Transcript Slide 1

Budget and Finances
at UTPA
An Overview
1
What is a Budget?
A plan for deploying financial resources to achieve a goal or goals
Mission,
Vision &
Goals
Assessment
Results
Strategic
Plan
Resources
Plan
(Budget)
2
Types of
Budgets
Approaches
Operating
Zero-based
Capital
Incremental
Event
Formula
Project
Mix of the
above
Future for
UTPA?
Continuous
Planning?
3
UTPA process (bottom up)
Key Players
President’s
Cabinet
Division Head
Department
President
Division Heads (division head staff)
Deans/Directors
Project Managers
Administrative Services Officers
Budget Staff
Office of Institutional Research &
Effectiveness
Human Resources
Comptroller’s Office
Cost of Education Committee
Student Affairs Advisory Committee
4
Which Funds are Formally Budgeted?
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Budgeted
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Educational and General
Designated
Auxiliary Enterprises
Restricted
Plant Funds (to extent used for operating)
Non-Budgeted
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Loan
Endowment & Similar Funds
Agency
Plant Funds (except portion used for operating)
5
Resources Available to UTPA
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State Appropriations
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Formula Funding (to be discussed in later section)
Special Line Items
Tuition Revenue Bond (TRB) Payments
Student Tuition and Fees
(to be discussed in later section)
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Transfers
 From THECB: TEXAS Grants, Top 10% Scholarship, etc.
 Pass-Through: UTEP’s Border Consortium, UTSA’s SBDC, etc.
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HEAF (Higher Education Assistance Funds)
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Resources Available to UTPA (cont.)
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Designated and Auxiliary Sales Revenue
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Educational Activities
Housing and Meal Plans
Facility Use
Parking Revenue
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Indirect Cost Reimbursements (50% distributed as incentives)
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Restricted Funds (e.g., Grants, Gifts)
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Investment Income (endowment income, interest)
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Fund Balances (one time use)
7
Instruction & Operations Formula (matrix)
The funding for each class is calculated as follows:
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Calculation
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Teaching Experience Supplement
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SCH (semester credit hour) count * matrix weight (per discipline and level)*
funding rate. (Liberal arts = 1.00)
The lower of the student level or class level is used.
Additional 10% included if class is taught by a tenured or tenure-track professor.
Base year
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Starts with every even numbered Summer and goes through Spring.
An example; if 20 upper-division undergraduates each take a 3-hour course funded under the
Business would yield: 60 SCH * 1.70 * $53.71 = $5478.40.
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Infrastructure Support Formula
(uses space projection Model)
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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
Fall 2010 deficit was 473,186 sq. feet (309,131 sq. feet was in Teaching Space). The deficit has
increased every year since Fall 2005 when it was only 180,617 sq. feet.
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HEAF (Higher Education Assistance Funds)
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Established in 1984 as an amendment to the state constitution
Funds can be used for: land, equipment, library materials,
constructing and renovate buildings, Retire debt
HEAF vs. PUF (Permanent University Fund)
Elements; space, condition of facilities, complexity
UTPA Allocations ►
1986-1995
$2.9M
1996-2000
$8.6M
2001-2005
$6.0M
2006 & 2007
$8.5M
2008
$12.9M
2009 & 2010
$13.2M
2011-2015
$12.3M
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Bond Debt
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3 Types
 Tuition Revenue Bond (TRB)
 HEAF
 Revenue Finance System (RFS)
11
Appropriations & Budget Process Timeline
12
Appropriations Outcomes (State of Texas)
GENERAL REVENUE FUNDS, House Bill 1 ($M)
Art. I
Art. II
Art. III
General Government
Health and Human Services
Education
2010-11
2012-13
Change
Percent
Change
2,439.1
21,702.8
46,850.0
1,979.2
22,402.8
48,683.9
(459.9)
700.0
1,833.9
Public Education
33,783.6
36,827.2
3,043.6
9.0%
Higher Education
13,066.4
11,856.7
(1,209.7)
-9.3%
Art. IV
Art. V
Art. VI
Art. VII
Art. VIII
Art. IX
The Judiciary
Public Safety and Corrections
Natural Resources
Business and Economic Development
Regulatory
General Provisions
Art. X
The Legislature
Grand Total
-18.9%
3.2%
3.9%
425.8
8,620.4
874.3
501.1
