Launched on September 30, 2025, the Budget Model Redesign (BMR) initiative prioritizes the development of a budget model that emphasizes clear resource allocation, predictability for unit leaders, financial stewardship, and incentives aligned with MSU's mission and values.
The current incremental budget model has evolved over time and no longer fully reflects the complexity and scale of the university’s teaching, research, and outreach mission. As the university continues to grow and adapt to changes in enrollment, research activity, and operational costs, it is important that the framework used to allocate resources reflects today’s institutional needs.
The Budget Model Redesign initiative is an opportunity to develop a more transparent and predictable approach to resource allocation—one that supports responsible financial stewardship and aligns incentives with MSU’s mission.
The budget is the university’s annual estimate of what financial resources will be available, and how each college, unit, and department plans to use them. The budget model is the framework used to allocate financial resources across the university to support those budgets.
The BMR project team is comprised of a Steering Committee, Working Group, and ad hoc committees. The Steering Committee is composed of leaders from across the university to provide strategic direction and input on model design options. The Working Group includes academic, fiscal, and operational leaders responsible for analyzing budget model design options and providing input to the Steering Committee and Executive Sponsors. There are also ad hoc committees that are diving into specific topics of interest.
The BMR team has worked to create opportunities for employees from all areas—regardless of project governance representation—to provide insights into unique operational needs and feedback on potential models. Engagement opportunities are posted on the project website.
The project team has identified the most important core elements to define the new model, which will be shared with the MSU community later this spring.
It’s important to note that FY27 will serve as a parallel year between the current and new budget models. This will support understanding of the new model while also providing the opportunity to identify and implement improvements before the full launch of the model with the FY28 budget cycle.
Information regarding the Budget Model Redesign is available on the Office of Financial Planning and Budget’s website. The website will continue to be regularly updated to reflect the project status, future engagement opportunities, and additional resources.
The FY27 budget cycle will follow the university’s current incremental budget model.
FY27 will be a “parallel” year for the new model created by the BMR project. The project governance team will leverage the new model to share with college and unit leadership what their annual budget would have been as compared to the current model. This will support understanding of the new model while also providing the opportunity to identify and implement improvements before the full launch of the model with the FY28 budget cycle.
The new budget model will not be used for the FY27 budget cycle and does not impact planned reductions.
A guiding principle of the BMR project is to ensure predictability and sustainability. While the exact budget model is to be finalized, adaptability that allows for consistency and more gradual changes is a consideration in our planning.
Regardless of the budget model, programmatic decisions should continue to be made strategically at the unit level, with input from other areas (e.g., the Office of the Provost) as appropriate.
Protecting and supporting the university’s mission is a guiding principle for the project. The project governance team is mindful of all aspects of the mission—education, research, and outreach—in considering budget model impacts. It is also important to design a model that will work across the entire enterprise and allows for flexibility and innovation.
The budget model will serve as a framework that guides allocation of resources. The responsibility will lie with college and unit leaders to determine how best to deploy those allocated resources to meet operational needs in support of the university’s mission.