THE UNIVERSITY OF TEXAS OF THE PERMIAN BASIN
Funding & Finance Informational
May 17, 2016
Presenter
Mark McGurk, VPBA
THE UNIVERSITY OF TEXAS OF THE PERMIAN BASIN
 Legislative Process
Texas State Legislature
In session every two years
Odd numbered years from Mid-January to Late May
Must pass the State Budget (General Appropriations Act)
(GAA) for the next biennium
Legislative Cycle (GAA)
LAR’s (Legislative Appropriations Request) submitted by
all State Agencies and Institutions of Higher Education
Base Bill(s) prepared by the LBB (Legislative Budget
Board) is filed
House and Senate create and pass separate GAA
Conference Committee creates the final GAA
Conference Committee version of GAA is passed by the
House and Senate at the end of May
Legislative Cycle (GAA)
FY 2018 - 2019
 April 2016
 May 2016
 June 2016
 June – July 2016
 August 2016
 Aug – Sep 2016
 October 2016
Base reconciliation instructions issued
Budget (LAR) instructions issued by LBB
and GOBPP (Governor’s Office of Budget Planning
and Policy)
Base reconciliation is due
LBB provides GR (General Revenue) target to
institutions
Agency budget request (LAR) submitted
to LBB and GOBPP
Public hearings conducted by LBB and GOBPP
LAR updates submitted (tuition & fees-local)
Legislative Cycle (GAA)
FY 2018 - 2019
 January 2017
 January 2017
 Jan – Feb 2017
 Feb – Apr 2017
 Apr – May 2017
 May 2017
House and Senate each file a Base Bill
House and Senate committees and
subcommittees named
House and Senate LAR Hearings
House and Senate create and approve
separate versions of the GAA
Conference Committee creates final version
of the GAA
House and Senate approval Conference
Committee version of GAA
Formula Funding
 Formula funding is based on the following factors:
Headcount – Increase in headcount over prior biennium
2. Semester Credit Hour (SCH) – increase in SCH production over
prior biennium
3. Level of Instruction – UG Lower division, UG upper division,
graduate level, doctoral level (provides weighting)
4. Never fully funded – funding is based on the size of the available
pool of funds as set by the State Comptroller estimates
1.
Formula Funding Continued
Texas Higher Education Coordinating Board - Formula Funding - Conf. Comm. 2016-2017
Cost Study Relative Weights Matrix
Cost Study - FY 2012, FY 2013, and FY 2014
Relative Weights
Discipline
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
Liberal Arts
Science
Fine Arts
Teacher Ed
Agriculture
Engineering
Home Economics
Law
Social Services
Library Science
Veterinary Medicine
Vocational Training
Physical Training
Health Services
Pharmacy
Business Admin
Optometry
Teacher Ed Practice
Technology
Nursing
Developmental Ed
Base Rate
$
55.39
Undergraduate
Undergraduate UpperLower-Level
Level
1.00
1.76
1.78
3.02
1.47
2.52
1.63
2.08
2.07
2.75
2.38
3.52
1.10
1.75
0.00
0.00
1.68
2.05
1.49
1.57
0.00
0.00
1.45
2.64
1.51
1.26
1.07
1.65
1.86
5.02
1.19
1.88
0.00
0.00
2.28
2.13
2.26
2.41
1.72
2.11
1.00
0.00
Master's
Doctoral
4.00
7.53
6.03
2.56
7.80
7.10
3.01
0.00
2.93
3.60
0.00
0.00
0.00
2.79
28.29
3.39
37.52
0.00
3.89
3.34
0.00
Funding Rate
10%Teaching Experience Supplement for Tenure and Tenure Track
10.77
20.61
7.95
7.42
11.77
17.98
8.67
0.00
18.18
12.06
0.00
0.00
0.00
9.86
35.14
23.92
55.92
0.00
5.20
8.99
0.00
Professional
Practice
0.00
0.00
0.00
0.00
0.00
0.00
0.00
5.13
0.00
0.00
22.03
0.00
0.00
2.64
4.32
0.00
7.58
0.00
0.00
0.00
0.00
Why is this important to UTPB?
Texas Higher Education Coordinating Board - Formula Funding - Conf. Comm. 2016-2017
Allocation Summary
Formula
General Academics
Operations Support
T eaching Experience
Operations Support
Subtotal
Educational and General Space
Support
Small Institution Supplement
Space Support Subtotal
General Academics Total
Technical and State
Colleges
Educational and General Space
Support
Small Institution Supplement
Technical and State
Colleges Total
Formula Funding Formula Funding Appropriations w/ Appropriations
Conf. Comm.
