2013/14 Budget Outlook
April 30, 2013
~ Budget Planning Assumptions
Overview
The focus of the campus budget process is on core funds provided by the State or generated by the
University. These funds represent approximately one-fourth of the total receipts and are the focus of
allocation decisions made during the annual UCSD Budget Process.
Core funds include the following fund sources:
• State and UC General (includes Non-resident Supplemental Tuition);
• Tuition (Education, Professional Degree Supplemental) and Fees (Student Service, Summer Session);
and
• Overhead Recovery (Research: Off-the-Top, Opportunity, Educational Funds; and Auxiliary SelfSupporting Activity: Administrative, Differential Income Funds).
Most of the remaining funds, while significant and essential components of the UCSD enterprise, are
largely special purpose funds that are designated in purpose. Some major examples are: Federal Funds
(i.e, federal-sponsored grants); Private Gifts, Grants and Contracts; and Sales and Services of Teaching
Hospitals, Auxiliary Enterprises and Educational Activities.
Core funds are used to support core campus operations including mandatory fixed cost, as well as
program growth or strategic investments. To assist in the campus’ multi-year planning efforts, this paper
presents a 3-year outlook of core resources and the mandatory costs and priority investments that require
core funding.
Attachment 1
Budget Outlook
The Budget Outlook displays the campus’ annual incremental core resources and core-funded
expenditures estimated for 2012/13 and projected for years 2013/14 thru 2015/16. Resources reflect
annual incremental revenues generated by the campus whereas expenditures reflect annual incremental
mandatory costs or current or existing priority investments. Assumptions for all revenues and
expenditures are listed below.
I. Core Resources Available
In the next three years, the campus is expected to generate an increase of $118.6M in core revenues, 50%
or $58.9M of this in 2013/14. Much of this growth is based on the assumption that the State will fund a
new multi-year agreement with the university, as well as growth in non-resident enrollment income.
a. State General Funds
• With the passage of Proposition 30, beginning in 2013/14 the Governor has proposed $256M
for UC for the following:
- $125M to offset a foregone 6% student fee increase in 2012/13;
- $125M for a 5% increase to UC base budget (includes state funded debt service); annual
increases of 5/4/4 percent thereafter;
- $6.4M for Annuitant Health Care.
Page 1 of 4
•
•
Of the $256M available, an estimated $230M will be allocated to campuses (some distributed
via rebenching model); remaining funding held for priority funding to include $10M for online education incentives.
UCSD share of state funding estimated to be $28M in 2013/14, decreasing to $17M and $14M
in the following years.
b. Student Tuition and Fee Funds
• There are no fee increases projected for 2013/14 through 2015/16.
Attachment 2.
• Revenue projections are caused by growth in enrollment as reflected on
c. Indirect Cost Recovery - Research (Opportunity, Off-the-Top & Educational Funds)
• Federal: Projected decline in research funding of 1.7% annually (8.5% reduction spread over 5
years) due to sequestration, based on analysis from American Association for the
Advancement of Science (AAAS).
• State: Annual projected adjustments of -5.2%, -19.5% and 1%. Decline in State research due
to uncertainty in funding levels from California Institute for Regenerative Medicine (CIRM).
• Private/Local: Projected annual increases of 7.3%, based on 5-year historical averages.
• Clinical Trial: Projected annual increases of 5.7%, based on 5-year historical averages.
d. Indirect Cost Recovery - Auxiliary and Self-Supporting Activities (ASSA)
• Administrative Overhead: In 2012/13, the final $5.6M of the $14.5M generated on campus
was recorded as permanent ($8.9M made permanent in prior year). No additional growth
projected.
• Differential Income: In 2013/14 the campus will record the entire $1.7M generated as
permanent.
e.
Other Revenues
• Annual $200k increases for application fees based 5% revenue growth assumptions for UG
and no change for Grad/Prof.
II. Expenditures
The campus continues to recognize and fund mandatory costs. After 5-years of State budget reductions,
the campus is not forecasting any further state budget reductions. However, mandatory compensation
costs continue to require approximately $30M annually, accounting for 75% of the projected mandatory
costs (or $93M of $124M total mandatory costs) over the next three years.
a. Fixed Salary and Benefit Costs
• Funds are provided to the campus to support inflationary salary and benefit costs for
employee positions paid with Core funds.
- Salary cost estimates include the annual academic merit program, collectively bargained
wage increases (typically range and step), and UC-wide merit or range increases
approved by OP for policy covered staff. The current estimate for the next three years is
a 4.4% annual weighted-average increased cost to campus and Medical Center.
