1. Overview of Budget, Finances and Academic Costs Cost of Education Committee August 7, 2009

2. Agenda Tuition and Fee Setting Process Appropriations & Budget Cycle Timeline Higher Education Funding UTPA Operating Budget Tuition and Fees (including “Total Academic Cost”) Financial Aid Availability Challenges

3. Tuition and Fee Setting Process

4. Tuition and Fee Setting Process (cont.)

5. UT System Guidelines Institutions submit proposals for 2 years at a time during a major cycle and one year at a time in a minor cycle. Focus on total academic cost (average paid by a Resident Undergraduate Student for 15 hours) Promote predictability of academic costs for students and parents Identification of cost savings

6. 6 Which items are eligible for updates in this cycle? “Everything”  Justification for existing fees  Fees for new degree programs or requirements  Changes to courses affected by existing fees (subject to Executive Vice Chancellor review)  Designated Tuition  Mandatory Fees

7. 7 Designated Tuition and Utility Fee Proposals – Fall 2007 COEC Recommendation vs. Final Rates FY 2008 COEC Proposed FY 2009 COEC Proposed FY 2010 Final* FY 2009 Final* FY 2010 Des. Tuition Rate per SCH $79.15$108.60$125.90$87.70 $97.00 ($101.70 for Grad Level) + Utility Fee $2.85-- Combined Rate per SCH $82.00$108.60$125.90$90.55 $99.85 ($104.55 for Grad Level) Increase-$26.60$17.30$8.55$9.30 Foregone Revenue$8.1M$10.9M *UT System Board of Regents limited the annual increase in academic costs to the greater of $150 or 4.95% for a 15-hour resident undergraduate course load.

8. 8 Appropriations & Budget Timeline s

9. 9 UTPA’s Strategic Planning Goals (Compact with UT-System FY09 – FY10) 1. Improve Graduation Rates 2. Implement & Refine Quality Enhancement Plan (gatekeeper mathematics courses) 3. Improve organizational processes & structure 4. Increase research & doctoral programs 5. Increase graduates in science, technology, engineering, math, nursing & allied health

10. 10 Higher Education Funding - Background State appropriations are not keeping pace with needs. The percentage of the budget funded by Formula (GR) General Revenue has steadily declined since FY 2000. Trend toward viewing higher education as a private good instead of a public good Unlike community colleges UTPA does not receive property tax revenues

11. 11 UTPA Budget vs. State General Revenue for Core Operations (Formula) NOTE: General revenue shown is appropriations by the state for basic operations. Not included are funds the institution receives, from the state, for special line items, bond payments & other transfers such as Texas Grant.

12. 12 UTPA Formula Appropriations per FTSE (FY 2001 to FY 2008)

13. What State funds Does UTPA Receive? Formulas: 1. Instruction & Operations 2. Infrastructure Support 3. Teaching Supplement (tenure & T-Track) Special Line Items Incentive Funds Tuition Revenue Bond (TRB) Payments HEAF Funds Transferred from the Coordinating Board (ATP/ARP, Texas Grant, etc.) Flow-through funds (UTEP’s Border Consortium, UTSA’s SBDC, etc.)

14. 14 Formulas Instruction & Operations (matrix) SCH X Factor X rate Liberal arts = 1.00 (base) Infrastructure support (uses space projection Model) 1. Teaching space Level and program areas of an institution’s funded semester credit hours 2. Library space Faculty, students, approved programs, and holdings 3. Research space Research expenditures and students’ reported semester credit hours 4. Office space Faculty, staff, and current fund E&G expenditures 5. Support space A percentage of the total prediction for all the other factors

15. 15 HEAF Higher Education Assistance Funds (est. 1984) Funds can be used for: land, equipment, library materials, constructing and renovate buildings, Retire debt HEAF vs. PUF (Permanent University Fund) 1986-1995$2.9M 1996-2000$8.6M 2001-2005$6.0M 2006 & 2007$8.5M 2008$12.9M 2009 & 2010$13.2M 2011$12.3M UTPA Allocations ►

