UCOP’s new budget model for ANR offers more stability

Colleagues,

Some of you may recall the discussions that have taken place over the past year with ANR's leadership, the AES campuses, and UC's Office of the President involving revenue flow, the administration and allocation of ANR funds and resources, and the overall funding model for our division.

Following a lengthy and detailed review and analysis by an independent resource, as well as analysis by a committee appointed by President Napolitano, a decision has now been made by the President's office on how we're to move forward.

The bottom line, I believe, is that we now have a budget model that reduces uncertainty and allows us to more effectively plan and forecast into the future. I anticipate more clarity with each budget cycle, and (with the MOUs we're currently developing) less need for new rounds of negotiation every year with our AES campus partners.

Below, please see an email from the President's chief of staff regarding the new budget model.

Thank you,
Glenda

Glenda Humiston
Vice President

From: Jenne Vargas-Maes On Behalf Of Seth Grossman
Sent: Monday, May 09, 2016 3:39 PM
Subject: Agriculture and Natural Resources (ANR) - Financial and Business Operations Update

Dear Colleagues,

The purpose of this email is to share with you President Napolitano's decisions regarding financial and business operations issues raised last year by the Division of Agriculture and Natural Resources (ANR) and the campus locations. These decisions were made with the input of the task force convened by the President and led by CFO Nathan Brostrom, and are summarized as follows:

1.     Starting in FY17-18, the UCOP portion of the ANR budget will be calculated using the “UCSF Corridor” model, and the source of funds will continue to be the campus assessment. This model assumes that in years where the University receives increased funding from the State, ANR would receive its “normal share” of the first 2% increase and then one-half of its normal share above 2%. In years in which the University receives budget reductions from the State, ANR would receive a reduction equivalent to its normal share of the first 1% and then 25% of its normal share above 1%. “Normal share” is based on the percentage increase being allocated to the campuses for their base budget adjustment. 

2.     UC ANR will develop a comprehensive MOU with each of the three AES campuses (Berkeley, Davis and Riverside). An MOU is already in place between ANR and UC Merced.

3.     Indirect Cost Recovery (ICR) will remain with the location where the Specialist resides and the support activities take place.  In many cases this will be at the campus, although there are situations where the Specialist resides at an ANR facility. 

4.     The distribution of patent revenues, net of costs, will be negotiated by ANR and each of the campuses as part of the MOU. Negotiations should clarify administrative costs of the patent, and the allocation of patent revenue (net of cost) between the campus and ANR with the expectation that net revenues will be shared equitably.

Over the next few months, VP Humiston will lead the effort of creating the MOUs with the expectation that they will be reviewed every three years. The President and CFO Brostrom will review the negotiated MOUs prior to signing. 

All the best,
Seth

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