University of Houston
Leadership Retreat
Financial Overview
Revenue / Expense Projections
Planning for Fundraising
September 24, 2010
University of Houston System
Operating Budgets
($ in Millions)
FY2001
University of Houston *
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
$ 455.1 $ 489.7 $ 522.1 $ 553.5 $ 604.5 $ 644.4 $ 653.0 $ 708.6 $ 750.9 $ 805.9 $ 874.4
UH-Clear Lake
68.2
73.8
67.4
71.6
74.7
79.0
83.2
88.1
92.0
97.1
105.2
UH-Downtown
58.5
66.7
73.6
77.6
87.5
96.2
102.4
115.3
120.6
135.5
149.1
UH-Victoria
16.0
18.7
22.5
24.1
26.4
29.6
32.1
39.6
43.3
43.3
49.2
UH System Admin *
24.6
28.5
28.3
30.6
13.2
12.1
12.4
13.3
13.9
13.2
14.1
Total
$ 622.4 $ 677.4 $ 713.9 $ 757.4 $ 806.3 $ 861.3 $ 883.1 $ 964.9 $ 1,020.7 $ 1,095.0 $ 1,192.0
* Change from FY04 to FY05 includes the move of KUHT Public Television from System Administration to UH ($8.7 million)
2
University of Houston
Budgeted Sources of
Current Funds-FY2011
Endowment/Investment
Income
2%
Contracts, Grants,
Gifts
25%
Sales & Service
11%
HEAF
2%
State Appropriation
22%
Tuition Fees
38%
Total $874.4 million
3
University of Houston
Budgeted Uses of Current Funds By
Object-FY2011
Debt Service
5%
Equipment
3%
Scholarships
13%
Salaries & Wages
42%
Maint & Operations
28%
Benefits
9%
Total $874.4 million
4
University of Houston
Operating Budget
20%
22%
16%
14%
16%
16%
20%
26%
38%
48%
38%
26%
1991
Other Support
2001
Contracts & Grants (Research & Financial Aid)
2011
Student Support
State Support
5
University of Houston
Revenue Summary Based on Historical Enrollment Increases
FY2021 Revenue Increase
(vs FY2010 Revenue)
Annual
Tuition & Fee Increases
Annual
Increase in State-wide GR
Low (-2%)
Mid (0%)
High (2%)
Low (0%)
-$2.2
-0.6%
$20.9
5.8%
$49.1
13.7%
Mid (3%)
$128.1
35.6%
$151.2
42.0%
$179.4
49.9%
High (5%)
$271.1
75.4%
$294.2
81.8%
$322.4
89.6%
Actual Base Period Growth over Eight Years
Base Period Base Period
FY2000-01 FY2008-09
Undergrad
Masters
Doctoral
Professional
Total
627,841
81,576
19,677
47,967
777,061
701,925
85,139
18,880
60,610
866,554
SCH in Model (Based on traditional growth)
Annual
Growth
1.4%
0.5%
-0.5%
3.0%
1.4%
Fall FY2010
Undergrad
Masters
Doctoral
Professional
Total
345,494
41,058
9,071
26,014
421,637
Fall FY2021
402,761
43,544
8,570
35,885
490,759
Annual
Growth
1.4%
0.5%
-0.5%
3.0%
1.4%
6
Closing the Gap
•
•
•
•
•
•
Increased enrollment and tuition
Professional and differential tuition
Cost shifting to contract and grants
IDC income
Patent and Licensing Revenue
Philanthropy
7
ENROLLMENT DRIVES FUNDING
Operations Formula
Operating Dollars
SCH x Formula Weights x
$ Funding Rate
HEAF
(Higher Education
Assistance Fund)
Campus Enrollment
Admissions
Program
Semester Credit Hours (SCH)
Space Projection Model *
SCH
SqFt of Predicted Space
Needs
Space Usage Efficiency
Tuition and Fees
% of Seats Filled x % of Time Used
Facilities Maintenance
Dollars
TRBs
(Tuition Revenue
Bonds)
Campus Auxiliaries,
housing, parking
* Other input to Space Projection Model includes research expenditures, number of facility and staff, and library holdings
8
University of Houston
Master Plan Enrollment Targets
Actual
Targets
% Change
Fall 2009 Fall 00-09
Fall 2005
Undergraduate
Semester Credit Hours
Full-Time Equivalent Students
Student Headcount
290,198
24,183
25,095
331,490
27,624
27,510
345,494
28,791
29,298
19%
19%
17%
368,513
30,709
30,206
375,075
31,256
30,006
9%
9%
2%
Master's
Semester Credit Hours
Full-Time Equivalent Students
Student Headcount
37,089
3,788
4,062
30,307
3,367
3,607
41,058
4,562
4,287
11%
20%
6%
50,388
5,599
5,928
68,629
7,625
8,074
67%
67%
88%
Doctoral
Semester Credit Hours
Full-Time Equivalent Students
Student Headcount
8,053
895
1,391
9,250
1,028
1,463
9,071
1,008
1,647
13%
13%
18%
10,752
1,195
1,792
15,084
1,676
2,514
66%
66%
53%
Special Professional
Semester Credit Hours
Full-Time Equivalent Students
Student Headcount
20,790
1,733
1,575
27,059
2,255
2,002
26,014
2,168
1,768
25%
25%
12%
28,841
2,403
