Financial Aid Set Asides from Tuition Revenue

A. Background

TexEd.Ch54.0513 authorizes the governing board of an institution of higher education, under the terms the governing board considers appropriate, to charge any student “an amount designated as tuition that the governing board considers necessary for the effective operation of the institution.” Changes to this tuition rate, known as designated tuition, are authorized by the UT System Board of Regents.

Prior to the changes authorized by the 78th Legislature, governing boards were given authority to set the designated tuition rate at an amount not to exceed the statutory tuition rate. Constrained by relatively flat state funding and facing significant enrollment growth, most UT academic institutions were at or near the limit of $46 per semester credit hour (SCH) in FY 2003. With the changes by the 78th Legislature, institutions were allowed to exceed the statutory tuition rate. To help ensure affordability for all Texans, the 78th Legislature mandated financial aid set asides through TexEd.Ch56a.011 and TexEd.Ch56a.012.

B. Responsibilities

The UTSA Office of Financial Aid and Scholarships within the division of Strategic Enrollment under Academic Affairs is responsible for establishing policies and procedures for awarding financial aid to students in compliance with the TEC. 

Various departments and administrators reporting to the vice president for business affairs are responsible for the budgeting, accounting, financial control and related monitoring activities for the financial aid programs covered by this guideline:

• Recommends the budget target for each financial aid program based on projected revenues by student level and residency.
• Evaluates actual enrollment and coordinates reconciliation to ensure budget adjustments are made in the financial accounting system.
• Provides data to the Office of Financial Services and the University Bursar by December of each year for annual reporting to the Texas Higher Education Coordinating Board's Integrated Fiscal Reporting System (IFRS).

• Sets up the Banner tables to ensure students are accurately assessed tuition and fees. Enables, monitors and ensures waivers and exemptions are correctly processed and authorized.
• Provides, coordinates, analyzes and interprets student information reports. Reconciles the feed of student financial data from Banner to the UTShare/PeopleSoft financial system.
• Prepares various reports including the annual IFRS report to the Texas Higher Education Coordinating Board.

C. Set Aside Requirements: Establishing Financial Aid Budgets

Enrollment projections determined during the budget development cycle are used to establish the budget requirements for the next fiscal year. The Budget Office creates a spreadsheet to document the assumptions and allocation details.

Once the budgets are set up for the new fiscal year, responsibility for use of the funding in compliance with the TEC requirements is the purview of the senior vice provost for strategic enrollment.

1. Statutory Tuition Set Asides

1. TexEd.Ch56x.033-1 — 15% of each resident student’s statutory tuition charge under Section 54.051 as provided by the General Appropriations Act for the applicable academic year. This does not include graduate incremental tuition authorized per Section 54.008.
   
   Cost Centers: Undergraduate Resident DZX024; Graduate Resident DZX032
   
   
2. TexEd.Ch56x.033-2 — 3% of each nonresident student’s statutory tuition charge under Section 54.051. 
   
   Cost Centers:  Undergraduate Non Resident DZX026; Graduate Non Resident DZX029
   
   
3. TexEd.Ch56x.033-4b — Of the funds set aside from statutory tuition revenue, not less than 90% shall be used for Texas Public Education Grants and not more than 10% shall be used for emergency loans under Subchapter D of Chapter 56.
   
   Short Term Loan Fund Cost Center: TPEGRS