Transcript Slide 1

TASSCUBO
BUDGET COMMITTEE
Summer Meeting
The Woodlands
June 28, 2010
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AGENDA
1.
2.
3.
4.
5.
6.
7.
8.
9.
Welcome and Introductions
Legislative Appropriation Request 2012-2013
5% State Appropriation Reductions for 2010-2011
and 10% Plans for 2012-2013
Common Legislative Issues/Concerns for
Upcoming Session
ARRA Reporting Update/Questions
Tuition and Fee Proposals for Fall 2010 and Fall
2011
Salary Policies for FY 2010-11
State Reporting Requirements
Open Discussion, as Time Permits
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Legislative Appropriation Request
(LAR)- Highlights of Supplemental
Instructions from UT System
Budget Office
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LAR - Highlights of Supplemental Instructions from UT
System Budget Office
2.B. Summary of Base Request by Method of
Financing (MOF)
•ARRA Funding – Direct appropriations to institutions contained in
Article XII, Section 25, should be grouped under Regular
Appropriations using the appropriation adjustment description,
Regular Appropriations – Art. XII.
•Any General Revenue reductions contained in Article XII should be
shown under Regular-Appropriations as adjustments to the General
Revenue amounts using the relevant ABEST appropriation
adjustment description, Art. XII, Sec 30, GR Reductions.
•Supplemental Appropriations – Appropriations made to an
institution from House Bill 4586 should be grouped under
Supplemental Appropriations using the appropriations description,
HB 4586, 81st Legislature, Regular Session.
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LAR - Highlights of Supplemental Instructions from UT
System Budget Office
Part 3.A. Strategy Requests
Part 3.B. Rider Revisions and Additions Requests
Part 3.C. Rider Appropriations and Unexpended Balances
Requests
Part 4 Requests for Exceptional Items – 4.A. through 4.C.
Part 6. A. Historically Underutilized Business (HUB) Supporting
Schedule
Part 6.F. Advisory Committee Supporting Schedule
Part 6.G. Homeland Security Funding Schedule
•No significant changes were made to the above
Part 6. B. Current Biennium One-time Expenditure Schedule
•No significant changes were made to this form.
•Do not include items appropriated in Article XII, Section 25 on this
form.
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LAR - Highlights of Supplemental Instructions from UT
System Budget Office
Part 6.H. Estimated Total of All Funds Outside the
General Appropriations Act Bill Pattern Schedule
•No significant changes were made to this form, however,
institutions will be required to submit a different schedule
than the one shown in the LAR instructions.
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LAR - Highlights of Supplemental Instructions from UT
System Budget Office
Part 6.I. 10 Percent Biennial Base Reduction Options
Schedule
•This schedule, formerly a spreadsheet submission outside of
ABEST, is now an ABEST entry screen.
•LBB analysts will calculate the 10% reduction, “target
amount” and provide the information to each institution. The
“target amount” provided by the LBB will only apply to an
institution’s non-formula general revenue base. However, the
Legislature is expected to apply the 10 percent reduction to
the total general revenue base, including formula funding.
•Institutions must submit reduction options in increments of
five percent and the options must be listed in priority order.
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LAR - Highlights of Supplemental Instructions from UT
System Budget Office
Part 6.J. Budgetary Impacts Related to Federal
Health Care Reform **NEW**
•This is a new schedule requiring institutions affected by the
federal legislation on health care reform identifying any costs,
savings, and/or federal funds the agency has incurred or
expects to incur in as a result of the federal health care
reform.
•It is anticipated health-related institutions will be required
to provide additional information on this schedule.
•It is not anticipated that general-academic institutions will
be required to provide additional information for UT System,
since the employee benefits and health care will be handled
by the UT System.
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LAR - Highlights of Supplemental Instructions from UT
System Budget Office
Schedule 1A Other Educational and General Income
•No significant changes were made to this form, however,
institutions will now report Indirect Cost Recovery
amounts as an informational item on Schedule 2.
Schedule 1B Health Related Institutions Patient
Income
•No significant changes were made to this form.
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LAR - Highlights of Supplemental Instructions from UT
System Budget Office
Schedule 2 Grand Total, Educational, General and
Other Funds
•Indirect Cost Recovery amounts are to be reported as Item
