University of Georgia
Financial Overview
Where does it come from, where does it go?
October 15, 2013
Ryan Nesbit– Interim Vice President for Finance & Administration
1
UGA - FY 2014 Budget Sources
$ 402 M – State Appropriations
$ 13 M – Federal Appropriations
$ 515 M – Internal Revenue
$ 293 M – Sponsored Sources
$ 196 M – Auxiliary Enterprises
$ 34 M – Private Funding
$1.454 Billion
UGA - Funding Source Summary
FY 2014
FY 2002
Private
2%
Private
1%
Auxiliary
14%
Auxiliary
12%
State
28%
State
47%
Sponsored
20%
Sponsored
20%
Federal
1%
Internal
35%
Internal
19%
Federal
1%
FY 2014 State Budget
(by Policy Area)
As Percent of Total State Fund Budget - $19.9 Billion
Other Education
5%
Transport
4%
USG
9%
Health
23%
Other
6%
K - 12
39%
Debt
6%
Public Safety
9%
FY 2002 State Budget
(by Policy Area)
As Percent of Total State Fund Budget - $15.8 Billion
Transport
Other Education
5%
4%
Health
19%
USG
11%
Other
7%
K - 12
39%
Debt
5%
Public Safety
9%
University System of Georgia - State Funds
(Total University System funding in Billions)
$2.50
$2.25
$2.00
$1.75
$1.50
$1.25
$1.00
$0.75
$0.50
$0.25
$0.00
$2.13
$1.66
$1.81
$1.93
$2.30
$2.17
$1.95
$1.74 $1.75
$1.88
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
(est.)
USG - State Funding Per Student FTE
$9,000
$8,257
$8,191
$8,128
$8,000
$7,972
$7,000
$7,937
$7,503
$7,422
$6,930
$6,539
$6,059
$6,000
$5,000
$8,294
$6,857
$7,239
$7,266
$6,746
$6,297
$6,067
$5,930
$5,561
$5,643
$5,412
$4,000
$3,000
$2,000
$1,000
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
$-
UGA - Funding Source Summary
FY 2014
FY 2002
Private
2%
Private
1%
Auxiliary
14%
Auxiliary
12%
State
28%
State
47%
Sponsored
20%
Sponsored
20%
Federal
1%
Internal
35%
Internal
19%
Federal
1%
UGA State Funding Trend
$500
$495.3
(in millions)
7% cut
$459.5
$400
$97.0
$87.9
24% cut
$377.5
$74.6
$300
$200
$398.3
28% cut
$358.9
$70.5
24% cut
27% cut
$376.3
$363.2
$72.6
$70.4
22% cut
$386.9
$73.7
$371.6
$302.9
$288.4
$303.7
$292.8
$313.2
FY11
FY12
FY13
FY13A
FY14
$100
$0
FY09
FY10
Resident Instruction ("A")
B Units & Other
State Funding Trend
FY 2014
FY 1999
$ 386.9M
$ 387.9 M
34,500
students
29,693
students
More
Students, Buildings and
Salary/Benefit Obligations
Increased “Nondiscretionary” Costs
FY2000
FY2013
$422M
$590M
• Salaries/Benefits:
(40% Increase)
o Health/Life Insurance:
(More than doubled)
o Retiree Benefits:
(More than tripled)
• Utilities:
(54% Increase)
$33M
$72M
$7M
$25M
$14M
$22M
UGA - Funding Source Summary
FY 2014
FY 2002
Private
2%
Private
1%
Auxiliary
14%
Auxiliary
12%
State
28%
State
47%
Sponsored
20%
Sponsored
20%
Federal
1%
Internal
35%
Internal
19%
Federal
