Frequently Asked Questions
About the Project
What is the Budget Reform project?
The Budget Reform project is an effort designed to re-examine our current budget model and processes to identify opportunities to reimagine our budget practices, in line with the more dynamic, fluid environment in which we find ourselves for the foreseeable future.
The project will take place over three phases with the following key outputs:
- Phase 1 – Diagnostic / Current State Assessment
- Phase 2 – Solution Design / Reformed Budget Model + Implementation Roadmap
- Phase 3 – Implementation / Training, Templates, + Go-Live Support
- Phase 4 – Rollout
Why is the Budget Reform project occurring?
In developing a new budget model and supporting processes, we are seeking to elevate budget transparency and agility and to support processes that are people-centric and celebrate our collaborative spirit, empower our leaders to make data-driven decisions, and add value to our students and community.
To guide this effort, our guiding principles set the direction for the Budget Reform effort and will serve as the project’s north star throughout the project and in support of the budget model well beyond go-live.
When is the Budget Reform project occurring?
Click to view the project timeline.
When and how will I be informed of the latest Budget Reform decisions and updates?
The Budget Reform team will continue to communicate directly and broadly with all those impacted by the new model to ensure the delivery of proper change management and training.
To get the latest decisions and updates on the Budget Reform, please email Budget_reform@gatech.edu to receive our monthly newsletter.
About the Process
How long is the parallel process?
The parallel process period for the new budget model will extend to up to three years. Extending the parallel process will allow leadership and the colleges to track and adjust budget impacts over a longer time, such as:
- Base Budgets – Extending the parallel process timeline will allow leadership and the budget office to assess whether college base budgets are adequately funded to meet growth and instruction goals.
- Data – The extended parallel process timeline will help validate the data to correct for potential unorthodoxies present in FY20 and FY21 (Covid-era) data.
- Unit Needs – Extending the parallel process timeline will allow us to introduce new planning and reporting tools and expand unit training and capacity before fully implementing the new model.
What type of budget model is Georgia Tech moving to?
During the parallel process, Georgia Tech will move to a net new revenue allocation model which will guarantee base budgets for 3 years (FY23-FY25). Units will experience only the upside (net revenue growth) of the model while leadership assesses any downside impacts during the parallel process. Georgia Tech will implement the new model in FY26 once the parallel process is complete. The new model will allocate some units’ base budget through a formula that aligns budget resources with activity.
About the Policies
How will growth be distributed in the new budget model?
Growth to the colleges will be distributed based on increases in student credit hour (SCH) production, weighting SCH 60% to college of instruction, 40% college of enrollment.
How is Indirect Cost Recoveries (ICR) handled in the budget model?
What is the new Carry Forward policy?
What types of incentives are being considered for the future?
How are the non-college units treated in the new budget model?
In the net new revenue allocation model (FY23-FY25), incremental new state and tuition revenue will be allocated through the following steps.
- Mandatory increases to central expenses such as fringe benefits, salary pools, etc. AND central strategic investments will be covered.
- The remaining growth will be split between the colleges and non-colleges.
- The funds going to the college will be distributed based on growth in student credit hour (SCH) production (weighting SCH 60% to college of instruction, 40% college of enrollment).
- All remaining funds will then be allocated to non-college units. The ELT will allocate the growth pool across their respective divisions based on historical share of non-college funding.
Once Georgia Tech moves to a hybrid-activity based model in FY26, the non-college units budgets will be informed by a limited set of activity drivers, intended to tie non-college unit budgets to the growth (or shrinkage or the populations they serve or activities they perform).
How does the budget reform project and new model affect Georgia Tech’s research enterprise?
What is a cost containment incentive?
More Information
When and how will I be informed of the latest Budget Reform decisions and updates?
The Budget Reform team will continue to communicate directly and broadly with all those impacted by the new model to ensure the delivery of proper change management and training.
To get the latest decisions and updates on the Budget Reform, please email Budget_reform@gatech.edu to receive our monthly newsletter.
What tools and resources are available to my college or unit if they have questions about budget reform?
What can faculty and staff do if they have additional questions?
Other Resources
Questions? Comments? Feedback?
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