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Address:
Office of Planning & Budgeting
University of Washington
UW Tower, T-12
(NE 45th St. & Brooklyn Ave. NE)
Box 359445
Seattle, WA 98195

Email to main office:
budget@u.washington.edu
Phone number:
206-543-6277
FAX number:
206-543-0801

Activity Based Budgeting Project

    Important Document:

• University of Minnesota - Budget Model Overview
  (Julie Tonneson's November, 2009 Presentation)
• Indiana University - Budget Model Overview
  (Neil D. Theobald's October, 2009 Presentation)

The University of Washington is currently assessing the potential value and feasibility of implementing a new activity based budgeting (ABB) system. ABB is a method of budgeting in which the activities that incur costs in every functional area are accounted for, analyzed, and then linked to the mission and strategic goals of the institution. The full costs of programs and services are then more transparent and available to help with planning, budgeting and decision making. Several leading universities around the country have adopted some form of the ABB model. The University of Washington currently uses a modified incremental budgeting model that bases budget proposals and allocations on the budget from the previous year.

On October 21, 2009, Provost Phyllis Wise issued a letter directing a Steering Committee to examine ABB as a budget model for implementation at the University of Washington. The Steering Committee is comprised of deans, faculty and administrators representing a cross-section of units from across campus. Further, the work of the Steering Committee includes five sub-committees with even broader membership that includes front line staff who would be responsible for implementing ABB. The five sub-committees will examine the impacts of ABB on the institution relative to:

1. Academic Impact
2. Research and Indirect Cost Recovery
3. Administration and common good elements
4. Structure and delivery of a tax model
5. Definitions and data points

This Steering Committee follows the efforts of a Working Group that engaged in a preliminary examination of ABB during the summer and early fall of 2009. The Working Group issued a report containing its analyses and recommendations to further examine ABB as a potential good budget model for the University of Washington.

The Steering Committee will make final recommendations to the President and Provost in the spring of 2010. If an ABB model is approved by the President, then the Office of Planning & Budgeting will work through campus leadership and Administrators to coordinate implementation.

For more information, please contact:

Scott White
Project Manager - Activity Based Budgeting
Office of Planning and Budgeting
University of Washington
UW Tower, T-12, Box 359445
Seattle, WA 98195
206.616.7203 Direct
206.543.6277 Main Reception
scottw@u.washington.edu

Resource Documents:

Steering Committee

• UW Charge Letter ABB Steering Committee
  (October 21, 2009)

Working Group

• The UW Activity Based Budgeting Working Group Report
  (October 6, 2009)
• UW Charge Letter ABB Project Working Group
  (June 24, 2009)

Background Information and Examples of ABB utilization at other institutions:

• The University Budget Model at the University of Michigan
  (Phil Hanlon's September, 2009 Presentation)
• Preliminary Thoughts on Transforming UW Resource Allocation Process
  (October 1, 2008)
• Incentives for Managed Growth case study
• Responsibility Center Management at Major Public Universities from Hanover Research Council
• University of Arizona Tuition Funds Flow Task Force Report
• McMaster University Committee on Alternative Budget Models
• University of Michigan Cost Containment Efforts
• University of Minnesota Internal Budget Model