IRM Model Structure
Tuition Revenue Allocations
Under IRM, tuition revenue is allocated to revenue units based on a split of enrolled and instructed student credit hours.
Resident Undergraduate Students
- Allocate 70 percent on each unit’s share of resident undergraduate instructed credit hours (i.e., College of Instruction)
- Allocate 30 percent on each unit’s share of resident undergraduate enrolled credit hours (i.e., College of Record)
The allocation of a portion of tuition to the College of Record recognizes that colleges provide more to students than just instructional services.
Non-Resident Undergraduate Students
Requires calculation of premium being paid by non-resident students due to increased rates allowed to be a charge on statutory and designed tuition.
- Allocate non-resident, non-premium pool on 70/30 College of Instruction/College of Record split
- Allocate the remaining premium pool on 100 percent on non-resident undergraduate enrolled credit hours (i.e., College of Record)
The decision to allocate a premium on non-resident undergraduate students was to recognize that colleges have programs with the reputational draw for students, including out-of-state and international students.
Resident and Non-Resident Graduate Students
- Allocate 70 percent to academic units based on instructed credit hours (i.e., College of Instruction)
- Allocate 30 percent to academic units based on enrolled credit hours (i.e., College of Record)
- Graduate Incremental Tuition: allocate based on graduate College of Record semester credit hours at the rate set by residency status: $50 per resident graduate semester credit hour, $458 per non-resident graduate semester credit hour
The new budget model still allows colleges to designate graduate incremental tuition revenue toward their doctoral programs.
General state appropriations are allocated to revenue units on a split of weighted instructed credit hours and sponsored program revenue.
See the Budget Model Task Force final report for more information regarding allocations on centrally collected fees, scholarships and F&A revenue.
All other revenue directly attributed or earned by a revenue or support unit will remain with that unit to cover direct expenses. For example, all restricted gifts and sponsored program income will remain with the unit earning the revenue. The same principle for any specific or earmarked fee income attributed to courses or designated services to be delivered, i.e., library fee or advising fee. There is currently only one college receiving a direct state appropriation that will remain with the college.
Support Unit Costs
Support unit costs are allocated to revenue units based on their share of various activity-level metrics, such as student FTE, undergraduate student FTE, faculty and student FTE, student headcount, total student and employee headcount, employee headcount, sponsored programs revenue, expenditures, and square footage. Currently, support unit costs are covered by centrally allocated tuition, appropriations, fees or other revenue held, as well as reliance on their own directly earned revenues.
See the Budget Model Task Force final report for more information regarding support unit costs.
IRM includes a participation fee of 14 percent on selected revenues generated by revenue units, serving as a broad base to address three institutional needs:
- To provide a subvention pool for those units not able to cover direct costs.
- To retain an amount for university reserves and improve financial ratios that have been declining.
- To provide a central Strategic Initiative Fund that can be used to support university-wide priorities, such as student success, research excellence and revenue growth strategies.
The revenues proposed to be subject to the participation fee are:
- Allocated tuition
- General state appropriations
- F&A allocation
- Sales and services
- Other operating revenues
Those that are not subject to the participation fee are:
- Student fees, course fees and mandatory fees
- Direct state appropriations to special items or non-formula areas
- Sponsored programs
- Gift contributions and endowment income
- Investment income