1. Overview of State Budget FOR THE 2012–13 BIENNIUM JANUARY 2011 HOUSE VERSION   LBB baseline appropriations for state government ops total $156.4 billion from all fund sources. ,  a $31.1 billion, or 16.6 percent, decrease from the 2010–11 biennial level.   General Rev & GR-Dedicated total $79.3 billion, a decrease of $9.2 billion, or 10.4 percent SENATE VERSION   LBB baseline appropriations for state government ops total $158.7 billion from all fund sources.   a $28.8 billion, or 15.4 percent, decrease from the 2010–11 biennial level.   General Rev & GR-Dedicated total $79.7 billion, a decrease of $8.8 billion, or 9.9 percent

2. Overview of Impacts to UT San Antonio Overview of Impacts to UT San Antonio   General revenue is reduced by 19.5%, over the biennium.   Formula, incentive & other discretionary funding is cut 15%, over the biennium.   Cuts to other Special Items & Research Development Funds make up the remaining reductions. SENATE VERSION   General revenue is reduced by 15.7%, over the biennium.   Formula, incentive & other discretionary funding is cut 11.3%, over the biennium.   Cuts to other Special Items & Research Development Funds make up the remaining reductions. HOUSE VERSION

3. Overview of Impacts to Higher Education Overview of Impacts to Higher Education   ARRA funds were not replaced for formula, incentive funding or special items.   Special Items were cut 25% in addition to the 5% reductions taken & computed in the base during the LAR process.   Formula funding was reduced 10% in addition to the previous 5% and redistributed for enrollment changes. SENATE VERSION   SAME   Formula funding was reduced 5% in addition to the previous 5% & redistributed for enrollment changes. HOUSE VERSION

4. Financial Aid Impacts   66% of all UTSA students need financial aid to attend college and about half of those students are Pell-eligible (i.e. high-need students).   The proposed cut of 41% to Texas Grant funding will have a significant impact on recruiting and enrollment.   New freshmen will be ineligible for awards   66% of all UTSA students need financial aid to attend college and about half of those students are Pell-eligible (i.e. high-need students).   The proposed cut of 41% to Texas Grant funding will have a significant impact on recruiting and enrollment.   New freshmen will be ineligible for awards

5. Financial Aid Impacts   Loss of Texas Grants will:   inhibit, perhaps end, the university’s ability to offer the tuition and fee guarantee (UTSAccess) for low-income students.UTSAcces   result in an increase student indebtedness as they will need to also borrow privately in addition to grants, scholarships and Stafford Loans   Loss of Texas Grants will:   inhibit, perhaps end, the university’s ability to offer the tuition and fee guarantee (UTSAccess) for low-income students.UTSAcces   result in an increase student indebtedness as they will need to also borrow privately in addition to grants, scholarships and Stafford Loans

6. Financial Aid Impacts   There will likely be a negative impact on our ability to attract and support the high achieving students needed to meet strategic enrollment and graduation objectives as well as the objectives for Closing the Gaps.

7. Special Item Reductions Special ItemRecommended Reduction %FY12FY13Biennial Total SALSI P-16 Council TX PREP Center for Water Research Institute of Texan Cultures Downtown Campus Institutional Enhancement Texas State Data Center Total Special Item Reductions

8. Research Development Fund Texas Education Code Sec 62.091-62.098   RDF provides funding to promote increased research capacity   Based on the average amount of restricted research funds expended per year for the 3 preceding fiscal years.   Our reduction is -29% of the FY11 allocation, or each year of the biennium   RDF provides funding to promote increased research capacity   Based on the average amount of restricted research funds expended per year for the 3 preceding fiscal years.   Our reduction is -29% of the FY11 allocation, or each year of the biennium

9. RDF Changes – Top 10 by Amount InstitutionFY 11 Actual FY 12 SB1/HB1 Chg from Prior Yr % Chg UT – DALLAS 5,627,5943,717,303$ (1,910,291)-34% UNIVERSITY OF HOUSTON 6,380,6514,723,003 $ (1,657,648)-26% UT – EL PASO 4,263,3303,055,165 $ (1,208,165)-28% TEXAS TECH UNIVERSITY 4,868,2963,673,942 $ (1,194,354)-25% UT - SAN ANTONIO 3,402,5242,422,631 $ (979,893)-29% UT – ARLINGTON 3,452,8142,661,509 $ (791,305)-23% TEXAS A&M - CORPUS CHRISTI 1,495,540976,039 $ (519,501)-35% UNIVERSITY OF NORTH TEXAS 1,602,3131,100,933 $ (501,380)-31% TEXAS A&M – KINGSVILLE 1,267,265814,502 $ (452,763)-36% TARLETON STATE UNIVERSITY 1,115,775699,880 $ (415,895)-37%

10. How do we cover these reductions? ItemHouse Bill 1Senate Bill 1 Total Annual Reduction (net of TRB chgs) $18,106,640$14,635,658 Incentive Funding (not permanently allocated) Reductions Passed on to Special Items - San Antonio Life Sciences Institute (ARRA) P-16 Council (ARRA) Texas Pre Engineering Program Center for Water Research Institute of Texan Cultures Texas State Data Center Net Remaining Reduction to cover

11. Proposed Reduction Strategies ItemAmountRunning Total FY11 Permanent Budget Reduction$ 8,356,062 Tax Auxiliary Accounts for OH at 2.5% 1,300,000$ 9,656,062 Cut Official Occasions by 10% 138,000 $ 9,794,062 Professional Development Budget 130,934 $ 9,924,996 New Designated Tuition (Net of Set Asides) 179,012 $ 10,104,008 New Designated Tuition (Net of Set Asides) 3,470,982 $ 13,574,990 New Designated Tuition (Net of Set Asides) 3,350,006 $ 16,924,996 Salary Equity Reserve 288,000 $ 17,212,996 Tax Mandatory Fee Accounts at 2.5% 1,000,000$ 18,212,996 Change Graduate Student Medical Benefit to Stipend (change in savings amt) 110,800$18,323,796 Reduce Central Reserves 854,929$19,178,725 Reduce Utility Budget 350,000$19,528,725 SB1 Reduction HB1 Reduction Recommendations of Resource Strategy Team

12. Budget Calendar - Key Dates Feb 9Senate Finance Committee Hearing (House Appropriations Committee Hearing Pending) Feb 23University Strategic Resource Planning Council Meeting March 18Draft Revenue Projections and Debt Service Budgets provided to Fee Funded areas March 30University Strategic Resource Planning Council Meeting April 7FY12 Budget Document Preparation Begins (BUD System opens to departments) TBD (by Divisions/Areas) Internal Deadlines for Budget Document creation, review and approval by each VP/AVP April 29FY12 Budget Documents approved and forwarded to Budget (BUD System closes to depts) May 12Board of Regents Budget Policies and Guidelines Approved May 23-27CMO Reviews Campus Budget & Budget Goals Presentation June 1Last day of 82 nd Regular Legislative Session June 1 - 10UT System Budget Goals & Priorities Hearing June 29Draft FY12 Operating Budget due to UT System July 18Final FY12 Operating Budget due to UT System August 19FY12 Operating Budgets approved by Board of Regents