1. FY 2009 Budget Highlights

2. FY 2009 Operating Budget UTSA’s strategic goals provide the framework for budget priorities: – –budget plan focuses on the basics - salary merit increases and workload demands created by success as a growing institution. – –Only new source of revenue from tuition & fees UTSA continues to find opportunities to maximize usage of funds: – –will internally reallocate $3 million to meet FY 2009 requirements. UTSA’s strategic goals provide the framework for budget priorities: – –budget plan focuses on the basics - salary merit increases and workload demands created by success as a growing institution. – –Only new source of revenue from tuition & fees UTSA continues to find opportunities to maximize usage of funds: – –will internally reallocate $3 million to meet FY 2009 requirements.

3. Major Goals Addressed by FY 2009 Budget $2 million for new faculty positions – –Improve student faculty ratio of 22.3:1 – –Increase the proportion of tenure/tenure track faculty to non-tenured instructors. – –Focus on faculty retention Master Graduate Instructors program – –designed to benefit both graduate and undergraduate students. $2 million for new faculty positions – –Improve student faculty ratio of 22.3:1 – –Increase the proportion of tenure/tenure track faculty to non-tenured instructors. – –Focus on faculty retention Master Graduate Instructors program – –designed to benefit both graduate and undergraduate students.

4. Major Goals Addressed by FY 2009 Budget Realignment of resources to – –strengthen undergraduate & graduate experiences; – –increase retention & graduation rates, and other measures of student learning. Academic support service delivery – –Improvements to advising, tutoring & supplemental instruction; – –advising structure - review impact on retention and graduation rates. All positive efforts towards gaining reaccreditation in 2010. Realignment of resources to – –strengthen undergraduate & graduate experiences; – –increase retention & graduation rates, and other measures of student learning. Academic support service delivery – –Improvements to advising, tutoring & supplemental instruction; – –advising structure - review impact on retention and graduation rates. All positive efforts towards gaining reaccreditation in 2010.

5. Major Goals Addressed by FY 2009 Budget Information access is vital for assessment & reporting and an essential tool for planning. – –UTSA is investing in Data Warehouse and Cognos Reporting software implementation efforts. More on Cognos reporting project at future FAR meetings Information access is vital for assessment & reporting and an essential tool for planning. – –UTSA is investing in Data Warehouse and Cognos Reporting software implementation efforts. More on Cognos reporting project at future FAR meetings

6. Major Goals Addressed by FY 2009 Budget Research continues to grow after doubling over past 5 years. – –Indirect cost recovery will also increase with renegotiated F&A rate of 44.5% (+3%). Continued strengthening of research infrastructure – –compliance, grants management, technology transfer, and capital improvements. Partnerships in bioengineering – –New & expanded with military medicine programs, the UTHSC-San Antonio, the SW Research Institute & SW Foundation for Biomedical Research. Research continues to grow after doubling over past 5 years. – –Indirect cost recovery will also increase with renegotiated F&A rate of 44.5% (+3%). Continued strengthening of research infrastructure – –compliance, grants management, technology transfer, and capital improvements. Partnerships in bioengineering – –New & expanded with military medicine programs, the UTHSC-San Antonio, the SW Research Institute & SW Foundation for Biomedical Research.

7. Major Goals Addressed by FY 2009 Budget South Texas Technology Management Center – UTSA partnership with UTHSC-San Antonio, U. T. Pan American & U. T. Brownsville: – –To accelerate commercialization of inventions and potential revenue streams. South Texas Technology Management Center – UTSA partnership with UTHSC-San Antonio, U. T. Pan American & U. T. Brownsville: – –To accelerate commercialization of inventions and potential revenue streams.

