The Budget Template is intended to show the budgetary impact resulting from offering the new program. This table should be completed from the viewpoint of the department or budgetary unit that will be responsible for the program.

The key purpose is to determine what the budgetary unit will be doing (in terms of new or additional activities) that it is not now doing and show what these activities will cost — whether financed and staffed by shifting of assignments within the budgetary unit; reallocation of resources within the institution; special appropriation of the legislature; or gift, grant, or other funds.

It is also important to anticipate what revenues will be expected from the new program.

Below are frequently asked questions relating to developing a new program budget:

What the typical expenses or costs associated with a new program?

Personnel: Compensation of faculty, graduate assistants, and administrative support staff (including fringe benefits)
While new faculty are permanent positions, new staff positions associated with these initiatives are considered and posted as temporary until the initiative is deemed sustainable.
Other: Equipment, Travel, Telephone, Supplies, Marketing, Professional Development

What if the program does not require any new resources or expenses?

Many times a department reports that there are no new resources needed for a new program. If the program is simply a rearrangement of courses already being offered, relying on access to library resources available for other programs, with no requirements for new or additional specialized facilities, equipment, or technology, and with no increase or decrease in students served by the budgetary unit responsible for the program, the budgetary impact would be near zero and should be so reported in the table.

However, this is rarely the situation because most faculty and staff are already assuming responsibilities commensurate with a full-time position and thus some of their current responsibilities will either need to be deemed no longer necessary or will need to be assumed by an additional faculty or staff person. New programs require additional advising, recruitment, marketing, assessment and evaluation responsibilities; and they also require additional physical facilities, technology, and other resources. It is critical to honestly assess the necessary resources for a successful program.

How do I estimate the projected enrollment for a new program?

Using data from external and internal sources (Gray Scorecards, etc.), estimate the number of students by cohort.
It is also important to look at competitor institutions as well as the track record of enrollment in similar programs at Miami.
Starting with conservative estimates and then steadily increasing enrollment each year until you reach the enrollment target is a good rule of thumb.

How much do I charge per credit hour for my program?

If you are doing an UG program, you will use the BOT approved per credit hour rate for your projections.
If you are doing a GR program, you have two options:

Market Driven Tuition (MDT)- After doing a market comparison or competitors and using the Gray Associate competitor scorecard data, the department and the division need to determine a per credit hour rate. This rate is all inclusive of fees and is a single flat fee for all students in the program (no out of state surcharge.) This rate request must be accompanied by the competitor data and can be higher or lower than the standard graduate rate.

- MDT rates are NOT eligible for internal financial aid or waivers. Every student in the program will pay this determined rate.
- This MDT rate needs to be provided to the Provost office for approval and submission onto the BOT tuition fee ordinance that occurs annually at the June BOT meeting. Proposers should leave enough time to get this approval and market the rate for the upcoming cohort.
- This MDT rate remains fixed for 3-5 years in an effort to provide stable marketing and planning for students (like the UG tuition promise.)

2. The standard BOT approved graduate student rate that can be found on the EMSS Tuition and fees website. This rate changes annually and does have a different rate for instate and out of state students.

How do I calculate the projected revenues for a new program?

Once you have decided on your estimated cohort enrollment for each year, estimate the credit hours per student per year.
Calculate the per credit hour tuition rate, and calculate any additional program fees.
These numbers will enable you to project the net revenues by year for the new program.

Why is it important to make accurate calculations? What can I do to ensure that my calculations for revenues and expenses are as accurate as possible?

Since your program will be evaluated in part by the enrollment targets you set, it is important that you provide reasonable target enrollments so that your program will be deemed successful.
Share a draft of your budget template with other experts to gain feedback before submitting it for formal review.