RCM is a budget allocation model. The University adopted this budget model beginning July 1, 2009 so that resources will flow to areas experiencing growth and encourage entrepreneurial activities, such as new programs or services, enabling us to provide higher quality services.
RCM fosters net budget growth and this is accomplished by either growing revenues or reducing expenses. All employees, regardless of department, need to contribute to the overarching goals of the university. RCM will help improve the quality of the university in that budget dollars will be more readily available to invest in the academic mission.
The actual revenue earned by the responsibility center is a formula that considers multiple revenue streams and a two-year average for both tuition and state share of instruction. The RCM manual provides details on how revenue is calculated.
The 80%/20% split refers to how revenues are distributed. 80% of the revenues are based upon the course that the student is taking. 20% of the revenues are distributed to the students’ major. For a more detailed explanation please click here.