Toward a new budget model

Dear Colleagues,

Upon my arrival two years ago, I was approached by faculty members, deans and others with concerns about UD’s budget model and its implementation here. In response to those concerns, a comprehensive review process was undertaken, including a faculty-led task force, a team of external experts, and discussions with academic and administrative leadership. Throughout this process, it was our core academic priorities, including the pursuit of academic excellence and research and scholarly prominence, that drove the development of the model.

During discussions, it was reaffirmed that revenue-incented decision-making by academic leaders has much greater potential to move the University forward than traditional budget models. It rewards sound management, empowers decision-makers in ways traditional expense-oriented, centralized budgeting cannot and thus contributes to a higher quality, more competitive and more prominent University of Delaware.

I’m pleased to announce a significant milestone in our review and revision of our budget model. A new budget model, unanimously endorsed by the leadership of all colleges, has been created for implementation in the 2017-18 year. It will be employed as a parallel shadow system until that time to ensure a smooth implementation.

The new model offers benefits which were identified as important by the faculty task force and external reviewers. These include

  • Simplicity, transparency and predictability
  • Clearer allocation of revenues and simplified expenditure recovery
  • Incentives to all colleges to increase revenues and reduce costs while holding excellence paramount.

In the upcoming months, you will have the opportunity to learn more about the specifics of the new model.

This process and the many discussions that have taken place have reinforced that we are One University, and we all benefit from the synergies that make us strong. It is critical that we continue to work together to ensure our financial decisions directly support our values, our goals, and our drive for consequentiality.

I would like to personally thank everyone who worked so diligently and collaboratively to bring this effort to a successful conclusion.

With a Daring Spirit Bold, Delaware Will Shine!

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Domenico Grasso
Provost & Professor