1. 1 Budget and Finances at UTPA An Overview

2. 2 What is a Budget? A plan for deploying financial resources to achieve a goal or goals Mission, Vision & Goals Strategic Plan Resources Plan (Budget) ResultsAssessment

3. 3 Types of Budgets OperatingCapitalEventProject Approaches Zero-basedIncrementalFormula Mix of the above Future for UTPA? Continuous Planning?

4. UTPA process (bottom up) 4 Key Players President Division Heads (division head staff) Deans/Directors Project Managers Administrative Services Officers Budget Staff Office of Institutional Research & Effectiveness Human Resources Comptroller’s Office Cost of Education Committee Student Affairs Advisory Committee President’s Cabinet Division Head Department

5. 5 Which Funds are Formally Budgeted? Budgeted  Educational and General  Designated  Auxiliary Enterprises  Restricted  Plant Funds (to extent used for operating) Non-Budgeted  Loan  Endowment & Similar Funds  Agency  Plant Funds (except portion used for operating)

6. 6 Resources Available to UTPA State Appropriations  Formula Funding (to be discussed in later section)  Special Line Items  Tuition Revenue Bond (TRB) Payments Student Tuition and Fees (to be discussed in later section) Transfers  From THECB: TEXAS Grants, Top 10% Scholarship, etc.  Pass-Through: UTEP’s Border Consortium, UTSA’s SBDC, etc. HEAF (Higher Education Assistance Funds)

7. 7 Resources Available to UTPA (cont.) Designated and Auxiliary Sales Revenue  Educational Activities  Housing and Meal Plans  Facility Use  Parking Revenue Indirect Cost Reimbursements (50% distributed as incentives) Restricted Funds (e.g., Grants, Gifts) Investment Income (endowment income, interest) Fund Balances (one time use)

8. Instruction & Operations Formula (matrix) The funding for each class is calculated as follows: Calculation  SCH (semester credit hour) count * matrix weight (per discipline and level)* funding rate. (Liberal arts = 1.00)  The lower of the student level or class level is used. Teaching Experience Supplement  Additional 10% included if class is taught by a tenured or tenure-track professor. Base year  Starts with every even numbered Summer and goes through Spring. An example; if 20 upper-division undergraduates each take a 3-hour course funded under the Business would yield: 60 SCH * 1.70 * $53.71 = $5478.40. 8

9. Infrastructure Support Formula (uses space projection Model) Teaching space Level and program areas of an institution’s funded semester credit hours Library space Faculty, students, approved programs, and holdings Research space Research expenditures and students’ reported semester credit hours Office space Faculty, staff, and current fund E&G expenditures Support space A percentage of the total prediction for all the other factors Fall 2010 deficit was 473,186 sq. feet (309,131 sq. feet was in Teaching Space). The deficit has increased every year since Fall 2005 when it was only 180,617 sq. feet. 9

10. 10 HEAF (Higher Education Assistance Funds) Established in 1984 as an amendment to the state constitution Funds can be used for: land, equipment, library materials, constructing and renovate buildings, Retire debt HEAF vs. PUF (Permanent University Fund) Elements; space, condition of facilities, complexity 1986-1995$2.9M 1996-2000$8.6M 2001-2005$6.0M 2006 & 2007$8.5M 2008$12.9M 2009 & 2010$13.2M 2011-2015$12.3M UTPA Allocations ►

11. Bond Debt 3 Types  Tuition Revenue Bond (TRB)  HEAF  Revenue Finance System (RFS) 11

12. 12 Appropriations & Budget Process Timeline

13. 13 Appropriations Outcomes (State of Texas) Source: LBB Summary Tables. 2010-11 reflects 5% reduction and certain anticipated supplemental spending adjustments. Includes estimated distribution of all employee benefits. 2010-11 Base does not include the $12.1 billion in ARRA appropriations. GENERAL REVENUE FUNDS, House Bill 1 ($M) 2010-11 2012-13 Change Percent Change Art. IGeneral Government 2,439.1 1,979.2 (459.9)-18.9% Art. IIHealth and Human Services 21,702.8 22,402.8 700.03.2% Art. IIIEducation 46,850.0 48,683.9 1,833.93.9% Public Education 33,783.6 36,827.2 3,043.69.0% Higher Education 13,066.4 11,856.7 (1,209.7)-9.3% Art. IVThe Judiciary 425.8 370.8 (55.0)-12.9% Art. VPublic Safety and Corrections 8,620.4 8,184.0 (436.4)-5.1% Art. VINatural Resources 874.3 653.5 (220.8)-25.3% Art. VIIBusiness and Economic Development 501.1 594.4 93.318.6% Art. VIIIRegulatory 293.3 276.2 (17.1)-5.8% Art. IXGeneral Provisions - (3,017.7) NA Art. XThe Legislature 372.2 339.4 (32.7)-8.8% Grand Total 82,079.0 80,466.5 (1,612.4)-2.0%

