1. Operating Budget Overview Presented to the Tuition and Fee Committee November 13, 2009 Presented to the Tuition and Fee Committee November 13, 2009

2. UTSA Operating Budget Overview AGENDA   Fund Sources   State / Designated / Auxiliary / Restricted   Where the Money Comes From and Where the Money Goes   State Funds - Educational & General   Discretionary vs. Non-Discretionary   State Revenue and Tuition Trends   Other Revenues - Designated, Auxiliary, Restricted   Discretionary vs. Non-Discretionary Funds   Designated Tuition Uses   Fund Sources   State / Designated / Auxiliary / Restricted   Where the Money Comes From and Where the Money Goes   State Funds - Educational & General   Discretionary vs. Non-Discretionary   State Revenue and Tuition Trends   Other Revenues - Designated, Auxiliary, Restricted   Discretionary vs. Non-Discretionary Funds   Designated Tuition Uses

3. Fund Sources Fiscal Year 2010   State Funds ($178.9 M)   State Appropriations: Formula Funding, Special Items, Benefits   THECB Transfers: TX Pub Ed Grant (TPEG), Work-study, etc.   Statutory Tuition and Certain Lab Fees   Designated Funds ($151.3 M)   Designated Tuition, Mandatory, Course & Incidental Fees   Indirect Cost Recovery: Facilities & Administrative Overhead   Auxiliary Enterprise Funds ($50.6 M) Housing, Parking, Athletics, Bookstore, University Center, Food Services   Restricted Funds ($86.7 M) Gifts Sponsored Programs – Grants/Contracts Federal Financial Aid State Funds Also referred to as E&G: Educational & General budgets Designated Funds Also referred to as Institutional funds Auxiliary Funds Must be 100% Self-Support; no subsidies from other funds $34.6 Mil

4. Where the Money Comes From Fiscal Year 2010 Revenue Sources $467.4 Million

5. Where the Money Goes Fiscal Year 2010 (By Expense) Operating Expenses $467.4 Million

6. State Funds Educational & General (E&G) State Appropriations - TOTAL General Revenue Tuition Revenue Bond Retirement Research Development Fund Special Items Benefits Paid by the State General Revenue Dedicated - TOTAL Statutory Tuition Lab & Supplemental Fees State Grants & Contracts THECB – Incentive Funding THECB – College Work Study THECB – Texas Grant Program Budget 2010 $127,27672,89212,4803,40215,27323,229$40,24039,896344$10,6902,4912008,000 Type of Revenue DiscretionaryNon-DiscretionaryNon-DiscretionaryNon-DiscretionaryNon-DiscretionaryDiscretionaryNon-DiscretionaryNon-DiscretionaryNon-DiscretionaryNon-Discretionary (In thousands)

7. State Funds - Statutory Tuition   Rates established by Texas Education Code 54.051 ($50/SCH since Fall 2005 for resident undergraduate students)   Same rate for all UT institutions   Graduate students pay 2 times undergraduate rate, referred to as Graduate Incremental Tuition (Rate has remained at $100/SCH since Fall 2005)   Non-resident students pay rates equal to the average non-resident tuition at the 5 most populous U.S. states Rates are determined by The Higher Education Coordinating Board (THECB) and listed under Texas Ed Code §54.051(d). The current non-resident student rate is $331/SCH for UG and $662/SCH for GR.   Statutory Tuition is a revenue source for the Instructional & Operation (I/O) Formula, an amount estimated in the General Appropriations Act  The Institution bears the impact of any over or under collection of budgeted revenue – worse for campuses who lose enrollment

8. State Appropriations by UT Campus

9. State Appropriations and Total Revenues *net of adjustments for comparison to Annual Financial Report

10. State Appropriations and Tuition Revenue

11. Revenue per FTE Student

12. Other Revenues DESIGNATED REVENUE Designated Tuition Mandatory Student Fees Program, Course Related/Incidental Net Sales & Service F&A Indirect Cost Recovery Net Investment Income Other AUXILIARY REVENUE Mandatory Student Fees Net Auxiliary Enterprises Net Investment Income RESTRICTED REVENUE Grants Financial Aid Gifts BUDGET 2010 $151,27879,98439,88217,4205,0196,1502,515308$50,61723,15426,898565$86,69342,69135,4968,506 Revenue Type DiscretionaryNon-DiscretionaryNon-DiscretionaryNon-DiscretionaryDiscretionaryDiscretionaryDiscretionaryNon-DiscretionaryNon-DiscretionaryQuasi-DiscretionaryNon-DiscretionaryNon-DiscretionaryQuasi-Discretionary (In thousands)

13. Designated Funds - Designated Tuition In 2003, the legislature ‘deregulated’ designated tuition rates to counteract declining state revenue.   Rates are set by the Board of Regents   FY 08 = $101/SCH FY09 = $110/SCH FY10 = $120.85   Very important revenue stream   Only discretionary source of new revenue in the 2 nd year of the biennium to fund merit, mandatory cost increases, new faculty, strategic initiatives, etc.