16. 16 UTPA Operating Budget – Which Funds are Budgeted? Budgeted Educational and General Designated Auxiliary Enterprises Restricted Plant Funds Non-Budgeted Loan Endowment & Similar Funds Agency

17. 17 Funding Sources of FY 2010 Operating Budget FY 2010 Operating Budget: $283,615,685

18. 18 Where Does UTPA Get Its Operating Funds? 2010 Operating Budget (Total = $283.6M) State Appropriations$78.4M27.7% Tuition & Fees$92.3M32.6% Sales, Services, Auxiliary$11.8M4.2% Sponsored Programs-Federal$59.9M21.1% Sponsored Programs-State$23.5M8.3% Sponsored Programs-Local$2.6M0.9% Investments & Gifts$3.0M1.0% Interagency Contract$0.3M0.1% HEAF$13.2M4.6% Transfers and Balances-$1.4M-0.5%

19. Where Does UTPA Spend Its Operating Funds? 2010 Operating Budget (Total = $283.6M) Instruction$88.6M31.2% Academic Support$16.3M5.7% Research$5.8M2.0% Public Service$7.9M2.8% Institutional Support$20.9M7.4% Student Services$14.8M5.3% Oper & Maint of Plant$20.0M7.1% Scholarships & Fellowships$73.0M25.7% Auxiliary Enterprises$15.1M5.3% Debt Service$12.4M4.4% Capital Outlay$8.8M3.1%

20. 20 Tuition and Fees Statutory Tuition & Lab Fees (E&G) Designated Tuition (Designated) Mandatory Fees Academic Advisement Fee (Designated – undergraduates only) Information Technology Access Fee (Designated) International Education Fee (Designated) Library Tech Fee (Designated) Medical Service Fee (Designated) Registration Fee (Designated) Utility Fee (Designated) Recreation Fee (Auxiliary) Student Service Fee (Auxiliary) Student Union Fee (Auxiliary) Incidental Fees

21. 21 Tuition Rates at UTPA per Semester Credit Hour Fiscal Year Designated Tuition Statutory TuitionHeadcount 2000$22$3812,571 2001$22$4012,761 2002$26$4213,640 2003$26$4414,392 2004$32$4615,915 2005*$38$4817,030 2006$46$5017,049 2007$63.15$5017,330 2008$79.15$5017,435 2009$87.70$5017,573 2010 $97 ($101.70 Graduate) $50 * Designated Tuition was deregulated starting with FY 2005.

22. Comparative Designated Tuition Rates per SCH (Deregulated for FY 2005) FY04FY05FY06FY07FY08FY09 UT Austin$46$94Varies UT Dallas *$46$88$110 $119.45$122.78$134.11 UT El Paso$46$78$85.50$93.70$101.70$110.20 UT San Antonio$46$76$82.25$101$110$120.85 UT Arlington *$46$73 min $79.75 $124.26 $139 $152 UT Tyler$46$62$77.50$85$95$105 UT Perm. Basin$41$52$65$79$86$96 UT Pan Am$32$38$46$63.15$79.15$87.70 UT Brownsville$32$38$44$66$78$83 * FY 2007, 2008, 2009 based on average of 15 SCH. Actual tuition per SCH will vary based on class load.

23. Average Total Academic Costs (Resident Undergraduates taking 15 Hours) 23 Fall 2008Estimated Fall 2009 UTPA: Statutory Tuition $ 750.00 Designated Tuition 1,227.80 1,358.00 Mandatory Fees 584.45 604.35 Average Course/Program Fees 35.75 43.72 UTPA Total $ 2,598.00 $ 2,756.07 Other UT schools: UT-Arlington $4,071$4,273 UT-Austin $4,254$4,477 UT-Brownsville $2,718$2,828 UT-Dallas $4,647$4,919 UT-El Paso $3,048$3,184 UT-Permian Basin $2,725$2,864 UT-San Antonio $3,829$4,046 UT-Tyler $2,963$3,105

