Budget Model

UC Davis' Budget Model for Revenue Allocation

The core of support for the university’s instructional mission has historically come from what the university has called general fund revenue—a combination of state unrestricted funds and tuition support.

In an environment where state funding is a decreasing and smaller share of the total resources available to support the university and student tuition and other sources are an increasing share, it is important to distinguish between student tuition support and unrestricted state support. To accommodate these priorities, in 2012-2014 the campus transitioned to a budget model that is a hybrid of formulaic allocations and leadership decisions. Key budget model principles are: 

  • Create incentives to advance campus goals
  • Improve transparency
  • Simplicity
  • Balance local autonomy with campuswide vision
  • Incorporate transition strategies

The revenue allocation component of the budget model provides academic units with funding based on a share of the total revenue and metrics. The allocation methodology and metrics used varies by revenue source and allocations are provided to the Deans who make resource decisions within their school or college. Incremental decisions are made as part of the campus budget process. Administrative and Academic Support units do not receive formulaic revenue allocations; they receive funding through leadership investment decisions made through the campus budget process.

Below is a graphical representation of the budget model funds flow by source and spending authority.

Budget model source, authority, and use fund flow diagram

> Click to see full-size image

UC Davis is in the process of reviewing its incentive-based budget model.  In Fall 2017, in partnership with the Academic Senate, the campus engaged EY Consultants to review the campus budget model and process.  The results of this review and the Committee on Planning and Budget’s evaluation of the report are informing BIA’s review of its incentive-based budget model.  UC Davis is implementing changes to the Undergraduate Tuition Revenue (UGTR) component of the budget model to create a funding pool for student success initiatives starting with 2020-21 allocations.  While the Graduate Tuition Revenue (GRTR) budget model component is currently under review, the campus determined that the associated Master’s Enrollment Incentive Program (MEIP) would continue as originally conceived.  In addition, the concept of “Provost Allocation” introduced in the initial budget model was reframed to clarify how different components of the state funds and tuition revenue allocated through the budget model and annual budget process are defined, and what drives these allocations.

For each of the adjustments under consideration, BIA follows a process designed to evaluate benefits, drawbacks, and potential costs or savings; solicit and incorporate feedback from stakeholders; and communicate broadly.  More detail about these analyses are on the individual budget module pages.

Process Flowchart

For more information, contact the Budget Office.