The University of Washington is considering a new budgeting model that would allocate money based on quality of instruction and the number of degrees produced. The new model, called Activity Based Budgeting (ABB), would also allow all departments to keep the money generated by their research. Last weekend at the Graduate and Professional Student Senate (GPSS) Higher Education Summit the plan had its first public hearing, prompting both positive and negative reactions.

According to its supporters, ABB would help fund academic departments more efficiently.  GPSS Senator Trond Nilsen said it could “result in the departments being more responsive to student requests” because funding will depend on student satisfaction and enrollment in a department. However, critics claim that the system will prompt departments to lower the rigor of their classes to attract more students.

Despite the variety of responses, Executive Vice Provost for Academic Affairs Doug Wadden emphasized that the administration “would be talking about ABB even if we were in good times financially” because of concerns over fiscal transparency.

The University of Oregon and Indiana University use the ABB model.

The University of Washington will spend the next few months studying how the new model would impact all aspects of the school and its students.

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