As descibed earlier, allocations based on tuition revenue targets will be only a small portion of the total university budget. Under revenue based budgeting models, extensive portions of the instituitonal budgets are allocated on the basis of revenue generated. Responsibility Centered Management attributes instibutional revenues and costs to the revenue-generating units. This model, for instance, is in place at Indiana and Michigan, and goes far beyond the allocation of excess tuition revenues. The UW System now negotiates revenue targets for each UW System campus, which puts us into the same situation as most other higher education institutions.
Tuition is attributed to schools and colleges based on the credit hours that they convey.
This method is necessary to accommodate the flat rate we charge undergraduate students for enrollments between 12 and 18 credits and for graduate students above 8 credits. The financial climate within which UWM operates has changed significantly during this decade. To accommodate these changes, the university has made and is continuing to make significant adjustments in the way it budgets and manages resources. The Chancellor and the Chancellor's Budget Advisory Committee will undertake a comprehensive review of these budget procedures next year with the expectation that budget policies and procedures will continue to evolve. First, we need to recognize that we are talking about attributing a minor fraction of our university expenditures in this model.