BAT 2014-2015
2014-2015
2016-2017
Formula Funding - Summary
Difference
2016
Percent
Change
General
General
Revenue
Revenue
Formula Funding Formula Funding
General
General
Dedicated Dedicated - 2016
- 2017
Revenue - 2016 Revenue - 2017
2016
2017
Formula Funding - Summary
Board
Board
Authorized
Authorized
T uition (BAT ) - T uition (BAT ) 2016
2017
3,552,760,574
97,380,516
3,843,383,108
98,733,175
290,622,534
1,352,659
8.2%
1.4%
1,921,691,554
49,366,587
1,921,691,554
49,366,587
1,423,847,158
35,675,005
1,425,743,936
35,727,170
497,844,396
13,691,582
495,947,618
13,639,418
112,381,488
0
112,381,488
0
2,034,073,042
49,366,587
2,034,073,042
49,366,587
3,871,528,376
3,650,141,090
3,942,116,283
291,975,193
8.0%
1,971,058,142
1,971,058,142
1,459,522,163
1,461,471,106
511,535,978
509,587,036
112,381,488
112,381,488
2,083,439,630
2,083,439,630
676,108,223
20,724,900
696,833,123
4,568,361,499
676,108,223
20,724,900
696,833,123
4,346,974,213
715,306,834
18,879,900
734,186,734
4,676,303,017
39,198,611
(1,845,000)
37,353,611
329,328,804
5.8%
-8.9%
5.4%
7.6%
357,653,417
9,439,950
367,093,367
2,338,151,508
357,653,417
9,439,950
367,093,367
2,338,151,508
256,193,516
9,439,950
265,633,466
1,725,155,629
256,580,076
9,439,950
266,020,026
1,727,491,132
101,459,901
0
101,459,901
612,995,879
101,073,340
0
101,073,340
610,660,376
0
0
0
112,381,488
0
0
0
112,381,488
357,653,417
9,439,950
367,093,367
2,450,532,996
357,653,417
9,439,950
367,093,367
2,450,532,996
19,620,386
5,173,650
19,620,386
5,173,650
19,344,389
5,216,250
(275,997)
42,600
-1.4%
0.8%
9,672,195
2,608,125
9,672,195
2,608,125
7,535,753
2,608,125
7,478,062
2,608,125
2,136,441
0
2,194,132
0
0
0
0
0
9,672,195
2,608,125
9,672,195
2,608,125
24,794,036
24,794,036
24,560,639
(233,397)
-0.9%
12,280,320
12,280,320
10,143,878
10,086,187
2,136,441
2,194,132
Formula Funding - Total by Institution
23,889,730
23,440,356
30,078,347
4,568,361,499
4,346,974,213
4,676,303,017
0
0
12,280,320
12,280,320
252,300
112,381,488
15,291,473
2,450,532,996
15,291,473
2,450,532,996
252,300
112,381,488
12,589,575
2,083,439,630
12,589,575
2,083,439,630
252,300
112,381,488
12,097,225
2,034,073,042
12,097,225
2,034,073,042
6,637,991
329,328,804
28.3%
7.6%
15,039,173
2,338,151,508
15,039,173
2,338,151,508
10,571,856
1,725,155,629
Operations Support and Teaching Experience Supplement
009930 UT -Permian Basin
18,982,139
18,532,765
24,674,549
6,141,784
TOTAL
3,871,528,376
3,650,141,090
3,942,116,283
291,975,193
33.1%
8.0%
12,337,275
1,971,058,142
12,337,275
1,971,058,142
8,609,365
1,459,522,163
Operations Support and Teaching Experience Supplement
8,611,958
3,727,910
3,725,316
252,300
1,461,471,106
511,535,978
509,587,036
112,381,488
009930 UT -Permian Basin
TOTAL
Appropriations
w/ BAT - 2017
3,774,147,860
97,380,516
Formula Funding - Total by Institution
10,574,964
4,467,317
4,464,209
252,300
1,727,491,132
612,995,882
610,660,379
112,381,488
009930 UT -Permian Basin
TOTAL
Appropriations
w/ BAT - 2016
Operations Support
18,208,439
17,759,065
3,774,147,860
3,552,760,574
23,689,851
3,843,383,108
5,930,786
290,622,534
33.4%
8.2%
11,844,925
1,921,691,554
11,844,925
1,921,691,554
8,216,795
1,423,847,158
009930 UT -Permian Basin
TOTAL
Teaching Experience Supplement
773,700
773,700
984,698
97,380,516
97,380,516
98,733,175
210,998
1,352,659
27.3%
1.4%
492,349
49,366,587
492,349
49,366,587
392,569
35,675,005
009930 UT -Permian Basin
TOTAL
Educational and General Space Support
3,407,591
3,407,591
4,071,798
676,108,223
676,108,223
715,306,834
664,207
39,198,611
19.5%
5.8%
2,035,899
357,653,417
2,035,899
357,653,417
1,296,492
256,193,516
009930 UT -Permian Basin
TOTAL
Small Institution Supplement
1,500,000
1,500,000
1,332,000
20,724,900
20,724,900
18,879,900
-11.2%
-8.9%
666,000
9,439,950
666,000
9,439,950
666,000
9,439,950
(168,000)
(1,845,000)
8,219,320
1,425,743,936
Operations Support
3,628,130
3,625,606
497,844,396
495,947,618
252,300
112,381,488
Teaching Experience Supplement
392,639
99,780
99,710
35,727,170
13,691,582
13,639,418
Educational and General Space Support
1,297,006
739,407
738,893
256,580,076
101,459,901
101,073,340
Small Institution Supplement
666,000
9,439,950
-
-
-
492,349
49,366,587
492,349
49,366,587
-
-
2,035,899
357,653,417
2,035,899
357,653,417
-
-
666,000
9,439,950
666,000
9,439,950
Total General Revenue Dedicated
General Revenue Dedicated - Texas Public Education Grants
General Revenue Dedicated - Staff Group Insurance Premiums
General Revenue Dedicated - Organized Activities
State Appropriations provide almost half of UTPB
Budgeted Revenue
50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
47.8%
23.9%
9.9%
4.4%
3.4%
5.3%
0.3%
2.1%
2.9%
What do we spend it on?