1%
Tuition Growth Trend
(in millions)
$400
$333
$350
$346
$308
$277
$300
$298
$228
$250
$275
$251
$193
$200
$312
$217
$190
$150
$100
$87 $95
$50
$105
$141
$131
$123
$154
$167
Tuition
Tuition & Special Fee
14
FY
13
FY
12
FY
11
FY
10
FY
09
FY
08
FY
07
FY
06
FY
05
FY
04
FY
03
FY
02
FY
FY
01
$0
State + Tuition Funding
State
Tuition
Total
FY 2014
FY 2001
$ 402.3 M
$ 311.8 M
$ 714.1 M
$ 408.1 M
$ 86.7 M
$ 494.8 M
FY01: $4.70 in State Funds per $1 Tuition
FY14: $1.29 in State Funds per $1 Tuition
UGA General Fund (RI) Sources
(millions)
$450
$400
$401
$333
$350
$300
$318
$303
$336
$346
$308
$313
$250
$277
$288
$288
FY11
FY12
FY13
$193
$200
$163
$150
$99
$100
$50
$0
FY01
FY06
State
FY09
Tuition & Special Fee
FY14
UGA - FY 2014 Budget Sources
$ 402 M – State Appropriations
$ 13 M – Federal Appropriations
$ 515 M – Internal Revenue
$ 293 M – Sponsored Sources
$ 196 M – Auxiliary Enterprises
$ 34 M – Private Funding
$1.454 Billion
“Unrestricted” Budget Sources
$ 313 M – State Appropriations
$
0 M – Federal Appropriations
$ 375 M – Internal Revenue
$
0 M – Sponsored Sources
$
0 M – Auxiliary Enterprises
$
0 M – Private Funding
$ 688 M or 47% of
$1.454 Billion Total Budget
“Unrestricted” Budget Sources
$ 313 M – State Appropriations
Funding Formula Based
1. Measures Productivity
2. Estimates Resources Required
3. State Support to Board of Regents
4. NOT Allocations to Institutions
Shifting to Performance-Based Formula
“Unrestricted” Budget Sources
$ 375 M – Internal Revenue
Tuition = $312 M ($34 M Special Fee)
Tuition/Fee Set by Board of Regents
1. Growing Differentiation by Sector
Research Universities
Regional Universities
Two-Year Colleges
2. Differentiation by Program
Law, Business, Vet Med, Pharmacy
Tuition - Peer Institutions
FY 2013 Undergraduate In-State Tuition
Comparison Among BOR Peer Institutions
$7,000
$6,312
$6,000
$5,610
$5,000
$4,584
$4,557
$4,305
$4,041
$4,000
$3,823
Average:
$3,966
$3,588
$3,339
$3,324
$2,874
$3,000
Median:
$3,814
$2,841
$2,212
$2,000
$1,000
$0
Mich. St. UC - Davis Ohio St.
AZ
KY
MO
UGA
MD
Iowa
Iowa State NC St.
LSU2
FL
Tuition - Aspirational Institutions
FY 2013 Undergraduate In-State Tuition
Comparison Among BOR Aspirational Institutions
$16,000
$14,000
$13,523
$12,000
$10,000
$7,781
$8,000
Average:
$6,140
$6,400
$6,030
$6,000
$5,818
$5,653
$5,610
$5,610
$4,897
$4,811
$4,637
$4,000
Median:
$3,823$5,631
$2,912
$2,000
$0
Cornell
Penn
State
MI
MN
IL
WA
UC Berkley
UCLA
TX
VA
WI
UGA
UNC
FY2014 Budgeted Expenditures
$ 300.0 M (20.6%) – Instruction
$ 380.5 M (26.2%) – Research
$ 178.7 M (12.3%) – Public Service
$ 89.0 M ( 6.1%) – Student Services/Scholarships