293.3
-
370.8
8,184.0
653.5
594.4
276.2
(3,017.7)
(55.0)
(436.4)
(220.8)
93.3
(17.1)
(3,017.7)
-12.9%
-5.1%
-25.3%
18.6%
-5.8%
NA
372.2
82,079.0
339.4
80,466.5
(32.7)
(1,612.4)
-8.8%
-2.0%
Source: LBB Summary Tables. 2010-11 reflects 5% reduction and certain anticipated supplemental spending adjustments. Includes
estimated distribution of all employee benefits. 2010-11 Base does not include the $12.1 billion in ARRA appropriations.
13
Appropriation Bill Comparison (UTPA)
14
FY 2011 & FY 2012 Operating Budgets
Fund Group
FY 2011
FY 2012
Education & General
$166,981,968
$164,690,503
64.83%
Designated
42,959,101
46,341,016
18.24%
Auxiliary
19,470,676
19,234,767
7.57%
Restricted
76,013,547
71,395,368
27.32%
300,000
500,000
.20%
$305,725,292
$302,161,654
118.95%
-41,870,522
-48,134,364
-18.95%
$263,854,770
$254,027,290
100.00%
Plant (operating)
Gross
Adjustments*
Net
*Adjustments: tuition discounting, capital outlay, debt principal, and depreciation.
%
15
Where Does UTPA Get Its Operating Funds?
FY12%
Revenues (in Millions)
22.6%
State Appropriations (GR)
36.1%
FY2011
FY2012 Change
$72.7
$68.4
-$4.3
Tuition & Fees
98.5
109.2
10.7
Sales, Services, Auxiliary, Other
13.7
14.1
0.4
Sponsored Programs-Federal
73.9
68.4
-5.5
8.8%
Sponsored Programs-State
27.0
26.4
-0.6
0.7%
Sponsored Programs-Local
2.5
2.2
-0.3
1.9%
Investments & Gifts
4.9
5.6
0.7
0.1%
Interagency Contract
0.3
0.2
-0.1
4.1%
HEAF
12.3
12.3
0.0
-0.6%
Transfers (B-On-Time; Emer. Loans)
-1.5
-1.8
-0.3
-1.0%
Balances
1.4
-2.8
-4.2
$305.7
$302.2
-$3.5
4.7%
22.6%
100.0%
Totals
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Where Does UTPA Spend Its Operating Funds?
FY12%
29.5%
Expenses (in Millions)
Instruction
FY2011
FY2012 Change
$88.8
$89.1
$0.3
18.3
18.9
0.6
6.3%
Academic Support
2.1%
Research
6.7
6.3
-0.4
2.3%
Public Service
7.6
6.9
-0.7
6.8%
Institutional Support
21.3
20.6
-0.7
5.2%
Student Services
14.3
15.9
1.6
6.6%
Operation & Maintenance of Plant
20.2
19.8
-0.4
Scholarships & Fellowships
90.9
87.5
-3.4
5.3%
Auxiliary Enterprises
16.2
16.1
-0.1
3.9%
Debt Service
12.4
11.9
-0.5
3.0%
Capital Outlay
9.0
9.2
0.2
$305.7
$302.2
-$3.5
29.0%
100.0%
Total
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Expense Reductions
Amount
$1,704,999
Description
Vacant Positions eliminated (64)
510,310
Voluntary Separation Incentive Program (43)
935,289
Positions eliminated due to reorganizations (26)
1,298,730
233,543
Maintenance & Operations (50%)
Travel budgets (50% cut with 10% in Div Pools)
Note: Wages identified in the contingency reduction plans were not touched in order to protect
student employment.
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Must Do
Amount
$619,600
Description
Group Health Insurance - 5.25% increase in premium sharing
441,200
Group Health Insurance - Coverage for first 90 days
329,400
Other Increases (OASI, TRS, ORP)
440,726
Comp Sys Licensing (increase from $1.98M to $2.42M)
400,000
McAllen Teaching Site SLI
371,714
Swap of expenses to Institutional funds
128,000
Faculty Promotions
9,500
Applicant Tracking System Lic/Maint
7,851
Child Care Subsidy
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Initiatives Funded
Amount
Description
$426,000 University College (Lower Level UG)
361,529 New/Emerging Academic Programs - new funds
200,000 Pay plan; Staff
200,000 Provost Office Reorganization
200,000 Student Employment Office
200,000 Summer faculty budget pool
150,000 Attorney
145,954 Shary Estate administrative/office support
111,242 5 Job Groups to be adjusted
100,000 Supplemental Instruction - restore funding
20
Initiatives Funded (cont.)
Amount
Description
$68,040 Marketing
65,000 External evaluators for academic programs
55,000 New Position: Marketing Project Manager (est. rate)
50,000 Advising Reorganization
50,000 Dual Enrollment Program Support (replenish SLI cut)
49,000 Distinguished Speakers
48,000 Scholarship for laid-off employees
40,000 New Position: Endowment Services Manager (est. rate)
40,000 Leadership training (LEAP)
10,000 Center for Bilingual Studies
21
Tuition and Fees
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Statutory Tuition & Lab Fees (E&G)
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Designated Tuition (Designated)
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Mandatory Fees
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Designated:
Designated:
Designated:
Designated:
Designated:
Designated:
Designated:
Auxiliary:
Auxiliary:
Auxiliary:
Academic Advisement Fee (undergraduates only)
Information Technology Access Fee
International Education Fee
Library Support Fee
Medical Service Fee
Registration Fee
Utility Fee
Recreation Fee
Student Service Fee
Student Union Fee
Incidental Fees (e.g. graduation fee, course fees)
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Types of Tuition
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Statutory Tuition
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Rates established by Ed Code
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Included in Formula Funding
