Overview of State Budget FOR THE 2012–13 BIENNIUM JANUARY 2011

1. Overview of State Budget FOR THE 2012–13 BIENNIUM JANUARY 2011 HOUSE VERSION SENATE VERSION LBB baseline appropriations for state government ops total $158.7 billion from all fund sources. a $28.8 billion, or 15.4 percent, decrease from the 2010–11 biennial level. General Rev & GR-Dedicated total $79.7 billion, a decrease of $8.8 billion, or 9.9 percent • LBB baseline appropriations for state government ops total $156.4 billion from all fund sources. • a $31.1 billion, or 16.6 percent, decrease from the 2010–11 biennial level. • General Rev & GR-Dedicated total $79.3 billion, a decrease of $9.2 billion, or 10.4 percent

2. Overview of Impacts to UT San Antonio HOUSE VERSION SENATE VERSION General revenue is reduced by 15.7%, <$29,378,209> over the biennium. Formula, incentive & other discretionary funding is cut 11.3%, <$21,137,137> over the biennium. Cuts to other Special Items & Research Development Funds make up the remaining reductions. • General revenue is reduced by 19.5%, <$36,320,173> over the biennium. • Formula, incentive & other discretionary funding is cut 15%, <$28,079,101> over the biennium. • Cuts to other Special Items & Research Development Funds make up the remaining reductions.

3. Overview of Impacts to Higher Education HOUSE VERSION SENATE VERSION SAME SAME Formula funding was reduced 5% in addition to the previous 5% & redistributed for enrollment changes. • ARRA funds were not replaced for formula, incentive funding or special items. • Special Items were cut 25% in addition to the 5% reductions taken & computed in the base during the LAR process. • Formula funding was reduced 10% in addition to the previous 5% and redistributed for enrollment changes.

4. Financial Aid Impacts • 66% of all UTSA students need financial aid to attend college and about half of those students are Pell-eligible (i.e. high-need students). • The proposed cut of 41% to Texas Grant funding will have a significant impact on recruiting and enrollment. • New freshmen will be ineligible for awards

5. Financial Aid Impacts • Loss of Texas Grants will: • inhibit, perhaps end, the university’s ability to offer the tuition and fee guarantee (UTSAccess) for low-income students. • result in an increase student indebtedness as they will need to also borrow privately in addition to grants, scholarships and Stafford Loans

6. Financial Aid Impacts • There will likely be a negative impact on our ability to attract and support the high achieving students needed to meet strategic enrollment and graduation objectives as well as the objectives for Closing the Gaps.

7. Special Item Reductions

8. Research Development Fund Texas Education Code Sec 62.091-62.098 • RDF provides funding to promote increased research capacity • Based on the average amount of restricted research funds expended per year for the 3 preceding fiscal years. • Our reduction is -29% of the FY11 allocation, or <$979,893> each year of the biennium

9. RDF Changes – Top 10 by Amount

10. How do we cover these reductions?

11. Proposed Reduction Strategies SB1 Reduction HB1 Reduction Recommendations of Resource Strategy Team

12. Budget Calendar - Key Dates