8. Major Goals Addressed by FY 2009 Budget Community Services’ activities annually serve over 225,000 Texans, affecting improvements in the regional quality of life. – –A strategic allocation to organize UTSA services information & accessibility via a new web interface: strengthen engagement with the public improve customer service engender community support for the campus as UTSA plans for the launch of a capital campaign. Community Services’ activities annually serve over 225,000 Texans, affecting improvements in the regional quality of life. – –A strategic allocation to organize UTSA services information & accessibility via a new web interface: strengthen engagement with the public improve customer service engender community support for the campus as UTSA plans for the launch of a capital campaign.

9. FY 2009 Budgeted Revenues Projected overall revenue growth of 4% – –Largest gain in auxiliary enterprises: Laurel Village completion & opening for Fall 2008 University Center fee increase +82% Athletic fee increase +10% – –Statutory tuition will be flat due to changes in student mix (graduate & non-resident) – –Designated tuition revenue due to rate increase ($101 to $110/SCH) Projected overall revenue growth of 4% – –Largest gain in auxiliary enterprises: Laurel Village completion & opening for Fall 2008 University Center fee increase +82% Athletic fee increase +10% – –Statutory tuition will be flat due to changes in student mix (graduate & non-resident) – –Designated tuition revenue due to rate increase ($101 to $110/SCH)

10. Base Budget Allocations effective September 1, 2008 Preserving the Quality of our Workforce 3% Merit Salary Increases (Compensation Increases) Total: $3,520,000 3% Merit Salary Increases Faculty 1,600,000 Staff 1,540,000 Faculty Equity, Promotion and Tenure 190,000 Staff Salary Equity Pool 190,000 Preserving the Quality of our Workforce 3% Merit Salary Increases (Compensation Increases) Total: $3,520,000 3% Merit Salary Increases Faculty 1,600,000 Staff 1,540,000 Faculty Equity, Promotion and Tenure 190,000 Staff Salary Equity Pool 190,000

11. Base Budget Allocations effective September 1, 2008 Preserving our Mission Quality & Student Success Total: $3,176,329 New Tenure/Tenure Track Faculty & Full time Non Tenure Track Apptmts $2,000,000 Financial Aid Set-Asides 1,176,329 Preserving our Mission Quality & Student Success Total: $3,176,329 New Tenure/Tenure Track Faculty & Full time Non Tenure Track Apptmts $2,000,000 Financial Aid Set-Asides 1,176,329

12. Base Budget Allocations effective September 1, 2008 Strategic Initiative FundingTotal: $1,234,625 Academic Affairs – New Staff 160,000 Master Graduate Instructors Program 295,000 Extended Services – Institute for Economic Development 67,849 Business Affairs – New Staff 251,000 Research – New Staff 108,500 Student Affairs – Admissions, Outreach & Student Recruitment 37,762 University Advancement – Staffing/M&O 314,514 Strategic Initiative FundingTotal: $1,234,625 Academic Affairs – New Staff 160,000 Master Graduate Instructors Program 295,000 Extended Services – Institute for Economic Development 67,849 Business Affairs – New Staff 251,000 Research – New Staff 108,500 Student Affairs – Admissions, Outreach & Student Recruitment 37,762 University Advancement – Staffing/M&O 314,514

13. Base Budget Allocations effective September 1, 2008 Enhancing and Protecting our Infrastructure Total: $1,383,490 Support for new facility openings 655,334 Reserves, Bad Debt & TX Tomorrow 436,931 University Police 132,000 Debt Service 159,225 Total Operating Base Budget Allocations -- $9,314,444 (Includes state appropriations and tuition revenue only) Enhancing and Protecting our Infrastructure Total: $1,383,490 Support for new facility openings 655,334 Reserves, Bad Debt & TX Tomorrow 436,931 University Police 132,000 Debt Service 159,225 Total Operating Base Budget Allocations -- $9,314,444 (Includes state appropriations and tuition revenue only)