- Benefit cost estimates include the related payroll tax benefits (referred to as variable
benefits) on salary increases as well as annual increases for health and welfare program
Page 2 of 4
costs (referred to as fixed benefits). The active employee health insurance program
represents approximately 80% of these costs and is estimated to increase 3.5% annually.
Retiree, or annuitant, health is included in the variable benefits.
b. UCRP Employer Costs
• Employer contribution rates are reflected in the table below, highlighted in yellow for
planning years. Beginning in 2012/13, reimbursed costs are for all core funded personnel.
FY 09/10
FY 10/11
FY 11/12
FY 12/13
FY 13/14
FY 14/15
FY 15/16
4.00%
7.70%
10.63%
12.65%
15.00%
17.10%
Cumulative Increases
Employer
•
•
4.00%
Employee
2.00%
2.00%
3.50%
5.00%
6.50%
6.50%
6.50%
Total
6.00%
6.00%
11.20%
15.63%
19.15%
21.50%
23.60%
Effective July 1, 2013, an additional tier is created for UCRP. Employees newly hired, or
rehired, on or after that date will contribute 7% of eligible payroll. UC contributes the same
percentage for all employees, regardless of tier.
It is anticipated that FY 2016/17 will be the last year of incremental increase to the employer
contribution rate, resulting in steady state for future years.
c. UCOP Assessment
• Funds campus’ share of UC’s operating budget. Budget Outlook reflects assessment related
to core funded activity (which was ~47% of total assessment in 2012/13).
• Assessment funded centrally in 2011/12. Beginning in 2012/13, both revenue and costs of
assessment are decentralized and distributed to Major Business Units. For out years, Outlook
reflects annual incremental share for core-funded activity.
• Assumes 3% annual growth.
d. “Off the Top Arrangements – ICR”
• Incremental “off the top” research facility funding arrangement costs >$500k include:
- 2013/14: Biomedical Research Facility ($4.5M); Sanford ($3M); CTRI ($2.5M); VCHS
Lease Arrangements ($1.7M); CMME ($.8M); MESOM ($.7M).
- 2014/15: Biomedical Research Facility ($3.1M); MESOM ($.5M).
- 2015/16: Biomedical Research Facility ($1.2M).
e. Financial Aid
• Projected Financial Aid is based on a Return to Aid (RTA) component Tuition and fees based
on table below:
Return To Aid Percentage by Tuition/Fee Source
Undergraduate
Graduate Academic
Professional
Tuition
Student Services Fee (1)
Per Unit Fee
FWS
FWS
Summer
FWS
FWS
Summer
33
50
33
33
50
33
30
47
47
N/A
N/A
33
0
0
0
N/A
N/A
N/A
Professional (PDST) Nonresident (NRST)
(1) RTA is calculated only on increase beginning Fall, 2011. No RTA prior to that date.
Page 3 of 4
f. Priority Investments
• Includes costs for those priority programs and other campus investments currently identified,
but not funded by Campuswide resources. In 2013/14, program costs include:
- Faculty Recruitment and Retention ($4M);
- Graduate Student Support ($3.6M);
- Research Cyber-infrastructures - RCI ($2.5M);
- Electronic Research Administration Program - eRAP ($1.1M);
- Instructional Technology ($4M);
- UCSD Stem Cell Program ($2M);
- Information Systems ($1M);
- Early Childhood Education Center ($760k).
