2014-15 SUNY Operating and
Capital Budget Requests
Finance and Administration Committee
November 14, 2013
Fashion Institute of Technology
Economic Environment
Annual Direct State Tax Support for SUNY2
Projected State Budget Gaps
$2.0 B
$3.5 B
$2.9 B
$3.0 B
$2.9 B
$1.7 B
$1.7 B
2010/11
2011/12
2012/13
$84.4B
$87.2B
$88.8B
$1.7 B
$1.6 B
$2.5 B
$2.0 B
$1.8 B
$1.8 B
$1.4 B
$1.2 B
$1.7 B
$1.0 B
$1.5 B
$0.8 B
$0.6 B
$1.0 B
$0.4 B
$0.5 B
$0.2 B
$- B
State Budget1
2014/15
2015/16
2016/17
$93.8B
$98.2B
$101.5B
1 Excludes capital, federal, and off-budget items
2 Excludes State paid fringe benefits, debt service, and State funded grant programs (TAP)
-
2013/14
$90.7B
2
Economic Environment
$60.0 B
Outstanding Debt and Room Left Under
Statutory Debt Cap
$42.8 B
$45.1 B
$50.0 B
$2.4 B
$1.4 B
$47.3 B
$0.8 B
$49.6 B
$52.1 B
$0.7 B
$1.5 B
$900.0 M
$852.0 M
$800.0 M
$700.0 M
$572.0 M
$40.0 B
$582.0 M
$600.0 M
$500.0 M
$30.0 B
$20.0 B
Annual Direct Capital Appropriations for SUNY
$40.4 B
$43.6 B
$46.5 B
$48.9 B
$50.7 B
$400.0 M
$300.0 M
$10.0 B
$187.0 M
$200.0 M
$100.0 M
$- B
2013/14
2014/15
Outstanding Debt
2015/16
2016/17
2017/18
-
Remaining Cap Room
2010/11
2011/12
2012/13
2013/14
Debt Cap
$37.7B
$39.4B
$41.2B
$42.8B
Room Rem.
$ 4.1B
$ 3.6B
$ 3.6B
$ 2.4B
3
2014-15 SUNY Operating
Budget Request
November 14, 2013
2014-15 Operating Budget Request
Sector / Area
2013-14 Enacted
State-operated Campuses
$
Tuition Revenue
General State Charges (Fringe benefits)
General IFR
State Univ. Tuition Reimbursable (SUTRA)
Stabilization
Dormitory Operating
State-operated Subtotal
$
Statutory Campuses
Cornell Cooperative Extension
Statutory Subtotal
$
841.9
1,573.2
213.0
837.8
151.9
343.4
3,961.2
($ millions)
State Tax
Support
Self-Generated
Revenue
2014-15 Budget
Request
$ Change % Change
$
$
$
$
$
$
$
129.3
4.2
133.5
Community Colleges
$
Direct Hospital Support
Hospital Operating
Hospital Sponsored Programs
Long Island Veterans Home
Hospital Subtotal
$
Grand Total
94.2
15.8
110.0
$
95.0
15.0
110.0
$
936.2
1,668.2
228.8
837.8
151.9
15.0
343.4
4,181.2
$
94.2
95.0
15.8
15.0
220.0
11.2%
6.0%
7.4%
0.0%
0.0%
*
0.0%
5.6%
5.6%
53.2%
7.1%
$
$
136.5
6.5
143.0
$
7.2
2.2
9.4
$
503.0
$
30.9
6.5%
90.0
2,572.1
100.0
44.9
2,807.0
$
$
$
(267.5)
0.8
(266.7) $
30.0
(267.5)
0.8
$ (236.7)
50.0%
-9.4%
0.0%
1.8%
-7.8%
$
(156.7) $
7,634.1
$
$
$
7.2
2.2
9.4
$
$
-
472.1
$
30.9
$
-
$
$
60.0
2,839.5
100.0
44.1
3,043.6
$
$
30.0
30.0
$
7,610.4
$
180.3
* 2013-14 was Year 2 of the SUNY Stabilization Account Two Year Appropriation made in 2012-13.
As per State Finance Law, 2014-15 would be the first year of the new two year appropriation.
