Transcript Slide 1

The Budget Process at UTPA
An Overview
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Agenda
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Sharing Knowledge &
Engaging in the conversation
of Resource Allocation
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What is a Budget?
Biennial Timeline
State Appropriations
UTPA Budget Process
Resources and Fund Groups
Public Sector Budgeting
How does UTPA Compare?
Challenges
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What is a Budget?
A budget is a plan for allocating limited resources.
Strategic
Plan & Mission
Vision & Goals
Assessment
Resources
Plan
(Budget)
Results
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UTPA’s 3 Overarching Goals
Undergraduate Access and Success
2. Enhancement of Graduate Education and
Research
3. Improvement of Organizational Effectiveness
1.
Compact with UT System
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UTPA’s 6 Strategic Goals
1.
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4.
5.
6.
Enhance UTPA’s engagement with the community to meet
challenges and maximize opportunities.
Infuse inter-American and global perspectives throughout
the university community.
Tip:
Optimize institutional effectiveness and efficiency
Frame
budget
requests around
these
consistent with
highyour
quality
organizational
standards.
goals.
Become an outstanding research institution, emphasizing
collaborative partnerships and entrepreneurship.
Collaborate with K-12 schools to enlarge the pool of
applicants who are personally prepared and academically
qualified for higher education.
Provide students with a quality educational experience that
enables them to complete their educational goals in a timely
fashion.
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Funding Sources of FY 2006 Operating Budget
FY 2006 Operating Budget: $217,934,796
Other Funds
31%
Tuition & Fees
28%
Paid by Student outof-pocket
12%
Transfers
16%
Appropriated
General Revenue
25%
Paid with Financial
Aid Funds
16%
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The Appropriation & Budget Timeline
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Legislative Appropriations Request (LAR)
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Outlines agencies goals
Actual & projected performance measures
Actual & projected costs
Opportunity for Special Line Item & requests
Tuition Revenue Bond (TRB) requests are
traditionally submitted every other biennium
Submitted prior to each legislative session
Institutional hearings with:
Legislative Budget Board (LBB)
Governor’s Office of Budget, Planning &
Policy (GOBPP)
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Legislative Session
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Uses the LBB recommended bill as a starting
point in developing State Budget
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Senate Finance Committee (SFC) and House
Appropriations Committee (HAC)
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Conference Committee
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Fiscal Notes via LBB
http://www.capitol.state.tx.us/
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Appropriations Bill
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Not like other bills that create or modify
statutes; it establishes the State’s Budget
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Sections (Articles)
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Various articles for; general government, judiciary,
public safety & criminal justice, etc.
Article III = Education
Article IX = general provisions & contingencies
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General Appropriations Act
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Funds Flow to UTPA in 3 different ways
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Direct Appropriation
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Indirect Appropriation
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Formulas & Special Line items or Identified Needs
related to Institutional Staff Benefits
Other Indirect Appropriation
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subsequently allocated through other agencies:
Texas Higher Education Coordinating Board (THECB)
Higher Education Assistance Funds (HEAF)
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UTPA – FY 2006 Direct Appropriations
(Summary)
Method of Finance
General Revenue Fund
$54.9 M
Estimated Educational
and General (E&G)
Income (includes
Statutory Tuition)
21.2 M
Interagency Contracts
0.3 M
Total
$76.4 M
Goals Supported
Instruction and Operations1
$52.6 M
Infrastructure Support2
13.1 M
Special Item Support
10.5 M
Research Development
Total
0.2 M
$76.4 M
1. Includes formula-calculated support for instruction and operations ($45.6 M) and
teaching experience ($1.2 M).
2. Includes formula-calculated support for infrastructure ($8.8 M).
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HEAF
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Higher Education Assistance Funds
Established in 1984
Funds can be used for: land, equipment, library materials,
constructing and renovate buildings, retire debt
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HEAF vs. PUF (Permanent University Fund)
Formula Elements:
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Space deficit
Condition of buildings
Complexity
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UTPA HEAF Appropriations
Fiscal Year
Annual Amount
1986-1990
$2.9M
1991-1995
$2.9M
1996-2000
$8.6M
2001-2005
$6.0M
2006 & 2007
$8.5M
2008-2010
$12.8M (?)
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Formula Funding
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Instruction & Operations Support
(FY06 = $45.6M)
Calculated according to matrix weights
Liberal arts = 1.00
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Teaching Experience Supplement
(FY06 = $1.2M)
Additional 10% weight added to undergraduate hours taught by tenure and
tenure-track faculty.
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Infrastructure Support
1.
2.
3.
4.
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(FY06 = $8.8M)
THECB Space Projection Model uses the following criteria to predict
Educational & General (E&G) space:
Teaching space Level and program areas of an institution’s funded semester
credit hours
Library space Faculty, students, approved programs, and holdings
Research space Research expenditures and students’ reported semester
credit hours
Office space Faculty, staff, and current fund E&G expenditures
Support space A percentage of the total prediction for all the other factors
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Instruction & Operations Support – Matrix
UTPA receives support for instruction and operations
according to the formula funding matrix in the Appropriations
bill. A link to the matrix applicable to the FY 2006 – 2007
biennium is available on the THECB website:
http://www.thecb.state.tx.us/PA/FinanceandResourcePlanning/
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Instruction & Operations Support – Example
The funding for each class is calculated as follows:
SCH (semester credit hour) count * matrix weight
(per discipline and level)* funding rate.
