BUDGET 2015 AND
LEGISLATIVE APPROPRIATIONS
REQUEST 2016-2017
MARY SIMON, SR. DIRECTOR
BUDGET PLANNING AND DEVELOPMENT
MAY 6, 2014
AGENDA
• Trend - Paying Semester Credit Hours (SCH)
• Tuition and Student Fee Revenue Projections
• Budget Recap / Timeline
• Legislative Appropriations Request (LAR)
• Q&A
TREND - PAYING SEMESTER CREDIT HOURS
(SCH in thousands)
800
714.3
700
3.9
62.1
15.9
728.0
4.8
65.3
25.4
600
713.6
4.9
61.8
32.0
667.7
4.3
58.7
29.4
654.7
3.9
56.4
27
500
Grad Non-Res
Grad Resident
400
300
632.4
632.5
UG Non-Res
614.9
575.3
567.4
200
100
0
FY 2011
FY 2012
FY 2013
FRSCT FY14 BUDGET 2015
UG Resident
TUITION AND STUDENT FEE REVENUE
PROJECTIONS
($000)
TOTAL Tuition
Statutory Tuition
Designated Tuition
Lab & Supplemental Fees
TOTAL Mandatory Student Fees
Designated - Mandatory Fees
Auxiliary - Mandatory Fees
TOTAL Incidental Student Fees
Designated Program, Course
Fees
Auxiliary Student Parking
Tuition and Student Fees
LESS: Tuition Set Asides
NET Tuition and Student Fees
Budget
FY2014
Forecast
FY2014
$
Change
%
Change
Budget
FY2015
$154,222
48,629
105,593
$150,492
50,000
100,492
($ 3,730)
1,371
(5,101)
(2.4%)
2.8%
(4.8%)
$146,863
48,348
98,515
301
294
(7)
(2.3%)
294
$69,266
40,372
28,894
$65,134
38,001
27,133
($4,132)
(2,371)
(1,761)
(6.0%)
(5.9%)
(6.1%)
$63,887
37,320
26,567
$25,589
21,821
3,768
$24,557
20,954
3,603
($1,032)
(867)
(165)
(4.0%)
(4.0%)
(4.4%)
$25,465
21,589
3,876
$249,378
(19,175)
$240,477
(18,084)
($8.901)
1,091
(3.6%)
5.7%
$236,509
(17,778)
$230,203
$222,393
($7,810)
(3.4%)
$218,731
Note: Forecast based on PAYING SCH Certified FALL, SPRING and Budget SUMMER
BUDGET 2015 RECAP
• Draft Operating Budget 2015 does not include proposed Tuition
and Fee increases being presented at the May BOR meeting
• Tuition & Fee revenue declined over Budget 2014 by approx.
$11.5 Million or 5%
• Paying SCH total 654,700 compared to 702,000 for Budget
2014; a decline of 6.7% or 47,300 paying SCH
• Mandatory & Incidental Fees were reduced accordingly
based on paying SCH or student head count
• Decline in Restricted Sponsored Program revenue resulted in a
decline in F&A Recovery
• Merit will be decided based on the outcome of T&F proposal
• Draft Operating Budget final in DEFINE BUD System by May 9th
due to PeopleSoft system conversion. Any permanent budget
updates will be processed via permanent transfers 9/1/14
2015 BUDGET TIMELINE
Feb. 5
Board of Regents Budget Policies and Guidelines Approved
Feb. 5-25
Budget coordination of salary review reports of permanent positions and related funding
Feb. 27
University Strategic Resource Planning Council (USRPC) Meeting
Feb. 27
Draft Revenue Projections (Mandatory and Incidental Fees) provided to Fee Funded areas
Mar 4 – 5
Budget Training – Overview and BUD Document preparation (published in T&D booklets)
March 6
Benefits Template (website) and Longevity Reports (via Rowdy Space) provided to areas
March 6
FY15 Budget Document Preparation Begins (BUD System opens to departments)
March 7
Draft Debt Service Budgets provided to Financial Area reps
March 12-13
Budget Training – Hands on training available (available workstations for data entry)
TBA by Areas
Internal Department Deadlines for Budget Document review and approval
March 31st
FY15 Budget Documents are due to Budget Office (BUD System closes to departments)
April 1-6
Preparation for UT System Budget Goals & Priorities Hearing
April
USRPC Meeting to review Resources and Requirements
April 16
UT System/UTSA Budget Goals & Priorities Hearing
May 12 April 28
Draft FY15 Operating Budget due to UT System
May 14-15
Board of Regents to approve Tuition and Fee Proposal
June 2
Final FY15 Operating Budget due to UT System
July 24
1st Draft LAR Biennium 2016-17 due to UT System
August 6
Final LAR Biennium 2016-17 due to UT System
August 20-21
FY15 Operating Budgets approved by Board of Regents
LEGISLATIVE APPROPRIATIONS
REQUEST FY 2016 - FY2017
LEGISLATIVE APPROPRIATIONS REQUEST
(LAR) 2016 AND 2017
Laws and Policies Impacting Budgets
•
Legislative Appropriations Request
•
General Appropriations Act
•
Role of the Texas Higher Education Coordinating Board
•
Formula Funding
Texas State Budget Cycle
Legislature convenes every 2 years for 140 days in odd numbered calendar
years beginning January 2nd
2013 = 83rd Legislative Session for FY14 and FY15 Budgets
2015= 84th Legislative Session for FY16 and FY17 Budgets
State of Texas budget is allocated once every two years; therefore, LAR is
prepared to cover a 2 year time period.
