UNIVERSITY FUND
Background
The University Fund equals approximately 22% of the total State Appropriation received by the University of New Hampshire, including all related PAU’s (see attached chart). The University Fund has two components:
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A "balancing adjustment" allocated to Units at the onset of RCM to bring Units into RCM in a "revenue neutral" budget position (no better or worse off than under the old budget system).
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A fund used for incremental increases to units after the first year of RCM. The Central Budget Committee manages this fund.
Detailed Guidelines
1. The absolute amount of the "balancing adjustment" component of the University Fund will not decrease except in the occurrence of the following circumstances. In all cases, the adjustment must be approved by the Central Budget Committee:
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As a result of formal RCM reviews, modifications to the model may be made that will require an adjustment to the University Fund allocation to ensure that changes in the model do not financially harm any unit. For example, credit hour weighting used in the tuition allocation may be re-calibrated during the five year review. If the five year review results in an increase to the credit hour weighting for a unit, the University fund allocation would be reduced to compensate for what would otherwise be a tuition windfall.
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Significant modifications to the academic curriculum offered by one or more colleges could result in a shift in the University Fund to rebalance the model. For example, the move of a department from one college to another or a merger of colleges would result in a different mix in the revenue and expense available to a college. Such a profound change could require a change in the balancing adjustment to make sure that the RCM model will continue to work for each unit.
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If an event occurs that is beyond the control of the University that results in significant financial harm to the University, some portion of the "balancing adjustment" could possibly be utilized to provide continuity of University operations.
2. The amount of the "balancing adjustment" portion of the University Fund allocation for each RC unit will not be automatically increased for inflation.
3. All RC units are eligible to apply for incremental increases in their overall University Fund allocation. During the budget process, each RC unit should forward these requests to its Vice President, who upon review and approval would then forward the request to the Central Budget Committee.
4. Criteria for allocation of the incremental increase portion of the University Fund by the Central Budget Committee is outlined below:
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Supporting the University: Resource allocation shall be in the best interest of the institution.
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Rewarding Excellence: Excellent programs and new initiatives within or between RC units should be rewarded and encouraged.
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Upholding the Institution’s Mission: RC units that contribute to the University’s goals and priorities, as contained in the academic/strategic plan should be supported.
5. Allocations from the University Fund may be one-time, for a limited number of years, or without limit of time.
Please see attached example to show how the University Fund works.
