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

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

HOUSE VERSION HOUSE VERSION

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

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

SENATE 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 $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

Overview of Impacts Overview of Impacts to UT San Antonioto UT San Antonio

Overview of Impacts Overview of Impacts to UT San Antonioto UT San Antonio

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.

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.

SENATE 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 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.

HOUSE VERSION

Overview of Impacts Overview of Impacts to Higher Educationto Higher Education

Overview of Impacts Overview of Impacts to Higher Educationto Higher Education

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.

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.

SENATE VERSION SENATE VERSION SAME

SAME

Formula funding was reduced 5% in addition to the previous 5% & redistributed for enrollment changes.

SAME

SAME

Formula funding was reduced 5% in addition to the previous 5% & redistributed for enrollment changes.

HOUSE VERSION

Financial Aid ImpactsFinancial 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

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

Financial Aid ImpactsFinancial Aid ImpactsLoss 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

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

Financial Aid ImpactsFinancial Aid ImpactsThere 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.

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.

Special Item ReductionsSpecial Item ReductionsSpecial Item

Recommended Reduction

% FY12 FY13 Biennial Total

SALSI <100%> <$2,000,000> <$2,000,000> <$4,000,000>

P-16 Council <100%> <$250,000> <$250,000> < 500,000>

TX PREP <25%> <$139,298> <$139,298> < 278,596>

Center for Water Research <100%> <$131,250> <$131,250> <262,500>

Institute of Texan Cultures <25%> <$488,282> <$488,282> <976,564>

Downtown Campus <29.3%>

<$384,614> <$384,614> <769,228>

Institutional Enhancement <28.9%>

<$1,651,866> <$1,651,866> <$3,303,732>

Texas State Data Center <18.8%> <$113,813> <$113,813> < 263,626>

Total Special Item Reductions <$5,159,123> <$5,159,123> <$10,318,246>

Research Development Fund Texas Education Code Sec 62.091-62.098

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

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

RDF Changes – Top 10 by AmountRDF Changes – Top 10 by AmountInstitution FY 11

ActualFY 12

SB1/HB1Chg from Prior

Yr% Chg

UT – DALLAS 5,627,594 3,717,303 $ (1,910,291) -34%

UNIVERSITY OF HOUSTON 6,380,651 4,723,003 $ (1,657,648) -26%

UT – EL PASO 4,263,330 3,055,165 $ (1,208,165) -28%

TEXAS TECH UNIVERSITY 4,868,296 3,673,942 $ (1,194,354) -25%

UT - SAN ANTONIO 3,402,524 2,422,631 $ (979,893) -29%

UT – ARLINGTON 3,452,814 2,661,509 $ (791,305) -23%

TEXAS A&M - CORPUS CHRISTI 1,495,540 976,039 $ (519,501) -35%

UNIVERSITY OF NORTH TEXAS 1,602,313 1,100,933 $ (501,380) -31%

TEXAS A&M – KINGSVILLE 1,267,265 814,502 $ (452,763) -36%

TARLETON STATE UNIVERSITY 1,115,775 699,880 $ (415,895) -37%

How do we cover these reductions?

How do we cover these reductions? Item House Bill 1 Senate Bill 1

Total Annual Reduction (net of TRB chgs) $18,106,640 $14,635,658

Incentive Funding (not permanently allocated)

<1,409,007>

<1,409,007>

Reductions Passed on to Special Items - San Antonio Life Sciences Institute (ARRA) <$2,000,000> <$2,000,000>

P-16 Council (ARRA) <$250,000> <$250,000>

Texas Pre Engineering Program <$139,298> <$139,298>

Center for Water Research <$131,250> <$131,250>

Institute of Texan Cultures <$488,282> <$488,282>

Texas State Data Center <$113,813> <$113,813>

Net Remaining Reduction to cover <13,574,990> <10,104,008>

Proposed Reduction Strategies

Proposed Reduction Strategies Item Amount Running Total

FY11 Permanent Budget Reduction $ 8,356,062 $ 8,356,062

Tax Auxiliary Accounts for OH at 2.5% 1,300,000 $ 9,656,062

Cut Official Occasions by 10% 138,000 $ 9,794,062Professional Development Budget 130,934 $ 9,924,996

New Designated Tuition (Net of Set Asides) 179,012 $ 10,104,008

New Designated Tuition (Net of Set Asides) 3,470,982 $ 13,574,990

New Designated Tuition (Net of Set Asides) 3,350,006 $ 16,924,996Salary Equity Reserve 288,000 $ 17,212,996

Tax Mandatory Fee Accounts at 2.5% 1,000,000 $ 18,212,996Change Graduate Student Medical Benefit to Stipend (change in savings amt)

110,800 $18,323,796

Reduce Central Reserves 854,929 $19,178,725

Reduce Utility Budget 350,000 $19,528,725

SB1 Reduction

HB1 Reduction

Recommendations of Resource Strategy Team

Budget Calendar - Key DatesBudget Calendar - Key Dates

Feb 9 Senate Finance Committee Hearing (House Appropriations Committee Hearing Pending)

Feb 23 University Strategic Resource Planning Council Meeting

March 18 Draft Revenue Projections and Debt Service Budgets provided to Fee Funded areas

March 30 University Strategic Resource Planning Council Meeting

April 7 FY12 Budget Document Preparation Begins (BUD System opens to departments)

TBD (by Divisions/Areas) Internal Deadlines for Budget Document creation, review and approval by each VP/AVP

April 29 FY12 Budget Documents approved and forwarded to Budget (BUD System closes to depts)

May 12 Board of Regents Budget Policies and Guidelines Approved

May 23-27 CMO Reviews Campus Budget & Budget Goals Presentation

June 1 Last day of 82nd Regular Legislative Session

June 1 - 10 UT System Budget Goals & Priorities Hearing

June 29 Draft FY12 Operating Budget due to UT System

July 18 Final FY12 Operating Budget due to UT System

August 19 FY12 Operating Budgets approved by Board of Regents