Effective July 1, 2018, the University of Oregon provides general fund allocations to all academic units through the new Academic Allocation Model.
The new model replaces the previous Oregon Budget Model, an activity-based budget model primarily driven by student activity such as student credit hours, the location of enrolled majors and graduate students, and earned degrees.
In contrast, the new Academic Allocation Model provides each academic unit with a funding allocation calibrated to prior year as well as projected expenses, and opportunities for strategic investment dollars. It is designed to create financial stability for UO schools and colleges.
Under the new Academic Allocation Model, each school or college will be given a single operating allocation for the fiscal year, funded through the components outlined below. The schools and colleges will be responsible for creating an internal, balanced budget based on this operating allocation.
The deans and chief financial officers will work closely with the Office of the Provost (OtP) and the executive vice provost for academic operations to track and project expenditures.
The operating allocation is the sum of the following:
- Tenure-Track Faculty Base Allocation: total base salary and OPE of all tenure-related faculty in the unit. This allocation is tied to the Institutional Hiring Plan.
- Graduate Employee Base Allocation: salary, insurance, and fees for a specified number of graduate employee appointments (by academic year term). The number of graduate employees will continue to be determined annually through a collaborative process between the Graduate School, OtP, and each school and college.
- Graduate/Differential Tuition Allocation: 100% of any academic year graduate tuition or undergraduate differential tuition generated by the unit, less a fixed Tuition Holdback. The Tuition Holdback is a lump sum that grows each year based on salary inflation, shared expenses related to graduate programs, and conversations between the provost and individual deans.
- Summer Session Allocation: summer session revenue based on undergraduate and graduate student credit hours, in a manner similar to that of the old Oregon Budget Model.
- General Operations Allocation: a lump sum amount determined by OtP based on understanding of the operations of the school or college and conversations with the dean. Across all schools and colleges, this allocation represents roughly 16% of the total allocation.
- Short-term Program Investment Allocation: a sum to seed new programs, build strength in programs, or help units through difficult, short-term adverse market or financial conditions. Program investments are tied directly to conversations between the dean and the provost.
This operating allocation is intended to fund all basic school and college operations. For more information about the allocation model, including details on each of the allocation components and procedural guidelines, see the Academic Allocation Model Handbook.