Committee on Planning and Budget, Fall RetreatNovember 16, 2012

Overview ofCampus Budget, Budget Model, and Budget Process

I. Budget Overview

II. Budget Model

III. Budget Process

Presentation Outline

State designated and restricted; 1% Student Fees; 5%

Tuition; 11%

State unrestricted funds; 8%

Indirect cost recovery; 3%

Grants and contracts, direct; 14%

Federal (Hatch, Pell Grants); 2%Sales and Service, Auxiliary; 11%

Gifts, endowments, interest, other; 4%

UC Davis Medical Center; 40%

2012-13 Projected Revenue: $3.6 Billion

State, Unrestricted and Tuition, 19% ($703 million)

Budget Overview Sources of Funds

 

  Source of Funds

2012-13

Budget

(in millions)

1State support, tuition,

fees 

2 State unrestricted funds $307

3State designated and

restricted$50

4 Tuition $396

5 Student Fees $162

6 Sub-total $915

7 Extramural research (all sponsors)

8 Grants and contracts, direct $518

9 Indirect cost recovery $122

10 Sub-total $640

11 Other Sources  

12 Federal (Hatch, Pell Grants) $60

13 Sales and Service, Auxiliary $397

14Gifts, endowment, interest,

other$143

15 Sub-total $600

16 UC Davis Medical Center $1,431

17 TOTAL $3,586

2011-12 Operating Expenses: $3.2 Billion

1 Category

Amount

(in millions) % of total

2Instruction and

Academic Support$ 766 24%

3 Research $ 508 16%

4Student Services and

Financial Aid$ 321 10%

5Operation and

Maintenance$ 95 3%

6 Auxiliary $ 96 3%

7 Institutional Support $ 147 5%

8 Public Service $ 63 2%

9 Medical Center $ 1,217 38%

10 TOTAL EXPENSES $ 3,213 100%

Budget Overview Uses of Funds

Salaries and Wages --

Academic, 18%

Salaries and Wages -- Staff, 33%

Benefits, 16%

Scholarships, 7%

Supplies and Equipment, 25%

Budget Overview 2012-13 Core Funding

 dollars in millions

1 Budget needs and priorities (on-going)  

2 Prior year shortfall not addressed permanently $ (25.0)

3 State Budget Act (as enacted July, 2012) $ (5.1)

4 Salary, Benefit, UCRS fixed costs – approved and pending  $ (25.7)

5 TOTAL ON-GOING NEEDS $ (55.8)

6 Funding Budget Needs and Priorities (on-going)  

7 Tuition revenue/2012-13 buy-out $ --

8 Increase in national and international undergraduates $ 3.5

9 Efficiencies, cost reductions, and re-allocations  $ 4.0

10 ON-GOING SURPLUS/SHORTFALL $ (48.3)

11 Reserves and Other One-Time Funds

12 Available Central Reserves $ 38.3

13 OP Tax mitigation and Campus Transition $ (2.0)

14 OP Transition funds and system borrowing $ 2.3

15 Additions to campus reserves or campus borrowing tbd

16 REMAINING CENTRAL RESERVE $ (9.7)

State Funds and Tuition

Budget Overview 2013-14 Core Funding

 dollars in millions

1 Budget needs and priorities (on-going)  

2 Prior year shortfall not addressed permanently $ (48.3)

3 Salary, Benefit, UCRS fixed costs – approved and pending $ (25.0)

4 Investments in stabilization and quality improvements tbd

5 TOTAL On-going Needs $ (73.3)

6 Funding Budget Needs and Priorities (on-going)  

7 State Budget Act -- Tuition revenue/2012-13 buy-out $17.0

8 State Budget Act – augmentations $15.0

9 State Budget Act – debt restructuring proposal tbd

10 Tuition revenue due to fee increase or buy-out $17.0

11Campus Process (revenues, efficiencies, cost reductions, re-

allocations)tbd

12 ON-GOING SURPLUS/SHORTFALL  $ (24.3)

13 Reserves and Other One-Time Funds

14 Available Central Reserves $ (0.0)

15 REMAINING CENTRAL RESERVE $ (24.3)

Estimated UCD Share $8-11 M

State Funds and Tuition

State designated and restricted; 1% Student Fees; 5%

Tuition; 11%

State unrestricted funds; 8%

Indirect cost re-covery; 3%

Grants and contracts, direct; 14%

Federal (Hatch, Pell Grants); 2%Sales and Service, Auxiliary; 11%

Gifts, endowments, interest, other; 4%

UC Davis Medical Center; 40%

Budget Model Campus Budget Model

• Advances the UC DavisVision of Excellence

• Encouragescreativity

• Leads to a moretransparent budget process

• Includes a transitionstrategy

Budget Components in Budget Model

Campus Budget Model

Phase I – Implemented or in process Provost Allocation and Spring Annual

