Learning About RCM

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There are many resources available for faculty and staff members to learn more about RCM. Below are some of the commonly asked questions about RCM.

FAQs

1. What is RCM? Why did Kent State choose RCM?

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.

2. What do I need to know about RCM? How does RCM affect my department?

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.

3. Where do I get financial and enrollment information?

In this website you will find a section on RCM resources. In this section you will find where you can locate financial and enrollment information.

4. How is revenue calculated?

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.

5. How can I estimate the incremental revenue impact from a new course?

To help determine revenue that a new course will earn, a tool has been developed. You will be required to estimate the potential enrollment and the tool will calculate a “break-even” analysis.

6. When will I find out the actual revenue numbers of each semester?

Colleges will be given updates on their actual revenues periodically throughout the academic year.

7. How can I suggest ideas for budgeting, using RCM, and other models?

All suggestions can be sent directly to Wayne Schneider, Director, RPIE (phone: 330-672-8225 or wgschnei@kent.edu) or on the home page of this website.

8. How long will Kent State operate under RCM budgeting?

The University is expected to operate according to this model for the foreseeable future. The RCM budget process will be continually reviewed by the Executive Officers and by FaSBAC.

9. What is the 80%/20% split?

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.

10. What assumptions are used to guide the yearly preliminary budgets?

The preliminary budgets are based upon enrollment projections from each of the colleges. These enrollment projections are the foundation for building the budget.

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