Operating Budget Education and General (E&G) E&G represents the primary mission of the university: Instruction, Research and Public Service. This would also include those functions that are necessary to support the mission. Resources provided for this purpose are generally referred to as part of the current operating funds and, along with Auxiliary funds, comprise the annual operating budget. Revenues supporting E&G primarily consist of Tuition and Fees and State Appropriations. Auxiliary An Auxiliary enterprise directly or indirectly provides a service to students, faculty or staff and charges a fee related to, but not necessarily equal to, the cost of services. Auxiliary enterprises are generally self-sufficient operations and include Athletics, Housing, Food Service, Bookstore, Student Health, Student Center, HPER, Farris Field, Radio Station, Post Office and Parking Facilities. Unrestricted Sources Education & General Tuition and Fees State Appropriations Auxiliary Student Fees Revenues from sources in chart below Unrestricted Grants and Contracts Unrestricted Uses (Functional Classification) Education & General Instruction Athletics Research (unrestricted) Housing (including College Square) Public Service Food Service Academic Support Bookstore Student Support Student Health Institutional Support Student Center Operation of Plant HPER Scholarships (Institutional) Farris Field Mandatory Transfers Radio Station Debt Service Non-Mandatory Transfers Auxiliary Post Office Parking Facilities To Plant To Auxiliary To Other Funds 1 3 Cash Funds vs. State Treasury Funds • Cash funds are those dollars generated by the operation of the university. Examples include student tuition and fees, room and board revenue, gate receipts, rental of space, fines, interest earnings, etc. • State Treasury funds are those dollars funded through the State of Arkansas. These include Revenue Stabilization Act (RSA) and Educational Excellence. There are other State Treasury dollars funded on a one-time basis, such as the General Improvement Funds. • Cash Funds and State Treasury Funds are both public funds. • Expenditures from all categories are reported to the state and will soon be available on the UCA website. Appropriation vs. Funding • Appropriation is the legislative authority to spend money up to a set amount. • Funding is based on a statewide formula and available revenue at the state level. UCA is currently funded at 72.4% of what the formula suggests. This is about midpoint for all four-year, public universities, but slightly above the average of 71.1%. 4 Annualized Full-Time Equivalents (FTE) This is the number used by the Arkansas Department of Higher Education (ADHE) to input enrollment data into the funding formula. Enrollment for the full academic year is used and is defined in the order of Summer 2, Fall, Spring and Summer I. Inter-sessions and offschedule Student Semester Credit Hours (SSCH) are also captured during an academic year. Following state definitions, annualized FTE are computed by adding all the SSCH, dividing the undergraduate SSCH by 30 and the graduate SSCH by 24. Looking at FTE by semester vs. annualized does not generate comparable numbers due to the inclusion of summer SSCH. When FTEs are computed for the fall or spring semesters alone, undergraduate SSCH is divided by 15 and graduate SSCH by 12. These two different methods of looking at FTE are used in different ways. 5 Headcount vs. FTE I’m taking 3 hours this semester. I’m taking 6 hours this semester. I’m taking 6 hours as well. Headcount is simply a count of how many students are enrolled in a given period of time, regardless of how many hours in which they are enrolled. FTE is the number of students who are enrolled in enough credit hours to be considered full-time students. For Undergraduate students, this would be a minimum of 15 hours. For Graduate students, this would be a minimum of 12 hours. Undergraduate Students In the example to the left, the headcount would be 3 and the FTE would be 1. 6 STATE FUNDING PER ANNUALIZED FTE 2001-02 TO 2010-11 7 COLA Increase Summary E&G Total Auxiliaries Total Grand Total Base Salaries COLA Salary Increase Fringe Rate 58,739,188 1% 587,392 31% 5,325,982 1% 53,260 31% 64,065,170 640,652 Fringes 182,091 16,511 198,602 Total 769,483 69,770 839,254 E&G Total Auxiliaries Total Grand Total Base Salaries COLA Salary Increase Fringe Rate 58,739,188 2% 1,174,784 31% 5,325,982 2% 106,520 31% 64,065,170 1,281,303 Fringes 364,183 33,021 397,204 Total 1,538,967 139,541 1,678,507 Note: Additional funds would be needed for promotions and equity adjustments. As of 10-11-2011 13 Example – Potential Revenue Generated from Tuition Increases Percent Increase 1.00% New Per Hour $ 181.35 Additional Revenue $ 484,475 $1.80 Per Hour Increase $27.00 Additional expense per semester for a student taking 15 hours Note: The assumption is based on annualized FTE and flat enrollment (FY12 numbers). 