SIU administrators are experimenting with six models that would distribute tuition money based on a college’s productivity.

The University is looking into a plan similar to a Responsibility Center Management (RCM) system in which a university distributes tuition money to colleges based on enrollment.

Currently, the University collects tuition dollars for distribution to the various colleges. Under RCM, colleges keep their tuition dollars and are able to spend them accordingly.

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The six attribution models promote various distribution tactics that would divide the money among colleges. Under the models, percentages of tuition dollars flow to colleges which teach courses and colleges which enroll students.

John Jackson, provost and vice chancellor for Academic Affairs, said he commissioned the study and is not promising this that this plan will ever go into affect. However, a new budgeting system could go into effect as early as fiscal year 2001.

I commissioned a study out of our budgeting office which was a dry run of several models as to how we might allocate tuition money to the colleges if we might do RCM, Jackson said. It’s not a done deal at all, it’s just an option.

We needed to sort of see how it might work if we do it.

Elaine Hyden, vice president for planning and budget services, said the plan is in its early stages and a government ruling may have played a part in the school’s action. She said the state government decided about two years ago to allow universities to keep their tuition money. Prior to that, tuition and general revenue was state money.

It is still very elementary at this level, Hyden said.

Retaining our tuition money allowed us to consider different options.

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C. Michael Williams, executive director of budgeting and information services, is the collecting data for the models. Williams built a database that consisted of four years of historical data and has tested them on the six models that the University is considering.

We tested these models on actual enrollment already. The historical data consists of the years 1994-97, Williams said. We have shared the data with a couple of committees on campus and the provost.

Williams said he is unable to release the results, and there are many colleges that his department still has to meet with.

We had been instructed to meet with [College of Liberal Arts] and [College of Business and Administration] later this month, he said. Later we will visit with other deans and their associates.

Several universities have installed or will be installing plans similar to RCM. The University of Illinois is implementing a tuition distribution change beginning in July.

Responsibility Center Budgeting:An Approach to Decentralized Management for Institutions of Higher Education is a book describing how Indiana University decentralized their budgeting and management system.

Hyden said the fact that other universities have tried this plan really brought this option to the surface for SIUC officials.

We are seeing changes in budgeting across the country and that’s another reason why this is an option for us.