Campus Budget Briefing UC Davis Shared Service Center May 30, 2014

Campus Budget BriefingUC Davis Shared Service Center

May 30, 2014

2|Annual Budget Briefing – May 30, 2014

UC DavisCampus Facts

Started in 1905 as the "farm" for UC Berkeley. Founded as a separate campus in 1959.

Students as of fall 2013: 34,000

4 colleges, 6 professional schools

99 undergraduate majors

90 graduate programs

23 intercollegiate sports (NCAA Division I)

UC Davis accounts for $6.9 billion and 69,000 jobs

22,500 employees (4,100 academic, 14,900 staff, 3,500 students)

Member of the Association of American Universities

1st in the world for agriculture and forestry (QS World University Rankings, 2014)

9th ranked public university by U.S. News & World Report

1st in Sierra Magazine 2012 “Cool Schools” Survey

Health System:• Top Hospital and

"A" Hospital Safety Award, Leapfrog Group

• Consumer Choice Award, National Research Corporation

Research Funding:

• 13th among U.S. ranked public universities

• 21nd among public and private universities


Vision of Excellence

A Strategic Framework

We are One Community that aspires

to make this university the UC of the 21st

Century

We foster a vibrant community of

learning and scholarship

We drive innovation at the

frontiers of knowledge

We embrace global issues

We nurture a sustainable future and

propel economic vitality

We champion health, education,

access and opportunity

We cultivate a culture of

organizational excellence, effectiveness

and stewardship

UC Davis is the University that

transforms lives while it celebrates humanity

and inspires breakthroughs


Annual Budget Process

Financial Stability, Invest in Strengths, Rebuild

Foundation

Fixed costs for state/tuition Estimate %

Benefits, composite rate increase $12.3 33%

Faculty, merit and 3% $13.5 36%

Staff, 3% and contracts $8.5 23%

Deferred Maintenance, renewal $2.8 8%

Total $37.1 100%

CAMPUS BUDGET PROCESS

Call letter – February 24, 2014

Budget meetings – April/May

Faculty Hiring call – April

BALANCED APPROACH

Revenue – 2020, State, Other

Fixed costs – salaries, benefits, retirement, deferred maintenance

Investments – capital (classrooms, maintenance), graduate student support, library, student success (honors, advising)

BUT, CHALLENGES REMAIN

Bridge with reserves

Continue efficiencies – Administration for 21st Century

Tuition policy –multi-year framework is needed

Core fund shortfall of $13M likely to increase to $21 million

State Un-restricted $342 (9%)

Tuition $413 (11%)

Indirect Cost Recovery $124 (3%)

Grants and Contracts $513 (14%)

Federal (Hatch, Pell Grants) $56 (2%)

Sales and Service, Auxiliary$410

(11%) Gifts, Endowments, Interest, Other

$154 (4%)

State Designated and Restricted $46

(1%)

Student Fees $166 (4%)

Medical Center $1,531 (41%)

2013-14 ProjectionsUC Davis Revenue$3.8 billion


Incentive-Based Budget Model

FRAMEWORK

Revenue allocation model; allocates funds to deans not departments

Provost retains portion centrally for cross-subsidy and strategic investments

Incentives drive growth allocations and re-allocations of base

Uses principles and metrics for accountability

PROCESS

White papers as tool to provide analysis and frame policy decisions

Use transition and bridging strategies

Recognize significance of cultural change

MODULES

Undergraduate tuition. Model uses student credit hours, majors and degrees awarded. Incentivizes cross college teaching.

Indirect Cost Recovery. 37% of Indirect Cost Recovery allocated to unit generating revenue.

Summer tuition. Model uses student credit hours with new, direct participation by deans.

Graduate tuition. New model removes NRST barrier for 2nd and 3rd year International PhD students. Incentives for masters and TAs.

Faculty resources. More autonomy for deans and central funds to support Hiring Incentive Program (HIP) Provost allocation. Fund common goods and provide subsidies across academic units.


