Frequently Asked Questions
About the Project
What is the Budget Reform project?
The Budget Reform project is an initiative designed to assess our existing budget model and budget development processes to uncover opportunities for streamlining, digitizing, and innovating our budgeting practices.
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
Why is the Budget Reform project occurring?
Georgia Tech’s 10-year Institute Strategic Plan promotes growth across the Institute. A new budget model is needed that can reward innovation, contain costs, and generate revenue in alignment with strategic goals and priorities.
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 newsletter.
About the Process
What type of budget model is Georgia Tech moving to?
Georgia Tech will implement the Hybrid Allocation Model in FY26. This model is designed to distribute the budget to both colleges and non-colleges based on changes in activity and revenue generated by the Institute. Additionally, the Hybrid Allocation Model will enhance funding transparency and encourage growth in budget and revenue by rewarding increased credit hour activity.
During the parallel process from FY23 to FY25, Georgia Tech adopted a net new revenue allocation model that guaranteed base budgets for three years. During this time, units benefited solely from any net revenue growth, while leadership assessed any potential downsides of the model.
About the Policies
How will growth be distributed to colleges 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), Indirect Cost Recoveries (ICR), and a college strategic pool allocated by the provost.
How is Indirect Cost Recoveries (ICR) handled in the budget model?
In addition to the 30% allocation of ICR to colleges, the Institute will now allocate the remaining available ICR to non-colleges. The allocation formula is based on the rate study which identifies effort and non-personnel services (NPS) expense by unit or area of expense management. The non-college allocation is intended to support new workload in research support units as well as cost-sharing matches, faculty startup and research initiatives.
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?
Once Georgia Tech transitions to a hybrid allocation model in FY26, the budgets for non-college units will be guided by a limited set of activity drivers. These drivers are designed to link the budgets of non-college units to the growth or decline of the populations they serve or the activities they undertake. They will serve as a basis for determining how budgets should increase or decrease, ensuring a consistent level of service across units. Executive leaders will have the discretion to allocate the funds they receive among the divisions they manage.
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 newsletter.
What tools and resources are available to my college or unit if they have questions about budget reform?
Resources such as a budget guidebook are available on the Institute Budget Planning & Administration Budget Development website.
What can faculty and staff do if they have additional questions?
Other Resources
Questions? Comments? Feedback?
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