Kelly RatliffAssociate Vice Chancellor

Department Chairs MeetingSeptember 20, 2012

Campus Budget Overview

State designated and restricted; 1% Student Fees; 5%

Tuition; 11%

State unrestricted funds; 8%

Indirect cost recovery; 3%

Grants and contracts, direct; 14%

Federal (Hatch, Pell Grants); 2%Sales and Service, Auxiliary; 11%

Gifts, endowments, interest, other; 4%

UC Davis Medical Center; 40%

Projected Revenue: $3.6 Billion

State, Unrestricted and Tuition, 19% ($700 million)

Sources of Funds: 2012-13 Revenue Projections

   Source of Funds

2012-13 Budget

(in millions)

1State support, tuition, fees

 

2 State unrestricted funds $304

3State designated and restricted

$50

4 Tuition $3965 Student Fees $1626 Sub-total $9127 Extramural research (all sponsors)8 Grants and contracts, direct $5189 Indirect cost recovery $122

10 Sub-total $64011 Other Sources  12 Federal (Hatch, Pell Grants) $6013 Sales and Service, Auxiliary $397

14Gifts, endowment, interest, other

$143

15 Sub-total $60016 UC Davis Medical Center $1,43117 TOTAL $3,583

Total Campus: $3.2 Billion

1 CategoryAmount

(in millions) % of total

2Instruction andAcademic Support

$ 766 24%

3 Research $ 508 16%

4Student Services andFinancial Aid

$ 321 10%

5Operation and Maintenance

$ 95 3%

6 Auxiliary $ 96 3%

7 Institutional Support $ 147 5%

8 Public Service $ 63 2%

9 Medical Center $ 1,217 38%

10 TOTAL EXPENSES $ 3,213 100%

Uses of Funds: 2011-12 Operating Expenses

Salaries and Wages 52%

Benefits 16%

Scholarships 7%

Supplies and Equipment 25%

UC Davis, Annual State Revenue vs. Student Tuition and Fees ($ in Millions)

Unrestricted State Revenue vs. Mandatory Student Fees

2007-08 2008-09 2009-10 2010-11 2011-12 (preliminary) 2012-13(projected)

$0

$100

$200

$300

$400

$500

$600

TuitionTuition and Other Student FeesUnrestricted State General Funds

2007-08 Enrollment30,685

2012-13 Enrollment34,004 (Projected)

Trigger cut to UCof $250 million.

Regents may consider

tuition increase.

Campus will look for additional

efficiencies and cost reductions.

UC and campus will look for bridging

options.

2012-13 State Funds and Tuition Budget Shortfall

 dollars in millionsBase Scenario

1 Budget shortfall  2 Prior year shortfall not addressed permanently $ (25.4)3 State Budget Act (as enacted July, 2012) $ (5.3)4 Fixed cost increases for state funds and tuition  $ (25.1)5 TOTAL SHORTFALL $ (55.8)6 Addressing the shortfall  7 Tuition revenue due to fee increase $ --

8Increase in national and international undergraduates

$ 3.5

9 Tuition revenue due to enrollment increase  $ 2.8

10Academic investments for enrollment increases

$ (2.8)

11 Efficiencies and Cost Reductions $ 4.0 12 Remaining Shortfall $ (48.3)13 Available reserves $ 46.6 14 Remaining reserve balance $ (1.7)

April 2009 and April 2012 FTE

Employees by Fund Source

1 Other Faculty includes Adjunct Professors, Lecturers and other non-tenure-track appointments. Other Academic includes Librarians, Academic Administrative Officers and University Extension Educators and non-student research academic appointments. 2 Student Employees includes teaching assistants, graduate student researchers, residents, and administrative and clerical employees.3 Health Science Funds includes sales and services from the teaching hospital, the medical compensation plan, and funds for clinical drug trials

State Funds & Tuition Health Science Funds3 External & Other Funds TotalPosition Type 2009 2012 2009 2012 2009 2012 2009 2012Tenure-Track Faculty 1,172 1,113 51 46 54 70 1,277 1,229

Other Faculty and Other Academic1 715 612 497 511 1,382 1,748 2,594 2,871Total Academic 1,887 1,725 548 557 1,436 1,818 3,871 4,100

Staff 3,688 3,243 7,041 7,447 3,502 3,758 14,231 14,448

Student Employees2 1,317 1,391 499 527 1,435 1,406 3,251 3,324

Grand Total 6,892 6,359 8,088 8,531 6,373 6,982 21,353 21,872 Change from April 09 to April 11 -533 443 609 519

Notes:1. Amounts include health insurance ($1,380 undergrad and $2,280

graduate). Amounts for undergraduates exclude course material fees.2. Fee levels as of September 2012; Fees subject to change.