14. Appropriation Bill Comparison (UTPA) 14

15. 15 FY 2011 & FY 2012 Operating Budgets Fund GroupFY 2011 FY 2012% Education & General$166,981,968$164,690,50364.83% Designated42,959,10146,341,01618.24% Auxiliary19,470,67619,234,7677.57% Restricted76,013,54771,395,36827.32% Plant (operating)300,000500,000.20% Gross$305,725,292$302,161,654118.95% Adjustments*-41,870,522-48,134,364-18.95% Net$263,854,770$254,027,290100.00% *Adjustments: tuition discounting, capital outlay, debt principal, and depreciation.

16. Where Does UTPA Get Its Operating Funds? FY12%Revenues (in Millions)FY2011FY2012Change 22.6%State Appropriations (GR)$72.7$68.4-$4.3 36.1%Tuition & Fees98.5109.210.7 4.7%Sales, Services, Auxiliary, Other13.714.10.4 22.6%Sponsored Programs-Federal73.968.4-5.5 8.8%Sponsored Programs-State27.026.4-0.6 0.7%Sponsored Programs-Local2.52.2-0.3 1.9%Investments & Gifts4.95.60.7 0.1%Interagency Contract0.30.2-0.1 4.1%HEAF12.3 0.0 -0.6%Transfers (B-On-Time; Emer. Loans)-1.5-1.8-0.3 -1.0%Balances1.4-2.8-4.2 100.0%Totals$305.7$302.2-$3.5 16

17. Where Does UTPA Spend Its Operating Funds? FY12%Expenses (in Millions)FY2011FY2012Change 29.5%Instruction$88.8$89.1$0.3 6.3%Academic Support18.318.90.6 2.1%Research6.76.3-0.4 2.3%Public Service7.66.9-0.7 6.8%Institutional Support21.320.6-0.7 5.2%Student Services14.315.91.6 6.6%Operation & Maintenance of Plant20.219.8-0.4 29.0%Scholarships & Fellowships90.987.5-3.4 5.3%Auxiliary Enterprises16.216.1-0.1 3.9%Debt Service12.411.9-0.5 3.0%Capital Outlay9.09.20.2 100.0%Total$305.7$302.2 -$3.5 17

18. Expense Reductions AmountDescription $1,704,999Vacant Positions eliminated (64) 510,310Voluntary Separation Incentive Program (43) 935,289Positions eliminated due to reorganizations (26) 1,298,730Maintenance & Operations (50%) 233,543Travel budgets (50% cut with 10% in Div Pools) 18 Note: Wages identified in the contingency reduction plans were not touched in order to protect student employment.

19. Must Do AmountDescription $619,600Group Health Insurance - 5.25% increase in premium sharing 441,200Group Health Insurance - Coverage for first 90 days 329,400Other Increases (OASI, TRS, ORP) 440,726Comp Sys Licensing (increase from $1.98M to $2.42M) 400,000McAllen Teaching Site SLI 371,714Swap of expenses to Institutional funds 128,000Faculty Promotions 9,500Applicant Tracking System Lic/Maint 7,851Child Care Subsidy 19

20. Initiatives Funded AmountDescription $426,000 University College (Lower Level UG) 361,529 New/Emerging Academic Programs - new funds 200,000 Pay plan; Staff 200,000 Provost Office Reorganization 200,000 Student Employment Office 200,000 Summer faculty budget pool 150,000 Attorney 145,954 Shary Estate administrative/office support 111,242 5 Job Groups to be adjusted 100,000 Supplemental Instruction - restore funding 20

21. Initiatives Funded (cont.) 21 AmountDescription $68,040Marketing 65,000External evaluators for academic programs 55,000New Position: Marketing Project Manager (est. rate) 50,000Advising Reorganization 50,000Dual Enrollment Program Support (replenish SLI cut) 49,000Distinguished Speakers 48,000Scholarship for laid-off employees 40,000New Position: Endowment Services Manager (est. rate) 40,000Leadership training (LEAP) 10,000Center for Bilingual Studies

22. 22 Tuition and Fees Statutory Tuition & Lab Fees (E&G) Designated Tuition (Designated) Mandatory Fees  Designated:Academic Advisement Fee (undergraduates only)  Designated:Information Technology Access Fee  Designated:International Education Fee  Designated:Library Support Fee  Designated:Medical Service Fee  Designated:Registration Fee  Designated:Utility Fee  Auxiliary:Recreation Fee  Auxiliary:Student Service Fee  Auxiliary:Student Union Fee Incidental Fees (e.g. graduation fee, course fees)

