First, I take this part of the article to mean they use Responsibility Center Management at UVM. What this means is that each college must cover all of its own costs with all of its own revenues. If this is the case, it gives the college incentive to cut programs not making $.
Second, many colleges are obsessed with revenue per student credit hour. It's the metric by which they measure if there are resources to, for example, hire more faculty in a given program. Depending on the funding formula, it can influence the types of programs that are launched.
Under RCM, what programs earn in student credit hours (referred to SCHs where I'm at) becomes extra important. Effectively, each college becomes an independent business entity that must figure out how to at least break even. It's a model that will certainly hurt the humanities.
Unrelated, I also think RCM is a model that would disadvantage colleges of education, which through no fault of their own can have enrollment challenges. They'd likely accelerate what they're already doing: investing in graduate programs.
And I confirmed that Vermont uses a type of RCM called Incentive Based Budgeting. It's an approached that has gained in popularity in higher ed. And has some possible benefits, certainly. https://www.uvm.edu/finance/ibb 
I wrote a bit about consolidated administrative services and RCM here. https://www.aaup.org/article/next-generation-higher-education-management-fads#.X84zKxNKjJ8
You can follow @kevinrmcclure.
Tip: mention @twtextapp on a Twitter thread with the keyword “unroll” to get a link to it.

Latest Threads Unrolled:

By continuing to use the site, you are consenting to the use of cookies as explained in our Cookie Policy to improve your experience.