2012-13 Student Tuition and Fees

Total Fees and Tuition ResidentNational &

International

Undergraduate $15,257 $38,135

Graduate $15,387 $30,489

Selected Professional Degree Programs:

Law (JD) $49,564 $58,815

Management (MBA) $38,727 $50,972

Medicine (MD) $39,652 $51,897

Nursing (MS) $23,127 $35,372

Veterinary Medicine (DVM) $33,091 $45,336

The University’s financial aid program helps to offset the impact of fee increases for undergraduates from lower-income families.

The net cost of attendance at UC Davis has actually declined for undergraduates from the lowest-income families since 2006-07.

Gift aid (which does not need to be repaid) from all sources more than doubled between 2007-08 and 2010-11.

06-07 07-08 08-09 09-10 10-11$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

Net Cost of Attendance by Family Income in Constant 2010-11 Dollars

Less than $25,000 $25,000 to $49,000$49,000 to $74,000 $74,000 to $99,000$99,000 to $123,000 $123,000 to $149,000$149,000 and above All students

Net Cost of Attendance for UC Davis Undergraduates

Financial Aid Offsets Fee Hikes for Many

Phase I – Implemented or in process Provost Allocation and Spring

Annual Budget Process Undergraduate tuition Indirect cost recovery Central benefits pool

decentralization Office of the President funding

streams Academic masters tuition pilot Finalization of 2012-13 budgets

Phase II – To be completed• Graduate tuition• Summer session tuition

Budget Model Development

State designated and restricted; 1% Student Fees; 5%

Tuition; 11%

State unrestricted funds; 8%

Indirect cost re-covery; 3%

Grants and contracts, direct; 14%

Federal (Hatch, Pell Grants); 2%Sales and Service, Auxiliary; 11%

Gifts, endowments, interest, other; 4%

UC Davis Medical Center; 40%

Campus Budget Model

• Advances the UC DavisVision of Excellence

• Encouragescreativity

• Leads to a moretransparent budget process

• Includes a transitionstrategy

Budget Components in Budget Model

Campus Budget Model

Undergraduate Tuition

Budget Model Phase I

dollars in thousands1 Net UG tuition revenue from prior year $ 195,260

   

2 Net UG tuition revenue due to enrollment growth (390 students)

$ 2,800

3 Distributed as instructional needs $ 1,570 4 Distributed per budget model formula $ 1,230 5 Total, prior year + enrollment growth $198,060     6 CA&ES $23,5867 CBS $20,7558 COE $12,4429 HArCS $22,83510 MPS $19,40611 DSS $37,01212 Other Academic Units $1,95413 Total (rounded) $137,99014 Provost $59,95315 Special Programs $1,11716 TOTAL $198,060

Indirect Cost Recovery Funds

Budget Model Phase I (continued)

dollars in thousands

1 Total ICR generated 2011-12 and distributed 2012-13 $ 121,700

2 Less categorical set-asides (ARRA, Garamendi, etc.) $ (25,200)

3 ICR available for distribution $ 96,500

4 Distribution for Deans, VC-R (34%) $ 32,800

5 Distribution for Provost (66%) $ 63,700

6

7 Distribution for Deans, VC-R (34%) $ 32,800

8 Less prior year campus return program $ (14,700)

9 Less OP Tax, benefits, existing base budgets $ (8,300)

10 ICR Increase to Deans, VC-R $ 9,800

11

12 Distribution for Provost (66%)

13 Graduate student support, matching funds $ 10,000

14 Research support (VC-R, VC-ARM, Library) $ 18,000

15 Transition for OP tax implications $ 5,500

16 Provost decisions (debt service, start-ups, etc.) $ 30,200

• Budget news (campus, UC system, state)o budgetnews.ucdavis.edu

• Data, analysis and reportso Provost’s Dashboard:

provost.ucdavis.eduo Campus Facts: facts.ucdavis.edu o Campus Budget Office:

budget.ucdavis.edu • Advocacy (critical!)

o www.ucforcalifornia.org• Annual financial schedules and

reportso www.universityofcalifornia.edu/reportingt

ransparency

Budget Information Sources