This page contains answers to frequently asked questions related to the Budget Redesign Initiative. Click a question to view its answer.
A budget model is a resource management philosophy designed to ensure Indiana University and its campuses are intentionally using financial resources to best support its mission and goals. An effective budget model allows for the appropriate allocation of resources based on needs, goals and objectives, while balancing the resources available to support Indiana University and its strategic plans.
IU’s current budget model is Responsibility Center Management (RCM), and the university was the first public institution to adopt this model. RCM has been used for many years at the overall institution and campus level to allocate resources and manage annual budgets.
RCM has served IU well. However, over time this model has become more complex and a convoluted approach to budgeting across IU. The RCM model needs to be modernized to allow for greater transparency in budget development, better budget planning and management, and stronger budget and financial analysis. Redesign efforts will also focus on developing processes that incentivize innovation and interdisciplinary activity across IU’s campuses.
Many large educational institutions use RCM, or a version of it, including many of IU’s B10 peers. Half of these B10 institutions are reviewing their budget models and plan to modernize their approach to budgeting at their respective campuses.
It’s imperative to review IU’s existing budget model and bring it in line with modern processes. Reviewing and updating the budget model ensures that each campus will have the tools they need to plan to meet the goals they’ve set as part of the IU 2030 plan.
Each campus has formed working groups led by academic and finance leaders. These working groups will engage in budget model redesign specific to their campus. Sub-committees will engage in discussions that focus on fostering a broader understanding of the campus’s needs throughout the development of this new approach. Visit the Project Leadership, Governance & Support page to review a list of representatives from your campus.
A steering committee comprised of leadership from all IU campuses, supported by Interim Vice President for Finance and Chief Financial Officer Jason Dudich, guides the overall project.
Finally, Huron Consulting – an external advisor with extensive higher education expertise – provided insight and guidance from best practices to IU as part of the process.
The UA assessment is an umbrella term for the costs allocated to campuses to ensure University Administration (UA) units have appropriate funds necessary to support IU and its campuses' essential operational needs. The UA assessment funds organizations such as IU HR, Public Safety, Finance, Research Administration, Information Technology, Capital Facilities, Legal Services, and more.
Yes. Phase I of the Budget Redesign effort focuses on review of the University Administration (UA) annual campus assessment. IU’s current allocation method is outdated and lacks a data driven approach.
The goal of Phase I is to define an UA assessment that encompasses all essential and necessary UA functions based on historic needs and future initiatives. Work on Phase I began in Fiscal Year 2025 and will continue through Fiscal Year 2026 and Fiscal Year 2027 to allow time for additional adjustments as the redesign progresses.
Phase II of Budget Redesign focuses on campus budget model redesign. Each campus will assess its budget model structure and determine what budget model structure best suits its needs. Each campus will design a budget model that allows it to allocate resources, invest in initiatives and projects that align with their IU 2030 plans, and strengthen financial management.
Completion of Phase II is not dependent on completion of Phase I (reviewing the UA assessment).
The goals of Budget Redesign are similar across all IU campuses. However, each campus working group will take into consideration their campus’s strategic priorities, culture, and fiscal needs when designing a model that best fits their needs. Visit your campus overview page to learn more about your campus working group’s priorities.
At the earliest, implementation of a new model will take effect in Fiscal Year 2027. No budget model changes will impact Fiscal Year 2026. Ideally, each campus will operate under its current budget model in Fiscal Year 2026 while running the new budget model in parallel. This allows campus working groups time to review the model, make adjustments, and continue discussions with campus stakeholders ahead of full implementation.
Visit the Budget Redesign Contact page to view a list of support contacts for your campus.