1,962
34,721
2,893
2,362
33%
33%
34%
Total
Semester Credit Hours
Full-Time Equivalent Students
Student Headcount
356,130
30,599
32,123
398,106
34,274
34,582
421,637
36,529
37,000
18%
19%
15%
458,494
39,906
39,888
493,509
43,450
42,956
17%
19%
16%
21.9%
20.4%
20.8%
24.3%
30.1%
Percent Graduate & Professional
Fall 2015
% Change
Fall 2020 Fall 09-20
Fall 2000
9
University of Houston
Expense Summary Based on Campus Master Plan Enrollments
FY2021 Expense Increase
(vs FY2010 Expense)
Salary Increases
Increase Faculty Appointments
Low (0 FTE)
Mid (100 FTE)
High (325 FTE)
Low (0%)
$0.0
$42.2
$137.1
Mid (1%)
$31.2
$73.4
$168.3
High (3%)
$93.6
$135.7
$230.7
Recurring Costs - Faculty
Faculty Costs, Doctoral Growth
$
Faculty Costs, Undergraduate
Faculty Costs, Masters & Professional
TOTAL
$
Recurring Costs - Other
Maintenance and Operations
Non-instructional Staffing
Financial Aid
Construction Financing
TOTAL
$
$
HIGH
MEDIUM
24,000,000 $
7,320,000 $
1,954,000
560,000
8,056,000
2,560,000
34,010,000 $ 10,440,000 $
60,702,800 $
9,240,000
26,704,292
6,469,000
103,116,092 $
HIGH (3%)
18,677,785 $
2,843,077
8,216,705
1,990,462
31,728,028 $
MID (1%)
Faculty/Staff Salary Increases
$
93,550,000 $
31,183,333 $
Total Recurring Costs
$
230,676,092 $
73,351,362 $
LOW
LOW (0%)
-
Note: Cost for Increase in Faculty Appointments reflects additional salary and benefits and proportional other
expenses as needed for enrollment growth resulting from additional faculty.
10
University of Houston
Revenue Summary Based on Campus Master Plan Enrollments
FY2021 Revenue Increase
(vs FY2010 Revenue)
Annual
Tuition & Fee Increases
Annual
Increase in State-wide GR
Low (-2%)
Mid (0%)
High (2%)
Low (0%)
$20.6
5.7%
$46.6
13.0%
$78.4
21.8%
Mid (3%)
$151.6
42.2%
$177.6
49.4%
$209.4
58.2%
High (5%)
$295.4
89.1%
$321.4
89.4%
$353.2
98.2%
SCH in Model (Based on Master Plan)
Fall FY2010
Undergraduate
Masters
Doctoral
Professional
Total
345,494
41,058
9,071
26,014
421,637
Fall FY2021
375,075
68,629
15,084
34,721
493,509
Annual Growth
0.7%
4.8%
4.7%
2.7%
1.4%
11
Closing the Gap
•
•
•
•
•
•
Increased enrollment and tuition
Professional and differential tuition
Cost shifting to contract and grants
IDC income
Patent and Licensing Revenue
Philanthropy
12
UH Annual Private Support Trend
13
Annual Private Support
Comparison to UH Peer Group
+
*
*
*
*
* Includes mega gift of $40 million or more—cash or company product
+ Includes single company product valued at $23 million
14
Comparison of Top Pyramid Gifts
As a Percentage of Total Support
70%
60%
62%
3-YR AVG (FY2007-FY2009)
59%
Net of mega gifts
Source: VSE
56% 58%
20%
16%
14%
16% 15%
Oklahoma
Cincinnati
30%
Houston
40%
Arizona State
50%
25% 24%
27% 28%
10%
0%
Top 3 Gifts
Top 4-10 Gifts
All Other Gifts
15
Comparison of Top Pyramid Gifts
Reported as Dollar Amounts
$90
$82
$80
$70
3-YR AVG (FY2007-FY2009)
$69
Net of mega gifts
Source: VSE
$20
$10
$16
$13
$47
Oklahoma
$30
Cincinnati
$40
Houston
millions
$50
Arizona State
$60
$39
$27
$21
$37
$23
$16
$10
$-
Top 3 Gifts
Top 4-10 Gifts
All Other Gifts
16
Comparison of Endowment Gifts
As a Percentage of Total Support
35.0%
30.0%
$46.3 million
3 YR AVG (FY2007-FY2009)
Net of mega gifts
Source: VSE
$21.8 million
25.0%
20.0%
$19.3 million
$8.8 million
15.0%
10.0%
15.1%
17.4%
25.9%
32.3%
5.0%
0.0%
UH
Arizona St
Cincinnati
Oklahoma
17
Target Fundraising Goals by Unit
to Sustain a $100 million Per Year Level
16%
20%
50%
14%
Target Allocation
Source: Eduventures
18
Target Fundraising Goals by Unit
to Sustain a $100 million Per Year Level
16%
33%
6%
20%
50%
14%
Target Allocation
Source: Eduventures
39%
22%
Current Actual UH Allocation
3-YR AVG FY2008-FY2010
19
What Needs to be Done?
1. Develop clear priorities that compel
philanthropy
2. Build relationships with our best donor
prospects
3. Listen to donor prospects and match
their passion to priorities
4. Focus resources on the first three
points!
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