14. NonBase Budget Allocations effective September 1, 2008 Data Warehouse $685,000 Graduate Student Recruitment 206,500 Police & Facility Vehicles 169,000 Police Digital/Voice Vehicle Records & Tech Enhancements 108,500 Police DSX System 295,490 Security Camera Updates 41,400 Inventory Scanner Replacements 73,550 Computer Upgrades & replacements 92,300 Data Warehouse $685,000 Graduate Student Recruitment 206,500 Police & Facility Vehicles 169,000 Police Digital/Voice Vehicle Records & Tech Enhancements 108,500 Police DSX System 295,490 Security Camera Updates 41,400 Inventory Scanner Replacements 73,550 Computer Upgrades & replacements 92,300

15. NonBase Budget Allocations effective September 1, 2008 Housekeeping Equipment $40,000 Outreach & Engagement Website 29,000 Annual Fund Direct Mail Campaign 70,000 Annual Fund Call Center 30,300 Animal Housing & Handling Costs 440,000 Research Maintenance & Operation Costs 113,750 Admissions Student Recruitment Efforts 206,776 Student Retention Study 63,434 University Advancement Capital Campaign 260,000 University Advancement Computer System 50,000 Annual Giving Solicitation Materials 25,000 Total Non-recurring needs $3,000,000 Housekeeping Equipment $40,000 Outreach & Engagement Website 29,000 Annual Fund Direct Mail Campaign 70,000 Annual Fund Call Center 30,300 Animal Housing & Handling Costs 440,000 Research Maintenance & Operation Costs 113,750 Admissions Student Recruitment Efforts 206,776 Student Retention Study 63,434 University Advancement Capital Campaign 260,000 University Advancement Computer System 50,000 Annual Giving Solicitation Materials 25,000 Total Non-recurring needs $3,000,000

16. FY09 Budgeted Net Operating Revenues (All Funds) $385,856,278

17. FY09 UTSA Budgeted Operating Expenses (All Funds) $389,244,181

18. Budgeted Expenses Academics (in millions) FY 2008 FY 2009 $ Chg % Chg (% of Total) UT Arlington 10% $ 366.0 $ 385.6 $ 385.6 $ 19.6 5.3% (8.4%) UT Austin 51.3% 1,851.8 1,851.8 1.983.6 1.983.6 131.8 131.8 7.1% (56.5%) UT Brownsville 3.6% 130.0 130.0 138.9 138.9 8.9 8.9 6.8% (3.8%) UT Dallas 8% 276.3 276.3 309.1 309.1 32.8 32.8 11.9% (14.1%) UT El Paso 7.6% 280.2 280.2 295.0 295.0 14.8 14.8 5.3% (6.3%) UT Pan Amer 6.1% 229.2 229.2 235.2 235.2 6.0 6.0 2.6% (2.6%) UT Perm Basin 1.2% 44.8 44.8 46.2 46.2 1.4 1.4 3.0% (0.6%) UTSA 10.1% 377.6 389.2 11.6 3.1% (5%) UT Tyler 2.1% 74.9 74.9 81.3 81.3 6.4 6.4 8.5% (2.7%) Total Academic$3,630.8$3,864.1 $233.3 6.4% (100%)

19. FY 2009 Library, Equipment, Repair & Rehabilitation (LERR) Total Funding = $30,000,000 UT Arlington $ 2,136,850 UTSouthwestern Dallas $ 1,975,000 UT Austin 4,494,150 UTMB Galveston 2,050,000 UT Dallas 2,150,000 UTHSC Houston 1,975,000 UT El Paso 2,170,000 UTHSC San Antonio 2,000,000 UT Permian Basin 830,000 UT MD Anderson 1,975,000 UT San Antonio 2,238,000 UT Health Center Tyler 1,995,000 UT Tyler 811,000 Total $ 14,830,000 Total $ 11,970,000 Academic Library Collection $2,700,000 Collaboration Projects 500,000 UT Arlington $ 2,136,850 UTSouthwestern Dallas $ 1,975,000 UT Austin 4,494,150 UTMB Galveston 2,050,000 UT Dallas 2,150,000 UTHSC Houston 1,975,000 UT El Paso 2,170,000 UTHSC San Antonio 2,000,000 UT Permian Basin 830,000 UT MD Anderson 1,975,000 UT San Antonio 2,238,000 UT Health Center Tyler 1,995,000 UT Tyler 811,000 Total $ 14,830,000 Total $ 11,970,000 Academic Library Collection $2,700,000 Collaboration Projects 500,000

