2011-13 Biennial Budget Update
Robert Cramer -Assistant Chancellor
March 29, 2011
Presentation Outline
• HRS and Campus Climate Survey Reminder
• Background on State and UW-Platteville
• Proposed 2011-13 Budget
– Funding Impacts and Financial Aid Impacts
– UW Madison Authority
– Other Budget Items
– Procurement and Economic Development
• Next Steps
UW Human Resources Project
•
•
•
•
•
Coming in April
Impacts 67,000
Payroll
Benefits
HR Processes
• See http://hrs.uwsa.edu/index.html for details
Campus Climate Survey
• https://online.survey.psu.edu/uwplatt/
Background - Funding Sources
• General Purpose Revenue (GPR) – includes general funding,
specific purpose funding, and earmarked funding from the
state, primarily from state sales and income taxes
• Program Revenue (PR) – includes tuition, auxiliaries, and
segregated fees, as revenues received for services or from
users
• Federal Revenue (PR-F) – includes federal grants, financial aid,
direct loans, as revenues from a federal agency
• Segregated Funds (SEG) – includes transportation fund and
other separate state accounts, credited by law to a specific
state fund
• Gifts and Grants – includes revenues from the Foundation,
non federal grants
2009-11 State Budget
All Revenue Sources - $65.8 B
Segregated Revenue,
$7,629,911,900, 12%
Bond Revenue,
$3,581,172,100, 5%
General Purpose Revenue,
$27,671,651,200, 42%
Program Revenue,
$8,700,116,100, 13%
Federal Revenue,
$18,190,433,100, 28%
http://www.legis.state.wi.us/lfb/LFBPublications_ButtonPages/2009-11_budget.htm
Ten Largest General Fund
Programs in 2009-11
Program
Elementary and Secondary School Aids
Medical Assistance
UW System
2009-11
%
Cumulative %
$10,296,746,200
$2,331,348,900
$2,236,656,800
37.2%
8.4
8.1
37.2%
45.6
53.7
Correctional Operations
Shared Revenues
$1,988,035,800
$1,857,718,900
7.2
6.7
60.9
67.6
School Levy/First Dollar Tax Credits
$1,697,625,200
6.2
73.7
Appropriation Obligation Bonds
$728,715,000
2.6
76.3
Community & Juvenile Correctional Services
$503,577,700
1.8
78.1
Judicial and Legal Services
$486,265,500
1.8
79.9
$378,485,700
$22,505,175,700
1.4
81.4%
81.3
$5,166,475,500
18.6%
100%
$27,671,651,200
100.0%
State Residential Institutions
Subtotal
All Other Programs
Total
UW-Platteville 2010-11 All Funds
Budget is $148.9 Million
Auxiliary Enterprises
32,270,250
22%
Extension
560,106
0%
General Purpose Tax Dollars
18,402,962
12%
Specific Purpose Tax Dollars
11,435,118
8%
Gifts and Grants
1,216,604
1%
Tuition
43,852,004
29%
Federal
41,191,310
28%
General Purpose Tax Dollars
Specific Purpose Tax Dollars
Tuition
Federal
Gifts and Grants
Auxiliary Enterprises
Extension
Funding Impacts Compensation
• Retirement Contribution 5.8% (50% of total)
• Health Insurance Contribution 12.6% (up from
6%)
• UWS GPR Impact $22,274,900 each year
• UW-Platteville – TBD
• UW-Platteville appears to keep program
revenue savings associated with increased
contributions
Funding Impacts
• GPR Cuts – $250 million total, $125 million
per year
– UW Madison $62,500,000 per year; UWS
$62,500,000 per year
– $2.8 million estimated annual reduction in UWPlatteville (11% of GPR and 4.7% of UWS share)
– $2.4 million reduction for UW System (25% of UW
System GPR)
Funding Impacts
• Tuition – 5.5% increase annually
– UWS total is $35,750,000 in 2011-12 and
$71,500,000 in 2012-13
– UW-Platteville increase is between $1 million and
$1.2 million each year
Funding Impacts
• Prior Year Tuition Increases – As requested, reflect
prior year changes including $109,765,900 increase
each year to reflect GPR reduction offset
($35,000,000), differential tuition increases
($34,208,400), enrollment ($20,557,500), and vets
remissions ($20,000,000)
• Student Technology Fee – Increase appropriation by
$1,471,400 in FY12 and $2,701,300 in FY13 as
requested by the Board of Regents (BOR)
Funding Impacts
• Fuel and Utilities – Increase GPR funding by
$1,303,100 in FY12 and $2,461,200 in FY13
• Debt Service – Re-estimate debt service payments,
reducing funding by $129.1 million in 2011-12 and
increasing by $57.8 million in 2012-13
– Reductions include -$23.4 million PR in 2011-12 and -$16.4
million PR in 2012-13
– Impact on UW-Platteville PR debt service – TBD - (budget
for PR debt service is $6.2 million in FY11)
Funding Impacts
• Standard Budget Adjustments – Fully fund requested
adjustments for continuing position salaries and
benefits, reclassifications and pay progression, leases
and moves, and minor appropriation transfers
FY12
FY13
– GPR
$61,693,800
$61,693,800
– PRO
$34,040,400
$34,040,400
– PRS
$34,200
$34,200
– SEG
$50,400
$50,400
Bottom Line - Funding Impacts
• Bottom Line not yet known
– Estimated $2.8 million annual GPR cut – not
cumulative
– Estimated $1 million to $1.2 million annual tuition
increase offsets some of GPR cut
• Other Variables Include
– Enrollment including TSI
– Retention of PR savings
– New Tools to Manage Cuts (WI Idea Partnership)
Wisconsin Idea Partnership
• Tools to manage UW-Platteville effectively for
students, faculty, employees, and citizens
• Budgeting – Provide “block grants” to
campuses and allow funding reallocations
• Tuition – Provide the Board of Regents with
authority to set tuition
• Human Resources – Allow the Board of
