UTSA FY 2009-10 BUDGET OVERVIEW Financial Area Representatives June 17, 2009

1. UTSA FY 2009-10 BUDGET OVERVIEWFinancial Area RepresentativesJune 17, 2009

2. FY2010-11 BienniumState Budget Outcome • University of Texas Academic Institutions received 8.53% average increase to general revenue appropriations (net of Tuition Revenue Bonds) • All Academic institutional average = 8.1% • Largest system increase was 12.4% for the Texas State system • UT San Antonio received 11.54% over the biennium (3% over UT average) • Largest UT increase was to Dallas at 22.36% • Largest non-UT increase was 44.63% to Texas A&M-Texarkana (next was 34.93% to Lamar University) Financial Area Representatives

3. FY2010-11 BienniumState Budget Outcome • Federal Stimulus money is being used to fund $42.5M of new Special Items over 2 years of the biennium: • 14% of the overall increase for UT System, $16.4 million (1.2% of the 8.5% overall increase, true net increase 7.3%) • For UT Dallas, $11.5 million in new special items funded from stimulus; 39% of their overall increase (true net increase 13.5%) • For UT San Antonio – 2.7% of our net increase is due to stimulus funding (true net increase 8.8%): • $4M for SA Life Science Institute • $500K for P-16 Council Financial Area Representatives

4. FY2010-11 BienniumState Budget Outcome • Federal Stimulus money is also being used to fund: • $81 Million in formula funding for Academic Institutions • $51 Million in formula funding for Health Related Institutions • $80 Million in Higher Education Incentive Funding to THECB • Board of Regents’ Chairman Huffines and Chancellor Cigarroa have cautioned UT campuses to recognize that this level of funding is not sustainable in the long term. Financial Area Representatives

5. FY2010-11 BienniumState Budget Outcome • Stimulus funding is one time money - state general revenues are declining • For UTSA - if those funds are not replaced in the next biennium could translate to a $2.9 million shortfall PLUS loss of SALSI / P-16 funding. • Chairman Huffines is strongly urging cost containment and reductions in administrative overhead. • UT San Antonio must be mindful of future year impacts and demonstrate fiscal restraint Financial Area Representatives

6. FY2010-11 BienniumState Budget Outcome • No Tuition Bills passed, but other notable legislation • HB51 – provides a strategic plan for creating additional national research universities in Texas • Requires emerging institutions to submit a long-term strategic plan in a format yet to be established by THECB • Also provides for bonding authority for Texas A&M at Galveston and UT Medical Branch to recover from Hurricane Ike damage. • Other: recommendations for future funding (next biennium) for excellence in specific programs and fields; incentive grants, elimination/replacement of RDF with RUDF, many other provisions that are still being reviewed as to impact. Financial Area Representatives

7. FY2010-11 BienniumState Budget Outcome • HB103 requires institutions with student population of 20,000+ to offer or sponsor one or more student health benefit plans, one of which must be a high deductible plan. • Must collect information as to the reason a student declines the health insurance plan. • Requires student health centers to assist students in the filing of claims against the insurance plans held by the user, although may contract with a third-party service to assist. Financial Area Representatives

8. FY2010-11 BienniumState Budget Outcome • HB 269 requires that credit be granted to honorably discharged military veterans for any physical education course requirement and course credit for up to 12 non-major or minor elective hours. • Also requires THECB to establish fees for ROTC course programs, establishes limits on tuition charged for courses taken as part of ROTC and establishes the counting of coursework taken as part of ROTC program in determining the full time status of students. Financial Area Representatives

9. FY2010-11 BienniumState Budget Outcome • HB 1096 requires higher ed institutions to provide written notice to current or prospective students of the availability of required or recommended textbooks at university-affiliated and other non-university retailers, including ON LINE retail sellers. • THECB to adopt rules. • Must be implemented by Fall 2009 Financial Area Representatives

10. FY2010-11 BienniumState Budget Outcome • HB 2504 requires to post on the website for each UG course offered for credit, within 7 days after the term begins (must also be updated & maintained for 2 years), the: • Course syllabus • Departmental budget, if available; and • Curriculum vitae of each regular instructor. • Also requires: • a plan to make end-of-course student evaluations of faculty available online. • an online list of workstudy employment opportunities (see also SB 305). Financial Area Representatives

11. FY2010-11 BienniumState Budget Outcome • HB 3353 Environmental Service fee • Authorizes establishment of such a fee subject to approval by a majority vote of students enrolled at the institution (SB 2182) • HB 3452 establishes the Texas Armed Services Scholarship Program to be administered by THECB • Qualified student could receive an annual conditional scholarship for use at any institution having a ROTC program. • Gov, Lt Gov each senator and member of the Texas House of Representatives can appoint one recipient Financial Area Representatives

12. FY2010-11 BienniumState Budget Outcome • HB 3646 authorizes public school districts to contract with higher ed institutions located in the same county to provide district resources to pay the costs for design and construction for instructional and athletic facilities, including stadiums • HB 3951 requires that at least 1 person employed by UTSA is trained (and available during business hours) to assist military veterans or their families to understand state and federal financial aid programs. Financial Area Representatives

13. FY2010-11 BienniumState Budget Outcome • HB 4149 requires THECB to conduct a study to identify achievable cost-savings measures in the management and operation of HE institutions. • Report should be submitted by January 31, 2011 and estimate the amount to be realized over a 5 year period. • Also requires a study on use and availability of electronic textbooks, including review of UT Austin pilot program. Due December 1, 2010. Financial Area Representatives