20. FY 2009 Library, Equipment, Repair & Rehabilitation (LERR) Total Funding for UTSA $2,238,000 Physical Education Building Fire Suppression $450,000 Expansion of Library Collection Shelving 630,000 Student Safety and Security 508,000 ADA Access 150,000 Science Bldg Teaching Lab Safety Rehabilitation (Requested $654,000) $500,000 Physical Education Building Fire Suppression $450,000 Expansion of Library Collection Shelving 630,000 Student Safety and Security 508,000 ADA Access 150,000 Science Bldg Teaching Lab Safety Rehabilitation (Requested $654,000) $500,000

21. FY 2009 Faculty Science & Technology Acquisition & Retention Program (STARs) Total Funding = $20,000,000 Faculty STARs Program – Academic Institutions $10,000,000 Faculty STARs Program – Health Institutions $10,000,000 Benefits of Faculty STARs Program: Recruit and retain best faculty in the nation Develop and strengthen research capacity Pending and issued patents Encourage future research and excellence Collaboration with outside entities

22. STARs Funding History Academic Institutions 2005 Faculty STARS $ 32,450,000 (UTSA received $2,500,000 Competitive / $2,717,388 Non- Competitive; $5,217,388 Total) 2006 Faculty STARS $ 15,000,000 (UTSA received $0) 2007 Faculty STARS $ 20,000,000 (UTSA received $490,000) 2008 Faculty STARS $ 10,000,000 (UTSA received $0) 2009 Proposed $ 10,000,000 Health Institutions 2005 Faculty STARS $ 26,550,000 2009 Proposed $ 10,000,000 Funds must be used for equipment or lab renovation only. Competitive awards overseen by a peer review chaired by the Exec VC

23. Budget Rules Budget Rules For Fiscal Year Ending August 31, 2009 A. A.INITIAL BUDGET 1. 1.Any transfers subsequent to the approval of the initial budget shall be made only after consideration of the allocations, transfer limitations, and general provisions of the current general appropriations act. (See B: Budget Amendments) A. A.INITIAL BUDGET 1. 1.Any transfers subsequent to the approval of the initial budget shall be made only after consideration of the allocations, transfer limitations, and general provisions of the current general appropriations act. (See B: Budget Amendments)

24. Budget Rules Budget Rules For Fiscal Year Ending August 31, 2009 2. All appointments are subject to the provisions of the U. T. System Board of Regents‘ Rules and Regulations for the governance of The University of Texas System. 3. The established merit principle will be observed in determining salary rates. 2. All appointments are subject to the provisions of the U. T. System Board of Regents‘ Rules and Regulations for the governance of The University of Texas System. 3. The established merit principle will be observed in determining salary rates.

25. Budget Rules Budget Rules For Fiscal Year Ending August 31, 2009 4. 4.All academic salary rates in the instructional departments are 9-month rates (Sept 1 – May 31) unless otherwise specified. 5. 5.All appointments of classified personnel are based on 12-month rates and are made within appropriate salary ranges as defined by the classified personnel Pay Plan approved by the president or Chancellor. All appointments of administrative & professional (A&P) personnel are based on 12-month rates. 4. 4.All academic salary rates in the instructional departments are 9-month rates (Sept 1 – May 31) unless otherwise specified. 5. 5.All appointments of classified personnel are based on 12-month rates and are made within appropriate salary ranges as defined by the classified personnel Pay Plan approved by the president or Chancellor. All appointments of administrative & professional (A&P) personnel are based on 12-month rates.