10.
•Designated Tuition amounts are to be reported as Item 9.
•For General Revenue Appropriations, institutions must
report an adjustment for the portion of the formula
appropriation that was swapped with ARRA funds.
•For Other Appropriated Funds Income, institutions must
add the portion of their formula appropriation that was
swapped with ARRA Funds.
•For Other Additions, institutions that received ARRA
appropriations in Art. XII, Section 25 must report those
funds under Other Additions.
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LAR - Highlights of Supplemental Instructions from UT
System Budget Office
Schedules 3A and 3B Group Insurance Data
Elements
Schedule 4 Computation of OASI
Schedule5 Calculation of Retirement Proportionality
and ORP Differential
Schedule 6 Capital Funding
Schedule 7 Current and Local Fund (General)
Balances
•No significant changes were made to the above schedules.
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LAR - Highlights of Supplemental Instructions from UT
System Budget Office
Schedule 8 Personnel
•For Other Appropriated Funds, new categories of FTEs have
been included for clarification purposes. Included in this
section are FTEs paid from Art. XII, Section 25
appropriations.
Schedule 9 Expenditures Associated with E&G Space
Utility Operations Fiscal Year 2010
•No significant changes were made to this form, however,
institutions should include ARRA fund expenditures
appropriated through the GAA.
Schedule 10A Proposed Tuition Revenue Bond Proj
Schedule 10B Tuition Revenue Bond Issuance History
•No significant changes were made to these forms.
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LAR - Highlights of Supplemental Instructions from UT
System Budget Office
Schedule 10C Revenue Capacity for Tuition Revenue
Bond Projects
•UT System Administration handles for UT System
institutions.
Schedule 11 Special Item Information
•No significant changes were made to this form.
Schedule 12A Formula Strategies by NACUBO
and Schedule 12B Object of Expense Detail for
Formula Strategies and NACUBO Functions of Cost
•These schedules only apply to general academic institutions.
•No significant changes were made to these forms.
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2010-2011 5% and 2012-2013 10%
Budget Reduction Plans
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5% General Revenue Reduction Plans
January 15, 2010 Letter from Governor, Lieutenant
Governor, and Speaker of the House
Plans in Priority Increments totaling 5% of General
Revenue:
•
Included Higher Education Group Insurance
•
Excluded Most General Revenue – Dedicated for
Higher Education (Fund 704 and 770)
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Excluded Tuition Revenue Bonds
•
Excluded Article XII ARRA appropriations
Submitted to the LBB via ABEST in February 2010
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10% General Revenue Reduction Plans
2012-2013 LAR Instructions from LBB and
Governor’s Office of Budget, Planning and Policy
Dated May 27, 2010
As a starting point for budget deliberations, an agency’s
baseline request for general revenue-related (GR and
GR-Dedicated) funds may not exceed the sum of
amounts expended in fiscal year 2010 and budgeted in
fiscal year 2011 adjusted to reflect the full five percent
reduction target identified by our offices for each agency.
Agencies must also submit a supplemental schedule
detailing how they would reduce the baseline request by
an additional 10 percent (in five percent increments) in
general revenue-related funding.
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5% and 10% Reduction Plan Possibilities
•Hiring Freeze – Not filling vacancies
•Program Reductions resulting in layoffs
•Salary Freeze
•Strategic Budget Reductions by College and Vice President with goal of
maintaining core missions
•Across-the-Board Budget Reductions by College and Vice President
•Contributions from Auxiliaries to Cover One-time Needs
•Increased Revenues – Further Tuition Increases?
•Move Expenditures to other Appropriate Funding Sources
•Reductions in Travel Expenditures
•Delaying Capital Expenditures or Projects
•Commitment to Austerity Throughout Institution
•Special Item Reductions
•Retirement Incentives – Budget Committee
Discussion
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Common Legislative Issues and
Concerns for Upcoming Session
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Legislative Issues – Lab Fees
Recommendation from Budget
Committee (see attached):
Modify Section 54.501 of the Texas Education
Code, Laboratory Fees, to allow lab fees to be
collected as designated funds and allow
expenditures on repairs and maintenance on lab
equipment as well as other ancillary costs tied
specifically to lab courses.
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Legislative Issues – Lab Fees

