1. Financial Overview: Budget & Planning January 2013 Kathy Cutshaw Vice Chancellor for Administration, Finance & Operations F ACULTY S ENATE 1

2. State Budget General Fund Distribution Other Departments include: * Public Safety * Accounting & General Services * Governor's Office * Lt. Governor's Office * Business & Economic Development * Agriculture, Labor & Industrial Relations * Defense * Taxation * Human Resources Management * Attorney General's Office * Land & Natural Resources 2

3. UH Share over time 3

4. University Budget Cycle Fiscal Year: July 1 – June 30 Biennium and Supplemental Timeline: May–July: Manoa prepares and submits budget July–Aug: System reviews and prioritizes August: Budget presentation to the BOR September: BOR approval of budget request December: Governor’s Budget finalized Jan–May: Legislative Session June: Governor sign budget bill 4

5. System-wide General Fund Allocation 5

6. Manoa’s Budget Components State Appropriated Funds General Funds 100% used for personnel costs State pays fringe Lapse Special and Revolving Funds Established by Statute Expenditures restricted to Statute language Do not lapse Legislative Expenditure Ceiling Includes tuition & Fees Includes Return of Overhead (RTRF) State Appropriated Maintenance & Capital Improvement Health and Safety Capital Renewal/Deferred Maintenance (CRDM) CIP (Capital Improvements) Federal Contracts and Grants Restricted 6

7. Where Does The Money Come From 7

8. Where Does The Money Go 8

9. Mānoa Operating Funds 9

10. Mānoa Appropriated Fund (G/R/S) Distribution to Units 10

11. Operating Funds Flowchart Year End Allocated Fund Distribution for FY 2012 11

12. Operating Funds Flowchart Year End Allocated Fund Distribution for FY 2012 12

13. Approaches to University Budgeting Incremental Budget for current year become base for incremental allocations for the next year Zero Based No continuing base budget Everything re-evaluated and re-allocated yearly Formula Based Typical allocation is based on enrollment or graduation rates Responsibility Centered Budgeting Each unit gets all available resources Pays for all costs (admin, overhead, space, etc) 13

14. Going Forward UH Budget Approach - Biennium FY2013-15 Hawaii Graduation Initiative Outcome Funding Focus on graduate outcomes Focus on transfer outcomes Additional weighting for: Native Hawaiian student success STEM student success Low income student success Five Program Change Requests (PCRs) Hawaii Innovation Initiative Adds 50 new researchers over next 3 bienniums Stewardship of Facilities/Renovate to Innovate 14

15. Fiscal Biennium 2013-15 UH Budget Request 15 Initiative/Description UH Budget Request Executive 2013-20142014-2015 2013-20142014-2015 $$FTE$$FTE $$FTE$$FTE Hawaii Graduation Initiative Outcome Based Funding20,000 30,000 2,387 Distance Learning & Educational Technology1,00041,5007 Engineering Consortium1,200122,90028 Na Pua Noeau7001270012 Statewide Longitudinal Data system20024004 West Oahu Campus Build-out support9132291322913 Subtotal24,0135236,413733,300 Hawaii Innovation Initiative5,875613,960201,000 STEM Initiative - Governor's00001,500 Total29,8885850,37393 5,800

16. Outcome Based Funding Manoa 16

17. Systemwide Program Change Requests Distance Learning & Educational Technology Distance delivery Increase student engagement and learning Engineering Consortium Increase numbers & retention of pre-engineering students Cyber-Mentoring/Tutorial Program Na Pua No’eau Become model indigenous service institution Promote college going among (K-12) Native Hawaiians Statewide Longitudinal Data System Statewide student data tracking system West Oahu Campus Provide infrastructure support 17

18. Hawaii Innovation Initiative HI2 Initiative will: Adds 50 new researchers overtime Doubles research funding create new businesses diversify, deepen state economy Estimated Total Cost: Year 1 $5.9M 6 FTE Year 2 $13.9M 20 FTE 18

