2013-15 Biennial Budget Overview
April 2013
Robert Cramer - Vice Chancellor
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• UW-Platteville’s 2012-13 Budget Summary
• AB 40 – Governor Walker’s Budget Proposal
– Biennial Budget Process
– State Budget Overview
• Financial Provisions
• Policy Provisions
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UW-Platteville 2012-13 Budget
Final 2012-2013 UW-Platteville Budget
$172.6 Million (all funds)
Final 2012-2013 UW-Platteville Budget
$126.1 Million (excluding federal aid)
Auxiliary
Enterprises
40,242,335
32%
Extension
616,185
1%
Gifts and
Grants
1,314,900
1%
Federal
1,646,700
1%
State
Funding
of 17%
State
Funding
of 22%
General
Purpose Tax
Dollars
17,004,951
Specific
13%
Purpose Tax
Dollars
11,452,271
9%
Tuition
53,804,157
43%
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Biennial Budget Timeline
• August 2012 – Board of Regents submitted a budget
request to Wisconsin Department of Administration
• February 2013 – Governor Walker proposed 2013-15
biennial budget
• April – June 2013 – Legislature acts on 2013-15 budget
recommendations
– Joint Committee on Finance
– State Assembly
– State Senate
• June 2013 (or after?) – Governor Walker exercises veto
authority
• Legislature has ability to override vetoes
• July 2013 – Board of Regents determines 2013-14 tuition
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2014-15 Sources of Funds
($ millions)
Proposed 2014-15 Total - $33.5 billion
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Ten Largest GPR Programs
($ millions)
Program
2014-15
%
Elementary and Secondary School Aids
$5,328.4
34.4%
34.4%
Medical Assistance
$2,438.0
15.7%
50.1%
UW System
$1,231.0
7.9%
58.0%
Correctional Operations
$1,162.8
7.5%
65.5%
Shared Revenues
$904.5
5.8%
71.3%
State Property Tax Credits
$897.4
5.8%
77.1%
Homestead, Earned Income, and other Credits
$336.9
2.2%
79.3%
Community and Social Service Aids
$175.6
1.1%
80.4%
Wisconsin Works and Economic Support
$159.9
1.0%
81.5%
Supplemental Security Income, State Share
$151.6
1.0%
82.4%
$12,786.1
82.4%
All Other Programs
$2,721.7
17.6%
Total
$15,507.8
100.0%
Subtotal
Cumulative %
100.0%
GPR – General Purpose Revenue – state taxes funds from income, sales, corporate, and other
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UW System Overview
• No budget cuts or lapses proposed - $181.4 million in new state funds
recommended:
– Funding for new programs including economic development - $28.75 million
over two years including $20 million over two years for:
• Economic Development-Activities must encourage the establishment and growth of
business in Wisconsin
• Skilled Workforce- Activities must relate to: a) Increasing the number of degrees
awarded in fields identified as high-demand by the Department of Workforce
Development and WTCS; b) Increasing the number of student internship and cooperative
work experience opportunities; c) Enhancing research and development
• Affordability of Post-Secondary Education- Reducing the time required to obtain a
degree, increasing opportunities for high school students to earn credit toward a postsecondary degree, or improving the transfer of credit between institutions
– Costs to continue funding included - $63.2 million over two years
– Funding for pay increases and fringe benefits, utilities and other items - $89.4
million over two years.
• No tuition cap or limit.
• $650,000 and 6.5 FTE in 2013-14, increasing to $1.3 million and 13 FTE in
2014-15, to develop new UW Flexible Option degree programs. ($2
million GPR biennially that is part of the $28.75 million above)
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Employee Compensation
• Authority for the UW System to establish
compensation plans for its employees.
• Removal of restrictions on use of all funds for
salary increases and the types of adjustments
that can be made with base funds.
• Not clear how much funding is in the block
grant for compensation.
