1 / 28

Tuition Policy Advisory Committee Meeting September 2, 2003

Tuition Policy Advisory Committee Meeting September 2, 2003. Committee Meeting #1. Today’s Agenda. President’s Welcome Procedural Issues Background Information recent history university finances… next year’s budget tuition & fees. Welcome and Thank You for Agreeing to Serve!.

Download Presentation

Tuition Policy Advisory Committee Meeting September 2, 2003

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Tuition Policy AdvisoryCommittee MeetingSeptember 2, 2003 Committee Meeting #1

  2. Today’s Agenda President’s Welcome Procedural Issues Background Information recent history university finances… next year’s budget tuition & fees

  3. Welcome and Thank You for Agreeing to Serve!

  4. Procedural Issues

  5. Working Timeline

  6. Recent History

  7. Recent History • Aging infrastructure confirmed by third party studies – conclusion: Under funding R&R $20M per year • Infrastructure fee proposed but rendered impractical by AG ruling • Legislative solutions sought with limited success • UBC focused on $40M recurring shortfall for the FY03/04 fiscal year: • $ 5M Aggressive cost savings measures • $25M General budget reductions undertaken • $10M R&R budget reduced to cover final legislative “dings”

  8. Positives Negatives Legislative Session Outcome • 100% IDC Retention +$20M • Tuition Flexibility • Continued downward trend in State financial support • GR reduction ($22M) • P/T Benefits ($6M) • 90 Day Wait ($2M) • TX Tomorrow ($3M) • B-on-Time ($?M) • Higher tuition set asides $20M -$33M

  9. Budget issues to Deal with • $30M annual shortfall in R&R funding • $20M annual coming into the year • $10M reduction to balance the Fy03/04 budget • $15M recurring shortfall in competitive compensation funding

  10. University Finances

  11. University Finances FY03/04 Total University Budget $1.44B Educational & General Component 59% Endowment Component 9% Total University Budget $846.7M+ 6.8% $1.44B + 4.7% or $63M $129.1M – 1.0% Research Component 20% Auxiliary Component 12% $292.2M + 12.6% $176.6M + 2.2%

  12. University FinancesHow does State General Revenue fit into the Picture?

  13. The Permanent University Fund (PUF) Why isn’t it enough? PUF Lands==> 02’ Market Value $6.7B <== return on investment Available University Fund 2/3 UT System 1/3 A&M System System Costs PUF Bonds UT Austin UT Austin receives about 30% of the total distributed income from the PUF UT Austin Fy03/04 $109.4M

  14. Next Year’s Budget

  15. Budget Accomplishments • For our State • Improved research competitiveness • For our Students • Additional faculty positions • Increased tuition & scholarship support • Capacity to invest in specific programmatic initiatives • For our Employees • Preservation of a competitive benefit program • Possibility of mid-year salary program

  16. It was a challenge to balance the budget! • Efficiency Improvements • $5M from Office Supplies & Credit Card changes…more to come • Across-the-board Budget Reductions • $25M total reductions…$4M from occupied positions • Reduced Infrastructure Funding • $10M reduction in an area already under funded!

  17. What are our Continuing Challenges? • Infrastructure Funding - $30M annual shortfall

  18. Facility Aging Drives Repair & Renovation (R&R) RequirementsThere is a significant bubble of R&R requirements in the near future. A substantial portion of the University’s Plant, those projects built in the 50’s through 80’s, is approaching 30-60 years old and will require substantial repair and renovation.

  19. Why is a Near Term Infrastructure Solution Needed – Why can’t this wait? • Campus & Building Safety • Cost • Usability / Habitability • Continuity of Plant Operations

  20. What are our Continuing Challenges? • Competitive Compensation Program Funding - $15M recurring

  21. Tuition & Fees

  22. Appropriation & Tuition and Fees Collected per FTE 1999/00 UT vs. Peer Institutions

  23. Competitive Position – Tuition & Mandatory Fees UT vs. Other Institutions (2002 Data) Source: Morgan Stanley, based on information from the College Board and the Chronicle of Higher Education..

  24. A Rule of Thumb for Planning • Every dollar increase in tuition generates about $1M of net revenue, after set-asides, for the University on an annual basis. • Therefore, a student taking 28 SCH annually would pay $28 more in tuition per year for each $1 increase in tuition.

  25. Next Steps

  26. The Challenge Summary • Infrastructure Funding - $30M annual • Compensation Program Funding - $15M recurring

  27. Possible Near Term Solutions • Reduce expenses elsewhere and reinvest in R&R • Just completed exhaustive effort • Impossible to not impact people • Reduce / eliminate January compensation program • Increases competitive issues • Not a long-term fix • Increase tuition

  28. Thank You

More Related