Budget Model Framework
Institutions of public higher education have felt economic strains in recent years, and Temple University is no exception. The Commonwealth of Pennsylvania was once a major underwriter of public higher education, but significant financial pressures in the state have resulted in declining support. The decline in public dollars has put increasing pressure on tuition. At the same time, our board has resolved to make affordable access Temple's highest priority.
Temple University's decision in FY2015 to implement a decentralized budget model (often called "RCM") was influenced by the model's ability to
- allow for changes in response to concerns as they are recognized;
- decentralize responsibility and involve more faculty in budget and planning decisions;
- emphasize transparency and access to information that can lead to significant efficiencies and streamlining;
- encourage multiyear strategic planning, aligning resources with top priorities; and
- incentivize schools and departments to strive for excellence in teaching and research.
Based on these themes and the thoughtful consideration of the Steering Committee in 2013, Temple developed a set of guiding principles to help us frame the budget model and provide the guardrails for decision making. These principles continue to guide the process throughout its life in all circumstances irrespective of changes in its goals, strategies or leaders.
In February 2025, a Steering Committee convened to lead a comprehensive review of the RCM budget model, supported by experts from NACUBO Consulting, and informed by extensive campus engagement—including stakeholder interviews, data analysis and benchmarking against peer institutions. The review process has shown that the RCM model has limited our ability to advance institutional priorities, in some cases has impeded collaboration and it does not effectively align resources with our long-term goals. It has become clear that a different approach—with clear incentives and accountability—is needed to position Temple to navigate demographic and financial headwinds while also being effective in carrying out our teaching, research and service work.
President Fry accepted the Steering Committee’s recommendation to sunset the RCM budget model and over the FY26 we will design and implement a new budget model to take effect on July 1, 2026. This new model will better reflect our values, simplify resource allocation, encourage revenue generation and enable greater transparency in institutional investments.