$ 98.6 M ( 6.8%) – Academic Support
$ 98.0 M ( 6.7%) – Physical Plant
$ 92.6 M ( 6.4%) – Institutional Support
$ 163.7 M (11.3%) – Auxiliary Enterprises
$ 52.9 M ( 3.6%) – Capital Improvements
$1.454 Billion
FY2014 Budgeted Expenditures
$ 300.0 M (20.6%) – Instruction
$ 380.5 M (26.2%) – Research
$ 178.7 M (12.3%) – Public Service
$ 89.0 M ( 6.1%) – Student Services/Scholarships
$ 98.6 M ( 6.8%) – Academic Support
72% to Core Missions
FY2002 Budgeted Expenditures
$ 176.5 M (18.6%) – Instruction
$ 232.9 M (24.5%) – Research
$ 153.2 M (16.1%) – Public Service
$ 45.1 M ( 4.7%) – Student Services/Scholarships
$ 76.1 M ( 8.0%) – Academic Support
72% to Core Missions
UGA – Budgeted Expense Summary
FY 2014
FY 2002
Roles & Responsibilities
State of Georgia - oversees all State Agencies
Board of Regents - oversees 31 Institutions
University of Georgia - 17 Schools & Colleges
1. Senior Administration
2. Academic Deans
Role of Board of Regents
Appoint & Empower Presidents
Set Broad Policies
Strategic Plan for Higher Ed in Georgia
Allocate Resources
1. Allocate Formula-Based State Support
2. Establish Tuition Policy & Rates
Role of UGA
1. Senior Administration
2. Academic Deans
Role of UGA Senior Administration
Appoint & Empower Academic Deans
Establish Policies & Procedures
1. Faculty Governance/Academic Policy
2. Hiring/Compensation Guidelines
3. Fiscal Responsibility & Financial Controls
Develop Strategic Plan for UGA
Academic Program Planning Process
Academic Program Planning Process
Deans establish Specific Program Priorities
Deans identify key Resource Needs
Deans/Provost establish Performance Measures
Reviewed annually during Budget Process
Gauge progress towards goals
Considered by Provost in Allocation decisions
DEFINES ACCOUNTABILITY
Role of UGA Senior Administration
Appoint & Empower Academic Deans
Establish Policies & Procedures
1. Faculty Governance/Academic Policy
2. Hiring/Compensation Guidelines
3. Fiscal Responsibility & Financial Controls
Develop Strategic Plan for UGA
Academic Program Planning Process
Allocate Resources to Schools & Colleges
Hold Deans Accountable
Role of UGA’s Academic Deans
Develop Academic Program Plan
DEFINES ACCOUNTABILITY
Implement Academic Program Plan
1. Develop & Manage Academic Programs
2. Develop & Manage Budget
3. Hire & Manage Faculty/Staff
4. Measure & Report Performance
Small Group Discussion
Scope of Budgetary Responsibilities
(department, college, institution, etc.)
1. Where the funding comes from?
2. Where does it go?
3. Changes/trends you have observed
University of Georgia
Financial Overview
Where does it come from, where does it go?