26. Budget Rules Budget Rules For Fiscal Year Ending August 31, 2009 B. BUDGET AMENDMENTS 1. 1.Items requiring approval of the UT System Administration & subsequent approval by the BoR: a. a.Transfers from unappropriated E&G fund balance b. b.New appointments of tenured faculty c. c.Award of tenure to any faculty member d. d.New appointment to Emeritus status. e. e.Appointments, promotions & salary increases involving the President. B. BUDGET AMENDMENTS 1. 1.Items requiring approval of the UT System Administration & subsequent approval by the BoR: a. a.Transfers from unappropriated E&G fund balance b. b.New appointments of tenured faculty c. c.Award of tenure to any faculty member d. d.New appointment to Emeritus status. e. e.Appointments, promotions & salary increases involving the President.

27. Budget Rules Budget Rules For Fiscal Year Ending August 31, 2009 B. BUDGET AMENDMENTS (continued) 1. 1.Items requiring approval of the UT System Administration & subsequent approval by the BoR: f. Compensation changes, new contracts, or contract changes involving Athletic directors or head coaches. g. Compensation changes for EE’s whose total annual compensation is $1,000,000 or above. h. Increases in budgeted amounts of $500,000 or more from income for E&G, Auxiliary, Designated Funds, Service Departments, Revolving Funds and Plant Funds. B. BUDGET AMENDMENTS (continued) 1. 1.Items requiring approval of the UT System Administration & subsequent approval by the BoR: f. Compensation changes, new contracts, or contract changes involving Athletic directors or head coaches. g. Compensation changes for EE’s whose total annual compensation is $1,000,000 or above. h. Increases in budgeted amounts of $500,000 or more from income for E&G, Auxiliary, Designated Funds, Service Departments, Revolving Funds and Plant Funds.

28. Budget Rules Budget Rules For Fiscal Year Ending August 31, 2009 B. BUDGET AMENDMENTS (continued) 1. 1.Items requiring approval of the UT System Administration & subsequent approval by the BoR: i. i.Increases to Plant Funds of $500,000 or more which result from transfers from E&G, Auxiliary, Designated Funds, Service Departments, and Revolving Funds. B. BUDGET AMENDMENTS (continued) 1. 1.Items requiring approval of the UT System Administration & subsequent approval by the BoR: i. i.Increases to Plant Funds of $500,000 or more which result from transfers from E&G, Auxiliary, Designated Funds, Service Departments, and Revolving Funds.

29. Budget Rules Budget Rules For Fiscal Year Ending August 31, 2009 B. BUDGET AMENDMENTS (continued) 2. Items requiring approval of the UT System Administration (non-docket) a. a.Reappropriation of prior year E&G fund balances of $100,000 or more. b. b. Increases in budgeted amounts of $100,000 - $499,999 from income for E&G, Auxiliary, Designated, Service Departments, & Revolving funds. c. c.Increases to plant funds of $100,000 - $499,999, which result from transfers from E&G, Auxiliary, Designated, Service department & Revolving funds. B. BUDGET AMENDMENTS (continued) 2. Items requiring approval of the UT System Administration (non-docket) a. a.Reappropriation of prior year E&G fund balances of $100,000 or more. b. b. Increases in budgeted amounts of $100,000 - $499,999 from income for E&G, Auxiliary, Designated, Service Departments, & Revolving funds. c. c.Increases to plant funds of $100,000 - $499,999, which result from transfers from E&G, Auxiliary, Designated, Service department & Revolving funds.