14. Designated Tuition Uses Budget 2010 Designated Tuition Revenue $80.0Uses: % of Total Financial Aid Programs $13.717.1% Instruction & Academic Support 20.725.9% Student Services 3.74.6% Debt Service & Capital Outlay 10.413.0% Operations & Maintenance of Plant 14.818.5% Institutional Support 15.018.8% Other Expenses 1.72.1% Total Uses $80.0100% (in millions)

15. Your Tuition Dollars at Work Instruction & Academic Support Expenditures for salaries, wages, and all other costs related to those engaged in the teaching function including the operating costs of instructional departments. This would include the salaries of faculty, teaching assistants, lecturers and teaching equipment. Library materials and related salaries are also included. Budget 2010 funding $20.7 M from Designated Tuition $16.9 M – Faculty Salaries $3.1 M – Departmental Operating Costs (office furniture, computers, printers, office supplies, equipment, travel, etc.) $0.6 M – Teaching Assistants $0.1 M – Special Items ( TEX-Prep, Water Research Center )

16. Your Tuition Dollars at Work 163 new faculty FTE’s added over five years 14% increase from Fall 2005 to Fall 2009 36 new budgeted faculty FTE’s for Fiscal Year 2010

17. Your Tuition Dollars at Work 163 new faculty FTE’s added over five years Student Faculty ratio has improved 6% over the last five years # of FTE students per faculty member

18. Expenditures for central activities concerned with administration and long-range planning for the entire institution. Expenditures related to: Executive direction, planning, programming, and legal operations Activities to maintain relations with the community, alumni, or other constituents; development and fund raising Fiscal operations (accounting office, financial services, budget office) Activities related to general administrative operations and services (human resources office, purchasing office, etc) Budget 2010 funding $15.0 M from Designated Tuition $11.1 M – Salaries, Wages, and Benefit Expenditures $3.9 M – Departmental Operating costs Your Tuition Dollars at Work Institutional Support

19. Expenditures for offices of admissions and of the registrar and activities with the primary purpose of contributing to students’ emotional and physical well-being and intellectual, cultural, and social development outside the context of the formal instruction program. Budget 2010 funding $3.7 M from Designated Tuition $2.7 M – Salaries, Wages, and Benefits $1 M – Departmental Operating costs Your Tuition Dollars at Work Student Services

20. Expenditures of current operating funds for the operation and maintenance of the physical plant. This includes all expenditures for operations established to provide services and maintenance related to grounds and facilities. Also included are utilities, fire protection, property insurance, and similar items. Campus Police Environmental Health & Safety Facilities Budget 2010 funding $14.8 M from Designated Tuition $8.2 M – Utilities $1.3 M – University Leases $2.0 M – Salaries, Wages, and Benefits $1.3 M – Misc Projects including fire safety, chemical/radiation waste, environmental testing, and property insurance $1.9 M – Departmental Operating costs Your Tuition Dollars at Work Operation & Maintenance of Plant

21. Debt Service – Interest and principal payments from borrowed funds for Capital Projects approved by the Board of Regents such as construction of a building or renovation of existing facilities. Capital Outlay – acquisition of a long-lived assets Budget 2010 funding $10.4 M from Designated Tuition $2.5 M – Renovation Projects (classroom, lab, and restroom renovations, network upgrades, etc.) $3.0 M – Building and facilities repairs (Deferred Maintenance) $1.6 M – Miscellaneous Projects $3.3 M – Debt Service Your Tuition Dollars at Work Debt Service & Capital Outlay

22. What debt does Designated Tuition pay for? Downtown Building Phase II Downtown Campus Cladding Repairs Monterey Building Acquisition Thermal Energy Plant No. 2/Garage Campus Roadway & Parking Improvements Your Tuition Dollars at Work Debt Service & Capital Outlay

23. What the state requires (need based programs): Scholarships - $6.1 M Work-study Programs - $1.2 M B-on-Time Program - $2.2 M Total – $9.5 M Other programs funded by Designated Tuition: Scholarships - $0.6 M Fellowships - $2.3 M Incentive Programs - $0.4 M TX Tomorrow Fund & Interest Free Loan/Forgiveness Program - $0.8 M Total – $4.1 M Your Tuition Dollars at Work Financial Aid Programs - $13.7 M

24. Your Tuition Dollars at Work Budget 2010 Recap Faculty Salaries $16.9 Staff Salaries & Wages 15.8 Departmental Operating Costs 9.9 Teaching Assistants 0.6 Financial Aid Programs 13.7 Utilities8.2 University Leases 1.3 Misc Projects (O&M of Plant) 1.3 Renovation Projects 2.5 Building & Facilities Repairs 3.0 Debt Service 3.3 Misc Capital Projects 1.6 Other Expenses 1.8 Total Designated Tuition $79.9 (in millions)

26. Special Item Support Fiscal Year 2010 Instruction and Academic Support: Texas Pre-Engineering Program Texas Pre-Engineering Program Center for Water Research Center for Water Research$662.1133.8 Downtown Campus – Phase II Downtown Campus – Phase II 1,312.5 1,312.5 Research: San Antonio Life Sciences Institute San Antonio Life Sciences Institute2,000.0 Institutional Enhancement 1,981.4 Public Service: Small Business Development Center Small Business Development Center SBDC – South West Texas Border SBDC – South West Texas Border The Institute of Texan Culture The Institute of Texan Culture Texas State Data Center Texas State Data Center P-16 Council P-16 Council3,992.21,213.23,087.1640.7250.0 Total Special Items $15,273.0 (In thousands)