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UNC Budget Outlook. November 7, 2008. UNC Faculty Council. The University of North Carolina. UNC Summary – Revenues 2006-07. Total = $8.2 billion. Source: IPEDS Data. UNC-CH Summary – Revenues 2006-07. Total = $2.5 billion. Source: IPEDS Data. UNC System = $2.6 billion* 2008-09. - PowerPoint PPT Presentation
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UNC Budget OutlookUNC Budget Outlook
November 7, 2008November 7, 2008November 7, 2008November 7, 2008The University of North Carolina
UNC Faculty CouncilUNC Faculty Council
The University of North Carolina2
UNC Summary – Revenues2006-07
UNC Summary – Revenues2006-07
Auxiliaries13%
Federal Appropriations,
Contracts & Grants11%
Tuition & Fees
12%
State Appropriations,
Contracts & Grants31%
HospitalsSales & Services
10%
Investment Income, Endowments
& Gifts9%
Other Revenues
2%
Capital Appropriations, Grants & Gifts
10%
Local Grants & Contracts
2%
Source: IPEDS Data
Total = $8.2 billion
The University of North Carolina3
UNC-CH Summary – Revenues2006-07
UNC-CH Summary – Revenues2006-07
Auxiliaries20%
Federal Appropriations,
Contracts & Grants19%
Tuition & Fees
8%
State Appropriations,
Contracts & Grants22%
Investment Income, Endowments
& Gifts18%
Other Revenues
1%
Capital Appropriations, Grants & Gifts
8%
Local Grants & Contracts
4%
Source: IPEDS Data
Total = $2.5 billion
The University of North Carolina4
All Other 33%
UNC-CH22%
NCSU20%
ECU11%
UNCC7%
UNCG7%
* Excludes capital improvements
UNC-CH = 22% of UNC System State Appropriations
UNC System = $2.6 billion*2008-09
UNC System = $2.6 billion*2008-09
The University of North Carolina5
Education$11.453.8%
Justice & Public Safety
$2.09.4%
Health & Human Services
$4.923.1%
Other$1.25.5%
Reserves$1.15.2%
Debt Service
$0.63.0%
* Excludes capital improvements
UNC = 12% of overall state budget and 23% of Education budget
NC State Budget - $21.2 billion*2008-09
NC State Budget - $21.2 billion*2008-09
The University of North Carolina6
UNC as a % of State BudgetUNC as a % of State Budget
2008-09
2003-04
1998-99
1993-94
1988-89
2008-09
2003-04
1998-99
1993-94
1988-89
12.0%
12.2%
13.2%
14.2%
16.5%
12.0%
12.2%
13.2%
14.2%
16.5%
The University of North Carolina7
Education Budget Breakdown2008-09
Education Budget Breakdown2008-09
DPI: $7.8 billion UNC: $2.6 billion NCCCS: $.9 billion Private Colleges: $.1 billion
DPI: $7.8 billion UNC: $2.6 billion NCCCS: $.9 billion Private Colleges: $.1 billion
The University of North Carolina8
Fiscal Year 2008-09Fiscal Year 2008-09
2008-09 revenue projections are based on 3.9% growth
Each 1% of growth = $200 million Currently, revenues are approximately
$300 million behind projections. This is a significant deficit for the 1st quarter.
Governor has issued 4% reversions Other Factors:
State Health Plan has at least a $300 million deficit for 2008-09
2008-09 revenue projections are based on 3.9% growth
Each 1% of growth = $200 million Currently, revenues are approximately
$300 million behind projections. This is a significant deficit for the 1st quarter.
