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Committee on Planning and Budget, Fall Retreat November 16, 2012 Overview of Campus Budget, Budget Model, and Budget Process.

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Presentation on theme: "Committee on Planning and Budget, Fall Retreat November 16, 2012 Overview of Campus Budget, Budget Model, and Budget Process."— Presentation transcript:

1 Committee on Planning and Budget, Fall Retreat November 16, 2012 Overview of Campus Budget, Budget Model, and Budget Process

2 I.Budget Overview II.Budget Model III.Budget Process Presentation Outline

3 2012-13 Projected Revenue: $3.6 Billion State, Unrestricted and Tuition, 19% ($703 million) Budget Overview Sources of Funds Source of Funds 2012-13 Budget (in millions) 1State support, tuition, fees 2State unrestricted funds$307 3State designated and restricted$50 4Tuition$396 5Student Fees$162 6Sub-total$915 7Extramural research (all sponsors) 8Grants and contracts, direct$518 9Indirect cost recovery$122 10Sub-total$640 11Other Sources 12Federal (Hatch, Pell Grants)$60 13Sales and Service, Auxiliary$397 14Gifts, endowment, interest, other$143 15Sub-total$600 16UC Davis Medical Center$1,431 17TOTAL$3,586

4 2011-12 Operating Expenses: $3.2 Billion 1Category Amount (in millions)% of total 2 Instruction and Academic Support $ 76624% 3Research$ 50816% 4 Student Services and Financial Aid $ 32110% 5 Operation and Maintenance $ 953% 6Auxiliary$ 963% 7Institutional Support$ 1475% 8Public Service$ 632% 9Medical Center$ 1,21738% 10TOTAL EXPENSES$ 3,213100% Budget Overview Uses of Funds

5 Budget Overview 2012-13 Core Funding dollars in millions 1Budget needs and priorities (on-going) 2Prior year shortfall not addressed permanently $ (25.0) 3State Budget Act (as enacted July, 2012) $ (5.1) 4Salary, Benefit, UCRS fixed costs – approved and pending $ (25.7) 5TOTAL ON-GOING NEEDS $ (55.8) 6Funding Budget Needs and Priorities (on-going) 7Tuition revenue/2012-13 buy-out $ -- 8Increase in national and international undergraduates $ 3.5 9Efficiencies, cost reductions, and re-allocations $ 4.0 10ON-GOING SURPLUS/SHORTFALL$ (48.3) 11 Reserves and Other One-Time Funds 12Available Central Reserves $ 38.3 13OP Tax mitigation and Campus Transition $ (2.0) 14OP Transition funds and system borrowing $ 2.3 15Additions to campus reserves or campus borrowingtbd 16REMAINING CENTRAL RESERVE $ (9.7) State Funds and Tuition

6 Budget Overview 2013-14 Core Funding dollars in millions 1Budget needs and priorities (on-going) 2Prior year shortfall not addressed permanently $ (48.3) 3Salary, Benefit, UCRS fixed costs – approved and pending $ (25.0) 4Investments in stabilization and quality improvementstbd 5TOTAL On-going Needs $ (73.3) 6Funding Budget Needs and Priorities (on-going) 7State Budget Act -- Tuition revenue/2012-13 buy-out $17.0 8State Budget Act – augmentations$15.0 9State Budget Act – debt restructuring proposaltbd 10Tuition revenue due to fee increase or buy-out$17.0 11Campus Process (revenues, efficiencies, cost reductions, re-allocations)tbd 12ON-GOING SURPLUS/SHORTFALL $ (24.3) 13 Reserves and Other One-Time Funds 14Available Central Reserves $ (0.0) 15REMAINING CENTRAL RESERVE $ (24.3) Estimated UCD Share $8-11 M State Funds and Tuition

7 Budget Model Campus Budget Model Advances the UC Davis Vision of Excellence Encourages creativity Leads to a more transparent budget process Includes a transition strategy Budget Components in Budget Model Campus Budget Model

8 Phase I – Implemented or in process Provost Allocation and Spring Annual Budget Process Undergraduate tuition Indirect cost recovery Central benefits pool decentralization Office of the President funding streams Academic masters tuition pilot Finalization of 2012-13 budgets Phase II – To be completed Graduate tuition Summer session tuition Faculty FTE Budget Model Development

9 Budget Model Undergraduate Tuition Revenue Tuition allocated directly to schools and colleges ($136 M) 60% based on student credit hours 30% based on degree majors 10% based on degrees awarded Return to Aid (RTA) ($77 M) Deducted before allocating to schools and colleges New model does not change our commitment to student support Assessment ($60 M) 30% after accounting for RTA Portion of new tuition is assessed for allocation by the Provost

10 Budget Model Indirect Cost Recovery ICR distributed to schools and colleges ($32 M) 34% is distributed based on where the funds were generated Will support salaries and benefits, start-up packages and other research-related activities Funds allocated to deans and vice chancellors Assessment ($90 M) 66% allocated to central campus for facility maintenance, debt service, start-up packages, campus research support services Categorical set-asides (ARRA, Garamendi, etc.)

