Changes to budget model won't affect FY14 budgets
The process of implementing changes to the university's 5-year-old budget model is under way, but no changes will be made this year that affect budgets for the fiscal year that begins next July.
Last month, president Steven Leath appointed a work group to review each of the 47 recommendations presented in a May 2012 report (PDF) by the group that completed a 10-month review of the Resource Management Model (RMM). (These 47 recommendations were amassed in the report's Appendix D, pp. 106-113.) In August, Leath addressed one of the review committee’s recommendations by calling for changes to the budget advisory committee structures.
The work group will be lead by the president's office and includes these members:
- Dave Biedenbach, assistant vice president for financial planning and budgets, president's office
- Pam Elliott Cain, associate vice president for business and finance
- Kathy Jones, associate vice president for student affairs
- Miles Lackey, associate vice president and chief of staff, president's office
- Ellen Rasmussen, associate vice president for budget and planning, provost's office
By early November, the group hopes to complete an initial review of the 47 recommendations and develop an implementation plan. The plan will provide:
- Changes that will be made during the FY14 budget development process (changes in this category will not impact units’ FY14 budgets)
- Recommended changes that need further input from subject experts on campus (implementation of changes most likely would occur after FY14)
- Proposed alternatives to an issue addressed by the review committee. The work group would seek campus input on the proposed alternatives.
Biedenbach said the group hopes to share a preliminary implementation plan with Leath by early December. Implementing changes would occur over several fiscal years, he said.
"We don't have a timeline for implementing all of the changes that will be made. The important thing is that we implement changes that address the issues that were highlighted during the formal review process," Biedenbach said. Units should proceed with FY14 budget planning with the assurance that any changes made to the model this year "won't have a dollar impact on units' FY14 budgets."
Despite the fact that the RMM review committee sought and received extensive campus input both to prepare its draft report and before it completed its final report, Biedenbach said the implementation group would not hesitate to ask for more input.
Iowa State units first used the RMM to build budgets for the fiscal year that ended June 30, 2009. The model is designed to link resources with responsibilities, offer better flexibility as priorities evolve, and build in incentives to support university goals and strategies. The committee that adapted and led its implementation recommended a review of the model after three to five years of use. The review committee began its work in June 2011.
Questions about the implementation process for RMM changes may be directed to Biedenbach.