24. 24 Total Academic Cost Rankings (15 hours, Fall 2008) Includes Tuition, Mandatory Fees and Average College and Course Fees 1The University of Texas at Dallas $ 4,647 2The University of Texas at Austin 4,254 3Texas A&M University 4,148 4The University of Texas at Arlington 4,071 5University of Houston 3,981 6The University of Texas at San Antonio 3,829 7University of North Texas 3,584 8Texas Tech University 3,570 9Texas State University - San Marcos 3,497 10Texas A&M University at Galveston 3,435 11Prairie View A&M University 3,412 12Stephen F. Austin State University 3,270 13Texas Southern University 3,201 14Texas Woman's University 3,154 15Sam Houston State University 3,053 16The University of Texas at El Paso 3,048 17Lamar University 3,032 18Midwestern State University $2,996 19The University of Texas at Tyler 2,963 20University of Houston - Clear Lake 2,928 21Texas A&M University - Corpus Christi 2,925 22Tarleton State University 2,820 23Texas A&M University – Kingsville 2,745 24The University of Texas of the Permian Basin 2,725 25The University of Texas at Brownsville 2,718 26Angelo State University 2,705 27Texas A&M International University 2,698 28West Texas A&M University 2,691 29University of Houston - Victoria 2,657 30The University of Texas - Pan American 2,598 31Texas A&M University - Commerce 2,585 32Sul Ross State University 2,545 33University of Houston - Downtown 2,505 34Texas A&M University - Texarkana 2,121 Source: Texas Higher Education Coordinating Board: Tuition & Fees Data (THECB) available at www.txhighereddata.org. www.txhighereddata.org

25. 25 Tuition and Fee Approaches  Fixed Rate (UT-Arlington, UT-Austin)  4-Yr Guaranteed Cost Option (UT-Dallas)  14-Hour Cap (UTPA)

26. 26 Financial Assistance Set Aside A portion of the designated tuition charges are required to be set aside to provide need-based financial assistance for resident students. Estimated total set-asides are as follows: FY 2008FY 2009FY 2010 Undergraduates*$2,510,377$3,209,156$3,929,955 Graduates170,166209,674290,108 Total$2,680,543$3,418,830$4,220,063 Increase ($)-$738,287$801,233 Increase (%)-27.5%23.4% * One fourth of the undergraduate set aside amount is used for B-On-Time loans.

27. 27 Projected Financial Assistance Initiatives from Tuition Set Asides in FY10 (Need-Based) Funded with Designated Tuition Set Aside (Total = $4,220,063) UTPAdvantage Program - $837,000 Summer Grants - $643,466 Work-study Program - $50,000 Scholarship Matching Programs - $200,000 Other Undergraduate Student Assistance - $1,217,000 B-on-Time Loan Funds - $982,489 Graduate Student Tuition Grant - $290,108 Funded with Statutory Tuition Set Aside: Texas Public Education Grant (TPEG) - $3,430,906

28. 28 Financial Aid Awards FY 2006FY 2007FY 2008 Grants$46,030,714$50,861,903$57,628,181 Scholarships8,274,8739,582,81810,274,515 Work-study2,277,5502,159,4052,297,359 Waivers5,320,2375,933,1126,628,913 Loans29,735,55033,802,36934,385,001 Total$91,638,924$102,339,607$111,213,969

29. 29 Challenges  Rising academic standards/enrollment  Concurrent Enrollment / Early College HS  Shift in cost towards the students and families  Financial aid funds  Tight margins  Debt capacity near maximum  Land and construction needs  Facilities maintenance  Economic uncertainty  State shortage of discretionary funds  Pressure to restrain tuition and fee rate increases

30. 30 Contact Information UTPA Budget Office website: www.utpa.edu/budget/ Email: Budgetoffice@utpa.edu