Showing posts with label Performance Based Budgeting. Show all posts
Showing posts with label Performance Based Budgeting. Show all posts

Thursday, October 23, 2014

We Missed You at the SEM and PBB Forums

On October 13th and 17th, I held open forums about the Academic Affairs FY 16 Strategic Enrollment Management (SEM) planning and Performance-Based Budgeting (PBB) process.

The presentation included the FY 16 SEM and PBB planning process, timeline and the final FY 15 performance requirements for units in OAA.

Approximately 30 individuals attended the forums, and it was great to see Michael Bowman, chair of the Faculty Senate Budget Committee, at both sessions. I was pleased all the deans and most of the associate deans were present. Given their knowledge of budget and/or enrollment management planning, they really came to listen to the input and questions faculty would have. Faculty provided commentary and asked many informative questions. However, only eight faculty members attended.

Seeking Feedback
Last year the budget was such a hot and controversial topic that I was surprised by the low attendance this month.
  • Have we done such a good job explaining the SEM and PBB process that everyone has the information they need?
  • Were faculty aware of the sessions? 
  • Is everyone just too busy? (I can relate!)
Communication Efforts
On September 15th I sent an email to all department chairs to forward the forum times and dates to faculty in their departments. Also, on October 5th my blog on FY 16 SEM and PBB planning to begin listed the times and dates. Finally, on October 6th the times and dates were provided in writing at the Faculty Senate meeting (see item B5- provost comments).

I would appreciate hearing any thoughts or suggestions you may have on the low attendance, and if there is any information needed on the OAA FY 15 budget or the FY 16 SEM and PBB planning.

Monday, October 13, 2014

SCH—orbiting the giant hairball?

Would a one-day moratorium of not saying “SCH” (Student Credit Hours) change how we frame issues? Perhaps it would have us look differently at how we approach the curriculum, or how we derive alternative solutions?  I often hear that the way SCH is counted, attributed and valued prevents us from doing what we want to do.

Breaking the Myths
Some believe that PSU unit budgets were historically based on the SCH production. I am hard pressed to believe this as a past practice given there is little evidence that as units grew or shrunk that budgets followed these same patterns. I also hear that our new performance-based budget model (PBB) is solely SCH driven; that it sets up competition for SCH; and that administration thinks the more SCH the better.  This is not accurate either. PBB revenue requirements are based on tuition revenue, however PBB expenditure budgets take into account non-tuition revenue generated activities such as unfunded faculty research and service, as well department and college administrative costs. While there is no question we need the revenue generated by the tuition paid by students, we must put the SCH in perspective.  The focus should be on student success and quality.

Brief History of Student Credit Hours
Where did SCH as a measure come from anyway? Over 100 years ago, as a trustee of Cornell University, Andrew Carnegie set out to create a pension system for university professors that would be administered by the nonprofit Carnegie Foundation for the Advancement of Teaching.  He borrowed a system that had been used by high schools for measuring a standard unit of time a student spent on a subject.  It forever became known as the “Carnegie Unit” and the defacto standard for determining high school graduation and college admissions requirements. Carnegie’s  pension  system  also spurred  higher  education to convert its own course  offerings  into time-based units, which  were  used  to  determine  faculty-workload  thresholds to qualify for the new pension program. 

Understanding how Student Credit Hours translate into revenue
Let us re-examine the credit hour to understand its proper relationship to budget and not let it be the driver of what we do.

First, all SCH are not the same in the revenue they generate.  Out-of-state students pay more than in-state students, graduate students pay more than undergraduates, and some programs have differential tuition. How SCH growth is generated is also important both in terms of student success and finances. 

For example, we may find that competency-based learning or credit for prior learning (CPL), although lowering SCH, enhances student success and reduce costs to students.  And in turn, is less costly to the university than recruiting and attracting a new student, or having students not see their program of study through completion.

Stuck in a hairball?
SCH is important, but it should not be the goal. I have on my shelf a book I read a number of years ago—Gordon McKenzie’s Orbiting the Giant Hairball (the image above is from the book).  The book highlights how even the most innovative organization become "giant hairballs" – tangled in an impenetrable mass of rules, traditions, and systems; all based on what worked in the past. I would like to see us work on creative curricular solutions that guarantee high-quality learning that allow us to break away from the giant SCH hairball we find ourselves getting stuck in so often.  I wonder what others think.




Sunday, October 05, 2014

FY 16 SEM and PBB planning to begin


Last week was not only the first week of a new fall term, but it was also the start of the Academic Affairs budget and enrollment planning for FY16.  FY 16 will be our second year of performance-based budgeting (PBB).  PBB is a change from the incremental budget setting that PSU used in the past and it no doubt will take some time for everyone to have a full understanding of how it works and for us to use it to its full capabilities. 

This new model changes our budget paradigm.  Whereas in the past we set budgets and then determined what we could do with those funds, we now have a process whereby we assess what is possible and feasible and develop a budget to support that.  This requires an integrated planning approach that begins with school/college level Strategic Enrollment Management (SEM) plans.  SEM planning anticipates the ups and downs in trends of demographics, enrollment, and demand; articulates the strategies units will use to improve success of current students; lays out recruitment efforts for new students; and identifies potential new programs.  The SEM plans are done at the school/college level with each having an internal process. The SEM plans are critical to projecting revenue generated by tuition, which along with the state appropriation and fees establishes our Education and General (E&G) to support the teaching, research and services provided by the university. 

