Board reacts to proposed budgeting modications

The University Board of Regents is scheduled to vote today on proposed changes to the current budgeting system.

The changes will alter the budget to better serve the academic mission of the University, said Provost Nancy Cantor, as she presented the proposal to the regents at their monthly meeting yesterday.

"Budgets are here to support the academic commitments of the faculty and students," Cantor said.

Cantor

Cantor's proposed revisions include a change in the naming of the budget system, increased attention on interdisciplinary collaboration between schools, a move to a multi-year budgeting system and centralization of money allocation for University museums and libraries.

Regents predict the proposal will be approved.

Regent Shirley McFee (R-Battle Creek) said it is important to realize that there is no perfect budgeting system, and therefore changes must be made periodically.

"I think it is always important to recognize that a budget is a fluid process," McFee said. "Provost Cantor is demonstrating that she is willing to make changes to a system that was imposed two years ago because some problems have arose."

Cantor said the first problem with the system is its title. She said the name Value Centered Management leads one to believe that the budgeting system reflects the values of the University.

"There is too much importance put on the system rather than the choices, and the process to make those choices," Cantor said. "We should call it what it is - a budget model."

Cantor said there needs to be incentives to promote cross-discipline studies between the University's 19 schools and colleges.

"We need to make sure that schools get the support they need in order to attract students to take classes (in other disciplines), which may greatly impact their lives," she said.

Regent Olivia Maynard (D-Goodrich) said the encouragement of collaboration "excites" her.

"It is a very creative way to do budgeting," Maynard said.

VCM, which was approved two years ago, made each individual unit of the University responsible for its own revenues and costs, essentially setting them free as individual financial entities.

Regent Philip Power (D-Ann Arbor) said the fact that VCM does not give the individual units incentives to manage their costs concerns him.

"If everybody focuses on individual units, what happens to the interdisciplinary missions, which are one of the University's greatest strengths?" Power asked.

Cantor also proposed that allocations for University service missions, which include the libraries, museums and the president's and provost's offices, should go through her office, not the individual schools and colleges.

Though he initially questioned if it was smart to put the budget control of these units in one person's hands, Power said the centralization of money will help ensure the service units receive tough-minded budget supervision.

"Previously, no one person had overall responsibility (for the budgets)," Power said.

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