2020 Initiative

GOALS

Ensure access for California students and increase opportunities for national and international students

Stabilize our finances

Increase tenure-track faculty to strengthen research, teaching and outreach

Internationalize the campus

Boost regional economic development and create new jobs

PROCESS

Task forces – academic resources, enrollment management, facilities

Consultation and refinement of initial proposal

Academic Senate review

Decision to proceed

Implementation plan

FRAMEWORK

5,000 undergraduates – 500 residents and 4,500 national and international; more opportunities for graduate and professional

300 faculty (tenure track and teaching faculty)

Rate of growth adjusted to capacity in human and physical resources


2020 InitiativeEarly Results

Fall 2011 to Fall 2013

UNDERGRADUATE STUDENTS

All applications have increased: residents (+11%), national (+146%), international (+355%); higher selectivity

More applications from underrepresented students: +27%

Added 1,500 undergraduates; proportion national/international increased from 4% to 7%

INVESTMENTS

$26+ million – investments for instructional programs and student success including advising, gateway courses, TAs, classroom enhancements, student counseling, recruitment and yield

Capital Program (new and renewal):

• Classrooms (e.g., 600-seat, Walker Hall, Testing Center)

• Laboratory and Office space

• International Center

• Student Housing

FACULTY

Over 110 searches authorized this year

Received 76 Hiring Incentive Program (HIP) proposals


Staffing Trends2008 to 2013

Core Fund employees 2008 2013 change

Ladder Faculty and Other Academic

1,863 1,775 -5%

Staff 3,287 2,913 -11%

SMG and MSP 289 220 -24%

Students 1,327 1,445 9%

Total 6,766 6,353 -6%

MIDDLE MANAGEMENT FOR ALL FUNDS DECLINED

Number of supervisors declined by 15 percent (~230 FTE)

Staff-to-supervisor ratio increased ~5 staff per supervisor to ~6 staff per supervisor

THE ACADEMIC CORE HAS BEEN OUR HIGHEST PRIORITY FOR STATE FUNDS/TUITION

The number of staff working in general administration units declined from 11% of all employees to 9%.

Number of faculty and academic employees on core sources declined by 90 (5%), while the number of staff declined by 443 (11%).

Among staff, the number of managers and senior professional positions declined by 24% while the number of all other staff positions declined by 11%.


Deferred Maintenance

One TimeFunds$12,754,722 Permanent Allocation

$4,900,000

Debt (Facilities Renewal)

$4,414,000

2005-2013 DM InvestmentRECENT INVESTMENTS

2005-2013 investment: ≈ $22 million

Statewide Energy Partnership Program (SEPP):

2010 -2014: ≈$60 million

Investments are opportunistic and intended to leverage modest base budget (<$1M)

BACKLOG

In 2012, UC Davis worked with a facility asset advisor to determine DM backlog on

campus.

Need of $1.3 billion was identified

One of highest backlogs in the system

FUTURE INVESTMENTS

Chancellor and Provost established biannual allocations as part of campus and health

system budget process to provide a source for a multi-year investment plan of $75

million

Many capital projects include substantial renewal elements

Capital plan also includes many IT infrastructure projects


Research Outcomes and

Initiatives

In 2012-13, research grew to $754 million, making UC Davis the only UC

campus to have experienced a constant increase in

funding in recent years.

In 2012-13, investment in research and scholarship = $18 million

through the Office of Research.

RISE (Research Investment in Science and

Engineering) = $11 million over 3 years

IFHA (Interdisciplinary Frontiers in

Humanities And Arts) = $3.6 million over 3 years

Research Bridge = $3.0 million to increase support of the research bridge

program


The public phase of

The Campaign for UC Davis

began in October 2010 with

the goal of raising $1 Billion

from 100,000 donors.

As of March 2, 2014,

$1.081 billion has been raised from 107,328 donors.

For the 2013-14 academic

year, over $108 million

has been raised to date.


One World,One UC Davis

UC Davis is a global network that is transforming lives, celebrating humanity and inspiring breakthroughs. This message is already integrated in our Health System, Athletics and the World Food Center


Improving the Student

Experience

A blue-ribbon committee identified several issues that need to be

addressed:

AdvisingFinancial AidCounseling

Time-to-degree

In 2013-14, UC Davis is investing more than $20 million in Advising,

TAs, Counseling Services and support for Undocumented Students. We are

also initiating the first Faculty in Residence program in our student

dorms.

Documents

Campus Budget Briefing UC Davis Shared Service Center May 30, 2014