The process of SEM and PBB planning is an integrated one and is a combination of analyzing data and making assumptions on student decisions.  It needs to take into account the interdependence units have on one another and how we function as a university as a whole. It is a process that cannot and does not take place behind closed doors. It is iterative as can be seen in its timelines that are publically posted and have been shared with the deans, the Faculty Senate Budget Committee, and all academic department chairs/directors.  I do not expect that everyone has had a chance to grasp all the aspects and capabilities of this new way of planning and budgeting.  In the spring we did create a short 9 minute video to explain the basics of PBB and I have started to write PBB issue briefs to help demystify concerns as they emerge.

On October 13th from 3-4 pm in SMSU 296/298 (and repeated again on the 17th from 9-10 am in SMSU 236) I will host open forums to provide a recap on the Academic Affairs FY 15 budget, to share information on the FY 16 SEM and PBB process, and to listen to concerns and questions you might have.  I encourage you to attend as well as to use this blog to share your views.

Wednesday, September 17, 2014

INTERDISCIPLINARY COLLABORATIONS

As a university, we have an organizational structure that puts academic disciplines into colleges, schools and departments.  We know that in reality the world operates as a set of interdisciplinary, inter-connected, complex systems.  Real world problems are solved when we blur and cross disciplinary boundaries. 

It is evident that PSU faculty members embrace interdisciplinary collaborations--in research, team teaching, requiring courses or electives in programs other than your own, and in joint programs. There is no doubt that we will see an increased need and desire to bring different disciplinary perspectives together to advance knowledge, the way we look at things, and to help our students learn to understand the complex world we live in.

I know that interdisciplinary collaborations are not easily achieved. It takes hard work and there certainly are many obstacles that prevent it from happening.  It requires creativity, time, effort and a willingness among individuals to work together.  Some faculty members at PSU have expressed concern that our new model of performance-based budgeting (PBB) will make it harder for interdisciplinary collaborations. That it will set up a competition between units and create barriers for working together.   If that were to happen it would certainly be detrimental to our research and teaching efforts. A budget model should support, not undermine, what our faculty members believe to be important ways of working together.  

I would like to bust the myth that our recently adopted performance–based budgeting will result in the demise of interdisciplinary collaboration.  It will not.  In fact, unlike our prior model of incremental budgeting, PBB makes it possible to recognize and create collaborations within and across schools and colleges at PSU.  I have written a PBB issue brief on this topic to explain how this works.  The issue brief can be accessed off of the Finance and Administration’s PBB main site (http://www.pdx.edu/budget/performance-based-budgeting) or directly at http://www.pdx.edu/budget/ppb-issue-briefs.


I would like to hear if at any time an interdisciplinary collaboration you wish to do is thwarted by our budget model.  If that is the case, we need to work to revise the model to make it possible for collaborations to happen.

Friday, July 25, 2014

Performance Based Budgeting (PBB)

FY 15 marks the first year that PSU is using Performance Based Budgeting (PBB).  The groundwork of PBB was created years ago with the Financial Futures Taskforce (for a history of PBB at PSU see http://www.pdx.edu/budget/history-of-performance-based-budgeting-0).

PBB moves us away from the incremental budgeting model of the past. Although that model served PSU well for many years, it was not able to fully support the dynamic nature of the growth and declines we were seeing both in terms of enrollment and stat funding.  To compensate for its shortcoming, PSU also developed a self-support model that ran in tandem with incremental budgeting.  And in recent years, we layered on to all of this the need to reduce budgets; making it even hard to distinguish what budget model was being used when and where.  I have probably over implied this, but given this is a blog post I am giving myself permission to do so.

As its name implies in PBB, performance and budget are linked.  But, at PSU that does not mean that every unit is a tub on its bottom—it does not mean that every unit performs the same.  In its simplest form, PBB for PSU schools/colleges can be explained as the relationship between 2 components: a revenue requirement and an expenditure budget (the expenditure budgets and performance requirements for all OAA units is available at (http://www.pdx.edu/budget/sites/www.pdx.edu.budget/files/Town%20Hall%20-%205-27-14_with%20video.pdf  (slide 43) ). This past spring we created a short, 9 minute animated video on how PBB works for our schools/colleges in OAA (http://www.youtube.com/v/Vdt30w5Yu8w ).

You can consider the video the OAA PBB primer.  It covers the most rudimentary elements and principles of PBB at PSU.  Over the course of this year I will post a series of issue briefs on PBB.  These will be short, 2 page documents designed to explain some of the ways PBB works (or does not work) and to dispel some of the myths and address concerns the model raises.  The one I will post soon is how PBB supports interdiicpilainry collaboration.  And, although I have yet to start writing  the second PBB issue brief, I already have a working title: “Getting over the loss of self – support and moving forward with PBB as an entrepreneurial tool”—or something like that.



Please do not hesitate to contact me if you have any questions or comments as we implement PBB.