Resource Management Budget Model

President's Decision

Jan. 24, 2007

To the Faculty and Staff of Iowa State University:

Two years ago, I charged a study group to examine a different approach to budgeting for Iowa State that would be more responsive to the changing mix of state appropriations, tuition and other revenues that has evolved in recent years. Since then, many hours of analysis, evaluation, dialogue, and reflection have taken place, with valued input from numerous faculty, staff, administrators, and students. Most recently, the Faculty Senate and P&S Council have formally endorsed adoption of the new budget model, now called the Resource Management Model, with important observations and provisos about its implementation. I deeply appreciate all of the thoughtful discussion that has occurred, and I want to thank the university community for its very careful consideration of this important change.

Earlier this week, the Budget Model Review and Implementation Committee (BMRIC) submitted a progress report on the design and implementation of the Resource Management Model as proposed in October 2006. That report is available at http://www.iastate.edu/~budgetmodel/RMM/0107rpt.shtml. It recommends continuing with the implementation process and makes important observations about leadership and cultural changes that will be needed with the new budget model.

After reflecting on all the advice and input, and consulting with my leadership team, I have decided to proceed with implementation of the new Resource Management Model. I have assigned responsibility for developing and overseeing the implementation process to Executive Vice President and Provost, Betsy Hoffman. An important early step will be establishing the budget advisory committees that are called for in the October 2006 BMRIC report. I will also ask the BMRIC to continue serving through the 2007 spring semester in order to develop a comprehensive description of the Resource Management Model and continue to provide input on policy level issues. At the end of the spring semester, I anticipate we will turn over the procedural and process implementation to various administrative work groups and the advisory committees. I have asked Dr. Hoffman to be especially diligent in ensuring that the Resource Management Model will enhance, and not harm, our great culture of supporting interdisciplinary activities.

Our plan is to develop the FY 2007-08 university budget using the current budgeting method. At the same time, we will prepare a parallel FY 2007-08 budget, using the new Resource Management Model as an opportunity to refine the processes for projecting tuition and other revenues at the college level, develop all of the datasets required, and fully understand the types of decisions required. If all proceeds well, the current budget development method will be discontinued after the FY 2007-08 budget is finalized and only the Resource Management Model will be used to develop the FY 2008-09 budget for implementation on July 1, 2008.

Developing a new budget model has been a very large and time-consuming effort, involving the work of many individuals. I want to thank everyone involved. I especially want to thank the members of the earlier Budget Model Study Group, the Budget Model Development Committee and the BMRIC for their outstanding efforts and leadership. Although we will have to be very careful to ensure that the Resource Management Model is properly implemented, I strongly believe that this new approach to budget and resource allocation will be extremely helpful as we work to advance the university and achieve our goals.

Gregory L. Geoffroy

President