BUDGET 2015 AND LEGISLATIVE APPROPRIATIONS REQUEST 2016-2017

MARY SIMON, SR. DIRECTOR

BUDGET PLANNING AND DEVELOPMENT

MAY 6, 2014

AGENDA

• Trend - Paying Semester Credit Hours (SCH)

• Tuition and Student Fee Revenue Projections

• Budget Recap / Timeline

• Legislative Appropriations Request (LAR)

• Q&A

632.4 632.5 614.9575.3 567.4

15.9 25.4 32.029.4 27

62.1 65.3 61.8

58.7 56.4

3.9 4.8 4.9

4.3 3.9

0

100

200

300

400

500

600

700

800

FY 2011 FY 2012 FY 2013 FRSCT FY14 BUDGET 2015

Grad Non-Res

Grad Resident

UG Non-Res

UG Resident

TREND - PAYING SEMESTER CREDIT HOURS

714.3728.0

713.6

(SCH in thousands)

654.7667.7

TUITION AND STUDENT FEE REVENUE PROJECTIONS

TOTAL Tuition Statutory Tuition Designated Tuition

Lab & Supplemental Fees

TOTAL Mandatory Student Fees Designated - Mandatory Fees Auxiliary - Mandatory Fees

TOTAL Incidental Student Fees Designated Program, Course Fees Auxiliary Student Parking

Tuition and Student Fees LESS: Tuition Set Asides

NET Tuition and Student Fees

Budget FY2014

$154,22248,629

105,593

301

$69,26640,37228,894

$25,58921,821

3,768

$249,378(19,175)

$230,203

Forecast FY2014

$150,49250,000

100,492

294

$65,13438,00127,133

$24,55720,954

3,603

$240,477(18,084)

$222,393

$ Change

($ 3,730)1,371

(5,101)

(7)

($4,132)(2,371)(1,761)

($1,032)(867)(165)

($8.901)1,091

($7,810)

% Change

(2.4%)2.8%

(4.8%)

(2.3%)

(6.0%)(5.9%)(6.1%)

(4.0%)(4.0%)(4.4%)

(3.6%)5.7%

(3.4%)

Budget FY2015

$146,86348,34898,515

294

$63,88737,32026,567

$25,46521,589

3,876

$236,509(17,778)

$218,731

($000)

Note: Forecast based on PAYING SCH Certified FALL, SPRING and Budget SUMMER

• Draft Operating Budget 2015 does not include proposed Tuition and Fee increases being presented at the May BOR meeting

• Tuition & Fee revenue declined over Budget 2014 by approx. $11.5 Million or 5% • Paying SCH total 654,700 compared to 702,000 for Budget

2014; a decline of 6.7% or 47,300 paying SCH• Mandatory & Incidental Fees were reduced accordingly

based on paying SCH or student head count• Decline in Restricted Sponsored Program revenue resulted in a

decline in F&A Recovery • Merit will be decided based on the outcome of T&F proposal

• Draft Operating Budget final in DEFINE BUD System by May 9th due to PeopleSoft system conversion. Any permanent budget updates will be processed via permanent transfers 9/1/14

BUDGET 2015 RECAP

2015 BUDGET TIMELINEFeb. 5 Board of Regents Budget Policies and Guidelines Approved

Feb. 5-25 Budget coordination of salary review reports of permanent positions and related funding

Feb. 27 University Strategic Resource Planning Council (USRPC) Meeting

Feb. 27 Draft Revenue Projections (Mandatory and Incidental Fees) provided to Fee Funded areas

Mar 4 – 5 Budget Training – Overview and BUD Document preparation (published in T&D booklets)

March 6 Benefits Template (website) and Longevity Reports (via Rowdy Space) provided to areas

March 6 FY15 Budget Document Preparation Begins (BUD System opens to departments)

March 7 Draft Debt Service Budgets provided to Financial Area reps

March 12-13 Budget Training – Hands on training available (available workstations for data entry)

TBA by Areas Internal Department Deadlines for Budget Document review and approval

March 31st FY15 Budget Documents are due to Budget Office (BUD System closes to departments)

April 1-6 Preparation for UT System Budget Goals & Priorities Hearing

April USRPC Meeting to review Resources and Requirements

April 16 UT System/UTSA Budget Goals & Priorities Hearing

May 12 April 28 Draft FY15 Operating Budget due to UT System

May 14-15 Board of Regents to approve Tuition and Fee Proposal

June 2 Final FY15 Operating Budget due to UT System

July 24 1st Draft LAR Biennium 2016-17 due to UT System

August 6 Final LAR Biennium 2016-17 due to UT System

August 20-21 FY15 Operating Budgets approved by Board of Regents

LEGISLATIVE APPROPRIATIONS REQUEST FY 2016 - FY2017

LEGISLATIVE APPROPRIATIONS REQUEST (LAR) 2016 AND 2017

Laws and Policies Impacting Budgets

• Legislative Appropriations Request• General Appropriations Act• Role of the Texas Higher Education Coordinating Board• Formula Funding

Texas State Budget CycleLegislature convenes every 2 years for 140 days in odd numbered calendar years beginning January 2nd

2013 = 83rd Legislative Session for FY14 and FY15 Budgets2015= 84th Legislative Session for FY16 and FY17 Budgets

State of Texas budget is allocated once every two years; therefore, LAR is prepared to cover a 2 year time period.

