10/9/2003tuition policy advisory committee1 appendix
DESCRIPTION
10/9/2003Tuition Policy Advisory Committee3 Academic Budget Over 30 YearsTRANSCRIPT
10/9/2003 Tuition Policy Advisory Committee 1
Appendix
10/9/2003 Tuition Policy Advisory Committee 2
Total University Total University BudgetBudget
Educational Educational & General & General ComponentComponent
59%59%
Endowment Endowment ComponentComponent
9%9%
Research Research ComponentComponent
20%20%
Auxiliary Auxiliary ComponentComponent
12%12%
$846.7M$846.7M
University FinancesUniversity FinancesFY03/04 Total University Budget $1.44BFY03/04 Total University Budget $1.44B
$176.6M$176.6M
$129.1M$129.1M
$292.2M$292.2M
$1.44B$1.44B
10/9/2003 Tuition Policy Advisory Committee 3
Academic Budget Over 30 Years
30 Years 20 Years 10 Years Today(in millions) 1973/74 1983/84 1993/94 2003/04
State GR Funding 68.6$ 190.5$ 219.6$ 291.8$
Total ACADEMIC Budget 81.6$ 287.0$ 458.5$ 846.7$
Percent State Funding 84.1% 66.4% 47.9% 34.5%
10/9/2003 Tuition Policy Advisory Committee 4
Operating Budget Projection
($ in Millions) 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
STATUS QUO BUDGET SOURCES 1
GR 2 $297.8 $291.8 $291.8 $291.8 $291.8 $291.8 $291.8Tuition & Fees 3,4 153.0 183.6 189.8 195.5 195.5 195.5 195.5AUF 119.3 109.4 103.6 101.2 102.7 102.9 102.7Other 5 68.3 59.5 60.0 61.6 61.7 64.0 66.4 TOTAL 638.5 644.3 645.2 650.1 651.8 654.2 656.4
STATUS QUO USESSalaries 390.3 386.9 386.9 386.9 386.9 386.9 386.9Other Oper 6 248.2 250.1 262.4 271.1 277.4 283.9 290.6 TOTAL 638.5 637.0 649.3 658.0 664.3 670.8 677.5
Net Status Quo Deficit $0.0 $7.2 ($4.1) ($7.9) ($12.5) ($16.6) ($21.1)
Quality Requirements Beyond Status QuoSalary Merit Program (3%) 7 - (7.2) (25.6) (40.1) (55.4) (71.4) (88.2) Salary Market Adjustments (2%) 7 - - (9.1) (18.8) (28.9) (39.6) (50.8) Reduction of Student/Faculty Ratio 7 - - (2.3) (4.7) (7.1) (9.6) (12.2) Expenses Funded by Incidental Fees (3%) - (3.2) (3.5) (3.9) (4.2) (4.6) Faculty Start-up Costs & New Programs Initiatives - - (11.5) (11.8) (12.2) (12.6) (12.9)
ESSENTIAL OPERATING BUDGET DEFICIT $0.0 $0.0 ($55.8) ($86.8) ($120.0) ($153.9) ($189.8)
1 - Enrollment steady at 51.8k students (1.3M SCH) 4 - Incidental fees held at 03-04 levels5 - Indirect Cost increased 5% annually
3 - Tuition: $2 statutory increase in 04-05 & 05-06 to $50 cap 6 - Operating Expenses increased 3% annually (No Designated Tuition Increase) 7 - Salary related increases include Fringes
2 - GR no growth, FY03/04 and ongoing
KEY STATUS QUO BUDGET ASSUMPTIONS
10/9/2003 Tuition Policy Advisory Committee 5
Facility Aging Drives Repair & Renovation (R&R) RequirementsThere is a significant bubble of R&R requirements in the near future.
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
1910 1920 1930 1940 1950 1960 1970 1980 1990Construction Decade
Gros
s Sq
uare
Foo
tage
A substantial portion of the University’s Plant, those projects built in the 50’s through 80’s, is approaching 30-60 years old and will require substantial repair and renovation.
Total Facility Replacement Cost: $ 2.1B
Gro
ss S
quar
e Fo
otag
e
10/9/2003 Tuition Policy Advisory Committee 6
Repair & Renovation (R&R) / Deferred Maintenance Budget Projection
* Transfer to FY 03-04 Benefit Budget to cover increases.