For example, if 20 upper-division undergraduates each take a
3-hour course funded under the Business Administration
discipline, the formula funding calculation would yield:
60 SCH * 1.61 * $55.72 = $5,382.55.
(If taught by a tenured or tenure-track professor, an extra 10%
would be generated from the teaching experience supplement.)
The lower of the student level or class level is used.
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Instruction & Operations Support – Base Period
The Instruction and Operations support for FY 2006 – 2007
was calculated according to the funded SCHs reported to the
THECB from Summer 2004 through Spring 2005.
A new one-year base period begins Summer 2006 and
concludes with the Spring 2007 semester.
Each funded SCH reported during this period will contribute
to the annual support for the FY 2008 – 2009 biennium.
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UTPA Budget Process
(FY 2007 Month)
1.
Budget packets sent to departments
2.
Regents approve budget policies
3.
EBRS deployed with training sessions
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Internal hearings
5.
Internal review of budget requests
6.
Budget requests due to Budget office
FEB
MAR
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UTPA Budget Process (cont.)
7.
UT-System videoconference with UTPA APR
8.
Draft budget submitted to UT-System
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…and distributed to account managers
10.
UT-System technical hearing
11.
Final budget submitted to UT-System
12.
Regents approve budget
MAY
AUG
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Resources Available to UTPA
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State Appropriations and HEAF
Student Tuition and Fees
Statutory Tuition (E&G)
Graduate Differential Tuition (E&G)
Designated Tuition (Designated)
Mandatory Fees
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Library Tech Fee (Designated)
Computer Access Fee (Designated)
Student Service Fee (Auxiliary)
Student Union Fee (Auxiliary)
Other Fees
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Resources Available to UTPA (cont.)
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Designated and Auxiliary Sales Revenue
Educational Activities
Housing and Meal Plans
Facility Use
Parking Revenue
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Transfers (e.g., Texas Grants)
Indirect Cost Reimbursements
Restricted Funds (e.g., Grants, Gifts)
Investment Income
Fund Balances
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Fund Groups – Current Funds:
Overview of Fund Groups
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Educational and General
Designated
Designated Service Departments
Auxiliary Enterprises
Restricted
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Funds Not in the Budget:
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Loan Funds
Endowment & Similar Funds
Plant Funds*
Unexpended Plant
Retirement of Indebtedness
Investment in Plant
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Agency Funds
* In the budget to the extent used for operations (e.g. Oracle) and
debt service.
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Oracle Public Sector Budgeting (PSB) –
Operating Budget Process
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Provides a complete and integrated solution for
preparing the operating budget.
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Web-based system will replace current Electronic
Budget Request System (EBRS).
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Advantages
 Workflow notifications
 Worksheets display Budget and Actual Data
 Integrated with Human Resources Management,
General Ledger, Projects, and Labor Distribution
modules.
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Oracle Public Sector Budgeting (PSB) –
Budget Changes (Other than Restricted Funds*)
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Will be created and processed in PSB
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Process is centralized into the Budget Office
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Advantages
 Provide instant fund checking status
 Workflow notification
 Process is expedited
*Budget changes for restricted funds will be processed in the Oracle
Projects module by the Grants & Contracts office.
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Other Possible Processes in PSB
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Salary Sweep Process
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Salary Adjustment Cycle (Merit, Equity, Reclassification
Cycle)
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When Will You Start Using PSB and
What about Training?
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Budget Changes - Starting in FY 2007
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Operating Budget Cycle – Starting in FY 2008
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Training will be available for budget users
 Budget Office
 Other training tools
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How does UTPA compare to the other UT
academic institutions?
UT Institution
Austin
FY 2006 Operating Endowment Funds
at 8/31/20051
Budget
Fall 2005
Headcount
$1,652,138,623
$2,109,515,081
49,333
Arlington
333,988,430
41,857,140
25,216
San Antonio
323,712,941
24,675,453
27,294
Dallas
264,820,695
216,675,771
14,387
El Paso
261,630,065
98,325,578
19,257
Pan American2
217,934,796
16,607,649
17,049
Brownsville
120,429,295
5,348,417
13,316
62,155,976
51,262,255
5,729
$37,918,685
$15,429,666
3,446
Tyler
Permian Basin
1. Amounts held by UT-System. Does not include Funds Functioning as Endowment.
2. Additional endowment funds of $28,614,063 were held by the UTPA Foundation at 8/31/05.
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Current and Proposed Tuition and Mandatory Fees
(resident undergraduates taking 15 hours)
UT Academic Institution
Austin (College of Liberal Arts)
FY 2006
FY 2007
Headcount
$3,486
$3,815
49,333
Dallas
3,416
3,665
14,387
Arlington
2,933
3,300
25,216
San Antonio
2,772
3,112
27,294
El Paso
2,444
2,632
19,257
Tyler
2,125
2,336
5,729
Permian Basin
2,074
2,260
3,446
Brownsville
1,948
2,213
13,316
Pan American
$1,738
$2,146
17,049
Average
$2,548
$2,831
19,447
UTPA $ Below Average
$810
$685
UTPA % Below Average
32%
24%
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Challenges
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UTPA
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Unprepared students
Shift towards research (workload adjustment)
Diminishing fund balances
Land
State
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Shift in cost towards the student
Little discretionary funds
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Contact Information
UTPA Budget Office website:
www.utpa.edu/budget/
Email:
[email protected]
[email protected]
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