19. Stewardship of Facilities Health, Safety, and Code Requirements Capital Renewal and Deferred Maintenance Project Renovate to Innovate Minor Renovation CIP Major Construction Projects (Shovel Ready) Financially Leveraged Projects Various Planning and Design Projects 19

20. FB13-15 Capital Improvement Projects Health and Safety Priorities (Manoa) 20 BOR Request Executive PriorityProject TitleMOFFY 2014FY 2015 FY 2014FY 2015 1Campuswide Accessibility Improvements Phase IC $ 2,400,000 $ 2,500,000 $ - 1College of Education Water System UpgradeC $ 1,500,000 $ - 1Colleoe of Education Retaining WallC $ 1,500,000 $ - 1Campuswide Sewer and Storm Drain UpgradeC $ - $ 9,500,000 $ - 1Hawal'l Institute of Marine Biology SeawallC $ - $ 9,200,000 $ - 1Lower Campus Automotive GuardrailC $ 500,000 $ - 1Lyon Arboretum Health and Safety ImprovementsC $ 2,000,000 $ 3,000,000 $ - 1Campuswlde Upgrade WalkwaysC $ 1,500,000 $ 2,500,000 $ - 1Stan Sherrif Center Emergency Generator ReplacementC $ 485,000 $ - 1Bilger Addition Replace Asbestos Containino FlooringC $ 274,000 $ - Total - Health, Safety & Code Requirements $ 10,159,000 $ 26,700,000 $ -

21. FB13-15 Capital Improvement Projects Capital Renewal/Deferred Maintenance (Manoa) 21 BOR Request Executive PriorityProject TitleMOFFY 2014FY 2015 FY 2014FY 2015 2Capital RenewalC $ 31,396,000 $ 45,724,000 $ - 2Reduction of Backlog in 6 yearsC $ 63,908,000 $ 67,103,000 $ - Total - CRDM $ 95,304,000 $ 112,827,000 $ -

22. FB13-15 Capital Improvement Projects Other CIP Projects (Manoa) 22 BOR Request Executive PriorityProject TitleMOFFY 2014FY 2015 FY 2014FY 2015 5Snyder Hall RenovationC $ 19,000,000 $ - 5Snyder Hall RenovationE $ 19,000,000 $ - 6Holmes Hall RenovationC $ 2,000,000 $ 20,000,000 $ - 6Holmes Hall RenovationE $ 2,000,000 $ 20,000,000 $ - 10Pacific Health Research LaboratoryC $ 5,000,000 $ - 10Pacific Health Research LaboratoryN $ 1,000 $ - 12Kuykendall Hall RenovationC $ 18,000,000 $ - 12Kuykendall Hall RenovationE $ 18,000,000 $ - 17Hawai'inulakea School of Hawaiian KnowledgeC $ 500,000 $ - 18Marine Fisheries Building Renovation to ResearchC $ - $ 3,000,000 $ - 21Instructional Building - College of Education SiteC $ - $ 25,000,000 $ - 24Law Library CenterC $ 3,000,000 $ - 26University of Hawaii Marine Center RelocationC $ 6,000,000 $ - 29Transportation Relocation to Lower CampusC $ 1,500,000 $ - 32Research Facilities at Loc C in Kaka`akoC $ 27,000,000 $ - 32Research Facilities at Loc C in Kaka`akoN $ 1,000 $ - 34Campuswide Master PlanC $ 2,000,000 $ - 35Law School ExpansionC $ 3,500,000 $ - 35Law School ExpansionE $ 3,500,000 $ - 40Campuswide Chilled Water Piping Upgrages & RepairsC $ 300,000 $ 2,500,000 $ - n/aStudent HousingB $ 4,100,000 $ - n/aStudent Life Center, Phase IIB $ - $ 350,000 $ - n/aNew Parking Structure for Kaka`ako CampusE $ 17,000,000 $ - Total - Other Projects $ 151,402,000 $ 70,850,000 $ -