1. The University of Texas – Pan American HEAF Background, Model, Issues and Possible Strategies to Consider

2. Items Covered  Background Info/History  Model explained  HEAF Committee Charge, etc.  Comparison & contrast between UTPA and other HEAF institutions  Questions & Strategies

3. Background  Established in 1984 via a constitutional amendment after the repeal of the ad-valorem tax.  Allocations began in FY 1986.  Originally earmarked $100M; Currently $175M is allocated.  Purpose: –Acquire land –Construct, repair & rehabilitate buildings –Purchase equipment –Purchase Library materials –Retire debt not to exceed 50% of the appropriation.  About to begin the third 10-year cycle  Formulas re-visited/re-run with updated data every five years. .

4. Background, Cont’d  Actual space data is compared to predicted data to determine deficit amounts  Documented reluctance, in the past, to use projections or other “non-factual” data

5. The Space Projection Model

6. Model Four Parts: 1.Space Deficit:  Provide funding for predicted space needs  uses the space projection model 2.Condition of Facilities:  Provide funding for renovation & maintenance of facilities  Replacement value of E&G buildings x 2% (accepted industry standard) 3.Complexity:  Provide funding for carrying out the range & level of an institution’s programs  Appropriations 4.Set Asides:  6.5% to Health Institutions  2.2% for TSTC (max allowed by constitution)  $1M for TSU per Texas Educational Opportunity Plan (1983)

7. Condition of Facilities  Is simply calculated by multiplying the replacement value of each institution’s E&G space times 2% (“industry standard”).  2003 UTPA replacement value = $242,331,008  Condition of facilities + Space deficit = 50% of the funds

8. Institutional Complexity  Formula appropriations are used as a surrogate  50% of the funds are allocated to this element

9. Space Deficit  Uses the Space Projection Model (SPM) used for the infrastructure formula.  Stated purpose of the SPM is “...to assess the need for new construction and to determine whether an institution’s new construction will qualify for maintenance & operations funding provided by General Revenue.”

10. Space Projection Model  Funding provided only for space deficits  Predicts Net assignable area in five categories: –Teaching –Library –Research –Office –Support

11. Teaching Space Four program areas:  Area 1: Most space intensive programs; agriculture and visual & performing arts.  Area 2: Architecture, engineering, trade & industrial arts.  Area 3: Computing, health sciences, psychology, physical sciences, languages, etc.  Area 4: All other programs such as english, history, math and political science.

12. HEAF Committee Charge  Deadline: October 2004 Coordinating Board meeting  Allow those not represented with an opportunity for input  Review the relevant sections of the constitution & education code  Review the assumptions and the data used & recommend changes “especially any that would help achieve the goal of Closing the Gaps by 2015.”  Avoid radical reallocation  Changes must be persuasive to the committee, the board and the legislature

13. Problems, Strategies & Questions  Persuade the committee to recommend an increase in funding beyond the $175M currently provided.  Persuade the committee to incorporate Closing the Gaps projections.  Get Bigger! Increase SCHs, Faculty FTEs, FTSEs, research expenditures, etc.  Suggest a change in weights  Suggest a set-aside for Closing the Gaps?

14. Problems, Strategies & Questions, cont’d  Existing formula rewards past success/growth.  Future trends are important and at least a portion of the allocation should be based on that—we need to prepare for the future now.

15. Problems, Strategies & Questions, cont’d  Identify additional elements? –% Hispanic? (vs. # of Hispanic) –Per capita income of the region? –Unemployment rates? –% of population without university education? –Growth rates of institution? –Growth rates of region’s population?  Suggest splitting of UT- Brownsville from us (technical, not substantive change)

16. Thank you… Questions? Additional Info Needed? Thoughts?