1. 1 University of Georgia Financial Overview Where does it come from, where does it go? October 15, 2013 Ryan Nesbit– Interim Vice President for Finance & Administration

2. UGA - FY 2014 Budget Sources $ 402 M – State Appropriations $ 13 M – Federal Appropriations $ 515 M – Internal Revenue $ 293 M – Sponsored Sources $ 196 M – Auxiliary Enterprises $ 34 M – Private Funding $1.454 Billion

3. UGA - Funding Source Summary FY 2014 FY 2002

4. FY 2014 State Budget (by Policy Area) As Percent of Total State Fund Budget - $19.9 Billion

5. FY 2002 State Budget (by Policy Area) As Percent of Total State Fund Budget - $15.8 Billion

6. University System of Georgia - State Funds (Total University System funding in Billions) (Total University System funding in Billions)

7. USG - State Funding Per Student FTE

8. UGA - Funding Source Summary FY 2014 FY 2002

9. UGA State Funding Trend (in millions) $495.3 $459.5 $377.5 7% cut 24% cut 28% cut $358.9 27% cut $363.2 24% cut $376.3 $386.9 22% cut

10. State Funding Trend FY 2014 $ 386.9M FY 1999 $ 387.9 M 34,500 students 29,693students More Students, Buildings and Salary/Benefit Obligations

11. Increased “Nondiscretionary” Costs FY2000 FY2013 Salaries/Benefits: (40% Increase) $422M $590M o Health/Life Insurance: (More than doubled) $33M $72M o Retiree Benefits: (More than tripled) $7M $25M Utilities: (54% Increase) $14M $22M

12. UGA - Funding Source Summary FY 2014 FY 2002

13. Tuition Growth Trend (in millions)

14. State + Tuition Funding FY 2001 $ 408.1 M State $ 86.7 M Tuition $ 494.8 M Total FY01: $4.70 in State Funds per $1 Tuition FY14: $1.29 in State Funds per $1 Tuition FY 2014 $ 402.3 M $ 311.8 M $ 714.1 M

15. UGA General Fund (RI) Sources (millions)

16. UGA - FY 2014 Budget Sources $ 402 M – State Appropriations $ 13 M – Federal Appropriations $ 515 M – Internal Revenue $ 293 M – Sponsored Sources $ 196 M – Auxiliary Enterprises $ 34 M – Private Funding $1.454 Billion

17. “Unrestricted” Budget Sources $ 313 M – State Appropriations $ 0 M – Federal Appropriations $ 375 M – Internal Revenue $ 0 M – Sponsored Sources $ 0 M – Auxiliary Enterprises $ 0 M – Private Funding $ 688 M or 47% of $1.454 Billion Total Budget

18. “Unrestricted” Budget Sources $ 313 M – State Appropriations Funding Formula Based 1.Measures Productivity 2.Estimates Resources Required 3.State Support to Board of Regents 4.NOT Allocations to Institutions Shifting to Performance-Based Formula

19. “Unrestricted” Budget Sources $ 375 M – Internal Revenue Tuition = $312 M ($34 M Special Fee) Tuition/Fee Set by Board of Regents 1.Growing Differentiation by Sector Research Universities Research Universities Regional Universities Regional Universities Two-Year Colleges Two-Year Colleges 2.Differentiation by Program Law, Business, Vet Med, Pharmacy Law, Business, Vet Med, Pharmacy

20. Tuition - Peer Institutions

21. Tuition - Aspirational Institutions

22. FY2014 Budgeted Expenditures $ 300.0 M (20.6%) – Instruction $ 380.5 M (26.2%) – Research $ 178.7 M (12.3%) – Public Service $ 89.0 M ( 6.1%) – Student Services/Scholarships $ 98.6 M ( 6.8%) – Academic Support $ 98.0 M ( 6.7%) – Physical Plant $ 92.6 M ( 6.4%) – Institutional Support $ 163.7 M (11.3%) – Auxiliary Enterprises $ 52.9 M ( 3.6%) – Capital Improvements $1.454 Billion

23. FY2014 Budgeted Expenditures $ 300.0 M (20.6%) – Instruction $ 380.5 M (26.2%) – Research $ 178.7 M (12.3%) – Public Service $ 89.0 M ( 6.1%) – Student Services/Scholarships $ 98.6 M ( 6.8%) – Academic Support 72% to Core Missions 72% to Core Missions

24. FY2002 Budgeted Expenditures $ 176.5 M (18.6%) – Instruction $ 232.9 M (24.5%) – Research $ 153.2 M (16.1%) – Public Service $ 45.1 M ( 4.7%) – Student Services/Scholarships $ 76.1 M ( 8.0%) – Academic Support 72% to Core Missions 72% to Core Missions

25. UGA – Budgeted Expense Summary FY 2014 FY 2002

26. State of Georgia - oversees all State Agencies Board of Regents - oversees 31 Institutions University of Georgia - 17 Schools & Colleges 1. Senior Administration 2. Academic Deans Roles & Responsibilities

27. Appoint & Empower Presidents Set Broad Policies Strategic Plan for Higher Ed in Georgia Allocate Resources 1. Allocate Formula-Based State Support 2. Establish Tuition Policy & Rates Role of Board of Regents

