University of Vermont

Incentive-based Budgeting (IBB)

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FAB IBB Reports and Data

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Incentive-based Budgeting

IBB at UVM

In FY14 the University engaged in a year-long university-wide effort to develop an incentive-based budget model. In FY15 the new IBB Model 1.0 and the existing budget model ran in parallel. In FY16 the transition was completed when the IBB Model 1.0 went live on July 1, 2015. Since FY14, the IBB Steering Committee has met regularly, first to develop the model, and then to watch the model “at work.” The Committee recommend refinements in response to challenges that became apparent early in the model’s operation, and as planned, conducted a major review of IBB Model 1.0 between November 2017 and December 2018. The result of this review was IBB Model 2.0, effective FY20.

The Steering Committee will continue to meet to assess the model’s performance and impact. Metrics associated with the model are reviewed annually. The next major review of the model will occur in FY24, with the implementation of IBB Model 3.0 in FY25.

The IBB website is used to post and archive all information relative to the development, implementation, and adaptation of the University’s budget model.

IBB Model 2.0 Final Report
IBB Model 2.0 Input
Educational Stewardship Committee
IBB Model 1.0 Review
Information for Students
IBB 1.0 Final Report
IBB Metrics
Common Misconceptions
About Subvention
IBB Manual
The Origin of IBB at UVM

In academic year 2012-13, the University community engaged in a discussion about the characteristics and operation of its existing budget model. Those discussions included governance leaders, Trustees, academic and administrative business managers, members of the Faculty Senate, and other constituents. There was uniform agreement on the model’s problems: lack of transparency, undue complexity, little flexibility, and few incentives.

President Sullivan asked Provost David Rosowsky, in his role as UVM’s Chief Budget Officer, to lead the effort to develop a new incentive-based budget (IBB) model for the University. The Provost chaired the IBB Steering Committee that was responsible for the final recommendations that were made to the President on the design and methodology of an overall incentive-based budget model for the University of Vermont. The IBB model was developed in FY14. Its performance was monitored in FY15 –the parallel year – during which the old model remained in place. The UVM IBB model went live in FY16.

The development, implementation and continuing assessment of the Incentive-based Budget Model will be guided by the Academic Excellence Goals for the University of Vermont and the following principles:

  • Creates incentives that promote academic quality and excellence
  • Creates incentives at all levels of the University that promote financial sustainability
  • Encourages innovation and entrepreneurship throughout the University
  • Provides transparency, clarity, and predictability
  • Can be easily understood, is easy to implement and operate, and is flexible
  • Can operate in all cycles of the economy, whether robust or downturn
  • Fosters interdisciplinary scholarly and teaching activity

Last modified January 10 2019 11:47 AM