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Financial Aid
• $4 million in 2013-14, increasing to $8.1 million in
2014-15, in the Higher Educational Aids Board
budget to fund grants for Wisconsin Covenant
Scholars. ($12.1 million biennially)
• Indexing the college tuition tax deduction to
inflation using the same methodology to adjust
state income tax brackets.
• No change in funding for the UW Wisconsin
Higher Education Grant (WHEG) program.
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Wisconsin GI Benefits Expansion
• A veteran from any state may qualify for the
Wisconsin GI Bill by living in the state for five
consecutive years.
• The spouse and children of any disabled veteran
who lives in Wisconsin for 5 consecutive years are
eligible for the Wisconsin GI Bill.
• Eliminate the ten-year eligibility limit on the
spouse or surviving spouse of an eligible disabled
or deceased veteran.
• Establish a requirement that all Wisconsin GI Bill
participants maintain a 2.0 cumulative GPA.
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30 Credits of Core Course Transfer
• The UW System and WTCS would be required to enter
into an agreement that ensures that no less than 30
credit hours of core general undergraduate courses
would transfer between institutions without loss of
credit toward graduation or completion of a specific
course of study.
• Independent and tribal colleges would be permitted to
enter into and implement the 30 core credit
agreement. The Governor recommends including
information on the agreement in the annual report
submitted to the Governor and the Legislature.
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Course Options Program
• Create a Course Options program to allow any
student attending K-12 to take up to 2
university courses at a time.
• These students would have all of the rights
and privileges given to all other UW students.
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Health Insurance Proposals
• The Group Insurance Board is required to impose a health insurance
premium surcharge of $50 per month for eligible employees who use
tobacco in in 2014 and 2015.
• The Group Insurance Board must offer all state employees the option for a
high-deductible healthcare plan that includes a health savings account.
• Under current law, health insurance plans are assigned to three different
tiers, depending on cost. Currently, the state may not pay more than 88
percent of the average premium costs of the lowest cost health insurance
plans. This bill provides that the state may not pay more than 88 percent
of the average premium costs of the health insurance plans in each tier. In
addition, the bill provides that if any tier contains no health insurance
plans, but is used to establish the premiums for employees who work and
reside outside of the state, the amount these employees must pay is
based on the premium contribution amount for that tier in the prior year,
adjusted by the average percentage change of the premium contribution
amount of the other tiers from the prior year.
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Rehired Annuitants
• Rehired annuitants are no longer permitted to
receive an annuity if working more than twothirds time.
• The Governor recommends increasing the
break in service requirement from 30 days to
75 days. Rehired annuitants may not receive
an annuity if they began work within 75 days
of retirement.
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Sale of BOR Property and Projects
• The Governor recommends language that enables the sale of state
heating plants.
• The university’s exemption to the sale or lease of property under
13.48 (14) (a) has been deleted. The building commission’s
authority to sell or lease state-owned buildings and lands has been
expanded to include all real property. [13.48 (14) (am)] The
commission may sell or lease property without the approval of the
agency having jurisdiction over the property.
• The statute exempting the university from DOAs authority to sell or
lease state property and facilities is repealed. [18.848 (2) (b)]
• DOA is required to let all construction projects that exceed
$185,000 through a modified single prime contracting process. The
university must submit a biennial inventory to DOA with the
estimated fair market value of all real property. [13.48(14)(d)]
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Reference / Useful Sites
• UW System Government Relations http://www.uwsa.edu/govrel/
• Department of Administration http://doa.wi.gov/index.asp?locid=166
• Wisconsin Legislature - http://legis.wisconsin.gov/
• Joint Committee on Finance http://legis.wisconsin.gov/lfb/jfc.html
• Legislative Fiscal Bureau http://legis.wisconsin.gov/lfb/index.html
• Wheeler Report - http://www.thewheelerreport.com/
• Wispolitics - http://www.wispolitics.com/
• Poll Everywhere – www.polleverywhere.com
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