Page 4 of 4
TOTAL EXPENDITURES
$
Footnotes:
$
$
$
$
$
46.1
52.3
$
(6.1) $
49.9
2.2
47.7
$
$
4.0
16.7
$
(12.8) $
18.5
18.3
0.3
0.3
-
-
$
$
50.1
69.0
(18.9)
68.4
20.5
48.0
3.0
4.4
9.8
20.4
10.4
49.5
5.6
2.7
$
$
$
$
57.5
46.1
11.4
47.6
-
47.6
13.2
4.9
8.5
0.6
20.4
59.0
1.8
0.2
(0.3)
-
23.0
0.9
1.1
4.4
2.1
2.9
28.0
11.0
1.9
14.5
0.9
1.0
-
$
$
6.9
0.1
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
$
$
$
$
31.1
50.1
$
(19.0) $
19.0
19.0
2013/14
1-time
88.6
96.2
(7.6)
66.6
19.0
47.6
13.2
4.9
8.5
0.6
20.4
59.0
1.8
0.2
(0.3)
-
11.0
1.9
14.5
0.9
1.0
-
28.0
Total
$
$
$
$
$
$
$
$
$
$
51.7
57.5
$
(5.8) $
39.6
-
39.6
3.3
3.9
10.4
0.7
21.4
33.9
0.2
(1.2)
-
6.6
1.3
6.0
3.2
0.6
-
17.0
Perm
-
-
-
-
-
-
$
$
$
$
74.7
88.6
$
(13.9) $
13.9
13.9
-
-
-
126.4
146.1
(19.7)
53.5
13.9
39.6
3.3
3.9
10.4
0.7
21.4
33.9
$
$
$
$
$
$
$
$
40.9
51.7
$
-
-
-
-
-
-
$
$
$
$
117.0
126.4
$
(9.4) $
9.4
9.4
-
-
-
2015/16
1-time
(10.8) $
36.7
-
36.7
1.0
2.5
10.3
0.7
22.3
25.9
0.2
0.2
5.1
0.0
3.1
2.0
0.5
-
14.3
0.8
-
$
$
Perm
(1.2)
-
6.6
1.3
6.0
3.2
0.6
-
17.0
Total
157.9
178.1
(20.2)
46.1
9.4
36.7
1.0
2.5
10.3
0.7
22.3
25.9
$
$
$
5/3/2013
N/A
N/A
(5.2)
123.9
-
123.9
17.4
11.2
29.2
1.9
64.1
118.7
1.8
0.6
0.2
22.7
3.2
23.5
6.0
2.1
-
59.3
(0.6)
-
$
$
3-Year Total
Perm
0.8
-
5.1
0.0
3.1
2.0
0.5
-
14.3
Total
(1) Annual State funding includes: 12/13, net share of UC's $94M and 2011/12 'trigger' reduction of $100M; 13/14, share of UC's $256M (includes 12/13 fee buyout and 5% growth to UC's state funding base); 14/15-15/16, share of 5% / 4% growth to UC's state funding base.
(2) Gross Tuition/Fee Income (2012/13, net of RTA with separate revenue line for Aid). Beginning in 2012/13, includes annual growth of NR-students of 834, 705, 252, 157 FTE; also includes small annual adjustments to Res-students. Source: Nov 2012 RBT.
(3) Indirect cost recovery is reflected in the year it is generated; although is allocated in arrears. 2012/13 should be the last year of ARRA ICR generated.
(4) ASSA recovery of $5.6M is recorded as permanent in 12/13, creating a permanent campus resource of $14.5M.
(5) Additional campus revenues include: 2012/13, on-going - Postdoc Fellows ($.1M); Temporary - UCOP funding ($1.8M), Application fees ($.7M), 2013/14, Includes Application Fees ($.2M on-going).
(6) Beginning 12/13 reflects funding for all core funded personnel. Assumes: 2.5% avg. academic merit; 3.5% for fixed benefits; various % levels for bargained units; 3% merit for non-represented staff and academics.
(7) Beginning April 2010, employer rates are set at 4% of covered payroll. Acceleration of employer contributions to UCRP: 2011/12 @ 7.7%; 2012/13 @ 10.6%; 2013/14 @ 12.7%; 2014/15 @ 15.0%; 2015/16 @ 17.1%. Beginning in 2012/13, assumes cost for core funded personnel.
(9) ICR directed to "Off the Top" arrangements.
(10) 12/13, on-going includes PDST flow thru to SOM, Scripps SOP, Rady and IRPS, and $1.2M to VC Student Affairs. Temporary allocations provided for FR&R ($4M, 12/13-15/16), Graduate Student Support ($3.6M, 12/13-15/16),
Instructional Technology ($3M, 12/13; $4M, 13/14); RCI ($2M, 11/12-12/13; $2.5M 13/14-14/15; ); eRAP ($1.1M, 13/14); UCSD Stem Cell Program ($2M, 12/13-15/16); Information Systems ($1M, 12/13-15/16); ECEC ($760k, 12/13-15/16).
(11) In 12/13, on-going includes resources from UC Funding Streams Initiative returned from UCOP plus additional ICR and Tuition funds retained by campus for UC Tax ($33.8M); $2.7M in Ed Tuition; prior year ICR generated but not allocated ($15.8M).
12/13 one-time funding from ICR generated in 11/12 and not allocated ($12.7M); ASSA funds ($3.7M) and $336k carrforward from 11/12 Resource Allocations.
