Tuition policy advisory committee meeting september 2 2003
Download
1 / 28

Tuition Policy Advisory Committee Meeting September 2, 2003 - PowerPoint PPT Presentation


  • 139 Views
  • Uploaded on

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!.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Tuition Policy Advisory Committee Meeting September 2, 2003' - thad


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.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Tuition policy advisory committee meeting september 2 2003

Tuition Policy AdvisoryCommittee MeetingSeptember 2, 2003

Committee Meeting #1


Today s agenda

Today’s Agenda

President’s Welcome

Procedural Issues

Background Information

recent history

university finances…

next year’s budget

tuition & fees






Recent history1
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”


Legislative session outcome

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


Budget issues to deal with
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



Tuition policy advisory committee meeting september 2 2003

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%


Tuition policy advisory committee meeting september 2 2003

University FinancesHow does State General Revenue fit into the Picture?


Tuition policy advisory committee meeting september 2 2003

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



Budget accomplishments
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


It was a challenge to balance the budget
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!


What are our continuing challenges
What are our Continuing Challenges?

  • Infrastructure Funding - $30M annual shortfall


Tuition policy advisory committee meeting september 2 2003

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.


Why is a near term infrastructure solution needed why can t this wait
Why is a Near Term Infrastructure Solution Needed – Why can’t this wait?

  • Campus & Building Safety

  • Cost

  • Usability / Habitability

  • Continuity of Plant Operations


What are our continuing challenges1
What are our Continuing Challenges? can’t this wait?

  • Competitive Compensation Program Funding - $15M recurring


Tuition fees
Tuition & Fees can’t this wait?


Tuition policy advisory committee meeting september 2 2003

Appropriation & Tuition and Fees Collected per FTE 1999/00 can’t this wait?

UT vs. Peer Institutions


Tuition policy advisory committee meeting september 2 2003

Competitive Position – Tuition & Mandatory Fees can’t this wait?

UT vs. Other Institutions

(2002 Data)

Source: Morgan Stanley, based on information from the College Board and the Chronicle of Higher Education..


A rule of thumb for planning
A Rule of Thumb can’t this wait? 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.


Next steps
Next Steps can’t this wait?


The challenge summary
The Challenge Summary can’t this wait?

  • Infrastructure Funding - $30M annual

  • Compensation Program Funding - $15M recurring


Possible near term solutions
Possible Near Term Solutions can’t this wait?

  • 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


Thank you
Thank You can’t this wait?