23. Types of Tuition Statutory Tuition  Rates established by Ed Code Resident student rate at $50/SCH since Fall 2005 Non-resident rate equal to the average non-resident tuition at the 5 most populous states (FY12 = $363/SCH)  Included in Formula Funding  Texas Public Education Grant (TPEG) Set-Asides Board Authorized Tuition  Also known as Graduate Differential Tuition and/or Graduate Incremental Tuition.  Additional $50/SCH for graduate level coursework (total = $100/SCH) Designated Tuition  Rates established by institutions and their governing boards  Formerly known as Building Use Fee, then General Use Fee  De-regulated starting Fall 2003 (FY 2004)  Set-asides for need-based financial aid and B-On-Time program  14-hour cap at UTPA 23

24. 24 Tuition Rates at UTPA per SCH Fiscal Year Designated Tuition Statutory TuitionHeadcount 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$97.00$5018,337 2011$106.09$5018,744 2012$115.39$50n/a deregulated

25. Total Average Academic Costs at UTPA is the sum of all tuition, mandatory fees, and academic-related college and course fees (fees required of all students enrolled in a given college, program or course). 25 Resident Undergraduates – 15 HoursFall 2009Fall 2010 (preliminary) Fall 2011 Statutory Tuition $750 Designated Tuition 1,358 1,485 1,615 Mandatory Fees 604 614624 Average College/Course Fees 52 6266 Total $2,764 $2,911 $3,055 Increase ($) $147 $144 Increase (%) 5.3%4.9% Average - Texas Public Universities $3,323 $3,511 not avail. UTPA $ Below Average $559 $600 not avail. Resident Graduates – 9 HoursFall 2009Fall 2010 (preliminary) Fall 2011 Total $2,275 $2,373 $2,471 Increase ($) $98 Increase (%) 4.3%4.1%

26. 26 Tuition & Fee Rankings (15 hours, Fall 2010) Includes Tuition, Mandatory Fees and Average College and Course Fees 1 The University of Texas at Dallas 5,21119 Angelo State University 3,347 2 The University of Texas at Austin 4,70820 Texas A&M University – Corpus Christi 3,304 3 The University of Texas at Arlington 4,61621 The University of Texas at El Paso 3,280 4 Texas A&M University 4,45122 Texas A&M University – Kingsville 3,207 5 Texas Tech University 4,30023 West Texas A&M University 3,186 6 University of Houston 4,24524 Tarleton State University 3,146 7 The University of Texas San Antonio 4,20425 The University of Texas of the Permian Basin 3,086 8 University of North Texas 4,01126 Texas A&M International University 3,067 9 Texas State University – San Marcos 3,91927 Texas A&M University – Central Texas 3,029 10 Texas Women’s University 3,88128 University of Houston – Clear Lake 3,021 11 Texas A&M University at Galveston 3,76429 Texas A&M University – Commerce 2,999 12 Texas Southern University 3,73130 The University of Texas at Brownsville 2,962 13 Prairie View A&M University 3,64831 Texas A&M University – San Antonio 2,911 14 Stephen F. Austin State University 3,54131 The University of Texas - Pan American 2,911 15 Lamar University 3,47233 University of Houston – Victoria 2,849 16 Midwestern State University 3,47134 Sul Ross State University 2,774 17 Sam Houston State University 3,44135 University of Houston – Downtown 2,753 18 The University of Texas at Tyler 3,40336 Texas A&M University - Texarkana 2,543 Source: Texas Higher Education Coordinating Board

27. 27 Challenges  State appropriations are not keeping pace with needs  Shift in cost towards the students and families  Financial aid funds  Tight margins  Debt capacity near maximum  Land and construction needs (space deficit)  Facilities maintenance  Economic uncertainty  Low academic cost  Pressure to restrain tuition and fee rate increases  Inflexible revenue streams (fees)  Region’s student enrollment trends

28. FY 2013 and Beyond  GAA Article IX Reduction Rider for FY13  Tuition & Fee caps: 2.6% - 3.6%  Changes to formulas I & O (outcomes based approach) Space Projection Model changes  Enrollment Growth (30,000 target by 2020) 28

29. Online Resources Legislative Budget Board (appropriations)  http://www.lbb.state.tx.us/ http://www.lbb.state.tx.us/ Legislature online (bill & statute lookup)  http://www.capitol.state.tx.us/BillLookup/BillNumber.aspx http://www.capitol.state.tx.us/BillLookup/BillNumber.aspx Texas Higher Education Coordinating Board (formulas, recommendations, student data)  http://www.thecb.state.tx.us/ http://www.thecb.state.tx.us/  http://www.txhighereddata.org/ http://www.txhighereddata.org/ UT-System (tuition plans, policies, etc.)  http://www.utsystem.edu/affordability/ http://www.utsystem.edu/affordability/ 29

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