The existing statute states that laboratory fees “shall be
accounted for as educational and general funds.”
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It also states this fee may be collected “in an amount
sufficient to cover the general cost of laboratory
materials and supplies used by a student.”
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Does not allow for lab fee revenue to be expended on
repairs or maintenance of laboratory equipment that
exists solely for the incremental use by students or
other non-consumable ancillary costs such as software
or anatomical models.
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This represents an insignificant amount of revenue for
each institution and if accounted for as designated funds,
the manual effort would be considerably less.
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Legislative Issues – Lab Fees
Wording Changes:
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Sec. 54.501. LABORATORY FEES. (a) An
institution of higher education shall set and collect
a laboratory fee in an amount sufficient to cover
the general cost of laboratory materials and
supplies used by a student including an amount to
cover maintenance on laboratory equipment and
other ancillary costs in support of the laboratory
curriculum.
….
(b) Laboratory fees collected by an institution
under this section shall be accounted for as
[educational and general funds] designated funds.
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Legislative Issues – Lab Fees
Impact of Change:

Promotes fiscal efficiencies in university
processes.
business
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Allows greater laboratory fee expenditure flexibility.
Laboratory fees will fund the curriculum beyond
materials and supplies and free up funds that are
currently being used to fund those ancillary costs.
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Legislative Issues

“Employee Only” Health Insurance –
Should employees contribute a
nominal amount to health insurance
premiums?
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Others?
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ARRA Fund Reporting
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ARRA Reporting Review

State Comptroller – Weekly Reports
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THECB Reports – Monthly on 5th once
Notice of Grant Award is received/executed
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Federal 1512 Reports - Quarterly on the
10th (January, April, July, October)
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LBB/Article XII Section 5 Reports –
Quarterly (4/12, 7/12, 10/11, Jan 2011, Apr
2011, Jul 2011, Oct 2011)
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Construction Funded with American Recovery
and Reinvestment Act of 2009 (ARRA)
General Provisions (Title XVI)

Buy American (Section 1605)
◦ “…all of the iron, steel, and manufactured goods
used in the project are produced in the United
States.”
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Wage Requirements (Section 1606)
◦ “…all laborers and mechanics employed by
contractors and subcontractors…shall be paid
wages at rates not less than those prevailing on
projects of a character similar in the locality”
◦ Davis Bacon Act (40 U.S.C. § 3142) requires
certified payrolls (Security Hint: contractor
remove Social Security Numbers and use an
alternate identifier)
Reporting for ARRA Construction
Projects

Individual (not cumulative) payments to vendors
over $25k require additional information
◦ Vendor Name, Payment Amount,Vendor DUNS
Number,Vendor Headquarters Zip Code + 4, 250
character description of the Product or Service,
Number of jobs created/retained by the payment,
Description of the Job Titles created/retained
◦ Internal Service Center charges may cause issues
with job reporting
Reporting for ARRA Construction
Projects

Possible limitation on pre-award
reimbursements
◦ Can be problematic for proposals that require
design work to be completed in advance
ARRA Construction Projects – Buy
American Provision (Section 1605)
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SEC. 1605. USE OF AMERICAN IRON, STEEL, AND
MANUFACTURED GOODS.
(a) None of the funds appropriated or otherwise made available by this Act
may be used for a project for the construction, alteration, maintenance, or
repair of a public building or public work unless all of the iron, steel, and
manufactured goods used in the project are produced in the United States.
(b) Subsection (a) shall not apply in any case or category of cases in which
the head of the Federal department or agency involved finds that—
(1) applying subsection (a) would be inconsistent with the public interest;
(2) iron, steel, and the relevant manufactured goods are not produced in
the United States in sufficient and reasonably available quantities and of a
satisfactory quality; or
(3) inclusion of iron, steel, and manufactured goods produced in the United
States will increase the cost of the overall project by more than 25
percent. (c) If the head of a Federal department or agency determines that
it is necessary to waive the application of subsection (a) based on a finding
under subsection (b), the head of the department or agency shall publish in
the Federal Register a detailed written justification as to why the provision
is being waived. (d) This section shall be applied in a manner consistent
with United States obligations under international agreements.
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ARRA Websites
THECB ARRA site http://www.thecb.state.tx.us/arra
 State Comptroller ARRA Sites

◦ FMX Site https://fmx.cpa.state.tx.us/fmx/recovery/index.php
◦ Public Site http://www.window.state.tx.us/recovery/

US Dept. of Education SFSF site
http://www2.ed.gov/programs/statestabilization/index.html

US Dept. of Education Applicant Information Page
http://www2.ed.gov/programs/statestabilization/applicant.html