Budget Process Undergraduate tuition Indirect cost recovery Central benefits pool decentralization Office of the President funding

streams Academic masters tuition pilot Finalization of 2012-13 budgets

Phase II – To be completed• Graduate tuition• Summer session tuition• Faculty FTE

Budget Model Development

Budget Model Undergraduate Tuition Revenue

Tuition allocated directly to schools and colleges ($136 M)• 60% based on student credit hours• 30% based on degree majors• 10% based on degrees awarded

Return to Aid (RTA) ($77 M)• Deducted before allocating to schools

and colleges• New model does not change our

commitment to student support

Assessment ($60 M)• 30% after accounting for RTA• Portion of new tuition is assessed for

allocation by the Provost

Budget Model Indirect Cost Recovery

ICR distributed to schools and colleges ($32 M)• 34% is distributed based on where the

funds were generated• Will support salaries and benefits,

start-up packages and other research-related activities

• Funds allocated to deans and vice chancellors

Assessment ($90 M)• 66% allocated to central campus for

facility maintenance, debt service, start-up packages, campus research support services

• Categorical set-asides (ARRA, Garamendi, etc.)

Budget Model Provost Allocation

Derived from a variety of sources ($428 M)• Assessment on undergraduate tuition

($60 M)• Graduate tuition ($55 M)• Unrestricted state support ($300 M)

Portion of ICR also flows to central campus ($90 M)

Used to support • Campuswide services from

administrative and academic support units

• Institutional initiatives• Basic operations of academic units

Initially, self-balancing part of the model

Budget Process Annual Budget Timeline

Mid-November Regents’ Budget Proposal

January 10thGovernor's Budget Proposal

Late January Campus Planning Letter

March-April Annual Budget Meetings

Mid-May Governor's May Revise

May-JunePreliminary Campus Decisions

July Final State Budget ActUC Systemwide AllocationsFinal Campus Allocations

Questions/discussion points for spring 2012 budget meetings

(from 2012-13 Budget Planning Letter, 4/12/12)

1. Background and context – the three-to-five primary goals you are advancing through the budget (deans should describe efforts to advance and improve graduate education, research and undergraduate student success).

2. Process and Metrics – a description of the process you use to develop and manage budgets; and an overview of the metrics used to inform resource allocations.

3. Sources and uses of funds – a high-level overview of the funding plan for your unit for this year (2011-12) and the budget year (2012-13) including a discussion of your strategies for managing ongoing operating funds and one-time reserves.

4. Budget reductions – brief recap of the impact and consequences of budget reductions over the last four years.

5. Other priorities and investments – an overview of additional investments you anticipate.

Budget Process Provost’s Budget Process Meetings

Next steps for 2013-14 budget meetings

• Refine budget questions

• Add in use of metrics, data

• Identify Provost’s priorities

Budget Process Next Steps

• Budget news (campus, UC system, state)o budgetnews.ucdavis.edu

• Data, analysis and reportso Provost’s Dashboard:

provost.ucdavis.eduo Campus Facts: facts.ucdavis.edu o Campus Budget Office:

budget.ucdavis.edu

• Advocacy o www.ucforcalifornia.org

• Annual financial schedules and reportso www.universityofcalifornia.edu/reportingt

ransparency

Budget Information Sources

Appendix State Funding vs. Fee Revenue

$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

Tuition

Tuition and Other Student Fees

Unrestricted State General Funds

2007-08 Enrollment 30,685

2012-13 Enrollment34,004 (Projected)

UC Davis, Annual Unrestricted State Revenue vs. Student Tuition and Fees ($ in Millions)

Notes:1. Amounts include health insurance ($1,380 undergrad and $2,280

graduate). Amounts for undergraduates exclude course material fees.2. Fee levels as of September 2012; Fees subject to change.

