How the RAMP Budget Model Works at WKU

In addition to giving WKU colleges ownership of their individual revenues and costs, RAMP allows them to be accountable for their own academic and financial planning and therefore encourages entrepreneurship, efficiency, and educationally sound choices. Revenues are allocated to academic units (Potter College of Arts & Letters, etc.) and auxiliary units (Parking, Athletics, etc.), while support unit costs (information technology, the library, etc.) are allocated using established metrics. This process creates a more transparent and collaborative environment for budget development guided by ongoing discussions between academic units, support units, budget governance groups, and campus leadership.

The academic units have several major sources of income under RAMP including tuition and state appropriation. Tuition revenue is distributed based on the share of the prior year's credit hour production. In alignment with Kentucky’s state performance funding model, state appropriation is allocated based upon a combination of credit hour production, degrees earned, and sponsored research activity. Institutional financial aid is distributed based on each academic college’s share of tuition revenue.

Support units are grouped into cost pools and net expenditures are allocated to each academic and auxiliary unit based on metrics that best represent the driver of cost. Support unit expenditures include operations such as utilities, building maintenance, the library, Academic Affairs, and Enrollment and Student Experience. The metrics consider inputs such as student headcount and FTE, faculty and staff headcount and FTE, net assignable square feet, and total direct expenses.

The RAMP budgetary process is conducted through budget governance committees representing a broad spectrum of the university. Recommendations via the committees are provided to the Executive Leadership. RAMP will be reviewed regularly for modifications to enhance an effective budgetary process for Western Kentucky University.