 Budgeted Expenses
21.1%
Instruction
30.5%
Academic Support
Research
7.6%
Public Service
Institutional Support
4.8%
8.4%
Student Services
Operations and Maintenance of Plant
10.1%
5.0%
Scholarships and Fellowships
8.6%
Auxiliary Enterprises
2.4%
1.6%
Depreciation and Amortization
Fund 0001 and Fund 0250 = State Appropriated Budget
Designated and other local funds = Budgeted as well
 General Revenue (GR) – Fund 0001 – State funding provided




by sales tax revenues, business taxes, energy taxes
Local Tuition Revenue – Fund 0250 – State Statutory Tuition
that is sent into the State Treasury ($50/SCH)
Designated Tuition – Locally retained tuition revenue that is
budgeted and serves as our reserves (savings account)
Auxiliary Revenues – Housing, Athletics, Student Service Fees
Restricted Revenues - Grants and Gifts
State Appropriation
Statutory Tuition Collected
Remitted to State Treasurer
UTPB State Appropriation
General Revenue
UTPB Budget Process
 Base Budget
 State Appropriated funds are used primarily to fund salaries
 Designated Funds are used to fund departmental budgets for
supplies, maintenance and operations, copiers, etc.
 Designated Funds are also used to fund utilities, physical plant
expenses (repairs and maintenance) and institutional scholarships
 Restricted Gift Funds are primarily used to fund scholarships and
endowed Chairs
 Restricted Sponsored Projects fund external contracts and grant
activities
UTPB Budget Process
 New Revenues
 Biennial Process for new State Appropriations – Increases
(decreases) in formula funding, new special items or sunset of
special items, new Tuition Revenue Bond (TRB) funding
 Tuition and Mandatory Fee Increases – can be yearly or every
other year based on Board of Regents request
 Incidental Fee requests –Yearly, approved by UTS Academic
Affairs Vice Chancellor
UTPB Budget Process
 Budget and Planning Committee
 Meets to discuss funding environment - new revenues, reductions
in funding, requests for funding.
 Evaluates new revenues or reductions and makes recommendation
to the President and Executive Staff
 Executive staff reviews Budget and Planning recommendations,
then makes recommendations to the President.
 President decides allocations and funding
Our Current Situation
 So, if we have this process, then why are we under Financial
watch?
 Simply, we are spending more than we generate in revenue
 Our reserve (Designated) has been reduced significantly
Total Unrestricted
Change in Net Position
$20,000,000.00
$10,000,000
$15,000,000.00
$5,000,000
$10,000,000.00
Total Unrestricted
$5,000,000.00
$$(5,000,000)
FY10
FY11
FY12
FY13
FY14
FY15
$-
$(10,000,000)
$(15,000,000)
FY10FY11FY12FY13FY14FY15
Change in Net
position
How did this occur?
 Rapid growth in enrollment
 Spending outside the budget
 PeopleSoft Implementation
 Mid-year, rapid turnover in the Accounting Office, Turnover in the
VPBA. Lack of knowledge hampered implementation.
 Lack of institutional input into fit-gap and short implementation
schedule. Little to no input into user group. Lack of knowledge by
the technical implementation team (UTShare)
What is being done?
 In the current year, we have implemented a strategic hiring
freeze. This means that all position requests must be reviewed
justified and approved at the executive level.
 Allocated Goals for reductions to executive leadership – each
area was allocated an amount to “save” in the current year and
next year - $800,000 total goal
 8% Maintenance and Operations reduction (Designated only)
only if cost centers have sufficient funds, not to impact
students.
What is being done?
 Budget and Planning Committee are currently reviewing and
discussing possible recommendations for next year.
 Planning for next year’s budget is currently being done to put
things into the budget
 Adjunct Faculty
 Summer Budget
 Institutional Scholarships
Questions?