1. BUDGET 2015 AND LEGISLATIVE APPROPRIATIONS REQUEST 2016-2017 MARY SIMON, SR. DIRECTOR BUDGET PLANNING AND DEVELOPMENT MAY 6, 2014

2. AGENDA Trend - Paying Semester Credit Hours (SCH) Tuition and Student Fee Revenue Projections Budget Recap / Timeline Legislative Appropriations Request (LAR) Q&A

3. TREND - PAYING SEMESTER CREDIT HOURS 714.3 728.0 713.6 (SCH in thousands) 654.7 667.7

4. TUITION AND STUDENT FEE REVENUE PROJECTIONS 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 FY2014 $154,222 48,629 105,593 301 $69,266 40,372 28,894 $25,589 21,821 3,768 $249,378 (19,175) $230,203 Forecast FY2014 $150,492 50,000 100,492 294 $65,134 38,001 27,133 $24,557 20,954 3,603 $240,477 (18,084) $222,393 $ Change ($ 3,730) 1,371 (5,101) (7) ($4,132) (2,371) (1,761) ($1,032) (867) (165) ($8.901) 1,091 ($7,810) % Change (2.4%) 2.8% (4.8%) (2.3%) (6.0%) (5.9%) (6.1%) (4.0%) (4.4%) (3.6%) 5.7% (3.4%) Budget FY2015 $146,863 48,348 98,515 294 $63,887 37,320 26,567 $25,465 21,589 3,876 $236,509 (17,778) $218,731 ($000) Note: Forecast based on PAYING SCH Certified FALL, SPRING and Budget SUMMER

5. Draft Operating Budget 2015 does not include proposed Tuition and Fee increases being presented at the May BOR meeting Tuition & Fee revenue declined over Budget 2014 by approx. $11.5 Million or 5% Paying SCH total 654,700 compared to 702,000 for Budget 2014; a decline of 6.7% or 47,300 paying SCH Mandatory & Incidental Fees were reduced accordingly based on paying SCH or student head count Decline in Restricted Sponsored Program revenue resulted in a decline in F&A Recovery Merit will be decided based on the outcome of T&F proposal Draft Operating Budget final in DEFINE BUD System by May 9 th due to PeopleSoft system conversion. Any permanent budget updates will be processed via permanent transfers 9/1/14 BUDGET 2015 RECAP

6. 2015 BUDGET TIMELINE Feb. 5Board of Regents Budget Policies and Guidelines Approved Feb. 5-25Budget coordination of salary review reports of permanent positions and related funding Feb. 27University Strategic Resource Planning Council (USRPC) Meeting Feb. 27Draft Revenue Projections (Mandatory and Incidental Fees) provided to Fee Funded areas Mar 4 – 5Budget Training – Overview and BUD Document preparation (published in T&D booklets) March 6Benefits Template (website) and Longevity Reports (via Rowdy Space) provided to areas March 6FY15 Budget Document Preparation Begins (BUD System opens to departments) March 7Draft Debt Service Budgets provided to Financial Area reps March 12-13Budget Training – Hands on training available (available workstations for data entry) TBA by AreasInternal Department Deadlines for Budget Document review and approval March 31 st FY15 Budget Documents are due to Budget Office (BUD System closes to departments) April 1-6Preparation for UT System Budget Goals & Priorities Hearing AprilUSRPC Meeting to review Resources and Requirements April 16UT System/UTSA Budget Goals & Priorities Hearing May 12 April 28Draft FY15 Operating Budget due to UT System May 14-15Board of Regents to approve Tuition and Fee Proposal June 2Final FY15 Operating Budget due to UT System July 241 st Draft LAR Biennium 2016-17 due to UT System August 6Final LAR Biennium 2016-17 due to UT System August 20-21FY15 Operating Budgets approved by Board of Regents

7. LEGISLATIVE APPROPRIATIONS REQUEST FY 2016 - FY2017

8. LEGISLATIVE APPROPRIATIONS REQUEST (LAR) 2016 AND 2017 Laws and Policies Impacting Budgets Legislative Appropriations Request General Appropriations Act Role of the Texas Higher Education Coordinating Board Formula Funding Texas State Budget Cycle Legislature convenes every 2 years for 140 days in odd numbered calendar years beginning January 2 nd 2013 = 83 rd Legislative Session for FY14 and FY15 Budgets 2015= 84 th Legislative Session for FY16 and FY17 Budgets State of Texas budget is allocated once every two years; therefore, LAR is prepared to cover a 2 year time period. Each agency prepares and submits an LAR during even numbered years, prior to the start of the legislative session. The summation of each institution’s LAR forms the basis for the appropriations bill prepared by the Legislative Budget Board (LBB)