23.7
0.3%
5
State-operated / Statutory Campuses
• State-operated Campuses: $220.0M net increase
•
•
•
•
$94.2M State tax support for contractual costs / initiatives
$15.8M State tax support for fringe benefits
$95.0M Rational Tuition Spending Authority
$15.0M Stabilization appropriation
– State funding request focuses on costs to continue / key
initiatives to improve SUNY operations and support mission
•
•
•
•
$98.0M: Contractual salary costs / fringe benefit costs
$ 6.0M: Open SUNY – Strategic Enrollment Growth Program
$ 4.0M: SUNY Innovators Program
$ 2.0M: Expanded U-Wide Flexibility and Support for Initiatives
• Statutory Campuses: $9.4M net increase
– Funding request provided by Statutory campuses
6
Rational Tuition Plan: Year Four of Five
Maximum Tuition Rate Inc.
NonResident
Resident
% Enrollment
NonResident
Resident
% Revenue
NonResident
Resident
Undergrad at Centers
$300
10.00%
25.97%
4.64%
18.98%
9.89%
Undergrad at Comp/Tech
$300
5.00%
52.48%
3.02%
38.35%
5.45%
Graduate
$500
10.00%
6.74%
3.00%
8.28%
6.84%
MBA
9.00%
10.00%
0.57%
0.15%
0.86%
0.37%
Masters of Social Work
9.00%
10.00%
0.54%
0.02%
0.73%
0.04%
Masters of Architecture
9.00%
10.00%
0.04%
0.02%
0.05%
0.04%
Physicians Assistant
9.00%
20.00%
0.07%
0.04%
0.09%
0.09%
Law
9.00%
10.00%
0.31%
0.03%
0.86%
0.13%
Pharmacy
9.00%
10.00%
0.23%
0.03%
0.64%
0.15%
Medicine
9.00%
5.00%
1.29%
0.07%
5.18%
0.50%
Dentistry
9.00%
10.00%
0.26%
0.04%
0.91%
0.30%
10.00%
10.00%
0.15%
0.03%
0.40%
0.15%
9.00%
10.00%
0.26%
0.02%
0.64%
0.08%
Optometry
Physical Therapy / Nursing Practice
Enrollment based on FTE
7
Proposed Annual 2014-15 SUNY Resident Undergraduate Tuition / Fees vs.
2013-14 Selected Peer State Rates
$14,000
$12,802
$11,600
$12,000
$10,792
$10,366
$10,000
$9,485: Middle States Average
$9,906
$8,893: US Average
$9,037
$8,000
$8,522
$7,839
$371
$6,336
$6,000
$4,000
$7,468
$2,000
$-
PA
MI
MA
VA
2013-14 Tuition and Fees
OH
CA
TX
SUNY
FL
Proposed 14-15 Tuition / Fees Increase
8
Community Colleges
• Total Request: $30.9M net increase
–
–
–
–
$ 34.9M: $250 / FTE Base Aid Increase
$ 7.8M: FIT upper division / grad. chargeback
$ 3.0M: Increase Job Linkage Program
$(14.9M): Lower State support need due to enrollment
decrease
• Funding:
– Focuses on increasing State share of CC costs
– Facilitates implementation of chargeback methodology
– Maximizes community / business relationships
9
Hospitals
• Total Request: $(236.7M) net decrease
– $30.0M in new State tax support
• Returns State tax funding to 2012-13 Enacted levels
– $(267.5M) in reduced spending authority
• Reflects Downstate restructuring and adjusting for historically
unspent revenue based appropriation authority
– $0.8M spending authority for Long Island Veterans
Home
• Items for further discussion:
– Operational structure and flexibility
– Alternative flow of funds to the medical schools
10
Summary of Capital Plan & Budget Request
2014-15 Capital Plan & Request
(in millions)
2014/15
Request
Program*
Educational Facilities
2014/15
Plan Need
5-Year
Request
5-Year
Plan Need
Appropriation Type
$750.0
$2,680.0
$3,750.0
$8,560.0
600.0
600.0
1,205.0
1,205.0
Bonded, Debt Repaid
Residence Halls
50.0
50.0
250.0
250.0
Hard Dollar, Self Pay
Community Colleges
91.0
134.0
575.0
575.0
Bonded, 50% State Share
Transformational Information
Technology Initiative
189.0
189.0
189.0
189.0
Bonded
Research Initiative
200.0
200.0
200.0
1,587.0
Energy Initiative
100.0
100.0
100.0
100.0
$1,980.0
$3,953.0
$6,269.0
$12,466.0
Hospitals
Bonded
SUNY-Wide Capital Initiatives:
Total
Bonded, Competitive Based
50% Bonded, 50% Dry
*Request includes reappropriations totaling $4.7B in support of all four programs and an appropriation to support campus-funded capital projects of $100M.
