1	2008-2010 TUITION & FEE COMMITTEE Proposal Development and Review Team
2	November 6th - Agenda
3	Public Higher Education Funding Model
4	Funding Sources of UTSA Operating Budget
5	UTSA FY 2008 Operating Budget All Revenue Sources - $404,292,502
6	Operating Budget Resources
7	State Appropriation as a % of Total Revenue has Declined
8
9	Statutory Tuition Statutory Tuition is set by the Legislature (has been $50/SCH since Fall 2005) and is the same for all UT institutions. Considered to be General Revenue-Dedicated as an offset to academic formula funding (in an amount estimated in the General Appropriations Act (GAA). Institution bears impact of any over or under collection of budgeted revenue.
10	Designated Tuition Designated Tuition was deregulated by the Texas Legislature in 2003, allowing public universities to counteract decreasing State appropriations. Considered a local source of revenue; the rate charged is set by each institution as approved by the Board of Regents: FY 07 = $92.25/SCH FY 08 = $101/SCH Covers general operational costs Primary source of new faculty and strategic initiatives funding 20% of the amount collected from UG and 15% from GR over $46/SCH is set aside for student financial aid.
11	Mandatory & Incidental Fees New fees & rate changes are established for two years to allow better planning. Tuition & Fee Proposals are approved by the Board of Regents in between the legislative session - “off year.” Fee revenues must be spent in accordance with the fee justification and Texas Education Code. Mandatory Fees: Required to be paid by all students. New fees and/or fee rate changes must be approved by the Board of Regents (BoR) Incidental or Course Fees: Fees are paid based on student or user choices, or as a good/service is actually used; not all incidental fees are optional but apply to all students taking a particular course, lab or within a college (e.g. advising fees.)
12	New State Appropriations in FY 2007-2009
13	Budgeted Tuition Revenue Increases FY 2007-2008
14	Internal Reallocations
15	UTSA Budget Increments for the 2008-2009 Biennium
16	FY 2008 (Current Year) Incremental Allocations
17	FY 2008 (Current Year) Incremental Allocations
18	FY 2008 (Current Year) Incremental Allocations
19	FY 2008 (Current Year) Incremental Allocations
20	FY 2008 (Current Year) Incremental Allocations
21	FY 2008 (Current Year) Incremental Allocations
22	FY 2009 Budget Planning Designated Tuition is the only new discretionary funding source in the 2^nd year of the Biennium. Limited additional opportunities for internal reallocation without a comprehensive review of all funding use. President/CMO have made recommendations to fund allocations for: 3% Merit Package Faculty Promotion/Tenure + Staff Equity Pool Benefits E&G Space Support / Safety & Security New Faculty Debt Service Required Financial Aid Set-aside
23	FY 2009 Budget Planning Major challenge – modeling what impact the new Admissions’ criteria will have on tuition revenue? Expect an enrollment loss from the prior year?! How much? We’ve estimated ~0.8% Summer is our trailing semester & has steadily declined. Will this trend continue? Elasticity of demand as tuition & fee rates continue to increase
24	Elimination of the Energy Fee Budget for E&G Utility costs is funded from: General Revenue Student Paid Energy Fee FY07 $45/head/semester $2.8 M FY08 $35/head/semester $2.259 M FY09 and beyond – eliminate this fee by incorporating revenue requirements into the designated tuition rate at the recommendation of The UT System – will include a financial aid portion.
25	Elimination of the Energy Fee 2009 E&G Utility Cost Est. $10.60M Rate/demand increase of 8% $1.1 M beyond construction demand for Engineering Bldg 2009 E&G Utility Cost Est. $11.45M Rate/demand increase of 8% No new facilities on line
26	FY 2009 Revenue Requirements Funding Item Est. Increment Required 3% Merit Package $ 3,160,000 Faculty Promotion 250,000 Staff Equity Pool 200,000 Benefits 600,000 E&G Space Support 787,334 New Faculty & Staff 1,500,000 Debt Service 112,759 Financial Aid Set-aside 1,760,430 Utility Costs (replace fee) 2,259,300 $10,579,823
27	FY 2009 Revenue Requirements Total Required $10,579,823 Less Prior Year Unallocated Base <979,823> Net Required 9,600,000 Base SCH for FY 2009 640,000 Proposed Designated Tuition Rate $116 / SCH
28	FY 2010 Revenue Requirements Strategic Issues: Enrollment – 1 year after new Admissions’ standards Increase? Flat? New Faculty – needed to become a premier research intensive university New Staff – to support workload & enrollment growth Utility/New Facilities: Engineering Building will open Other Strategic Requirements? Amount of new State Appropriation – Revenues at the state level available? Formula Funding Other issues at the legislative level? Overall state revenue
29	FY 2010 Funding Requirements Assumptions: UTSA will obtain the same level of appropriation increase in FY 2010 as in FY 2008. Enrollment will regain the loss anticipated in 08-09 due to an increase in our admissions’ criteria.
30	Strategic Issue: UTSA’s Reliance on Non Tenure Track Faculty
31	UTSA’s Reliance on Non Tenure Track Faculty
32	Instructional Usage of Tenure/ Tenure Track Faculty
33