BUDGET UPDATE: MID-YEAR REVIEW AND BUDGET CALENDAR MARY SIMON, SR. DIRECTOR BUDGET PLANNING AND DEVELOPMENT FEBRUARY 18, 2015

AGENDA 84 th Legislative Process Trend - Paying Semester Credit Hours (SCH) Tuition and Student Fee Revenue Projections Revenue Projections and Assumptions (Mid Year FY 2015 and Budget 2016) Revenue / Expense Budget Planning Hyperion Public Sector Planning & Budgeting (PSPB) 2016 Budget Planning Calendar Q&A

3 84 TH LEGISLATURE LEGISLATIVE APPROPRIATION REQUESTS (LAR) PROCESS State of Texas’ two-year budget takes roughly twice that amount of time to prepare, produce, and administer. Agencies develop Legislative Appropriations Requests in the first year and the legislature approves the General Appropriations Act in the second year. The approved budget is implemented over the next two years.  Strategic Planning – Spring 2014  LAR Submission – Summer 2014  Legislative Budget Board (LBB) and Governor’s Office Budget Recommendations – Fall 2014  General Appropriations Act (GAA) – Spring 2015

4 84TH LEGISLATIVE SESSION FISCAL NOTES PROCESS AND POTENTIAL IMPACTS  Fiscal Notes Process State statute requires a fiscal note be prepared and accompany a bill or joint resolution as it goes through the legislative process. A fiscal note is a written estimate of the costs, savings, revenue gain, or revenue loss that may result from implementation of requirements in a bill or joint resolution. Bills to Watch:  Set-Aside Tuition for Financial Assistance  Tuition Exemptions – Hazlewood  Concealed Handguns

TREND - PAYING SEMESTER CREDIT HOURS (SCH in thousands)

FALL 14 FALL 13FALL over FALL BUDGET Certified Incr. (Decr.)% Change UG - Resident271, , ,2214,4891.6% UG - Non-Resident12,902 12,809 14,257 (1,448)(10.2%) G - Resident21,705 20,153 20,510(357)(1.7%) G - Non-Resident1,815 2,040 1, % Doctoral - Resident5,247 5,182 5, % Doctoral - Non-Resident % Total – Paying SCH312, , ,075 2,9530.9% YEAR OVER YEAR - PAYING SCH FALL AND SPRING COMPARISON SPRING 15 SPRING 14 SPRING over SPRING BUDGET Pre- Certified Est. CertifiedIncr. (Decr.)% Change UG - Resident245, , , % UG - Non-Resident11,684 11,811 12,963 (1,152)(8.9%) G - Resident19,655 20,86419, % G - Non-Resident1,643 2,1281, % Doctoral - Resident4,752 4,800 4,806 (6)(0.1%) Doctoral - Non-Resident % Total – Paying SCH283, ,615288, %

TUITION AND STUDENT FEE REVENUE PROJECTIONS (PRELIMINARY) 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 FY2015 $147,251 48,348 98, $70,066 43,499 26,567 $19,286 15,410 3,876 $236,897 (5,060) $231,837 Forecast FY2015 $151,033 49, , $71,049 44,137 26,912 $19,286 15,410 3,876 $241,662 (5,180) $236,482 $ Change $ 3,782 1,449 2,333 0 $ ,765 (120) 4,645 % Change 2.6% 3.0% 2.4% 0.0% 1.4% 1.5% 1.3% 0.0% 2.0% (2.4%) 2.0% ($000) Note: Forecast based on PAYING SCH Certified FALL, Pre-Certified SPRING (est) and Budget SUMMER

REVENUE PROJECTIONS & ASSUMPTIONS MID YEAR FY 2015 AND BUDGET 2016 Methodology: Revenue projections are based on Paying SCH and/or student headcount (i.e. Mandatory fee projections). Paying SCH Total 670,169 based on Certified FALL 14, Pre-Certified SPRING 15 and Budgeted SUMMER 15 Incidental Fee projections are under review and will be based on trend analyses Full Year Forecast FY 2015  Budget adjustments will be recorded for Mandatory and Incidental Fees based on current projections  Fee Administrators & Area Reps will be notified in early March following Paying SCH pre-certified data Operating Budget 2016 Tuition and Mandatory Fee Budgets are expected to remain relatively flat at current budget levels  Incidental Fee Budgets will be reviewed and recommendations provided in March  Any deviations to projections will need to be discussed and approved by Sr. Budget Director prior to departmental submissions

