'U' budget plan to be tweaked

Since its official inception two years ago, the University's Valued Centered Management budget plan has been a point of contention between administrators and faculty forces.

Because VCM has been a particular sticking point, both parties will be paying close attention to Provost Nancy Cantor as she outlines the future of VCM at today's meeting of the faculty governing body, the Senate Assembly.

At today's meeting, Cantor is expected to simply announce plans to tweak the existing VCM programs, but not overhaul the system.

"The basic problem with VCM here is it did not adequately take into account its psychological and financial incentives on the behavior of departments and on individual faculty," said Martin Einhorn, chair of the faculty's financial affairs advisory committee.

VCM's genesis came under the tenure of former Provost Gilbert Whittaker. In theory, the plan allocates each University department a certain proportion of dollars brought in by tuition and other activities. Therefore, as individual departments increase enrollment, funding dollars should increase, and the largest programs should receive more money than smaller departments.

"The previous system had all general funds come to the provost where they would be allocated," said Paul Courant, associate-provost for academic and budgetary affairs. Under the old system, Courant said all departments got the same amount of money "across the board with some adjustments."

Courant said that according to VCM, "deans and other units get to keep the bulk of their revenue."

Courant said the promise of higher central funding entices departments to increase enrollment.

"There are much, much stronger incentives at the University level," he said.

But faculty members have faulted VCM, charging that the plan has not been outlined clearly and that the incentives of the budget system conflict with traditional academic values.

"The University needs a modern budget plan," said Senate Advisory Committee on University Affairs Chair Louis D'Alecy. "The new budget must make the patterns and flows of costs and revenues clear."

Einhorn said VCM can limit research and teaching initiatives.

"A system must be found that is not only efficient and financially sound, but in which also promotes the traditional goals of the University in the areas of teaching, scholarship and research and service to society," Einhorn said.

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