October 15, 2013
Ryan Nesbit– Interim Vice President for Finance & Administration
34
UGA Cost of Attendance
Tuition
Fees
Books/Supplies
Housing
Board
TOTAL Costs
FY 2014
$8,028
$2,234
$ 916
$5,290
$3,956
$20,424
(Georgian undergrad)
FY 2011
$7,070
$1,666
$1,030
$4,772
$3,688
$18,226
FY 2001
$2,506
$770
$610
$2,804
$2,276
$8,966
UGA Cost of Attendance
Tuition
Fees
Books/Supplies
Housing
Board
TOTAL Costs
HOPE Scholarship
Due from Student
Zell Miller Scholar
(Add to HOPE)
Due from Student
HOPE Coverage:
Tuition
Fees
Total Costs
(Georgian undergrad)
FY 2014
$8,028
$2,234
$ 916
$5,290
$3,956
$20,424
$6,554
$13,870
FY 2011
$7,070
$1,666
$1,030
$4,772
$3,688
$18,226
$8,240
$9,986
FY 2001
$2,506
$770
$610
$2,804
$2,276
$8,966
$3,576
$5,390
$1,474
$12,396
FY 2014
Z. Miller HOPE
100%
82%
0%
0%
39%
32%
FY 2011
100%
70%
45%
FY 2001
100%
100%
40%
UGA Cost of Attendance
Tuition
Fees
Books/Supplies
Housing
Board
TOTAL Costs
HOPE Scholarship
Due from Student
Zell Miller Scholar
(Add to HOPE)
Due from Student
HOPE Coverage:
Tuition
Fees
Total Costs
(Georgian undergrad)
FY 2014
$8,028
$2,234
$ 916
$5,290
$3,956
$20,424
$6,554
$13,870
FY 2011
$7,070
$1,666
$1,030
$4,772
$3,688
$18,226
$8,240
$9,986
FY 2001
$2,506
$770
$610
$2,804
$2,276
$8,966
$3,576
$5,390
$1,474
$12,396
FY 2014
Z. Miller HOPE
100%
82%
0%
0%
39%
32%
FY 2011
100%
70%
45%
FY 2001
100%
100%
40%
Need-Based Scholarships
Georgia Access: Need-Based
Originally provided up to $1,000
Currently up to $2,500
Awarded to 199 students in 2012-2013
Georgia Gateway General: Need-based, merit
based, and to attract students with special talents.
Awarded up to $600 to students who had
lost Pell Grant funding due to federal
budget cuts.
Need-Based Scholarships
Provost Need-Based Scholarship Program &
Financial Aid Emergency Funds
Awarded on a case by case basis for
extenuating circumstances.
UGA Advantage Scholarship
Freshman in the middle income range
2010 AGI between $25K and $75K (not qualify
for Federal Pell Grants)
Renewable for a total of 8 semesters (FT)
Return on Investment - Earnings
$ 33,200 – High School Diploma
$ 54,750 – Bachelor’s Degree
$ 65,675 – Master’s Degree
$ 80,650 – Doctoral Degree
$ 86,580 – Professional Degree
Return on Investment - Earnings
$ 33,200 – High School Diploma
$ 54,750 – Bachelor’s Degree
$ 65,675 – Master’s Degree
$ 80,650 – Doctoral Degree
$ 86,580 – Professional Degree
$1.3 Million Lifetime earnings
Return on Investment - Unemployment
9.4% – High School Diploma
4.9% – Bachelor’s Degree
3.6% – Master’s Degree
2.5% – Doctoral Degree
2.4% – Professional Degree
Return on Investment - Unemployment
24% – Recent High School Graduates
7% – Recent College Graduates
UGA – Internal Revenue Analysis
FY 2014
Tuition
Growth
FY 2002
$311,758,288
60.5%
230.7%
$94,273,855
53.4%
Student Fees
$68,506,856
13.3%
284.3%
$17,828,707
10.1%
Indirect Cost Recovery
$27,021,634
5.2%
106.4%
$13,094,383
7.4%
Miscellaneous Income
$12,580,125
2.4%
$0
0.0%
Dept. Sales & Service
$95,248,931
18.5%
85.9%
$51,239,669
29.0%
192.0%
$176,436,614
TOTAL BUDGET
ENROLLMENT
$515,115,834
34,500
32,317
UGA - Funding Source Summary
FY 2014
State Appropriation
Growth
FY 2002
$402,349,065
27.7%
-9.0%
$442,236,809
46.5%
$12,839,219
0.9%
-1.8%
$13,078,308
1.4%
Internal Revenue
$515,115,834
35.4%
192.0%
$176,436,614
18.5%
Sponsored
$292,728,629
20.1%
52.0%
$192,553,970
20.2%
Auxiliary Enterprises
$196,419,200
13.5%
75.5%
$111,938,091
11.8%
$34,428,007
2.4%
131.1%
$14,900,000
1.6%
52.9%
$951,143,792
Federal Appropriation
Private Funding
TOTAL BUDGET
ENROLLMENT
$1,453,879,954
34,500
32,317