30. Budget Rules Budget Rules For Fiscal Year Ending August 31, 2009 B. BUDGET AMENDMENTS (continued) 2. Items requiring approval of the UT System Administration (non-docket) d. Compensation changes for EEs who total annual compensation is $500,000 or more but less than $1M. e. Salary increases involving tenured faculty of $10,000 or more. This includes one time payments. f. Appointments & promotions involving A&P personnel reporting directly to a president, a vice president or the equivalent. B. BUDGET AMENDMENTS (continued) 2. Items requiring approval of the UT System Administration (non-docket) d. Compensation changes for EEs who total annual compensation is $500,000 or more but less than $1M. e. Salary increases involving tenured faculty of $10,000 or more. This includes one time payments. f. Appointments & promotions involving A&P personnel reporting directly to a president, a vice president or the equivalent.

31. Budget Rules Budget Rules For Fiscal Year Ending August 31, 2009 B. BUDGET AMENDMENTS (continued) 2. Items requiring approval of the UT System Administration (non-docket) g. Salary increases of $10,000 or more involving A&P personnel reporting directly to the president, a vice president or the equivalent. h. All appointments and salary increases of $10,000 or more involving employees other than athletic directors and head coaches under written employment contracts. B. BUDGET AMENDMENTS (continued) 2. Items requiring approval of the UT System Administration (non-docket) g. Salary increases of $10,000 or more involving A&P personnel reporting directly to the president, a vice president or the equivalent. h. All appointments and salary increases of $10,000 or more involving employees other than athletic directors and head coaches under written employment contracts.

32. Budget Rules Budget Rules For Fiscal Year Ending August 31, 2009 4. EFFECTIVE DATE OF APPOINTMENTS & SALARY INCREASES a. a.Any increase in an approved salary rate for the current fiscal year without a change in classification or position is not to be effective prior to the first day of the month in which the required final approval of the rate change is obtained. b. b.A salary rate increase resulting from an appointment to another classification or to a position involving new or different duties may be made effective to the time of the first performance of duties under the new appointment. 4. EFFECTIVE DATE OF APPOINTMENTS & SALARY INCREASES a. a.Any increase in an approved salary rate for the current fiscal year without a change in classification or position is not to be effective prior to the first day of the month in which the required final approval of the rate change is obtained. b. b.A salary rate increase resulting from an appointment to another classification or to a position involving new or different duties may be made effective to the time of the first performance of duties under the new appointment.

33. Budget Rules Budget Rules For Fiscal Year Ending August 31, 2009 4. EFFECTIVE DATE OF APPOINTMENTS & SALARY INCREASES (continued) c. The effective date of an appointment is the date in which the individual is first to perform service for the institution under that appointment. d. The original appointment during a fiscal year of a person not in a budget for that year or not under an existing appointment for that year may relate back to the first performance of duties during the fiscal year although such person may have been employed in a previous fiscal year and although an increased salary rate for the same classification or position is involved. 4. EFFECTIVE DATE OF APPOINTMENTS & SALARY INCREASES (continued) c. The effective date of an appointment is the date in which the individual is first to perform service for the institution under that appointment. d. The original appointment during a fiscal year of a person not in a budget for that year or not under an existing appointment for that year may relate back to the first performance of duties during the fiscal year although such person may have been employed in a previous fiscal year and although an increased salary rate for the same classification or position is involved.

34. Budget Rules Budget Rules For Fiscal Year Ending August 31, 2009 4. EFFECTIVE DATE OF APPOINTMENTS & SALARY INCREASES (continued) c. The effective date of an appointment is the date in which the individual is first to perform service for the institution under that appointment. d. The original appointment during a fiscal year, of a person not in a budget for that year or not under an existing appointment for that year may relate back to the first performance of duties during the fiscal year although such person may have been employed in a previous fiscal year and although an increased salary rate for the same classification or position is involved. 4. EFFECTIVE DATE OF APPOINTMENTS & SALARY INCREASES (continued) c. The effective date of an appointment is the date in which the individual is first to perform service for the institution under that appointment. d. The original appointment during a fiscal year, of a person not in a budget for that year or not under an existing appointment for that year may relate back to the first performance of duties during the fiscal year although such person may have been employed in a previous fiscal year and although an increased salary rate for the same classification or position is involved.