Frequently Asked Questions

We are changing to a new model to address four shortcomings of the current model: 

• The current model includes incentives based almost entirely on enrollment, and thus works best only if schools are on a growth trajectory, which many will not be in the coming years.​ 
• The current model does not cover the full cost of central support services. 
• The current model does not allocate the cost of central support services to the schools based on actual usage, resulting in the inequity of schools paying as much as 52% or as little as 0% of revenues for those services. 
• The current model does not designate funds for strategic investments, hampering the ability to capitalize on opportunities to advance Mason’s overall mission.​ 

The individuals involved in the RCAM project represent units from across the University, and come from Mason’s schools and colleges; the Office of the Provost; the Budget Office, Fiscal Services, Facilities, ITS, and other Central Services; University Business Consulting (UBC); and Grant Thornton, an external business consulting firm.

More information on RCAM project governance can be found at https://rcam.gmu.edu/connect/.

The RCAM project is broken into four phases which can be viewed at https://rcam.gmu.edu/project-timeline/

The project is currently in Phase II, Develop Model Inputs and Create Model, which will last through FY22. Phase III begins in FY23, which will be a parallel year run between the current model and the new model to allow for time to vet, test and adjust the new model. Phase IV will begin in FY24 in which the new model will be fully deployed and go live and will include a hold harmless period.

Unit financial leadership is centered within the colleges hence academic considerations can be given an even greater priority as decisions are made by those closest to the impact of those decisions – at the college, department and unit levels.

The RCAM model will allow greater transparency and authority at the unit level for financial decision making, improved entrepreneurial and creative reasoning, and a better alignment of budget and strategic priorities.

Based on the premise that deans best understand the operations of their own units, the new budget model allows each dean a greater level of empowerment in terms of budget authority.

The shift in financial decision making to the schools and colleges will create some new demands on various constituents: the Deans and other senior executives; school/college management support staff;  department chairs, faculty and student advisory committees; boards of visitors or other alumni bodies, and more. Leading into these changes, schools and colleges can broaden participation in financial discussions and determine what kind of internal structures make sense for them. 
 
Two of the developmental priorities in the new budgetary system are simplicity and transparency. A successful model should be accessible to most university stakeholders. Engagement and participation from those same stakeholders will help create a dynamic and healthy budgeting process. 

One goal of the new model is to tie financial decision making closer to core mission activities: instruction, research, and public service. A budgeting system that is more responsive to the changing needs of the university and utilizes resources more efficiently will help the university achieve the goals set out in the Strategic Plan. An effective implementation of this new budgeting model will require well-supported governance structures at various levels. Those structures should foster the increased participation of campus stakeholders. 

The RCAM model will affect academic units (i.e., schools and colleges) and business/administrative units, including the Provost’s Office. It is intended to be an all funds model.

The guiding principles for the RCAM project can be viewed at:

https://rcam.gmu.edu/guiding-principles/

Many universities, both private (e.g., Harvard, Duke, Johns Hopkins, Syracuse) and public (e.g., the University of Michigan, University of Delaware, University of New Hampshire) use some form of RCM.

RCM was developed and has evolved over some 35 years with the University of Pennsylvania being the first higher education institution to implement RCM in 1974. A 2011 Inside Higher Ed survey indicated “interest in responsibility center management among public universities is soaring, with more than 21 percent of public doctoral institutions reporting that they use the RCM model.”

Lessons learned, including ones gathered from best practices and benchmarking research and from which we will benefit, include: 

• Making the transition to a new budget model can be challenging, but it is considered the best approach and solution for collaborative and responsible financial management going forward. 
• Implementing a new budget model requires ongoing conversations between academic and administrative units to manage changes, take advantage of opportunities, and ensure commitment to core mission and values. 
• The general intent of implementation of a new model is to empower academic units and the institutions that have derived the greatest benefits have also learned that success requires trust, collaboration, and a common sense of purpose among all units in order to be successful. 

The Education Advisory Board website (https://eab.com) offers several helpful documents that go into great details on various aspects of budget models. 

If you have specific questions that you do not see answered here, please reach out to us at [email protected]. Once submitted, we will respond to your questions directly in a timely manner.