Governor has issued 4% reversions Other Factors:
State Health Plan has at least a $300 million deficit for 2008-09
The University of North Carolina9
2009-11 Budget2009-11 Budget North Carolina is a fast growing state
North Carolina will be the 7th largest state by 2030
Pressures on state budget Economy, declining revenues State Health Plan deficit – $600 to $700
million over biennium Medicaid – $50 million K-12 requirements
Enrollment – $100 million ABC Bonuses – $100 million
State Employee Salary Increases – each 1% is $130 million
New Governor, Legislators, & Treasurer
North Carolina is a fast growing state North Carolina will be the 7th largest state
by 2030 Pressures on state budget
Economy, declining revenues State Health Plan deficit – $600 to $700
million over biennium Medicaid – $50 million K-12 requirements
Enrollment – $100 million ABC Bonuses – $100 million
State Employee Salary Increases – each 1% is $130 million
New Governor, Legislators, & Treasurer
The University of North Carolina10
UNC State BudgetUNC State Budget
“A single, unified recommended budget for all of public senior higher education.” G.S. 116-11
Statute prescribes form of budget requests – three categories:
1. Continuing Operations (enrollment, utilities, vehicle replacement) – allocated to institutions
2. Academic Salary Increases – lump sum to Board of Governors and then allocated to campuses
3. Expansions/Improvements Items – lump sum to Board of Governors and then allocated to campuses
New and expanded programs Capital improvements
“A single, unified recommended budget for all of public senior higher education.” G.S. 116-11
Statute prescribes form of budget requests – three categories:
1. Continuing Operations (enrollment, utilities, vehicle replacement) – allocated to institutions
2. Academic Salary Increases – lump sum to Board of Governors and then allocated to campuses
3. Expansions/Improvements Items – lump sum to Board of Governors and then allocated to campuses
New and expanded programs Capital improvements
The University of North Carolina11
UNC State BudgetUNC State Budget Legal Basis
State Executive Budget Act – G.S.143C Higher Education Reorganization Act of 1971 – G.S. 116
Board of Governors’ Role: Presents comprehensive financial plans to General
Assembly Modifies plans based on resources made available by
Legislature Establishes annual budgets which are administered by
the constituent institutions Advocacy
Legal Basis State Executive Budget Act – G.S.143C Higher Education Reorganization Act of 1971 – G.S. 116
Board of Governors’ Role: Presents comprehensive financial plans to General
Assembly Modifies plans based on resources made available by
Legislature Establishes annual budgets which are administered by
the constituent institutions Advocacy
The University of North Carolina12
2009-11 Budget - Continuation2009-11 Budget - Continuation
Campuses work with Office of State Budget & Management (OSBM): Building Reserves for new State-funded
Facilities opening during the biennium
Replacement Vehicles & Equipment
Inflationary Increases (library books, utilities)
Required Staff Benefits & Continuing Personnel
Campuses and GA work together, then submit to OSBM:
Enrollment
Campuses work with Office of State Budget & Management (OSBM): Building Reserves for new State-funded
Facilities opening during the biennium
Replacement Vehicles & Equipment
Inflationary Increases (library books, utilities)
Required Staff Benefits & Continuing Personnel
Campuses and GA work together, then submit to OSBM:
Enrollment
The University of North Carolina13
Expansion Budget ProcessExpansion Budget Process
Budget PreparationCampus Submissions (Sept)UNC-GA Review (Sept-Oct)24 Chancellors’ & Affiliates
one-on-one discussions (Sept-Oct)
BOG Workshops (Oct-Nov)Final Recommendations (Nov)
Budget PreparationCampus Submissions (Sept)UNC-GA Review (Sept-Oct)24 Chancellors’ & Affiliates
one-on-one discussions (Sept-Oct)
BOG Workshops (Oct-Nov)Final Recommendations (Nov)
The University of North Carolina14
2009-11 Expansion Budget – Operating
2009-11 Expansion Budget – Operating
Campus Safety Our Citizens & Their Future:
Access to Higher Education UNC Need-Based Grant Regional Partnerships Student-focused Programs:
Community College/transfer Under-represented populations Retention and graduation
