UVM's incentive-based budgeting (IBB) model allocates both revenues (such as tuition) and expenses (for general infrastructure and support such as the library or information technology) directly to the units that generate the revenue through a series of budget algorithms (some for allocating revenue, some for allocating expense). The IBB model applies only to the General Fund (Fund 100). 

Guiding Principles

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

UVM's IBB model went live in FY16. The IBB Steering Committee continues to meet to assess the model’s performance and impact. All reports, data, and manuals can be found on our secure SharePoint site  (UVM faculty/staff authentication required).