Each agency prepares and submits an LAR during even numbered years, prior to
the start of the legislative session.
The summation of each institution’s LAR forms the basis for the appropriations
bill prepared by the Legislative Budget Board (LBB)
LEGISLATIVE APPROPRIATIONS REQUEST
GENERAL APPROPRIATIONS ACT (GAA)
GAA details biennial budget allocations and includes:
• State revenues only
• Certain restrictions on use of state funding
• Reporting & other requirements
Online version of GAA is available on the LBB website:
www.lbb.state.tx.us
Academic institutions
• Direct appropriations from funding formula are lump sum
and discretionary
• Most non-formula appropriations have restricted uses:
– Special Items & Higher Education Group Insurance
THECB: OUTCOMES-BASED
FUNDING - OBJECTIVE
Texas Education Code Section 61.0593 states that,
“it is in state's highest public interest to evaluate
student achievement at institutions of higher
education and to develop higher education
funding policy based on that evaluation.”
It further charges the Coordinating Board, in
consultation with institutions of higher
education, to incorporate the consideration of
undergraduate student success measures in
developing recommendations for university
formula funding.
GAIFAC RECOMMENDATION–
SUCCESS METRICS
• Total number of Bachelor’s Degrees awarded by an
institution in a given year.
Total
Undergraduate
Degrees by
Graduation Rate
• Total Bachelor’s Degrees multiplied by the school’s sixyear graduation rate, to incent timely completion.
Total
Undergraduate
Degrees per 100
FTSE
• Degrees divided by Full Time Student Equivalents
(FTSEs) and multiplied by 100. This aggregate measure
adjusts for part-time and transfer students, providing a
common framework for comparing degree productivity .
At-Risk
Undergraduate
Degrees
• Degrees awarded to students who meet federal criteria
for being at high risk for non-completion.
Retention Metrics
• Points awarded for students who complete their 30th,
60th, or 90th hour at the institution, to incentivize the use
of effective persistence policies.
11
Total
Undergraduate
Degrees
GAIFAC RECOMMENDATION –
ALLOCATION
Allocate Funds based on:
• Points earned on the 7
success metrics
• The average of the three most
recent years of data
• Points scaled statewide
• Points weighted by
institutions
• Phased-in over three biennia
More information on Outcome Based Funding (OBF) will be
presented at the University Strategic Resource Planning Council
REVENUE FUNDING SOURCES
State Appropriations: Formula Funding, Special Items,
Benefit Cost Sharing (General Revenue)
THECB Transfers: TX Grant, Work-study, etc.
Statutory Tuition, Certain Fees
State Funds
Also referred to as
E&G: Educational
& General budgets
(General Revenue-Dedicated)
Designated Tuition & Fees
Indirect Cost Recovery
Facilities & Administrative Overhead
Designated Funds
Also referred to as Local funds
Auxiliary Enterprise Funds
Housing, Parking, Athletics, Bookstore,
University Center, Food Services
Restricted Funds
Gifts, Financial Aid & Grants/Contracts
Plant Funds
Buildings and Capital Improvements
Must be 100% Self-Support;
no subsidies from other funds
LEGISLATIVE CYCLE (GAA)
FY 2016 - FY 2017
April 2014
Base Reconciliation Instructions Issued
May 2014
Budget (LAR) Instructions Issued by Legislative Budget Board (LBB) and
Governor’s Office of Budget Planning and Policy (GOBPP)
June 2014
Base Reconciliation is due
June – July 2014
LBB provides General Revenue (GR) Target to Institutions
August 2014
Agency Budget Request (LAR) submitted to LBB and GOBPP
August – September
Public Hearing s conducted by LBB and GOBPP
October 2014
LAR Updates submitted
January 2015
LBB Recommended Appropriation Bill is filed as both a House and Senate Bill
January 2015
House and Senate Committees and subcommittees named
Jan – February 2015
House and Senate LAR Hearings
Feb – April 2015
House and Senate create ad approve separate versions of GAA
April – May 2015
Conference Committee creates final version of GAA
May 2015
House and Senate Approval Conference Committee version of GAA
Refer to UTSA Budget Office – CALENDAR – LAR for Internal Due Dates:
http://www.utsa.edu/financialaffairs/budget/
Helpful Reference Web Sites
Legislative Budget Board
http://www.senate.state.tx.us/SRC/pdf/Budget_101-2011.pdf
TASSCUBO – LAR Workshop Materials
http://tasscubo.org/LAR.htm
Nationally-recognized model state government information portals:
State Government Expenditures
http://www.texastransparency.org
15
Texas Legislature Online
http://www.capitol.state.tx.us/