It includes Parking Services, Residence Life, ProfEd, Campus Dining, Campus ID Services, Bovee University Center, Printing Services and the CMU Bookstore.

Each area plans to make a revenue, but is still expected to cut its expenses like all other departments.

Residences and Auxiliary Services accounts for a projected $69,643,217 of the university’s 2009-10 operating revenue.

ProfEd

ProfEd, off-campus and online course offerings is one of the larger revenue centers for CMU. ProfEd offers courses to non-traditional students; they may have taken a break, are coming back to school or are balancing work and school.

“ProfEd has always operated like a business,” said Merodie Hancock, vice president for ProfEd. “It’s a lot of creativity in trying to make education affordable.”

Patty Davison, director of financial planning and operations for ProfEd, said ProfEd made a revenue of about $40,000,000 between July 1, 2008, and July 30, 2009. This money, like all other tuition money, goes back to the colleges that offered the programs through ProfEd.

ProfEd works to maintain high enrollment numbers by focusing on donations so it can offer payment plans and financial aid options to keep tuition low. The program does not receive any state appropriations — it acts as an auxiliary and puts money back into each department according to enrollment.

Allocations

Money is assessed to each department and each auxiliary service in order to cover expenses for such things as maintenance and building usage.

Tuition money is divided among the departments based on student enrollment when it comes in to CMU. The university runs on a responsibility-centered management model that is incentive-driven for each academic department. “Its all about student credit hours. If the department teaches and you pay to take more classes (ie. more student credit hours) that’s where the money goes,” said Barrie Wilkes, associate vice president of financial services and reporting. “The money follows students and the courses they’re taking.”

Each academic college is allocated a percentage of the student tuition dollars for their classes. The rest supports other university services.

Subsidized services

Subsidized auxiliary services generate a lot of revenue, but not enough to cover expenses. They also have budget goals they must meet.

Some subsidized auxiliaries include Athletics and Health Services.

“They only get a certain amount from the general fund,” said Carol Haas, director of Financial Planning and Budgets.

Service centers, such as University Recreation, Library Services and the grounds department, are not expected to generate a lot of revenue and most of their expenses are covered by the general fund.

“The grounds department doesn’t raise revenue; their job is to mow the lawn,” said David Burdette, vice president of Financial and Administrative Services.

Service centers were funded by fees before the CMU Promise fixed tuition rates. They have since been supported by part of each students’ tuition money.

While these services may occasionally earn money from late book fees or Student Activity Center non-student memberships, general fund money is essential. Some service centers, such as Scholarships and Financial Aid, try to give away as much money as possible.