ADJUSTED NET AVAILABLE
Available Carryforward Balances (11)
ANNUAL NET AVAILABLE (Shortfall)
Priority Investments
(10)
3.0
4.1
9.8
20.4
ICR for "Off the Top Arrangements" (9)
Financial Aid
10.4
5.7
2.6
5.6
0.1
43.8
2.9
2.1
-
0.3
$
$
Perm
2014/15
1-time
Total
2012/13
1-time
6.9
23.0
0.9
1.1
4.1
0.1
UCRP employer costs (7)
UCOP Assessment (Core Funded Activity)
Subtotal
$
$
Perm
Fixed salary & benefit costs (6)
Mandatory Costs
EXPENDITURES
RESOURCES AVAILABLE (SHORTFALL)
Student Tution/Fee Income (2)
Education Tuition
Summer Tuition
Non-resident Supplemental Tuition
Professional Degree Supplemental Tuition
Student Services Fee
Financial Aid (Various Tuition/Fee Sources)
Research Overhead Cost Recovery(3)
Campus ICR
ARRA ICR
ASSA Overhead Cost Recovery - Campus Distribution(4)
Other Revenues (5)
State Education Appropriation (1)
ANNUAL CORE RESOURCES AVAILABLE
Outlook - Projections
Estimated
Strategic Objective: Manage core budget resources AND expenditures over a multi-year period, in a balanced manner, that allow for continued strategic investment in campus priorities and new initiatives. Increase and expand revenue
streams; contain or reduce costs with program streamlining/redesign, restructuring and consolidations, workload efficiencies.
(Millions)
UC San Diego
Budget Outlook: 2012/13 thru 2015/16
KEY ASSUMPTIONS
2013/14
- State provides 6% fee buyout from 12/13 . No fee increase in 13/14.
- State provides 5% growth to UC state funding base.
Out-years
- In 14/15 & 15/16, State provides annual growth of 5% and 4% annually to
UC State funding base; no fee increases.
1
29,611
1,770
250
35
695
35
755
27,841
2,453
1,294
170
170
4,087
30,765
1,785
250
35
695
35
770
28,980
2,518
1,311
178
173
4,180
21,700
3,100
24,800
31,467
1,805
263
37
710
30
765
29,662
2,728
1,394
235
205
4,562
21,800
3,300
25,100
2014/15
Projected
FTE2
31,467
3,300
1,431
235
4,966
21,800
2,991
945
765
26,501
2014/15
Projected
FTE2
31,935
1,825
273
37
710
30
775
30,110
2,807
1,443
247
213
4,710
22,000
3,400
25,400
2015/16
Projected
FTE2
31,935
3,400
1,480
243
5,123
22,000
3,080
957
775
26,812
2015/16
Projected
FTE2
Attachment 2
R:\Cross Over Functions\Long-Range Budget Projection\2013-14 LRBP 3-year Projection Model - May13.xlsx
Actual 2011/12 from August 2012 RBT 10/18 and Estimated Actual 2012/13 from November 2012 RBT10/18 with adjustments to Grad Prof based on report frm C. Hurley on 1/19/2013.
29,859
1,712
235
27
691
28
731
28,147
2,440
1,194
198
169
4,001
21,279
2,475
23,754
2013/14
Projected
FTE2
2012/13
Estimated
Actual FTE1
2011/12
Actual FTE1
22,389
1,757
24,146
30,765
3,100
1,346
208
4,654
21,700
2,768
873
770
26,111
2013/14
Projected
FTE2
29,611
2,475
1,329
205
4,009
21,279
2,703
865
755
25,602
2012/13
Estimated
Actual FTE1
29,859
1,757
1,221
197
3,175
22,389
2,675
889
731
26,684
2011/12
Actual FTE1
Enrollment data from updated LREP summary report "UCSD Undergraduate Enrollments" dated 2/22/12 and LREP Table 1A "General Campus StateSupported Graduate Enrollments" dated 2/14/12 presented to Enrollment Planning Committee updated with February 14, 2013 RBT 18A and 18C
2
Total UCSD
Total Health Sciences
Health Sciences
Graduate Academic Resident
Graduate Academic Nonresident
Graduate Professional Resident
Graduate Professional Nonresident
Medical House Staff (pays no fees)
Total General Campus
Graduate Academic Resident
Graduate Academic Nonresident
Graduate Professional Resident
Graduate Professional Nonresident
Total Graduate
Enrollment by Campus Unit:
General Campus
Undergraduate Resident
Undergraduate Nonresident
Total Undergraduate
Total UCSD
Total Nonresident
Nonresident Enrollment
Undergrad
Graduate Academic
Graduate Professional
Total Resident
Resident Enrollment
Undergrad
Graduate Academic
Graduate Professional
Medical House Staff (pays no fees)
Enrollment by Resident/Nonresident:
UCSD Enrollment Summary