9. LEGISLATIVE APPROPRIATIONS REQUEST GENERAL APPROPRIATIONS ACT (GAA) GAA details biennial budget allocations and includes: State revenues only Certain restrictions on use of state funding Reporting & other requirements Online version of GAA is available on the LBB website: www.lbb.state.tx.us www.lbb.state.tx.us Academic institutions Direct appropriations from funding formula are lump sum and discretionary Most non-formula appropriations have restricted uses: – Special Items & Higher Education Group Insurance

10. THECB: OUTCOMES-BASED FUNDING - OBJECTIVE Texas Education Code Section 61.0593 states that, “it is in state's highest public interest to evaluate student achievement at institutions of higher education and to develop higher education funding policy based on that evaluation.” It further charges the Coordinating Board, in consultation with institutions of higher education, to incorporate the consideration of undergraduate student success measures in developing recommendations for university formula funding.

11. GAIFAC RECOMMENDATION– SUCCESS METRICS Total Undergraduate Degrees Total number of Bachelor’s Degrees awarded by an institution in a given year. Total Undergraduate Degrees by Graduation Rate Total Bachelor’s Degrees multiplied by the school’s six- year graduation rate, to incent timely completion. Total Undergraduate Degrees per 100 FTSE Degrees divided by Full Time Student Equivalents (FTSEs) and multiplied by 100. This aggregate measure adjusts for part-time and transfer students, providing a common framework for comparing degree productivity. At-Risk Undergraduate Degrees Degrees awarded to students who meet federal criteria for being at high risk for non-completion. Retention Metrics Points awarded for students who complete their 30th, 60th, or 90th hour at the institution, to incentivize the use of effective persistence policies. 11

12. GAIFAC RECOMMENDATION – ALLOCATION Allocate Funds based on: Points earned on the 7 success metrics The average of the three most recent years of data Points scaled statewide Points weighted by institutions Phased-in over three biennia More information on Outcome Based Funding (OBF) will be presented at the University Strategic Resource Planning Council

13. REVENUE FUNDING SOURCES State Appropriations: Formula Funding, Special Items, Benefit Cost Sharing (General Revenue) THECB Transfers: TX Grant, Work-study, etc. Statutory Tuition, Certain Fees (General Revenue-Dedicated) Designated Tuition & Fees Indirect Cost Recovery Facilities & Administrative Overhead Auxiliary Enterprise Funds Housing, Parking, Athletics, Bookstore, University Center, Food Services Restricted Funds Gifts, Financial Aid & Grants/Contracts Plant Funds Buildings and Capital Improvements State Funds Also referred to as E&G: Educational & General budgets Designated Funds Also referred to as Local funds Must be 100% Self-Support; no subsidies from other funds

14. LEGISLATIVE CYCLE (GAA) FY 2016 - FY 2017 April 2014Base Reconciliation Instructions Issued May 2014 Budget (LAR) Instructions Issued by Legislative Budget Board (LBB) and Governor’s Office of Budget Planning and Policy (GOBPP) June 2014Base Reconciliation is due June – July 2014LBB provides General Revenue (GR) Target to Institutions August 2014Agency Budget Request (LAR) submitted to LBB and GOBPP August – SeptemberPublic Hearing s conducted by LBB and GOBPP October 2014LAR Updates submitted January 2015LBB Recommended Appropriation Bill is filed as both a House and Senate Bill January 2015House and Senate Committees and subcommittees named Jan – February 2015House and Senate LAR Hearings Feb – April 2015House and Senate create ad approve separate versions of GAA April – May 2015Conference Committee creates final version of GAA May 2015House and Senate Approval Conference Committee version of GAA Refer to UTSA Budget Office – CALENDAR – LAR for Internal Due Dates: http://www.utsa.edu/financialaffairs/budget/ http://www.utsa.edu/financialaffairs/budget/

15. 15 Helpful Reference Web Sites Legislative Budget Board http://www.senate.state.tx.us/SRC/pdf/Budget_101-2011.pdf http://www.senate.state.tx.us/SRC/pdf/Budget_101-2011.pdf TASSCUBO – LAR Workshop Materials http://tasscubo.org/LAR.htm Nationally-recognized model state government information portals: State Government Expenditures http://www.texastransparency.org http://www.texastransparency.org Texas Legislature Online http://www.capitol.state.tx.us/ http://www.capitol.state.tx.us/