E&G FACILITIES ONLY($ in Millions) 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Annual Repair & Renovation (R&R) Requirement (30.0) (31.0) (32.0) (33.0) (34.0) (35.0)Annual R&R Funding (Based on Current Model)
Initial Budget 16.0 16.0 16.0 16.0 16.0 16.0Budget Transfer * (10.0) (10.0) (10.0) (10.0) (10.0) (10.0)
Total Annual R&R Funding 6.0 6.0 6.0 6.0 6.0 6.0
Net Annual Unfunded Amount (24.0) (25.0) (26.0) (27.0) (28.0) (29.0)
Proposed Phase In of Annual R&R Funding Requirements 13.0 22.0 25.0 28.0 34.0 35.0
Remaining Cumulative Unfunded Amount ($11.0) ($14.0) ($15.0) ($14.0) ($8.0) ($2.0)
10/9/2003 Tuition Policy Advisory Committee 7
6-Year Capital Budget Projection
Note: it would take about $39M recurring to generate $390M of capital funds from 30 year bonds.
WATER CONTROL RENEWAL ($ in Millions) FIRE & LIFE & ENVIRONMENTAL OF EXISTING ESSENTIAL TOTAL
SAFETY HEALTH ISSUES SPACE NEW SPACE NEEDEDACADEMIC
Experimental Science Bldg. 75.0 75.0 Batts 18.0 18.0 Biomedical Engineering Bldg. 25.0 25.0 Old Pharmacy Bldg 18.0 18.0 Air Handling in Lab Buildings 60.0 60.0 New Acad Bldg (F11 Bldg) 56.0 56.0 Biological Labs Bldg. 15.0 15.0 Nanoscience 35.0 35.0 Other Smaller Projects 10.0 10.0
INFRASTRUCTURELibrary Storage 5.0 5.0 IT Mirror Sites 15.0 15.0
FIRE & LIFE SAFETYPerforming Arts Center 7.6 7.6 American w/Disabilities Act 9.0 9.0 Campus 38.0 38.0
Total Budget Requirement $69.6 $93.0 $103.0 $121.0 386.6$
10/9/2003 Tuition Policy Advisory Committee 8
Annual Quality Funding Requirements
($ in Millions) 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
OperatingBudget Requirements -$ 55.8$ 86.8$ 120.0$ 153.9$ 189.8$
Repair & RenovationRequirements 13.0 22.0 25.0 28.0 34.0 35.0
Capital Budget Requirements - 8.0 16.0 24.0 32.0 39.0
Total Annual RecurringFunding Requirements 13.0$ 85.8$ 127.8$ 172.0$ 219.9$ 263.8$
Academic Sustainability Tuition 13.0 52.0
Unmet Quality Needs 33.8
10/9/2003 Tuition Policy Advisory Committee 9
Academic Sustainability Tuition
• Fixed increase amount for full-time students
• Prorated increase for part-time students
• Separate from legislative increases
• Includes associated financial aid increases
10/9/2003 Tuition Policy Advisory Committee 10
Spring 2004 Academic Sustainability Tuition
SEM Credit Hrs Resident Non-ResidentUndergraduateFull-Time 12+ Hours (Fixed) 361 397
Part-Time 8-11 Hours (Fixed) 289 3181-7 Hours (Prorated)
1st Hour 108 119Each Additional Hour 18 20
GraduateFull-Time 9+ Hours (Fixed) 361 397
Part-Time 1-8 Hours (Prorated)1st Hour 108 119All Other Hours 32 35
SEMESTER INCREASE OVER FALL 03
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Fall/Spring 2004-05 Academic Sustainability Tuition
SEM Credit Hrs Resident Non-ResidentUndergraduateFull-Time 12+ Hours (Fixed) 722 794
Part-Time 8-11 Hours (Fixed) 578 6361-7 Hours (Prorated)
1st Hour 217 238Each Additional Hour 36 40
GraduateFull-Time 9+ Hours (Fixed) 722 794
Part-Time 1-8 Hours (Prorated)1st Hour 217 238All Other Hours 63 70
SEMESTER INCREASE OVER FALL 03
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Average Cost of Education Resident Full-Time
Spring 2004 Fall 04/Spring 05UndergraduateCurrent $2,714 $2,714Academic Sustainability $361 $722Legislated $2/SCH Increase $30Total $3,075 $3,466Growth over prior semester 13.3% 12.7%
Graduate *Current $2,146 $2,146Academic Sustainability $361 $722Legislated $2/SCH Increase $18Total $2,507 $2,886Growth over prior semester 16.8% 15.1%
*Professional schools not included
10/9/2003 Tuition Policy Advisory Committee 13
Financial Aid Grant Award for Academic Sustainability Resident Undergraduate Tuition
Annual Income Proposed Award
$0 - $40,000 100%
$40,001 - $60,000 75%
$60,001 - $80,000 50%