UNC System - ncleg.net to Joint Appropriations Subcommittee on Education Brett Altman ... UNC-GA...

UNC System: Overview

Presentation to Joint Appropriations Subcommittee on Education

Brett Altman

Mark Bondo

Fiscal Research Division

March 5, 2015

Presentation Agenda

1. Overview and Enrollment

2. Budget Overview and Trends

3. Tuition and Fees

4. Performance Metrics

March 5, 2015 2

UNC System Overview

March 5, 2015 3

System Composition

March 5, 2015

Source: UNC Presentation to Joint Education Appropriations Subcommittee on February 19, 2015.

4

Classification of UNC Institutions in the

Carnegie Classification System

Special Focus

Institutions

UNC-SA

Bacc. Colleges (Arts &

Sciences)

UNC-A

Bacc. Colleges (Diverse Fields)

ECSU

WSSU

Masters Colleges and Universities

ASU

FSU

NCCU

UNC-P

UNC-W

WCU

Doctoral/ Research

Universities

ECU

UNC-C

Research Universities

(High Research Activity)

NC A&T

UNC-G

Research Universities (Very High Research Activity)

NCSU

UNC-CH

Not Classified

NCSSM

March 5, 2015 5

System Governance

General Assembly elects the UNC Board of Governors.

BOG is charged by statute with governing the UNC System Sets system-wide policy

Elects the system president and chancellors

Appoints a portion of Board of Trustee members

March 5, 2015 6

Enrollment

March 5, 2015 7

177,744

44,224 196,248 202,381

209,059 215,692

222,322 221,727 220,305 221,010 220,121

221,968

-

50,000

100,000

150,000

200,000

250,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Fall Student Headcount: 2005-2014

Undergraduates Graduates/Professional Schools Total Fall Enrollment

Student Headcount

Source: UNC General Administration Note: Does not include high school students.

March 5, 2015 8

Full Time 80%

Part Time 20%

All Students by Course Load

Student Characteristics

First-Time

Students 77%

Transfer Students

23%

New Students by Entry Type

In-State Resident

85%

Out-of-State

Resident 15%

All Students by Residency

March 5, 2015

Source: UNC General Administration Note: Does not include high school students.

9

State Approps. 33,390

55%

Receipts and Revenues 27,274

45%

UNC Employees by Source of Funds

Employees: UNC System

Total: 60,664 FTE

Source: Annual Salary Survey, December 2014

March 5, 2015 10

Budget Overview

March 5, 2015 11

UNC Budgeting 101

State General Fund Budget

• Education and related spending

• Any State appropriations for other items.

Campus Budgets

• Hospitals

• Auxiliary services

• Research

• Endowments

March 5, 2015 12

State Appropriations

26%

Tuition & Fees 15%

Federal Approps., Contracts, &

Grants 14%

State & Local Contracts &

Grants 6%

Gifts & Investment

Income 7%

Hospital Sales & Services

13%

Auxillaries 16%

Other Revenue 3%

FY 2013-14 Total Operating Revenues (Unaudited)

UNC Total Operating Revenues

Total = $9.6 billion

March 5, 2015

Source: UNC General Administration .

13

Instruction 27%

Research 11%

Public Service 4% Academic

Support and Student Services

13%

Institutional Support

6%

Auxilaries 22%

Hospitals 13%

Other 4%

FY 2013-14 Total Expenditures (Unaudited)*

Total = $9.3 billion

UNC Total Expenditures

March 5, 2015

Source: UNC General Administration *Totals include distributed interest, depreciation, and operation and maintenance

.

14

State General Fund Budget

$2.15

$2.44

$2.75

$2.90

$2.74 $2.68

$2.56 $2.66 $2.60 $2.65

$1.5

$1.7

$1.9

$2.1

$2.3

$2.5

$2.7

$2.9

$3.1

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15Budgeted

Net State General Fund Appropriations FY 2005-06 to FY 2014-15

An

nu

al A

pp

rop

riat

ion

($

Bill

ion

)

Source: June 30 BD 701 reports FY 2005-06 – 2013-14; FY 2014-15 Certified Budget as of December 2014.

March 5, 2015 15

State General Fund Budget

FY 2014-15 General Fund budget

Source: FY 2014-15 Certified Budget as of December 2014.

March 5, 2015

State

Appropriation

61%

Tuition &

Fees

34%

Other

5%

Total = $4.4 billion

16

State General Fund Budget

• 89% of net State General Fund

appropriations flows directly to the

campuses.

• Of the remaining 11%: – Aid to private institutions (4.1%)

– Financial aid (4.1%)

– UNC General Administration (1.5%)

– Other non-campus-specific programs (1.3%)

March 5, 2015 17

Enrollment Growth

G.S. 116-11(8) gives the Board of Governors (BOG) authority to set enrollment levels.

UNC has used an enrollment growth funding model since 1998 to develop its budget request. The General Assembly appropriates enrollment funding in

advance based on UNC’s own projections of the next year’s enrollment.

Factors that protected schools in years of declining enrollments have been removed in recent years.

March 5, 2015 18

Budget Flexibility

Special Responsibility Constituent Institutions

• Enacted in 1991 as part of the Budget Act

• General Assembly appropriates a lump sum to the

institution.

• Institution may:

– Carry forward 2.5% of appropriations for one-time

expenditures

– Spend overhead receipts

– Establish and abolish positions

– Other areas of Flexibility

March 5, 2015 19

Tuition and Fees

Setting Tuition

G.S. 116-11(7) directs the Board of Governors to set

tuition and fees rates “not inconsistent with actions of

the General Assembly.”

In 2014, the Board of Governors adopted a four-year

tuition and fee plan to guide it through 2018.