14 Proposed Budget FY13 Compared to FY12 1 2 3 4 5 6 7 8 9 Tuition & Fees Appropriations Sales & Services Organized Activities Grants & Contracts Other Sources Total E&G Revenue Auxiliary Income Total Income 10 11 12 13 14 15 16 17 18 Salaries & Wages Benefits M&O Fee Waivers Scholarships Purchased Utilities Debt Service Transfers Total Expenditures FY12 Rev. Base 67,620,309 56,393,905 57,185 222,793 115,000 1,093,421 125,502,613 34,129,297 159,631,910 FY13 Proposed 67,620,309 56,705,551 57,185 222,793 115,000 1,093,421 125,814,259 34,952,622 160,766,881 % Change Change - 0.00% 311,646 0.55% - 0.00% - 0.00% - 0.00% - 0.00% 311,646 0.25% 823,325 2.41% 1,134,971 0.71% % of Budget 42.06% 35.27% 0.04% 0.14% 0.07% 0.68% 78.26% 21.74% 100.00% 71,280,400 20,528,213 28,649,160 4,883,731 17,418,295 5,236,907 7,740,258 3,894,946 159,631,910 - 71,671,014 21,231,469 29,152,787 4,883,731 17,474,451 5,236,907 7,731,236 4,152,180 161,533,775 (766,894) 390,614 0.55% 703,256 3.43% 503,627 1.76% - 0.00% 56,156 0.32% - 0.00% (9,022) -0.12% 257,234 6.60% 1,901,865 1.19% (766,894) 44.37% 13.14% 18.05% 3.02% 10.82% 3.24% 4.79% 2.57% 100.00% * Current year tuition & fee revenue is projected to surpass the budget. The base budget will continue to be the foundation for building the FY13 budget. 22 * Current year tuition & fee revenue is projected to surpass the budget. The base budget will continue to be the foundation for building the FY13 budget. 55 SBAC Budget Priorities Recommendation for FY2013 Rank 1 2 3 4 5 6 7 8 9 10 10 11 12 Total One-Time Continuing Expense Expense Description 994,920 Disaster Recovery 134,930 * Faculty step raises with promotion & advancement 81,000 * Nursing MSN (196,180 revenue generated) 2,350 48,101 Asst. Dir. Transfer Services 80,364 ECSE-UACCM program ($96,957 revenue generated) 80,000 Disability Support Services contingency 282,000 * SEM team of consultants 19,076 Faculty replacements 100,000 UTEACH (matching funds for grant) 48,576 Senior Chemist/Program Coord 5,000 125,450 EBI Map-Works and GradesFirst 75,590 25,468 EPIC 10,000 Travel funds $ 1,359,860 $ 752,965 $ 2,112,825 Division Finance and Administration Academic Affairs Academic Affairs Enrollment Management Academic Affairs Student Services Enrollment Management Academic Affairs Academic Affairs Academic Affairs Enrollment Management Academic Affairs Advancement * Included in proposed base budget for FY13; faculty step-raises and Nursing MSN funded through Provost Fund; SEM consultants funded on base transfer from Univ./Gov. Relations to VPEM. Notes: Presented by division heads and ranked by the Strategic Budget Advisory Committee The COLA was addressed separately from this priority list 56 Chart of Other Funds – for Purposes Outside Annual Operating Budget Sources Restricted (*CPS line 11) External granting agencies Loan Endowment (CPS line 12) Interest on loans (CPS line 13) Donors Federal capital contribution Interest revenue Plant Agency Unexpended Plant R&R Debt Retirement Invested in Plant (CPS line 14) (CPS line 15) (CPS line 16) (CPS line 17) Transfers from other Transfers from Mandatory transfers No cash; just bricks and Student Activity funds Auxiliary Units from E&G and Aux. in mortar, equipment and fee the form of debt other physical plant assets expense Bond proceeds during Proceeds from bonds Dues the project issued to cover required sinking fund Fund raisers Uses Restricted Funds restricted by outside entities Loan Perkins student loans (NDSL) Federal grants/contracts State grants/contracts Private grants/contracts Endowment Unexpended Plant R&R Baldridge trust (real Capital project Housing estate) accounts Crow Plant Debt Retirement Debt paid from this fund from transfers from appropriate accounts Agency Invested in Plant Buildings Major building or Student Center renovation accounts Deferred maintenance Student Health accounts Capital carryover College Square accounts Property acquisition Food Service Land BOT fund Accumulated Depreciation HPER Greek accounts Departmental clubs Infrastructure Library Holdings Equipment Farris Fields Housing Furniture & Fixtures * CPS = Cash Position Statement 27 Deferred and Critical Maintenance List 29 FY13 Tuition & Fees $8,000 $7,553 $7,343 $7,332 $7,180 $7,146 $7,000 $6,984 $6,528 $6,000 $5,560 $5,517 $5,436 UAM UAPB UAFS $5,000 $4,000 $3,000 $2,000 $1,000 $UAF UALR UCA ASU SAU HSU ATU Source: Schedule 18-1, compiled 5/14/12 16 FY13 Total Cost Comparison – Tuition/Fees, Room & Board $16,000 $15,255 $13,880 $13,803 $14,000 $12,834 $12,602 $12,396 $12,047 $11,970 $12,000 $11,530 $10,620 $10,000 $8,000 $6,000 $4,000 $2,000 $UAF ASU UALR Residence Hall (Double Occupancy) UAFS UCA HSU UAPB SAU Board Rates (comparable to UCA's unlimited plan) ATU UAM Tuition/Fees Source: Schedule 18-1, compiled 5/14/12; UCA Housing Office 21