:

  • Phase 1: Requirements and Best Practices Data Gathering
  • Phase 2: Development and Approval of the Resource Allocation Framework
  • Phase 3: Testing the Proposed Model
  • Phase 4: Implementation of the New Model

Why Does UWM Need a New Budget Model?

The work of developing a new budget model was undertaken because many universities had moved from incremental­ based budgeting to models that provide more accountability, particularly among the revenue-­generating units, for total revenues and expenses, and thus more incentives for net revenue growth.

In addition, UWM’s current budget model is the result of a series of historical decisions that are complex and difficult to understand, and may not provide the types of incentives that are now optimal.

Finally, the budget cuts since 2014, tuition freezes, and enrollment declines have made it much more critical that all revenues be allocated to maximum effectiveness, both among the revenue­ generating schools and colleges and the support functions, in order to sustain UWM’s future.