11
Educational Facilities
–
•
Excludes funding for new facilities.
Annual bonded investment of $750M in bondfinanced State support will:
–
State Investment Reduces
Critical Maintenance Backlog
16%
Maintain progress made in reducing SUNY’s
critical maintenance backlog since 2007
14%
$800
$700
Annual State
Investment Requested
12%
$600
10%
$500
8%
$400
Industry Standard: 5% FCI
6%
$300
4%
$200
Reduction in FCI w/Investment
Growth in FCI w/o Investment
2%
$100
0%
–
•
Advance major portions of the present
Capital Plan.
$0
2014-15
2015-16
Project Type
Requested funding will:
2016-17
Fund critical life safety projects,
–
Ensure that buildings
are in compliance with current building
codes, and
5%
10%
Stabilize / modernize deteriorating
infrastructure.
2018-19
5%
Instructional
3%
Major Rehab
12%
47%
Building
Stabilization
14%
69%
Infrastructure
Stabilization
Life Safety
–
2017-18
Project Use
7%
–
$ in Millions
SUNY 5-year Capital Plan project needs have
been scaled back from $8.56B to $3.75B,
funding only critical maintenance components.
Facility Condition Index =
Backlog ÷Replacement Value
•
14%
Infrastructure,
MCM, etc.
Student Life /
Services
Research
Institutional Support
14%
Library
General
Administration
12
Hospitals
$600M in (repaid) bonded funding requested.
•
SUNY hospitals have not received bonded funding
since 2008, with UMC and SB largely exhausting
available funding.
•
Lack of new funding endangers maintaining safe
and modern facilities, ensuring patient safety, and
meeting accreditation requirements.
•
This level of funding is essential as full project
funding is required by State regulatory process
governing construction, renovation and major
medical equipment acquisitions of health care
facilities.
•
Although appropriations must be in place to
facilitate capital planning, actual spending from the
appropriations occur at a slower pace.
•
To better align capital funding with the health care
planning process, ensure continuous access to
capital, and remove hospital debt from the State
debt cap calculation, it is recommended that an
alternative financing structure be explored.
Hospitals in Need of New Funding
$350.0
No New Funding Provided Since 2008
$321.6
$300.0
$324.7
$297.7
$250.0
$ in Millions
•
$200.0
$155.9
$150.0
$100.0
$50.0
$4.6
$7.4
$0.0
Downstate
Total Appropriations
Stony Brook
Upstate
Uncommitted Appropriation Remaining
13
Residence Halls
•
$250M ($50M/Year for 5-Years and consistent with current State Financial Plan) is requested
in hard dollar (pay-as-you-go) support to support small maintenance and repair projects.
•
The residence hall bonding program was restructured in 2013/14 such that future debt
issuances are eliminated from the State debt cap calculations as well as the need for future
capital bonded appropriation. Although the restructuring of the program provided significant
relief to the State under the constraints imposed by the debt caps, that benefit did not accrue
to SUNY’s remaining bond-financed capital programs.
•
A bond limit of $944M was established for the bond-financed portion of the program for the
next five years, which is sufficient to meet the $744M in demand reflected in the most recent
campus capital plans.
•
The September 2013 bond sale ($440M) issued $175M in bonds to progress more than 100
projects over the next 12-15 months and refunded prior resolution bonds and instantly
generated an additional $265M in debt cap capacity for the entire State.
•
In 2014/15 additional bonds of $175M are expected to be issued to finance new and existing
capital projects.
14
Community Colleges
Project Type
•
$91M request reflects State share of community
college projects which have local sponsor
resolutions in place.
7%
3%
Major Rehabilitation / New Academic
or Student Life Facility
Building Stabilization
18%
•
$134M in projects have been initially planned by the
Colleges for 2014/15.