11 Budget Model Provost Allocation Derived from a variety of sources ($428 M) Assessment on undergraduate tuition ($60 M) Graduate tuition ($55 M) Unrestricted state support ($300 M) Portion of ICR also flows to central campus ($90 M) Used to support Campuswide services from administrative and academic support units Institutional initiatives Basic operations of academic units Initially, self-balancing part of the model

12 Budget Process Annual Budget Timeline Mid-NovemberRegents’ Budget Proposal January 10thGovernor's Budget Proposal Late JanuaryCampus Planning Letter March-AprilAnnual Budget Meetings Mid-MayGovernor's May Revise May-JunePreliminary Campus Decisions JulyFinal State Budget Act UC Systemwide Allocations Final Campus Allocations

13 Questions/discussion points for spring 2012 budget meetings (from 2012-13 Budget Planning Letter, 4/12/12) 1.Background and context – the three-to-five primary goals you are advancing through the budget (deans should describe efforts to advance and improve graduate education, research and undergraduate student success). 2.Process and Metrics – a description of the process you use to develop and manage budgets; and an overview of the metrics used to inform resource allocations. 3.Sources and uses of funds – a high-level overview of the funding plan for your unit for this year (2011-12) and the budget year (2012-13) including a discussion of your strategies for managing ongoing operating funds and one- time reserves. 4.Budget reductions – brief recap of the impact and consequences of budget reductions over the last four years. 5.Other priorities and investments – an overview of additional investments you anticipate. Budget Process Provost’s Budget Process Meetings

14 Next steps for 2013-14 budget meetings Refine budget questions Add in use of metrics, data Identify Provost’s priorities Budget Process Next Steps

15 Budget news (campus, UC system, state) o Data, analysis and reports o Provost’s Dashboard: o Campus Facts: o Campus Budget Office: Advocacy o Annual financial schedules and reports o Budget Information Sources

16 Appendix State Funding vs. Fee Revenue UC Davis, Annual Unrestricted State Revenue vs. Student Tuition and Fees ($ in Millions)

17 Notes: 1.Amounts include health insurance ($1,380 undergrad and $2,280 graduate). Amounts for undergraduates exclude course material fees. 2.Fee levels as of September 2012; Fees subject to change. Appendix 2012-13 Student Tuition and Fees Total Fees and TuitionResident National & International Undergraduate$15,257$38,135 Graduate$15,387$30,489 Selected Professional Degree Programs: Law (JD)$49,564$58,815 Management (MBA)$38,727$50,972 Medicine (MD)$39,652$51,897 Nursing (MS)$23,127$35,372 Veterinary Medicine (DVM)$33,091$45,336

18 The University’s financial aid program helps to offset the impact of fee increases for undergraduates from lower- income families. The net cost of attendance at UC Davis has actually declined for undergraduates from the lowest-income families since 2006-07. Gift aid (which does not need to be repaid) from all sources more than doubled between 2007-08 and 2010-11. Net Cost of Attendance for UC Davis Undergraduates Appendix Financial Aid Offsets Fee Hikes for Many

19 UC Davis Average Total Debt Levels – Bachelor’s Degree Recipients in Constant 2009 Dollars Appendix Student Loan Indebtedness

20 April 2009 and April 2012 FTE Appendix Employees by Fund Source 1 Other Faculty includes Adjunct Professors, Lecturers and other non-tenure-track appointments. Other Academic includes Librarians, Academic Administrative Officers and University Extension Educators and non-student research academic appointments. 2 Student Employees includes teaching assistants, graduate student researchers, residents, and administrative and clerical employees. 3 Health Science Funds includes sales and services from the teaching hospital, the medical compensation plan, and funds for clinical drug trials State Funds & TuitionHealth Science Funds 3 External & Other FundsTotal Position Type20092012200920122009201220092012 Tenure-Track Faculty1,1721,113514654701,2771,229 Other Faculty and Other Academic 1 7156124975111,3821,7482,5942,871 Total Academic1,8871,7255485571,4361,8183,8714,100 Staff3,6883,2437,0417,4473,5023,75814,23114,448 Student Employees 2 1,3171,3914995271,4351,4063,2513,324 Grand Total6,8926,3598,0888,5316,3736,98221,35321,872 Change from April 09 to April 11-533443609519

21 More large classes (>50). Fewer small classes (<20). Appendix Class Size

22 Despite a decline in the number of ladder faculty FTE, more student credit hours are being taught by ladder faculty. Appendix Ladder Faculty Teaching Load

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