Each agency prepares and submits an LAR during even numbered years, prior to the start of the legislative session.

The summation of each institution’s LAR forms the basis for the appropriations bill prepared by the Legislative Budget Board (LBB)

LEGISLATIVE APPROPRIATIONS REQUEST GENERAL APPROPRIATIONS ACT (GAA)

GAA details biennial budget allocations and includes:• State revenues only • Certain restrictions on use of state funding• Reporting & other requirements

Online version of GAA is available on the LBB website: www.lbb.state.tx.us

Academic institutions • Direct appropriations from funding formula are lump sum

and discretionary• Most non-formula appropriations have restricted uses:

– Special Items & Higher Education Group Insurance

THECB: OUTCOMES-BASED FUNDING - OBJECTIVE

Texas Education Code Section 61.0593 states that,

“it is in state's highest public interest to evaluate student achievement at institutions of higher education and to develop higher education funding policy based on that evaluation.”

It further charges the Coordinating Board, in consultation with institutions of higher education, to incorporate the consideration of undergraduate student success measures in developing recommendations for university formula funding.

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GAIFAC RECOMMENDATION– SUCCESS METRICS

Total Undergraduate

Degrees

• Total number of Bachelor’s Degrees awarded by an institution in a given year.

Total Undergraduate

Degrees by Graduation Rate

• Total Bachelor’s Degrees multiplied by the school’s six-year graduation rate, to incent timely completion.

Total Undergraduate

Degrees per 100 FTSE

• Degrees divided by Full Time Student Equivalents (FTSEs) and multiplied by 100. This aggregate measure adjusts for part-time and transfer students, providing a common framework for comparing degree productivity .

At-Risk Undergraduate

Degrees

• Degrees awarded to students who meet federal criteria for being at high risk for non-completion.

Retention Metrics• Points awarded for students who complete their 30th,

60th, or 90th hour at the institution, to incentivize the use of effective persistence policies.

GAIFAC RECOMMENDATION – ALLOCATION

Allocate Funds based on:

• Points earned on the 7 success metrics

• The average of the three most recent years of data

• Points scaled statewide

• Points weighted by institutions

• Phased-in over three biennia

More information on Outcome Based Funding (OBF) will be presented at the University Strategic Resource Planning Council

REVENUE FUNDING SOURCES

State Appropriations: Formula Funding, Special Items,

Benefit Cost Sharing (General Revenue)

THECB Transfers: TX Grant, Work-study, etc.

Statutory Tuition, Certain Fees (General Revenue-Dedicated)

Designated Tuition & Fees

Indirect Cost RecoveryFacilities & Administrative Overhead

Auxiliary Enterprise FundsHousing, Parking, Athletics, Bookstore,

University Center, Food Services

Restricted FundsGifts, Financial Aid & Grants/Contracts

Plant FundsBuildings and Capital Improvements

State Funds Also referred to as E&G: Educational

& General budgets

Designated FundsAlso referred to as Local funds

Must be 100% Self-Support;

no subsidies from other funds

LEGISLATIVE CYCLE (GAA) FY 2016 - FY 2017

April 2014 Base Reconciliation Instructions Issued

May 2014 Budget (LAR) Instructions Issued by Legislative Budget Board (LBB) and Governor’s Office of Budget Planning and Policy (GOBPP)

June 2014 Base Reconciliation is due

June – July 2014 LBB provides General Revenue (GR) Target to Institutions

August 2014 Agency Budget Request (LAR) submitted to LBB and GOBPP

August – September Public Hearing s conducted by LBB and GOBPP

October 2014 LAR Updates submitted

January 2015 LBB Recommended Appropriation Bill is filed as both a House and Senate Bill

January 2015 House and Senate Committees and subcommittees named

Jan – February 2015 House and Senate LAR Hearings

Feb – April 2015 House and Senate create ad approve separate versions of GAA

April – May 2015 Conference Committee creates final version of GAA

May 2015 House and Senate Approval Conference Committee version of GAA

Refer to UTSA Budget Office – CALENDAR – LAR for Internal Due Dates: http://www.utsa.edu/financialaffairs/budget/

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Helpful Reference Web Sites

Legislative Budget Boardhttp://www.senate.state.tx.us/SRC/pdf/Budget_101-2011.pdf

TASSCUBO – LAR Workshop Materialshttp://tasscubo.org/LAR.htm

Nationally-recognized model state government information portals: State Government Expenditures http://www.texastransparency.org

Texas Legislature Online http://www.capitol.state.tx.us/