28. 1.Senior Administration 2.Academic Deans Role of UGA

29. Appoint & Empower Academic Deans Establish Policies & Procedures 1. Faculty Governance/Academic Policy 2. Hiring/Compensation Guidelines 3. Fiscal Responsibility & Financial Controls Develop Strategic Plan for UGA Academic Program Planning Process Role of UGA Senior Administration

30. Deans establish Specific Program Priorities Deans identify key Resource Needs Deans/Provost establish Performance Measures Reviewed annually during Budget Process Gauge progress towards goals Considered by Provost in Allocation decisions DEFINES ACCOUNTABILITY Academic Program Planning Process

31. Appoint & Empower Academic Deans Establish Policies & Procedures 1. Faculty Governance/Academic Policy 2. Hiring/Compensation Guidelines 3. Fiscal Responsibility & Financial Controls Develop Strategic Plan for UGA Academic Program Planning Process Allocate Resources to Schools & Colleges Hold Deans Accountable Role of UGA Senior Administration

32. Develop Academic Program Plan DEFINES ACCOUNTABILITY Implement Academic Program Plan 1. Develop & Manage Academic Programs 2. Develop & Manage Budget 3. Hire & Manage Faculty/Staff 4. Measure & Report Performance Role of UGA’s Academic Deans

33. Scope of Budgetary Responsibilities (department, college, institution, etc.) 1. Where the funding comes from? 2. Where does it go? 3. Changes/trends you have observed Small Group Discussion

34. 34 University of Georgia Financial Overview Where does it come from, where does it go? October 15, 2013 Ryan Nesbit– Interim Vice President for Finance & Administration

35. UGA Cost of Attendance (Georgian undergrad) FY 2014FY 2011FY 2001 Tuition $8,028 $7,070 $2,506 Fees $2,234 $1,666 $770 Books/Supplies $ 916 $1,030 $610 Housing $5,290 $4,772 $2,804 Board $3,956 $3,688 $2,276 TOTALCosts $20,424 $18,226 $8,966

36. UGA Cost of Attendance (Georgian undergrad) FY 2014FY 2011FY 2001 Tuition $8,028 $7,070 $2,506 Fees $2,234 $1,666 $770 Books/Supplies $ 916 $1,030 $610 Housing $5,290 $4,772 $2,804 Board $3,956 $3,688 $2,276 TOTALCosts $20,424 $18,226 $8,966 HOPE Scholarship $6,554 $8,240 $3,576 Due from Student $13,870 $9,986 $5,390 Zell Miller Scholar (Add to HOPE) $1,474 (Add to HOPE) $1,474 Due from Student $12,396 HOPE Coverage: FY 2014 Z. Miller HOPE FY 2011 FY 2001 Z. Miller HOPE FY 2011 FY 2001 Tuition 100% 82% 100% 100% Fees0% 0% 70% 100% Total Costs 39% 32% 45% 40%

37. UGA Cost of Attendance (Georgian undergrad) FY 2014FY 2011FY 2001 Tuition $8,028 $7,070 $2,506 Fees $2,234 $1,666 $770 Books/Supplies $ 916 $1,030 $610 Housing $5,290 $4,772 $2,804 Board $3,956 $3,688 $2,276 TOTALCosts $20,424 $18,226 $8,966 HOPE Scholarship $6,554 $8,240 $3,576 Due from Student $13,870 $9,986 $5,390 Zell Miller Scholar (Add to HOPE) $1,474 (Add to HOPE) $1,474 Due from Student $12,396 HOPE Coverage: FY 2014 Z. Miller HOPE FY 2011 FY 2001 Z. Miller HOPE FY 2011 FY 2001 Tuition 100% 82% 100% 100% Fees0% 0% 70% 100% Total Costs 39% 32% 45% 40%

38. Need-Based Scholarships Georgia Access: Need-Based Originally provided up to $1,000 Currently up to $2,500 Awarded to 199 students in 2012-2013 Georgia Gateway General: Need-based, merit based, and to attract students with special talents. Awarded up to $600 to students who had lost Pell Grant funding due to federal budget cuts.

39. Need-Based Scholarships Provost Need-Based Scholarship Program & Financial Aid Emergency Funds Awarded on a case by case basis for extenuating circumstances. UGA Advantage Scholarship Freshman in the middle income range 2010 AGI between $25K and $75K (not qualify for Federal Pell Grants) Renewable for a total of 8 semesters (FT)

40. Return on Investment - Earnings $ 33,200 – High School Diploma $ 54,750 – Bachelor’s Degree $ 65,675 – Master’s Degree $ 80,650 – Doctoral Degree $ 86,580 – Professional Degree

41. Return on Investment - Earnings $ 33,200 – High School Diploma $ 54,750 – Bachelor’s Degree $ 65,675 – Master’s Degree $ 80,650 – Doctoral Degree $ 86,580 – Professional Degree $1.3 Million Lifetime earnings

42. Return on Investment - Unemployment 9.4% – High School Diploma 4.9% – Bachelor’s Degree 3.6% – Master’s Degree 2.5% – Doctoral Degree 2.4% – Professional Degree

43. Return on Investment - Unemployment 24% – Recent High School Graduates 7% – Recent College Graduates 7% – Recent College Graduates

44. UGA – Internal Revenue Analysis

45. UGA - Funding Source Summary