OMB 12/18/09 Guidance on ARRA Data Quality, NonReporting Recipients and Reporting of Job Estimates
http://www.whitehouse.gov/omb/assets/memoranda_2010/m1008.pdf
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Contact Information for ARRA presenters
at February TASSCUBO meeting.
Anthony Turrietta
UT-El Paso
915-747-7808
[email protected]
Alan Werchan
UT System Administration
512-499-4275
[email protected]
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Tuition and Fee Increases for Fall
2010 and Fall 2011
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House Concurrent Resolution –
H.C.R. No. 288 – Representative
Branch
Make every effort to ensure that the total academic
costs, including tuition, mandatory academic fees, and any
other academic-related general fees and college course
fees, charged to a resident undergraduate student for the
2010-2011, 2011-2012, or 2012-2013 academic year
Do not exceed the greater of 3.95 % or
$280
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Regents’ Approved Tuition and Fees
UT Austin – Total Academic Cost
Undergrad
Amount
Undergrad
%
Fall
2009
Tuition
Increase
SAC
Fee
Fall
2010
Tuition
Increase
Fall
2012
$4,468
$176
$65
$4,709
$183
$4,892
3.95%
1.45%
5.40%
**
3.95%
3.90%
**Includes $65 Student Activity Center tuition increase approved via
student referendum.
Plans at other Institutions?
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Student Referendums – Impact on Tuition/Fees
Environmental Service Fee, Section 54.5041
(HB 3353, Naishtat) – “Green Fee”
(a) …may charge each student enrolled at the institution an
environmental service fee, if the fee has been approved by a
majority vote of the students enrolled…
(b) …the amount of the fee may not exceed:
(1) $5 for each regular semester or summer term of more than
six weeks; or
(2) $2.50 for each summer session of six weeks or less.
(c) The fee may be used only to:
(1) provide environmental improvements …related to recycling,
energy efficiency and renewable energy, transportation,
employment, product purchasing, planning and maintenance, or
irrigation; or
(2) provide matching funds for grants to obtain environmental
improvements …
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Merit Plans for FY 2010-11
UT Austin
FY 09-10 – No staff Merit Increases, some targeted
Faculty salary increases
FY 10-11 – One-time 2% merit policy funded by units, no
central funding provided. Will be paid in a lump-sum in
early December.
Plans at other Institutions?
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State Reporting Requirements
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Status of Report Reduction Effort
Meeting held in May, Attendees:
Rissa Potter, CPUPC, THECB Planning and Accountability Staff
UT Austin Budget and Information Management and Analysis
representatives, Mike McKinney, Chancellor,TAMU System
ACTION ITEMS:
•THECB will prepare a list of CB reports with a notation of how they
are used
•University representatives will list state (non-CB) and federal reports,
providing a notation if there is duplication with an existing CB report
and/or indicate if the CB can submit the data instead of each Higher Ed
Institution
•Universities will prepare a list of data elements
•Universities will provide examples of CB reports/data that are used
and note if/where definitions need to be updated
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Status of Report Reduction Effort
Suggestions for Legislation:
•THECB
shall be the initial source of public Higher
Education data
•THECB’s
Data Request Committee process for reviewing
data requests will be applied, with the committee to include
institutional representatives
•If
data is already collected, THECB will provide response
•A
sunset process will be suggested regarding existing
report requirements
•Encourage
alignment of THECB, LBB and Comptroller
performance measures, preferably with the THECB
providing data/reporting
•Review
NSF, IPEDS, etc. to seek opportunities for a
crosswalk (data definitions at the federal and state level)
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Status of Report Reduction Effort
Additional Action:
THECB interim testimony on reporting is scheduled for
August 19
Senate Higher Education ; Charge 6—
Review the structure and operation of the Texas Higher
Education Coordinating Board. Evaluate the board’s data
collection systems, including costs to higher education
institutions, and make recommendations for improvements.
Include an assessment of higher education reporting
requirements and make recommendations to eliminate
duplicate requirements and streamline reporting.
Texas Association of Institutional Research (TAIR) is also
working on this with a new Data Committee that is being
formed this summer.
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TASSCUBO Budget Committee
Submission to Cost Efficiency Committee
In Response to Governor’s Executive Order on
Comprehensive Review of Higher Education Costs
(2) Streamline the Legislative Appropriation (LAR)
Process –
The TASSCUBO-Budget committee has discussed recommendations to
streamline the LAR process and printed document requirements. The
TASSCUBO-Budget committee would like to coordinate closely with
the Legislative Budget Board and the Governor’s Office on these
possible efficiencies.
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LAR Process Improvements
Gordon Thyberg, Director of Budgeting at Texas State
University has volunteered to chair a subcommittee to
refine the LAR Process Improvement Suggestions
developed by the Budget Committee.
Group will Prioritize, Group, and Justify the Top
Recommendations.
Additional Volunteers?
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Open Discussion
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TASSCUBO Budget Committee
Contact Information
Mary Knight, Chair
UT-Austin
Budget Office
512-471-3727
[email protected]
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