•
$45M worth of projects have not received local
sponsor support to-date and will be shifted to
subsequent years,
•
This leaves the requested amount of $91M.
49%
Economic / Workforce Development
Life Safety
Infrastructure Stabilization
23%
Project Use
1%
5%
•
The requested amount will support:
Instructional
13%
Library
–
44%
37 critical maintenance and health and safety projects.
15%
–
Support Services
Student Life
29 renovation with critical maintenance components
projects and 3 new facilities.
Student Life/Services
Administration
22%
15
Other SUNY-Wide Capital Initiatives
•Transformational Information Technology Initiative: A total of $189M is requested
to support the infrastructure necessary to support several System-wide academic, research
and operational initiatives.
Open SUNY
Student Access, Completion and Success ($93M): SUNY Recruitment and Application Processing System, SUNY-wide student identity tracking
and management, seamless student information system, degree planning system, course equivalency system, academic data integration system,
data warehousing and decision support system, Open SUNY Student Access Platform, student internship and experiential learning management
system, student ePortfolio system, next generation SUNY classrooms, open digital library and content system.
Operational Efficiency
SUNY Electronic Procurement Platform ($10M): Establish an electronic procurement system, transaction processing center, and strategic sourcing,
potentially producing annual savings of $100M.
SUNY Shared Data Centers and Telecom ($33M): Shared regional data centers, network operation center, and security operation center, reducing
number of data centers from hundreds to six. Creating SUNY-wide, cloud-based unified communication and reducing telecom costs by 25%.
SUNY Self-Service Platform ($4M): Self-service functions for HR, financial, and other operational transactions, reducing administrative expenses.
Research, Innovation and Economic Development
SUNY Collaboration Platform ($22M): SUNY-wide Intranet SUNY Blue, portal for networks for excellence, and telepresence video conference
network. Will reduce communication and travel costs and enable widespread collaboration for research and innovation.
SUNY Knowledge Center ($27M): Housed at University of Albany, shared by 64 campuses, this Center includes high performance computing
facilities and smart data transport and storage optimized to support large scale data analysis and decision support, shared by SUNY-wide
communities of researchers for algorithm design and data visualization, stimulating and supporting SUNY’s research growth of over $500M in the
next 10 years.
16
Other SUNY-Wide Capital Initiatives
(Continued)
•
SUNY Research Initiatives: A total of $200M is requested to provide seed
funding for a new competitive program to select projects that will enable SUNY to
further advance its goal of doubling the amount of sponsored research System-wide
over the next five years.
•
Energy Initiative: A total of $100M is requested (50% State-funded / 50% “dry”)
to support energy efficiency projects and enable campuses to significantly reduce
their energy usage. The dry portion of this program could be supported by grants or
loans from entities such as the New York Power Authority.
17
18
Resident Undergraduate Tuition Rates
2010/11 - Projected 2015/16
$7,000
$6,000
$5,000
$4,970
$5,570
$5,270
$5,870
$6,470
$6,170
$4,000
$3,000
$2,000
$1,000
$-
2010-11
2011-12
2012-13
2013-14
2014-15
Actual
2015-16
Projected
Rational Tuition Period
Non-Resident Tuition Rates at
the Four SUNY University Research Centers
2010/11 – Projected 2015/16
$25,000
$21,550
$20,000
$19,590
$17,810
$15,000
$14,720
$13,380
$16,190
$13,380
$14,720
$19,590
$17,810
$16,190
$10,000
$5,000
$-
2010-11
2011-12
2012-13
2013-14
2014-15
Actual
2015-16
Projected
University at Buffalo / Stony Brook University
University at Albany / Binghamton University
Rational Tuition Period
20
SUNY Enrollment Weighted Average In-State Tuition and Fees
Proposed 2014-15 SUNY vs. 2013-14 NY Private Schools
$60,000
$50,000
$49,138
$47,890
$46,785 $46,380
$46,370 $46,269
$46,165 $46,080
$46,040
$45,724
$40,000
$34,008
$30,500
$30,000
$20,000
$13,236
$7,839
$371
$10,000
$7,468
$0
2013-14 Tuition and Fees
Proposed Increase
21