University of Idaho Faculty Senate discusses how the Vandal Hybrid Budget Model is working to meet the needs of the various academic colleges

Faculty Senate discussed changes to the University of Idaho budget model which will shift away from the prior, increment-based model.  

The proposed hybrid model would utilize a combination of fixed and variable funding to allow for greater budget unification through a universal base budget percentage while allocating a portion of each academic college’s budget to be gained or lost depending on whether the college meets various performance metrics. 

Under the hybrid model, fixed funding based on the previous year will account for 90% of a college’s funding pool. 2% will be used for variable costs such as structural issues, collaboration rewards and other matters that emerge throughout the fiscal year. The remaining 8% will be allocated for metric-based incentives, Academic Budget Officer Kimberly Salisbury said. 

“One of the challenges here is that all of the colleges are unique,” Interim Provost and Executive Vice President Torrey Lawrence said. 

Originally, the hybrid model had provided funding on a proportional basis, but there were fears that colleges would be forced to compete with one another. This shifted the model to allow for individualized metrics for funding. The current metrics measured in the budget are student credit hours delivered, undergraduate degree completions, undergraduate enrollment trends, graduate degree completions and graduate enrollment trends. 

According to the university’s Sustainable Financial Model Working Group, each of these metrics will have target numbers that are adjusted for each academic college. The targets will then be evaluated on an annual basis, with adjustments being made nearly every three years. 

The targets for each college along with the metrics, the weights of the various metrics and the weight for completion of metrics will be finalized by July 1 and be implemented starting in fiscal year 2022, Salisbury said. 

Royce McCandless can be reached at [email protected]