There is a well-known definition of insanity: doing the same thing, over and over again, but expecting different results.
The state House of Representatives’ approach to lump-sum budgeting for the University of Hawaii system in House Bill 500, HD1, recently passed by the House, reflects a different approach — an approach where insanity is avoided.
Our current budgeting system leads to interference from politicians and other outside influences. It also creates a division within the university system itself. Each campus and the community colleges have an "every man for himself" attitude.
Our new lump-sum budgeting plan creates a system similar to the budget and finance system in state government.
It empowers the UH system’s chief financial officer in the same way as the state budget and finance director.
The CFO will be able to analyze budget requests from each campus and then allot, restrict and manage the funds given to UH.
No more coming to the Legislature with fake budget requests for electricity. No more hiding money in their slush funds.
This power will give the university true autonomy and will challenge the management of the university. Now the university system will have full control of its programs and funds to manage its repairs and its operating costs. No more, "The Legislature didn’t give us the money so we can’t fix the toilets."
If the toilets are broken, if the buildings are in disrepair, if debt service is due, if a project is over budget, if labor cost is unsustainable or if an operating unit is draining university resources — it will be because UH management allowed it.
Some might say that the university will just raise students’ tuition. I believe this option will dry up as UH’s tuitions rise to the upper quartile of tuitions for public universities in the nation. Students and families will demand accountability and not be willing to pay a Mercedes price to drive a Volkswagen.
The university will have to think beyond the easy response of simply raising tuition.
It will need to look more creatively for better solutions and to employ such methods as enterprise risk management to stress-test its ideas.
Management must now be nimble and move quickly to change course, including right-sizing the university.
If the university is mediocre, then a management team that has full autonomy will be at fault.
This management system is not for the weak-hearted.βIt will test the ability of the system to achieve its mission with the resources received or earned.
I am also not a dreamer but a pragmatist. Maybe the current managers at the university do not have the ability needed to execute this budget program. I hope that is not the case. But if all else fails — or, rather, if management fails — this budget scheme has enough safety valves to restore the budget back to the way it has always been done.
If this should happen, then we all will know that autonomy is not achievable at the University of Hawaii. These plans are perfect for the manager who relishes change. It is perfect for the manager who wants to manage and not merely occupy space.
I look forward to seeing big changes at the University of Hawaii. I look forward to different results.
State Rep. Isaac Choy (D, Manoa-Punahou-Moiliili) chairs the House Higher Education Committee.