We allocate service dept costs to Academic depts using a variety of drivers (but principally staff and student numbers plus space).

This of course assumes that the current level of budget/expend in service depts is at the right level.

We are looking to put the cost allocation into reverse, by deriving cost per driver for each service dept (we'll have to assume a base year) and then budgets in future years will be cost per driver * units of driver budgeted +/- inflation/efficiency and of course special factors. Not perfect, but at least it tries to relate service budgets to activity.

Stephen