The College of Engineering developed a process in 2007 to distribute the available budget (ETIC, differential tuition and E&G) to units in a manner consistent with our long-term goals, transparent to interested parties, and consistent across all schools and departments using data that were easily obtained and verifiable. The allocation model will be updated annually and will continue to serve as the allocation instrument for COE. Recognizing that no budgeting process is perfect and that ideally there would be more dollars to allocate, the goals of the process were to:
- Acknowledge the role of tenure/tenure-track faculty to the success of our mission
- Recognize the importance of staff to our long-term success
- Incentivize units to focus on outputs directly related to our strategic goals
- Increase Research
- Increase Graduate degree production
- Increase Baccalaureate degree production
The model is contained in a relatively simple Excel worksheet divided into five broad areas. Input data are contained in a series of linked worksheets.
Budget Charts - FY 2015
It should be noted that the model merely allocates the available resources to the unit; it is the responsibility of the unit leader to determine how the allocated resources are to be expended. Each area of the model is described below.
Tenure/Tenure Track Faculty – 89 percent of total
This portion of the model provides full funding for all current tenure/tenure track (T/TT) faculty including administrators by unit. Other personnel expense (OPE) is included and if appropriate, anticipated salary adjustments.
If the Dean, in consultation with the unit Heads, determines that new T/TT faculty will be hired during the year, direct allocation for salary and start up costs are made in the green-shaded area in the model output area.
Operational Budget –11 percent of total
The funds remaining after the salary and OPE are distributed are allocated in two parts each with two components. For the first part of the allocation, a fixed amount is assigned to each unit ($100K in FY15) and a fixed allocation per T/T-T faculty provided to each unit ($3K in FY15). The remaining funds are split evenly between a “process metric” and an “output metric” and allocated pro-rata basis to each unit. Available resources were insufficient to adequately fund unit operations in FY 15 so the Dean authorized 20 percent surcharge against unit-generated funds (INTO, E Campus, Summer Session) for redistribution to units through the model.
The process metric is the weighted student credit hour delivered by each unit averaged over the last three years. Student credit hours are weighted in ratios of 1:2:3 for lower division, upper division and graduate courses, respectively following the general guidance in the old OSU BAM model
The output metric attempts to capture the output parameters that have impact on the prosperity of the State and includes the number of engineering and computer science degrees granted at the BS, MS, and PhD levels and the College annual research expenditures. Each element is weighted; BS, MS, PhD and research – 40, 10, 20 and 30 percent, respectively. For example, if $1,000,000 were to be distributed via incentives, then $400,000 would be allocated to the BS degree category (40% of $1M). This $400,000 would be further sub-divided among the units based on their contribution to the total number of BS degrees produced by the College. As before, three year averages are used to smooth short term variations.
This model does not distribute the following;
- Returned overhead
- Sales and Services
- Tuition remission
- College Administrative support
This list provides example of other distributed resources but is not an exhaustive listing of all resources. This list provides example of other distributed resources but is not an exhaustive listing of all resources.