Strategic Budgeting FAQs

Frequently Asked Questions

As UNT considers the introduction of a new budget model and associated processes, the Steering Committee anticipates several questions from campus stakeholders. Below, you will find some of the most common inquiries organized by sections related to the model or process to provide clarity and transparency.

Overview and Governance

UNT is transitioning to a new budget model to better align resources with its enrollment growth, research, and strategic priorities. The current incremental and centralized approach lacks clarity on cost-revenue linkage and strategic priorities. Informed by seven guiding principles, the new model will improve effectiveness, efficiency, and transparency to support UNT’s mission, new priorities, and growing national reputation.

The Steering Committee was selected to represent a diverse cross-section of UNT stakeholders, including students, faculty, staff, and administrators. Members were chosen from key areas of the university to ensure broad perspectives in developing the new budget model. You can see a list of all committee members on the Strategic Budgeting Committee webpage.

The final structure of UNT's budget model will be decided by the Executive Committee, informed by recommendations from the Steering Committee, Technical Committee, and other university constituencies. While university administrators and the Strategic Budgeting Committees will oversee the implementation process, they will also monitor the model’s impact to ensure that it aligns with the university’s mission, values, and strategic priorities.

Campus-wide new or incremental obligations such as increases in insurance, utilities, contracts (e.g. software), assessments by the UNT System, promotion and tenure, costs to ensure compliance or accreditation, or other required or unavoidable costs.

UNT’s new budget model will be managed at multiple levels to ensure accountability and oversight. The president and executive leadership will have discretion on use of the Strategic Enhancement Fund (SEF), whether for one-time or recurring investments. The dean of each college will work with the Office of the Provost in allocating budget resources to each unit in the college in support of the institutional priorities outlined in the university’s strategic plan and developing proposals for the SEF.

Unit leaders will be able to exercise more autonomy in managing their budgets — including decisions impacting merit increases. Merit budgets would be institutionally defined and reside within the units.

Process for Developing the Model and Its Timeline

The timeline for rolling out the new budget model will happen in phases over several budget cycles to ensure that colleges and departments can adapt effectively. Implementation will begin in January 2025 with preparation of the FY26 budget. Transition to a new budget model entails taking time to learn the new system, training college budget officers, administrators, and staff. Accordingly, in response to recommendations of financial consultants, UNT will take a multi-year phased approach for this transition.

This will begin in FY26 with a transition period of at least three fiscal years to allow both academic and administrative units to assess the effects of changes without incurring significant budget reductions or windfalls because of the new model.

The model includes a Stabilization Fund administered by the Provost’s Office. Funding for this will come from reallocating revenue from colleges that would have received considerably more funds from the model to colleges that would incur a reduction. For the transition period, the intent is to provide all colleges at least 97% and no more than 103% of what they received in FY25.

Components of the New Budget Model

Tuition, in this budget model, refers to revenue generated through Statutory, Board Designated, and Board Authorized Tuition. The revenue is generated from increases or decreases in enrollment and changes in our state appropriations minus any mandatory costs or financial aid adjustments. Net new tuition focuses on the actual increase or decrease in revenue after considering all these factors. Colleges receiving differential tuition will continue to receive that revenue separate from the net new tuition. College- and department-levied fees are also outside net new tuition and will continue to go to the unit assessing the fee.

Mandatory costs are payments the university is required to make such as debt service, insurance, operating expenses, and payments to support the UNT System. Mandatory costs are taken out of net new tuition before any allocations are made to reflect the true amount of funds available.

State law requires the university to set aside a portion of tuition money for financial assistance to qualified students, thereby increasing educational access to a wider range of students. Deducting the state-mandated financial aid from new tuition results in the net new tuition that is available for allocation to academic and administrative units.

Funding for the Strategic Enhancement Fund (SEF) is determined by the strategic budget’s Executive Committee.

The Stabilization Fund is administered by the Provost’s Office as the source of funding for colleges adversely affected by the new budget model during the transition period. The Strategic Enhancement Fund is administered by the Executive Committee and was created to support strategic initiatives, programs, and priorities.

The committee did not settle on how best to integrate a graduation rate allocation metric into the model. It, along with a post-graduation outcomes (ROI) metric, was added to the model but no allocation percentage was included for either. The committee recognized the variety of factors that affect graduation rates for graduate degrees, and the even greater complication that occurs for doctoral programs.

The model creates a level of accountability across the institution to ensure that as enrollment fluctuates, revenue allocations to colleges and administrative units will also change.

University strategic priorities are integrated into the model through the Strategic Enhancement Fund which was created to support strategic initiatives, programs, and priorities.

Yes.

The college of instruction (COI) will be credited to the college in which the course prefix is selected by each student. The college of record (COR) is based on the college of the student’s major. The new Course Governance Committee, comprising faculty and college representatives, will oversee course management to ensure rationality between cross-listed courses.

Yes.

Yes, the SCHs taken by students as part of a certificate or minor count in the model. However, once a graduation rate metric is determined, a separate analysis will be conducted that only considers those SCHs tied to an approved degree.

The SCHs taken by students in either case would count toward the college of instruction (COI) in which the course prefix is located, and the college of record (COR) would be determined by whichever college is denoted as the primary host for the student’s major in the Peoplesoft Enterprise Resource Planning application. Further analysis will be considered when a graduation rate metric is decided upon by the budgeting committees.

Measuring the Model's Success

Regular communications on the new model’s implementation as well as pertinent updates will be sent through email and posted on the Strategic Budgeting webpage.

The model replicates the way revenue comes to UNT. UNT’s state appropriations and statutory tuition estimates use a series of weights set by the Texas Higher Education Coordinating Board (THECB) based upon the degree and level of the course (lower division, upper division, master's, and doctorate). The weight is then applied to the number of SCHs earned in each category and the model returns a portion of the revenue generated by that college. In this sense, the model is more equitable to the extent it creates an incentive for colleges to develop courses and degree programs that meet student interests.

Yes, explanations of processes, priorities, and decision-making can be found on the Strategic Budgeting Resources webpage.

Research is not directly included in the metrics of the model. Funded research is allocated using a separate formula and is not dependent on state appropriations or student tuition payments.

Assessing the Model's Impact

The model creates incentives for colleges to protect their SCH base and to channel students to take courses in their college. It also opens incentives for colleges to develop innovative courses and degree programs that promote interdisciplinary learning. Colleges with reputations for quality instruction, student-centered learning, effective academic and career advising, and supportive alumni networks will likely gain funding more successfully under this model.

The model rewards colleges (and degree programs to the extent that a dean chooses to reallocate funding) that generate more SCHs. When a metric is added for graduation rates and post-graduation outcomes (ROI) is added to the model, retention and completion of a degree will be added incentives for college deans.

The best source is the Strategic Budgeting Resources webpage, but updates will be distributed through newsletters, email updates, and/or other campus communications.