EXPENSE BUDGETS - STATUS QUO BUDGETS DEPARTMENTAL ACCOUNTS FUNDED WITH DESIGNATED TUITION Status Quo Base Budgets Departmental Operating budget preparation assumes no new money, i.e. ‘same base budgets’ Budget Development process begins before budget planning is complete University Strategic Resource Planning Council will review budget recommendations in Spring for tuition, fees and semester credit hour projections Budget Office will update Annual Operating budgets for impacts based on final allocations Exception: Budgets funded by fees will be coordinated with areas should estimates be further modified.

HYPERION FOR BUDGET 2016 (1 OF 2) PUBLIC SECTOR PLANNING & BUDGETING (PSPB) UT Share Hyperion-Public Sector Planning & Budgeting (PSPB) will be used for developing Budget 2016 Budget Development will be semi-centralized with Area Budget Coordinators identified by VP Areas Approximately 50 Budget Coordinators have been selected UTSA is only campus with update access to Department Area Budget Coordinators Area Budget Coordinators will review, reconcile and update final budgeted amounts Final Budgets will route from Area Budget Coordinators to each VP Budget Coordinator Hyperion PSPB planning tool is a flexible web based application Base Line Budget will be established using Budget Permanent Transfers System is loaded with converted data based on DEFINE BUD System and PeopleSoft HCM position data, reflecting the latest salaries upon data load Position attributes (i.e. FTE, % funding distribution, etc.) are used to calculate budgets Non-transactional based system and will reflect ending balances by cost center Updates to budget amounts can be made via spreadsheet uploads Permanent position updates require data entry in system to reflect changes and/or updates processed in PeopleSoft HCM

HYPERION FOR BUDGET 2016 (2 OF 2) PUBLIC SECTOR PLANNING & BUDGETING (PSPB) Training will be provided by Central Budget to Area Budget Coordinators Hyperion training materials are being provided by UT Share Central Budget will be sending information to Area Budget Coordinators and provide system training towards the end of March Budget Office will provide preliminary reports to Area Budget Coordinators Report data will assist in the review of Hyperion data prior to training Reports to include Original Budgets, Permanent Positions and Permanent transfers by cost center Reporting will be downloadable to MS Excel by Area Budget Coordinators Hierarchical reporting capabilities (department hierarchy; roll up by VP) MS Excel spreadsheets will display positions and comparative Budgets Decentralized reporting with flexible report formats (i.e. groupings by Fund, Department and Cost Center) Area Budget Coordinators will coordinate and distribute budget reports to Department Administrators for the final budget development

2016 BUDGET PLANNING CALENDAR Feb 18Planning Calendar to Financial Area Reps (FAR) March 10Mid-Year Revenue Adjustments Coordinated with Fee Administrators March 12Draft 2016 Revenue Projections (Mandatory and Incidental Fees) provided to Fee Administrators March 24Hyperion PSPB - Opens to “Area Budget Coordinators” (Baseline Budget 2016) Mar Hyperion PSPB Budget Training to Area Budget Coordinators (T&D booklet– closed enrollment) TBA - AreasInternal Department Deadlines coordinated by VP Areas for Hyperion Data Review March 30Benefits Template posted to website and Non-E&G Longevity Report information April 7Draft Debt Service Budgets provided to Financial Area reps April 8-14Hyperion PSPB Hands on training to Area Budget Coordinators (T&D booklet– closed enrollment) April Hyperion PSPB – Reconciliation by Area Budget Coordinators – Budget 2016 Version 1 May 1 - 8Hyperion PSPB – Reconciliation by Central Budget Office – Budget 2016 Version 2 TBD Strategic Resource Planning Council meeting to review FY16 Revenue projections; Resources and Requirements for Annual Operating Budget May 27 - June 10 Preparation for UT System Budget Goals & Priorities Hearing June 10UT System/UTSA Budget Goals & Priorities Hearing June 29Draft FY16 Operating Budget due to UT System July 15Final FY15 Operating Budget due to UT System Aug 21-22FY15 Operating Budgets approved by Board of Regents