Texas Public Education Grant (TPEG) Set-Asides
Board Authorized Tuition
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Resident student rate at $50/SCH since Fall 2005
Non-resident rate equal to the average non-resident tuition at the 5 most populous states (FY12 = $363/SCH)
Also known as Graduate Differential Tuition and/or Graduate Incremental Tuition.
Additional $50/SCH for graduate level coursework (total = $100/SCH)
Designated Tuition
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Rates established by institutions and their governing boards
Formerly known as Building Use Fee, then General Use Fee
De-regulated starting Fall 2003 (FY 2004)
Set-asides for need-based financial aid and B-On-Time program
14-hour cap at UTPA
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Tuition Rates at UTPA per SCH
Fiscal
Year
Designated
Tuition
Statutory
Tuition
Headcount
2001
$22
$40
12,761
2002
$26
$42
13,640
2003
$26
$44
14,392
2004
$32
$46
15,915
2005
$38
$48
17,030
2006
$46
$50
17,049
2007
$63.15
$50
17,330
2008
$79.15
$50
17,435
2009
$87.70
$50
17,573
2010
$97.00
$50
18,337
2011
$106.09
$50
18,744
2012
$115.39
$50
n/a
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Total Average Academic Costs at UTPA
is the sum of all tuition, mandatory fees, and academic-related college and course fees
(fees required of all students enrolled in a given college, program or course).
(preliminary)
Resident Undergraduates – 15 Hours
Statutory Tuition
Fall 2009
$750
Fall 2010
$750
Fall 2011
$750
1,358
1,485
1,615
604
52
614
62
624
66
$2,764
$2,911
$3,055
Increase ($)
$147
$144
Increase (%)
5.3%
4.9%
Designated Tuition
Mandatory Fees
Average College/Course Fees
Total
Average - Texas Public Universities
UTPA $ Below Average
$3,323
$559
$3,511
$600
not avail.
not avail.
(preliminary)
Resident Graduates – 9 Hours
Total
Fall 2009
$2,275
Fall 2010
$2,373
Fall 2011
$2,471
Increase ($)
$98
$98
Increase (%)
4.3%
4.1%
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Tuition & Fee Rankings (15 hours, Fall 2010)
Includes Tuition, Mandatory Fees and Average College and Course Fees
1
The University of Texas at Dallas
5,211
19 Angelo State University
3,347
2
The University of Texas at Austin
4,708
20 Texas A&M University – Corpus Christi
3,304
3
The University of Texas at Arlington
4,616
21 The University of Texas at El Paso
3,280
4
Texas A&M University
4,451 22 Texas A&M University – Kingsville
3,207
5
Texas Tech University
4,300 23 West Texas A&M University
3,186
6
University of Houston
4,245
24 Tarleton State University
3,146
7
The University of Texas San Antonio
4,204
25 The University of Texas of the Permian Basin
3,086
8
University of North Texas
4,011
26 Texas A&M International University
3,067
9
Texas State University – San Marcos
3,919
27 Texas A&M University – Central Texas
3,029
10 Texas Women’s University
3,881
28 University of Houston – Clear Lake
3,021
11 Texas A&M University at Galveston
3,764
29 Texas A&M University – Commerce
2,999
12 Texas Southern University
3,731
30 The University of Texas at Brownsville
2,962
13 Prairie View A&M University
3,648
31 Texas A&M University – San Antonio
2,911
14 Stephen F. Austin State University
3,541
31 The University of Texas - Pan American
2,911
15 Lamar University
3,472
33 University of Houston – Victoria
2,849
16 Midwestern State University
3,471
34 Sul Ross State University
2,774
17 Sam Houston State University
3,441
35 University of Houston – Downtown
2,753
18 The University of Texas at Tyler
3,403
36 Texas A&M University - Texarkana
2,543
Source: Texas Higher Education Coordinating Board
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Challenges
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State appropriations are not keeping pace with needs
Shift in cost towards the students and families
Financial aid funds
Tight margins
Debt capacity near maximum
Land and construction needs (space deficit)
Facilities maintenance
Economic uncertainty
Low academic cost
Pressure to restrain tuition and fee rate increases
Inflexible revenue streams (fees)
Region’s student enrollment trends
27
FY 2013 and Beyond

GAA Article IX Reduction Rider for FY13
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Tuition & Fee caps: 2.6% - 3.6%

Changes to formulas
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I & O (outcomes based approach)
Space Projection Model changes
Enrollment Growth (30,000 target by 2020)
28
Online Resources

Legislative Budget Board (appropriations)
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
Legislature online (bill & statute lookup)


http://www.capitol.state.tx.us/BillLookup/BillNumber.aspx
Texas Higher Education Coordinating Board (formulas,
recommendations, student data)



http://www.lbb.state.tx.us/
http://www.thecb.state.tx.us/
http://www.txhighereddata.org/
UT-System (tuition plans, policies, etc.)

http://www.utsystem.edu/affordability/
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Contact Information
UTPA Budget Office website:
www.utpa.edu/budget/
Email:
[email protected]
[email protected]
30