Budget Update FY 12 Mid Year Revenue Analysis and FY 13 Budget Planning

1. Budget Update FY 12 Mid Year Revenue Analysis andFY 13 Budget Planning Janet Parker, Associate Vice President, Financial Affairs Mary Simon, Senior Director, Budget Development & Planning PRESENTATION TO THE UNIVERSITY STRATEGIC RESOURCE PLANNING COUNCIL JANUARY 26, 2012 1

2. UT System Office of Strategic Initiatives Report • Undergraduate Fall Tuition & Fee Price & Operational Revenue – January 12, 2012 • Posted at Financial Affairs /Budget Website: http://www.utsa.edu/financialaffairs/Budget/docs/pdf/uts-undergradFallTuition.pdf 2

3. Cumulative Rate Increase since Fall 03 UT Dallas 110% UTSA 98.2% UT Arlington 96.4% UTEP 89.4% UT Austin 79.9% 3

4. Cumulative Change since 03-04 UT Arlington -33.7% UTEP -17.4% UT Dallas -16.8% UT Austin -12.3% UTSA - 5.6% Amounts above adjusted for inflation 4

5. Above amounts adjusted for inflation 5

6. Mid Year Tuition & Fee Revenue Projections 6

7. Tuition and Student Fee Revenue Projections ($000) * Preliminary forecast pending Spring Census review 7

8. SCH (in thousands) Revenue Generating Semester Credit Hours 81.5% of exemptions due to Hazelwood-a 3 fold increase over 3 yrs 714.3 716.4 693.1 (in thousands) 8

9. Hazelwood Exemption Trend We expect Hazelwood exemptions to continue to grow at a higher rate as more veterans exit the military. • Total revenue exempted includes all tuition & fees, except Student Service fees. • Hazelwood exemptions comprise 84% of total exemptions (FY12 est. = $8.9 Mil) 9

10. Revenue Projections • Estimated revenue generating SCH (non-exempted) or headcount depending on how fee is assessed Will be adjusted based on Spring Census review 10

11. 11

12. Cumulative Change TOTAL TOTAL 3.1% 0.3% 8.1% incr. 23.3% 1.3% <0.3%> 1.7% 2.8% 5.4% incr. 1.2% 12.4% 1.3% 26.0% incr. 5.0% 5.5% 19.4% 60.0% incr. <4.1%> 18.6% 17.8% 50.6% incr. <19.0%> 14.0% 61.6% .9% 12

13. FALL 2011 Semester • Biggest % growth increase due to non-resident students • UG students account for 91% of SCH & 90% of Tuition & Fee revenue 13

14. Mid Year Budget Adjustments • Current Year FY12 • Mid Year Budget adjustments will be made to all revenue accounts using Fall 11 Actual, Spring Census & 85% of prior year Summer SCH/Headcounts • Summer 12 enrollment unpredictable due to lack of Pell awards • Financial Aid suggests Summer 12 enrollment will be closer to FY09 – which is roughly 85% of what we budgeted • Adjustments will be completed by end of February 14

15. Tuition & Fee Proposal • Graduation Rate Improvement Plan was very well received by UT System but required changes to draft proposal: • Eliminate Energy fee and change designated tuition rates to reflect exactly 2.600% increase in T&F net of Athletics increase for undergraduate total academic costs. Resulted in: • New designated tuition rates: • Increased designated tuition set asides for financial aid • Less total revenue to replace the lost funding to the utility budget 15

16. Tuition & Fee Proposal 16

17. Tuition & Fee Proposal Revised proposal found at: http://www.utsa.edu/financialaffairs/docs/TF/TuitionandFeesProposalF12-F14.pdf 17

18. FY13 Budget Planning • SCH basis for revenue projections will continue to be conservative • All new tuition revenue due to rate increases if approved, must be allocated towards the Graduation Rate Improvement Plan and graduate education as detailed in the Tuition & Fee proposal • Limits flexibility for other new funding awards, e.g. merit • Possible reductions to state appropriations in the next biennium beginning FY 14, including changes to formula could have a significant impact to UTSA • FY 13 “Resources & Requirements” will be developed for CMO to review in February 18

19. FY 13 Budget Planning Calendar 19