PERFORMANCE BASED BUDGETING AND ACADEMIC REVIEW
Introduction

In 2004, President Hamilton initiated semi-annual institutional reviews for each University of the UA system, commonly referred to as Major Administrative Units (MAUs).  President Hamilton's initiative brought focus to the Strategic Plans and Missions of the UA System and those of its three separately accredited universities.  The reports beginning with FY04 focused on each strategic plan and subsequent actions that were instrumental in moving the university into meetings its mission and goals.  The Academic Review presented official data and narrative explanations on such items as the demographics of the student body, nature of the research activities and level of expenditures, programmatic priorities for growing or limiting degree and certificate programs using a thoughtful self-analysis to make strategic decisions about future priorities and direction. 

The first reviews by the system officers required two analyses of each MAU:  a financial look and an academic program look; historical as well as prospective.  The resulting discussions between MAU officers and system officers provided a lively forum to discuss and reach consensus on strategic outcomes for future academic years and afforded the opportunity to systematically inform the State Legislature how the university system provides important educational and research services.  President Hamilton's memorandum dated May 24, 2004 demonstrates the interactive nature of setting different targets and goals by the chancellors, the Faculty Alliance and the President.  Faculty involvement occurs within academic units at UAS and the Alliance receives periodic reports from the University President on system metrics and PBB.  The UA Office of Institutional Research tracks and reports regularly on the status of MAU metrics disseminated on the system website.

In more recent years, the Academic Review and Financial (Operational) Reviews have migrated into the current UA system approach of Performance Based Budgeting utilizing agreed upon metrics across the system.   The Academic Reviews in 04, 05, and 06 also reflect the importance that PBB has taken for the University of Alaska to provide important information to the State Legislature.   By adopting metrics for the system, each university can benchmark progress, set goals and actions to improve performance and even stress one or more metrics over others in order to preserve the unique mission and goals of each MAU.    The metrics of PBB are defined in the history of the Academic Reviews, Financial Reviews, and the Performance Based Budgeting reports that follow.   Reports for 2004 through 2008 are included.