Portland State University leaders unveiled a new budget model Jan. 19 that will help the campus meet its academic and financial goals despite declining state funding.
PSU joins dozens of other colleges and universities across the country in switching to a model that links funding allocation to performance and revenue generation in a simple, transparent and predictable way.
Roy Koch, provost and vice president for Academic Affairs; Kevin Reynolds, vice provost for Fiscal Strategies and Planning; and Monica Rimai, vice president for Finance and Administration, announced the changes at the annual winter symposium for faculty and staff.
The new model is the result of long-term campus planning as the University adjusts to lower state funding levels and relies more on tuition, research funding and philanthropy.
Academic units will receive tuition and state funds based on their enrollment, majors, degrees granted and sponsored research. Cross subsidies between and within colleges will be necessary to support some critical areas.
"It allows the funds to follow the students, and that is important," Reynolds said.
In the question and answer part of the presentation, a faculty member asked whether the new budget model would determine the University's priorities.
"The budget model comes second to the priorities, not the other way around," Rimai responded.
Koch added: "We spend our money to achieve the mission, such as student success. It's not our intent to only do the things that generate money."
A steering committee led by Rimai and Reynolds and a working group will develop the model this year, test it as a shadow budget model in 2012-13 and implement it in 2013-14.