Financial Overview:
Budget & Planning
FACULTY SENATE
January 2013
Kathy Cutshaw
Vice Chancellor for
Administration, Finance & Operations
1
State Budget General Fund Distribution
FY 2013
University of Hawaii,
$385 M (7%)
Other,
$423 M
(8%)
Health,
$489 M (9%)
Other Departments include:
* Public Safety
* Accounting & General Services
* Governor's Office
* Lt. Governor's Office
* Business & Economic Development
* Agriculture, Labor & Industrial
Relations
* Defense
* Taxation
* Human Resources Management
* Attorney General's Office
* Land & Natural Resources
Budget and Finance,
$1.79 B (32%)
Human Services,
$1.03 B (19%)
Education,
$1.44 B (26%)
Total State Budget:
$5.56 Billion
2
UH Share over time
$500 M
$450 M
$400 M
$350 M
$300 M
$250 M
$200 M
$150 M
$374 M
(8.5%)
$311 M
(8.4%)
$383 M
(8.1%)
$429 M
(8.3%)
$460 M
(8.7%)
$423 M
(8.2%)
$361 M
(7.3%)
$313 M
(8.4%)
$386 M
(7.1%)
$385 M
(6.9%)
$100 M
$50 M
3
$M
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
University Budget Cycle
• Fiscal Year: July 1 – June 30
• Biennium and Supplemental
• Timeline:
•
•
•
•
•
•
•
May–July:
July–Aug:
August:
September:
December:
Jan–May:
June:
Manoa prepares and submits budget
System reviews and prioritizes
Budget presentation to the BOR
BOR approval of budget request
Governor’s Budget finalized
Legislative Session
Governor sign budget bill
4
System-wide General Fund Allocation
FY 2013
Manoa
47.95%
JABSOM
4.24%
Hilo
7.41%
Systemwide
10.21%
SBDC
0.26%
Aquaria
0.16%
Community College
28.42%
West Oahu
1.35%
5
Manoa’s Budget Components
• State Appropriated Funds
• General Funds
• 100% used for personnel costs
• State pays fringe
• Lapse
• Special and Revolving Funds
•
•
•
•
•
•
Established by Statute
Expenditures restricted to Statute language
Do not lapse
Legislative Expenditure Ceiling
Includes tuition & Fees
Includes Return of Overhead (RTRF)
• State Appropriated Maintenance & Capital Improvement
• Health and Safety
• Capital Renewal/Deferred Maintenance (CRDM)
• CIP (Capital Improvements)
• Federal Contracts and Grants
• Restricted
6
Where Does The Money Come From
FY 2011
State
Appropriations
24%
Federal
Grants/Contracts
35%
Tuition and Fees
26%
Private Gifts,
Grants and
Contracts
5%
State
Grants/Contracts
2%
Auxiliary Services
3%
FY 2010
Federal
Appropriations
Other
3%
2%
State
Appropriations
26%
Tuition and Fees
24%
Private Gifts,
Grants and
Contracts
5%
State
Grants/Contracts
3%
Federal
Grants/Contracts
34%
Auxiliary Services
3%
Federal
Appropriations
Other
3%
2%
7
Where Does The Money Go
FY 2011
Public Service
4%
Research
37%
Academic
Support
8%
Student Services
5%
Instruction
30%
Other
2%
Operation/
Maintenance
of Physical Plant
6%
Scholarships/
Fellowships
6%
Auxiliary
Enterprises
2%
FY 2010
Public Service
5%
Research
39%
Academic Support
8%
Student Services
4%
Operation/
Maintenance
of Physical Plant
6%
Instruction
30%
Other
1%
Scholarships/
Fellowships
Auxiliary
5%
Enterprises
2%
8
Mānoa Operating Funds
Allocated Funds Over Time -- FY2004-2013
$300 M
$257 M
$250 M
$196 M
$200 M
$150 M
$128 M
$100 M
$87 M
$50 M
9
$M
04 05 06 07 08 09 10 11 12 13 04 05 06 07 08 09 10 11 12 13 04 05 06 07 08 09 10 11 12 13
General
RTRF
Fiscal Year / Fund Type
Net Tuition
Mānoa Appropriated Fund (G/R/S)
Distribution to Units
FY 2013
Students,
$13 M (4%)
Research,
$54 M (16%)
Medicine,
$35 M (10%)
Academic,
$172 M (50%)
Law,
$9 M (2%)
Infrastructure,
$48 M (14%)
10
Administrative,
$12 M (4%)
Operating Funds Flowchart
Year End Allocated Fund Distribution for FY 2012
11
Operating Funds Flowchart
Year End Allocated Fund Distribution for FY 2012
12
Approaches to University Budgeting
• Incremental
• Budget for current year become base for incremental allocations
for the next year
• Zero Based
• No continuing base budget
• Everything re-evaluated and re-allocated yearly
• Formula Based
• Typical allocation is based on enrollment or graduation rates
• Responsibility Centered Budgeting
• Each unit gets all available resources
• Pays for all costs (admin, overhead, space, etc)
13
Going Forward
• UH Budget Approach - Biennium FY2013-15
• Hawaii Graduation Initiative
• Outcome Funding
• Focus on graduate outcomes
• Focus on transfer outcomes
• Additional weighting for:
• Native Hawaiian student success
• STEM student success
Low income student success
• Five Program Change Requests (PCRs)
• Hawaii Innovation Initiative
• Adds 50 new researchers over next 3 bienniums
• Stewardship of Facilities/Renovate to Innovate
14
Fiscal Biennium 2013-15
UH Budget Request
UH Budget Request