Appendix 2012-13 Student Tuition and Fees

Total Fees and Tuition Resident

National &

International

Undergraduate $15,257 $38,135

Graduate $15,387 $30,489

Selected Professional Degree Programs:

Law (JD) $49,564 $58,815

Management (MBA) $38,727 $50,972

Medicine (MD) $39,652 $51,897

Nursing (MS) $23,127 $35,372

Veterinary Medicine (DVM) $33,091 $45,336

The University’s financial aid program helps to offset the impact of fee increases for undergraduates from lower-income families.

The net cost of attendance at UC Davis has actually declined for undergraduates from the lowest-income families since 2006-07.

Gift aid (which does not need to be repaid) from all sources more than doubled between 2007-08 and 2010-11.

06-07 07-08 08-09 09-10 10-11$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

Net Cost of Attendance by Family Income in Constant 2010-11 Dollars

Less than $25,000 $25,000 to $49,000$49,000 to $74,000 $74,000 to $99,000$99,000 to $123,000 $123,000 to $149,000$149,000 and above All students

Net Cost of Attendance for UC Davis Undergraduates

Appendix Financial Aid Offsets Fee Hikes for Many

UC Davis Average Total Debt Levels – Bachelor’s Degree Recipients in Constant 2009 Dollars

Appendix Student Loan Indebtedness

07-08 08-09 09-10 10-11 $-

$5,000

$10,000

$15,000

$20,000

Per Borrower Per Bachelor's Degree Recipient

(51%)(52%)

(52%)(54%)

(% Who Borrowed)

April 2009 and April 2012 FTE

Appendix Employees by Fund Source

1 Other Faculty includes Adjunct Professors, Lecturers and other non-tenure-track appointments. Other Academic includes Librarians, Academic Administrative Officers and University Extension Educators and non-student research academic appointments. 2 Student Employees includes teaching assistants, graduate student researchers, residents, and administrative and clerical employees.3 Health Science Funds includes sales and services from the teaching hospital, the medical compensation plan, and funds for clinical drug trials

State Funds & Tuition Health Science Funds3 External & Other Funds Total

Position Type 2009 2012 2009 2012 2009 2012 2009 2012

Tenure-Track Faculty 1,172 1,113 51 46 54 70 1,277 1,229

Other Faculty and Other Academic1 715 612 497 511 1,382 1,748 2,594 2,871

Total Academic 1,887 1,725 548 557 1,436 1,818 3,871 4,100

Staff 3,688 3,243 7,041 7,447 3,502 3,758 14,231 14,448

Student Employees2 1,317 1,391 499 527 1,435 1,406 3,251 3,324

Grand Total 6,892 6,359 8,088 8,531 6,373 6,982 21,353 21,872 Change from April 09 to April 11 -533 443 609 519

More large classes (>50). Fewer small classes (<20).

Appendix Class Size

1995-96 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Under 20

0.42 0.35 0.33 0.32 0.33 0.34 0.35 0.34 0.34 0.32 0.31 0.32 0.32

Over 50

0.23 0.26 0.28 0.3 0.3 0.3 0.29 0.29 0.29 0.29 0.31 0.31 0.32

18%

23%

28%

33%

38%

43%

Despite a decline in the number of ladder faculty FTE, more student credit hours are being taught by ladder

faculty.

Appendix Ladder Faculty Teaching Load

2006-07 2007-08 2008-09 2009-10 2010-11 2011-120

5,000

10,000

15,000

20,000

25,000

-

100

200

300

400

500

600

700

800

900

1,000

Ladder Taught UG Workload UG Workload Taught by Others Ladder FTE

Unde

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oad

(Ful

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Ladd

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