Campus Safety Our Citizens & Their Future:
Access to Higher Education UNC Need-Based Grant Regional Partnerships Student-focused Programs:
Community College/transfer Under-represented populations Retention and graduation
The University of North Carolina15
2009-11 Expansion Budget – Operating
2009-11 Expansion Budget – Operating
Increase Efforts to Recruit & Retain High Quality Faculty 80th Percentile Across the Board Merit Increases Distinguished Professors Recruitment & Retention Fund
Increase Efforts to Recruit & Retain High Quality Faculty 80th Percentile Across the Board Merit Increases Distinguished Professors Recruitment & Retention Fund
The University of North Carolina16
2009-11 Expansion Budget – Operating
2009-11 Expansion Budget – Operating
Our Global Readiness Graduates with 21st Century Skills
Critical and creative thinking Analysis Problem-solving Verbal and written communication
Our Health Dental Program
Medical Programs
Our Global Readiness Graduates with 21st Century Skills
Critical and creative thinking Analysis Problem-solving Verbal and written communication
Our Health Dental Program
Medical Programs
The University of North Carolina17
2009-11 Expansion Budget – Operating
2009-11 Expansion Budget – Operating
Our University’s Outreach & Engagement Regional Issues
Our Communities & Their Economic Transformation NC Research Campus at Kannapolis NC Research Competitiveness Fund Graduate Student Recruitment &
Retention
Our University’s Outreach & Engagement Regional Issues
Our Communities & Their Economic Transformation NC Research Campus at Kannapolis NC Research Competitiveness Fund Graduate Student Recruitment &
Retention
The University of North Carolina18
2009-11 Expansion Budget – Operating
2009-11 Expansion Budget – Operating
Our Children & Their Future: Improving Public Education Programs focused on producing
math & science teachers
Our Environment Campus sustainability programs Research related to sustainability
Efficient Use of Available Resources Fiscal Integrity
Affiliated Entities
Our Children & Their Future: Improving Public Education Programs focused on producing
math & science teachers
Our Environment Campus sustainability programs Research related to sustainability
Efficient Use of Available Resources Fiscal Integrity
Affiliated Entities
The University of North Carolina19
Fire Safety Improvements
Funding for projects which have been approved for planning
Planning funds for other important priorities
Repair and Renovation funds
Land
Fire Safety Improvements
Funding for projects which have been approved for planning
Planning funds for other important priorities
Repair and Renovation funds
Land
2009-11 Budget – Capital2009-11 Budget – Capital
The University of North Carolina20
Results of Working TogetherResults of Working Together2006 Session (2006-07 Budget)
UNC began the session with $2.1 billion and ended legislative session with a budget of $2.3 billion
$140 million in capital support
2007 Session (2007-08 Budget)UNC started continuation budget process at
$2.4 billion; ended legislative session with budgetof $2.7 billion – $300 million increase
$1 billion in capital support
2008 Session (2008-09 Budget)UNC received $159 million in increased appropriations$623 million in capital support
2006 Session (2006-07 Budget)UNC began the session with $2.1 billion and ended
legislative session with a budget of $2.3 billion$140 million in capital support
2007 Session (2007-08 Budget)UNC started continuation budget process at
$2.4 billion; ended legislative session with budgetof $2.7 billion – $300 million increase
$1 billion in capital support
2008 Session (2008-09 Budget)UNC received $159 million in increased appropriations$623 million in capital support
The University of North Carolina21
2009 NC Legislative Process“Long Session”
2009 NC Legislative Process“Long Session”
Governor’s Budget Proposal – January 2009General fund availability is determined
Two budgets may be submitted
General Assembly convenes – January 28, 2009
Senate Budget – May
House Budget – June
Conference Process Results in Final Budget –
June/July
Governor’s Budget Proposal – January 2009General fund availability is determined
Two budgets may be submitted
General Assembly convenes – January 28, 2009
Senate Budget – May
House Budget – June
Conference Process Results in Final Budget –
June/July