The Budget Transformation Initiative, a partnership between the Provost and Finance began in January 2023 with the goal to design, build, and implement a new budget model that improves transparency and better reflects Rice’s values, mission, and priorities. The initiative called for a shift from the University’s incremental budget model (where units primarily receive their prior year's budget with a small increment) to an incentive-based model. Throughout the initiative, a diverse group of faculty, staff, and leaders contributed to the effort, including the executive sponsors, steering committee, design committee, and working groups. Each individual played a role in designing the model and making important budget model decisions. The new budget model will actively support Rice’s goals by setting guidelines for managing and allocating financial resources. The initiative is on track for implementation for fiscal year 2025, which will be a “hold harmless” year.
Demonstrating the commitment to a smooth transition and the customer experience, the third phase focuses on planning and preparing for the implementation of the budget model. During this phase, the project team will continue delivering training, resources, and tools for university administrators and leaders while finalizing new budget processes and guidelines. A notable component includes a hold harmless year for FY25. The hold harmless period ensures school and support units receive the same funding in FY25 as they did in FY24. This provides time for schools and departments to adapt to the new budget model before its full implementation in fiscal year 2026.
The annual budget planning cycle begins this January with the new budget model, and it will follow a process similar to that of prior years. During this time, the steering committee will monitor and fine-tune the planning process, and school administrators will be engaged to provide feedback and ongoing engagement and communication. While faculty and staff not directly involved in the budget planning process may not notice immediate differences, they may observe changes in resource allocation to better align with Rice’s vision and values. Though the new budget model will not create new resources, it does provide incentive opportunities for academic and research activity, which directly supports the university’s mission.
Community members wanting to know more or get engaged in this process are encouraged to:
- Visit the Budget Transformation Initiative website and FAQ page for more information
- Engage with the committee by sending an email to budgettransformation@rice.edu
- Check-in with their department’s budget representative for department-specific details