Initiative/Description
2013-2014
$$
Executive
2014-2015
FTE
$$
2013-2014
FTE
$$
FTE
2014-2015
$$
FTE
Hawaii Graduation Initiative
Outcome Based Funding
20,000
30,000
2,387
2,387
Distance Learning & Educational Technology
1,000
4
1,500
7
Engineering Consortium
1,200
12
2,900
28
Na Pua Noeau
700
12
700
12
Statewide Longitudinal Data system
200
2
400
4
West Oahu Campus Build-out support
913
22
913
22
913
913
24,013
52
36,413
73
3,300
3,300
Hawaii Innovation Initiative
5,875
6
13,960
20
1,000
1,000
STEM Initiative - Governor's
0
0
0
0
1,500
1,500
29,888
58
50,373
93
5,800
5,800
Subtotal
Total
15
Outcome Based Funding
Manoa
16
Systemwide Program Change
Requests
• Distance Learning & Educational Technology
• Distance delivery
• Increase student engagement and learning
• Engineering Consortium
• Increase numbers & retention of pre-engineering students
• Cyber-Mentoring/Tutorial Program
• Na Pua No’eau
• Become model indigenous service institution
• Promote college going among (K-12) Native Hawaiians
• Statewide Longitudinal Data System
• Statewide student data tracking system
• West Oahu Campus
• Provide infrastructure support
17
Hawaii Innovation Initiative
HI2 Initiative will:
• Adds 50 new researchers overtime
• Doubles research funding
• create new businesses
• diversify, deepen state economy
• Estimated Total Cost:
• Year 1 $5.9M 6 FTE
• Year 2 $13.9M 20 FTE
18
Stewardship of Facilities
•
•
•
•
•
•
•
Health, Safety, and Code Requirements
Capital Renewal and Deferred Maintenance
Project Renovate to Innovate
Minor Renovation CIP
Major Construction Projects (Shovel Ready)
Financially Leveraged Projects
Various Planning and Design Projects
19
FB13-15 Capital Improvement Projects
Health and Safety Priorities (Manoa)
BOR Request
FY 2014
FY 2015
2,400,000 $
2,500,000
1,500,000 $
1,500,000 $
- $
9,500,000
- $
9,200,000
Priority
1
1
1
1
1
Project Title
Campuswide Accessibility Improvements Phase I
College of Education Water System Upgrade
Colleoe of Education Retaining Wall
Campuswide Sewer and Storm Drain Upgrade
Hawal'l Institute of Marine Biology Seawall
MOF
C
C
C
C
C
$
$
$
$
$
1
1
1
Lower Campus Automotive Guardrail
Lyon Arboretum Health and Safety Improvements
Campuswlde Upgrade Walkways
C
C
C
$
$
$
500,000 $
2,000,000 $
1,500,000 $
1
Stan Sherrif Center Emergency Generator Replacement
C
$
1
Bilger Addition Replace Asbestos Containino Flooring
C
Total - Health, Safety & Code Requirements
Executive
FY 2014
FY 2015
$
$
$
$
$
-
$
$
$
$
$
-
3,000,000
2,500,000
$
$
$
- $
- $
- $
-
485,000 $
-
$
- $
-
$
274,000 $
-
$
- $
-
$
10,159,000 $
26,700,000
$
- $
-
20
FB13-15 Capital Improvement Projects
Capital Renewal/Deferred Maintenance
(Manoa)
Priority
2
2
Project Title
Capital Renewal
Reduction of Backlog in 6 years
Total - CRDM
MOF
C
C
$
$
$
BOR Request
FY 2014
FY 2015
31,396,000 $
45,724,000
63,908,000 $
67,103,000
95,304,000 $
112,827,000
Executive
FY 2014
FY 2015
$
$
- $
- $
-
$
- $
-
21
FB13-15 Capital Improvement Projects
Other CIP Projects (Manoa)
Priority
5
5
6
6
10
Project Title
Snyder Hall Renovation
Snyder Hall Renovation
Holmes Hall Renovation
Holmes Hall Renovation
Pacific Health Research Laboratory
MOF
C
E
C
E
C
$
$
$
$
$
10
12
12
17
18
21
24
26
29
32
32
34
35
35
Pacific Health Research Laboratory
Kuykendall Hall Renovation
Kuykendall Hall Renovation
Hawai'inulakea School of Hawaiian Knowledge
Marine Fisheries Building Renovation to Research
Instructional Building - College of Education Site
Law Library Center
University of Hawaii Marine Center Relocation
Transportation Relocation to Lower Campus
Research Facilities at Loc C in Kaka`ako
Research Facilities at Loc C in Kaka`ako
Campuswide Master Plan
Law School Expansion
Law School Expansion
N
C
E
C
C
C
C
C
C
C
N
C
C
E
$
$
$
$
$
$
$
$
$
$
$
$
$
$
40
n/a
Campuswide Chilled Water Piping Upgrages & Repairs
Student Housing
C
B
n/a
n/a
Student Life Center, Phase II
New Parking Structure for Kaka`ako Campus
B
E
Total - Other Projects
BOR Request
FY 2014
FY 2015
19,000,000 $
19,000,000 $
2,000,000 $
20,000,000
2,000,000 $
20,000,000
5,000,000 $
1,000
18,000,000
18,000,000
500,000
3,000,000
6,000,000
1,500,000
27,000,000
1,000
2,000,000
3,500,000
3,500,000
Executive
FY 2014
FY 2015
$
$
$
$
$
-
$
$
$
$
$
-
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
-
$
$
$
$
$
$
$
$
$
$
$
3,000,000
25,000,000
-
$
$
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
300,000 $
4,100,000 $
2,500,000
-
$
$
-
$
$
-
$
$
- $
17,000,000 $
350,000
-
$
$
-
$
$
-
$
151,402,000 $
70,850,000
$
-
$
-
22