Regents to set pay plans and approve
collective bargaining agreements
Wisconsin Idea Partnership
• Capital Planning and Construction – Provide
the Board of Regents with authority over non
state funded projects following Building
Commission approval
• Financial Management – Allow the Board of
Regents to oversee revenue and invest
earnings
• Purchasing – Delegate to the Board of Regents
authority over University-related purchasing
BOR Requests Not Approved
• Growth Agenda
• Financial Aid
• Recruitment and
Retention
• OSER and DOA
Procurement
Chargebacks
• Tuition Increase Grants
• Restoration of 2% Pay
Plan
• UW Madison
Intercollegiate Athletics
• Expanded Tuition
Authority
• $12,000 Overload Cap
Elimination
Financial Aid
• No additional funding for WHEG and elimination of
statutory link to increase appropriations with tuition
• Funding is provided for Wisconsin Covenant Scholars
in 2011-12 and 2012-13
• HEAB administers the Wisconsin Covenant Scholars
• Enrollment in the Covenant Scholars will cease after
September 30, 2011
• Re-estimate MN – WI reciprocity funding
Financial Aid
• WI GI Bill is extended to UW-Madison Authority
• $6.5 GPR million is provided for the WI GI Bill
• Lawton Minority Retention Grants – suspend the
formula that increases grants by the same
percentage as tuition in 2011-13.
• No Increases for Lawton, Advanced Opportunity
Program, Tuition Increase Grant, Study Abroad or
Student Aid.
• Limit Tuition Increase Grant to students enrolled in
2010-11.
UW Madison Authority
• Establishes a separate authority with Board of
Trustees (21 members)
• Provides $378 million GPR in 2011-12 and $462
million GPR in 2012-13
• Authority has complete control over tuition and
employee compensation but must comply with
statutory requirements on benefits
• Classified employees part of state civil service system
until June 30, 2012
• Authority has control over revenue and interest
earnings related to tuition, auxiliaries, and other PR
UW Madison Authority
• UW Madison – s. 16.71(4) delegation to UW
Madison Trustees authority to contract for
materials, supplies, equipment or services
related to higher education.
• UW Madison – s. 16.73 (4m) allows UW
Madison trustees to enter into agreements
with other higher education institutions for
purchasing – does not appear to include UWS
UW Madison Authority
• Capital Projects - UW Madison – delegated authority
for non GPR / GFSB projects – s. 16.85 (1), 16.85 (12),
16.855 (22), 16.89
• Capital Projects – Enumeration of state funded
projects (GFSB or GPR)
• Building Commission approval of all projects over
$500,000
• State management of state funded projects
• Leases require Building Commission approval
UW Madison Authority
• Section 49 ((s. 13.48 (12) (b) 6. ) – the board may
allow privately owned or operated facilities on
University land without Building Commission
approval
• Section 1087 ((s. 37.11 (11)) – the board may invest
surplus moneys … that may be issued by such
nonprofit sharing corporation as may be contracted
with by the board for the construction or equipment
of dormitories, commons, or field houses…
Other Items
• Lapses – DOA secretary authorized to lapse GPR and
PFR from all employee compensation reductions,
elimination of positions, across the board cuts, and
elimination of the 2% wage increase. UW System is
not included in this lapse.
• DOA Secretary authorized to lapse an unallocated
$145 million GPR and PR from executive agencies.
UW System is not included in this lapse.
Other Items
• ECB – removes requirement that UW System provide
that the board grant part time use of equipment and
space necessary for the operations of the state
educational radio and television networks (section
968) (36.25 (5)
• Sale of Land – if the board sells any real property, the
board shall credit 20.285 (1) (iz) net of public debt
(section 1003) (s. 36.335)
Other Items
• Undocumented Persons – eliminate nonresident
tuition and fee exemptions
• UW-Milwaukee – Require Board of Regents to
allocate $250,000 for development of a plan to
convert UW-Milwaukee to an authority.
• Reports – eliminate required annual reports on
excess expenditures
• Appropriations – convert lab modifications and
master’s level business programs to continuing
appropriations.
Other Items
• Allow any UW campus to establish a charter
school with BOR approval
Procurement
• Increase threshold for sealed bids and proposals
from $25,000 to $50,000
• Eliminate uniform cost-benefit analyses for
contractual services
• Revise requirements related to prison industries
• Exempt equipment under $5,000 from energy
standards
• Permit DOA to maintain a list of bidders and
contractors who have been convicted of criminal
convictions
Economic Development
• Require the Board of Regents to coordinate
economic development with the Wisconsin
Economic Development Corporation (section 950
and 960) (s. 36.09 (1) (am) and s. 36.11 (29r) (b) 1.
• Create an Office of Business Development in DOA
with 2.0 FTE
Next Steps
• Legislative Process – Joint Committee on
Finance, Senate, and Assembly
• Decision on UW Madison as separate
authority
• Pursue Wisconsin Idea Partnership to manage
financial challenges going forward
References / 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