Resident undergraduate tuition and fees must remain in the

bottom 25% of each campus’s public “peer institution”

Non-resident undergraduate tuition and fees must fully

cover the cost of education.

The Board of Governors annually considers campus

requests to increase tuition and fees.

March 5, 2015 21

Tuition Increases

• Board of Governors approved biennial

increase for 2015-17 to generate and increase

of:

– $43.8 million in FY 2015-16

– $47.0 million in FY 2016-17

• A 3.8 and 3.9% undergraduate NC resident

increase for each year, respectively

March 5, 2015 22

Tuition Increases: Purposes

42%

24%

18%

10%

6%

Faculty & Staff Retention

- 42%

Expanded Institutional

Opprotunities - 24%

Academic Support - 18%

All Other Uses - 10%

Student Services - 6%

March 5, 2015 23

Setting Tuition: Undergraduate Peer Comparisons Institution Resident Rank Nonresident Rank

ASU 19 of 19 7 of 19

ECU 19 of 19 12 of 19

ECSU 15 of 16 11 of 16

FSU 17 of 17 10 of 17

NCA&T 16 of 18 10 of 18

NCCU 17 of 17 10 of 18

NCSU 15 of 17 15 of 17

UNCA 15 of 15 3 of 15

UNC-CH 11 of 11 7 of 11

UNCC 17 of 18 11 of 18

UNCG 17 of 19 12 of 19

UNCP 17 of 19 11 of 19

UNCW 18 of 18 9 of 18

UNCSA 13 of 14 12 of 14

WCU 15 of 18 10 of 18

WSSU 16 of 17 14 of 17 Source: UNC-GA presentation to Board of Governors, January 16,2015.

• Compares UNC

campuses to

public peer

institutions

• Rank determined

by value of FY

2015-16 proposed

tuition and fees of

UNC campuses

compared to FY

2014-15 total

tuition and fees

for public peer

institutions.

March 5, 2015 24

Tuition and Fee Revenues

• In the UNC System, tuition is collected and

maintained on campus.

Tuition and fees vary significantly by campus

FY 2015-16 (Resident)

Low: ECSU: $4,657

High: UNC-SA: $8,499

FY 2015-16 (Non-Resident)

Low: UNC-P: $15,931

High: UNC-CH: $33,416

March 5, 2015

Source: UNC-GA presentation to Board of Governors, January 16, 2015.

25

Resident Undergraduate Tuition

and Fees

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

Fees

Tuition

March 5, 2015 26

Tuition and Fees by Campus

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000A

SU

ECU

ECSU FS

U

NC

A&

T

NC

CU

NC

SU

UN

CA

UN

CC

H

UN

CC

UN

CG

UN

CP

UN

CSA

UN

CW

WC

U

WSS

U

2014-15 Undergraduate Tuition and Fees

Resident Non-ResidentSource: UNC-GA

March 5, 2015 27

Tuition Comparisons

Source: College Board, Trends in Higher Education Pricing, http://trends.collegeboard.org/college-pricing.

$6

,18

2

$6

,35

1

$8

,09

4

$8

,54

1

$8

,72

4

$8

,85

1

$9

,18

8

$9

,47

0

$1

0,8

99

$1

1,4

49

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

NC FL GA TN MD US Avg. KY AL VA SC

FY 2014-15 Undergraduate Resident Tuition and Fees, Surrounding States

March 5, 2015 28

Fees

• Fees vary by campus

• FY 2014-15 total fees range from:

• Lowest: $1,721 at Elizabeth City State

Highest: $2,666 at Appalachian State

• The six standard fees are:

Athletics Fee Health Services

Fee Student

Activities Fees

Educational and Technology

Fees

Debt Service Fee

Security Fee

March 5, 2015 29

Performance Metrics

Performance Measures

• Adopted in August of 2014

• Utilized in FY 2014-15 to apportion the

Management Flexibility Reduction

• Compares UNC Campuses to Peer Institutions

based on a set of Performance Measures

• Performance Measures do not apply to all

campuses

• Other measures are available

March 5, 2015 31

Graduation Rates Four and Six Year Graduation Rates (2006 Cohort)

March 5, 2015 32

Source: UNC General Administration

65%

34% 41% 44% 44% 45% 45%

56% 59% 60% 61% 62% 64% 72% 74% 76%

91%

0%

20%

40%

60%

80%

100%

4-year Rate 6-year Rate 6-year Rate Across UNC System

Freshman-to-Sophomore Retention

81% 83% 82% 82% 83%

84% 86% 85% 85% 85%

78% 78% 77% 78%

72%

74%

76%

78%

80%

82%

84%

86%

88%

2007 2008 2009 2010 2011

UNC System Freshman-to-Sophomore Retention Rates 2007-2011

Original Institution Any UNC Institution Public Peers Average

March 5, 2015

*2011 Public Peers Average Not Available Source: UNC General Administration

33

Degree Efficiency

March 5, 2015

Source: UNC General Administration and IPEDS Estimate

18

18.5

19

19.5

20

20.5

21

21.5

22

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

UNC System

Public Peer

Average

34

Education & Related Spending per Degree

$4

7,4

41

$4

8,0

78

$4

9,5

81

$5

3,8

88

$5

6,5

73

$5

7,5

94

$6

0,3

11

$6

0,7

11

$6

4,1

40

$6

4,8

08

$6

9,2

62

$7

1,3

61

$7

6,1

22

$7

8,0

59

$1

02

,63

9

$1

09

,47

3

$1

18

,53

5

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000FY 2013-14 E&R Spending per Degree by Campus

March 5, 2015

Source: UNC General Administration

35

Questions?

Brett Altman Brett.altman@ncleg.net

Mark Bondo markb@ncleg.net