14. FY2010-11 BienniumState Budget Outcome • HB 4189 requires 1st time students, including transfers, who apply to and are approved for on-campus housing to certify that they have been vaccinated for bacterial meningitis – eff. January 1, 2010. • Also, provides for the confidentiality and anonymity of persons filing a compliance report or participating in a compliance investigation. Provides for exemption of such information from disclosure – eff. Immediately. Financial Area Representatives

15. FY2010-11 BienniumState Budget Outcome • HB 4244 provides that the currently required waiver of non-resident tuition for out of state students who receive a competitive scholarship of at least $1,000 is optional rather than mandatory. • An institution that exercises the waiver will not lose general appropriations as a result. • HJR 14 authorizes a constitutional amendment subject to voter approval (November 3, 2009 election) to establish the national research university fund. Financial Area Representatives

16. FY2010-11 BienniumState Budget Outcome • SB 93 provides tuition and fee exemptions for certain military veterans who entered the service at a location in Texas, declared Texas as a home of record or would be determined to be a resident for tuition purposes at the time the person entered military service. • Removes the requirement that the person must have resided in Texas for at least 12 months before the date of registration and have been a citizen of Texas at the time they entered the service. • Exemptions are also applicable to certain qualified dependents of eligible veterans. • Effective Fall 2009, and requires refunds of any amounts paid for students who now qualify for the exemption. Financial Area Representatives

17. FY2010-11 BienniumState Budget Outcome • SB 175 changes the Top 10 % law at UT Austin eff 2011-2012 academic year to cap at 75% those who would normally receive automatic admission (resident student who graduated in the top 10% of their class). • Also provides Top 10% status for community college transfers who maintain a GPA of at least 2.5 (to the institution where he/she previously applied) • Establishes a scholarship program but a student is not eligible if the student was admitted to UT Austin under the reformed admissions law – eff 2010-11 academic year. Financial Area Representatives

18. FY2010-11 BienniumState Budget Outcome • SB 297 provides a waiver of non-resident tuition and fees for veterans and their spouses and children without regard to the length of time they have resided in Texas. • Also provides an exemption from payment of resident tuition for dependent children of active duty members of the armed forces during a term or semester when the member is engaged in combat operations outside the US. • Effective immediately with tuition and waiver beginning Fall 2009. Financial Area Representatives

19. FY2010-11 BienniumState Budget Outcome • SB 1304 requires notification to students of the amount of any designated tuition set-aside for financial aid in either a printed billing statement, receipt or any email sent to the student relating to the payment of tuition. • Effective immediately • SB 1343 exempts from excessive hours calculations, those SCH taken before earning an associate’s degree. • Effective immediately • SB 2244 sets a time limit of 5 years within a business or organization must be established as part of the state’s economic development program before an employee or employee’s dependent is entitled to pay resident tuition. • Effective Fall 2010 semester Financial Area Representatives

20. FY2011 UTSA Budget Revenues (E&G and Designated – Discretionary) State Appropriations (incremental to FY 2009 Base) Formula Funding $3,923,358 Stimulus Funding 2,250,000 Exceptional Items 1,835,673 Research Development 421,155 Subtotal $8,430,186 Financial Area Representatives

21. FY2011 UTSA Budget Revenues (E&G and Designated – Discretionary) State Paid Benefits Proportional Cost Sharing $2,094,783 Group Health Contributions 1,634,958 Subtotal $3,729,741 GR-Dedicated Statutory Tuition <$ 19,998> Allocable Misc E&G Rev <$ 28,732> Interest on Time Deposits 250,000 Subtotal $ 201,270 Total – E&G Revenues $12,361,197 Financial Area Representatives

22. FY2011 UTSA Budget Revenues (E&G and Designated – Discretionary) Designated Tuition Due to Rate Increase ($120.85/SCH +9.86% or $10.85 / SCH) $7,037,833 Enrollment Growth over ‘09 Budget 1,594,835 Subtotal $8,632,668 Other Fees & Revenue Third Time Enrollment $ 150,000 45 Hour Rule Fee 300,000 F&A Revenue 150,000 Subtotal $ 600,000 Financial Area Representatives

23. FY2011 UTSA Budget Revenues (E&G and Designated – Discretionary) Internal Reallocations F&A Reserves $ 405,000 Other Campus Reserves 1,064,292 Subtotal $1,469,292 TOTAL ALL SOURCES OF ALLOCATION E&G $12,361,197 Designated 10,701,960 Grand TOTAL $23,063,157 Financial Area Representatives

24. FY2011 UTSA Budget Uses of Budget – Base (Permanent) Allocations Centrally Paid Benefits $ 4,285,242 Compensation Related 3,414,795 Mandatory Costs/Other 6,189,042 Special Items/RDF 4,506,828 Strategic Initiatives / Div Reqsts 4,667,250 TOTAL $23,063,157 Financial Area Representatives

25. FY2011 UTSA Budget Review One Time Funding Awards Total Funds Available for One Time (Not Permanent) Budget Requirements: Network Upgrade Year 2 $1,433,460 Security Initiatives Year 2 284,328 Other Institutional Needs 3,355,359 TOTAL $5,073,147 Financial Area Representatives