Process & Timeline
Indiana University undertook a university-wide effort to modernize its approach to resource allocation and budget planning. The work included collaboration between University Administration (UA) and campus finance leaders, followed by campus-specific efforts to review and redesign budget models.
At IU Indianapolis, this work included developing recommendations, engaging campus leadership and faculty governance, and evaluating the updated model through a shadow period before full implementation in Fiscal Year 2027.
A Two Phase Approach
Phase I: University Administration Assessment
Beginning in summer 2023, finance leaders from University Administration and IU campuses collaborated to review the University Administration Assessment and how those costs are allocated across campuses.
The working group reviewed data, allocation methods, potential models, and the impacts of different approaches. Metrics considered included student enrollment, faculty and staff counts, research activity, space, and campus expenses.
The goal was to establish a data-informed, replicable, and transparent methodology that campuses could more easily understand and incorporate into their financial planning.
Phase II: Campus Budget Model Redesign
Beginning in summer 2024, IU campuses established working groups to assess their existing budget models and consider approaches that would better support contemporary budget planning and management.
IU established a common fiscal-year framework to guide this work while allowing each campus to develop a model responsive to its individual mission, priorities, and financial environment:
Fiscal Year 2025 | Assess and develop
Campuses assessed their existing models, developed recommendations, and prepared updated approaches for evaluation.
Fiscal Year 2026 | Evaluate and refine
Campuses used their existing budget models in parallel with their updated models to evaluate impacts, address issues, and refine processes and practices in preparation for implementation.
Fiscal Year 2027 | Implement
Fiscal Year 2027 was established as the earliest opportunity for campuses to fully implement an updated budget model, based on the results of their assessment and review.
IU Indianapolis followed this framework and fully implemented an updated budget model in Fiscal Year 2027.
