How Our Model Works

A highly collaborative, multi-phased approach was taken to design and build CU 勒貊勛圖s budget allocation model. The redesign process officially launched in December 2020, building on stakeholder interviews conducted in 2017 and 2019.泭泭

The new model was泭launched in fiscal year 2022-23. A formal review of the model was completed in June 2026, resulting in refinements to several components of the model which will be implemented in fiscal year 2027-28.泭泭

CU 勒貊勛圖s budget allocation model leverages an incentive-based methodology where schools and colleges receive annual budget from tuition revenue dollars based on quantitative methodologies including student credit hours, enrollment and undergraduate student retention and graduation.

Model Design

CU 勒貊勛圖s budget allocation model leverages an incentive-based methodology where schools and colleges receive annual budget from tuition revenue dollars based on quantitative methodologies including student credit hours, enrollment and undergraduate student retention and graduation.泭泭

Coming Soon! The Budget Allocation Model at CU 勒貊勛圖 provides details on泭the design of CU Bulders budget allocation model, the process by which the model was developed, and how the model advances campus priorities. 泭泭

The Interactive Budget Allocation Model flowchart(updated for 2026) provides a visual overview of how the model allocates budget, explains the rationale behind budget model components and decisions , and examines the known and anticipated impacts of these decisions.泭泭

The 2025-26 Budget Allocation Model Design Review: Process and Outcomes details the review completed in June 2026, including project governance, guiding principles, and model refinements. Embedded in the original design of CU 勒貊勛圖s budget model, the formal review process ensures the model is working effectively and as intended.泭泭

A Quick Guide to Whats New in the Budget Model 2026 provides a brief summary of what changed in CU 勒貊勛圖s budget model as a result of the 2025-26 design review.泭泭

Coming Soon! Details on the Comprehensive泭Fund Principles and泭Processes are currently under development.泭泭

Goals for the Campus Budget Model

  • Mission-driven mindset
  • Simplicity & Transparency
  • Incentives & Innovation
  • Accountability & Responsibility
  • Predictability & Planning

Budget Allocation Model Components

Allocable net tuition

The portion of net tuition available after strategic and mandatory funds deductions, for core funds allocations.泭

Core funds allocation

The portion of net tuition distributed directly to colleges and schools as well as academic and administrative support units (such as university libraries and human resources).

Faculty actions pool

A portion of the college/school allocable net tuition, which is distributed to colleges and schools to fund promotion, tenure, retentions and the faculty diversity action plan (FDAP) allocations.

Incentive-aligned budget model (current model)

Colleges and schools receive an annual budget from a methodology based on student credit hours as well as student retention and graduation.

Incremental-aligned budget model (previous model)

Colleges and schools receive an annual budget based on the previous years budget, plus or minus an incremental amount based on whether campus revenues are up or down.

Mandatory costs

Includes insurance and some deferred maintenance; is taken off the top, prior to core funds allocations.

Net tuition

Revenue from undergraduate and graduate tuition, less financial aid, tuition refunds and bad debt.

Strategic funds pool

A portion of the net tuition taken off the top, prior to core funds allocation, to support泭strategic campus-wide investments and activities.

Supplemental funds pool

A portion of the college/school allocable net tuition, which is distributed to colleges and schools, in addition to core funds, with consideration of the universitys mission as a comprehensive AAU public teaching and research institution and after consultation with stakeholders.