2013-15 Biennial Budget OverviewApril 2013

Robert Cramer - Vice Chancellor

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• UW-Platteville’s 2012-13 Budget Summary• AB 40 – Governor Walker’s Budget Proposal

– Biennial Budget Process– State Budget Overview

• Financial Provisions

• Policy Provisions

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UW-Platteville 2012-13 Budget

Final 2012-2013 UW-Platteville Budget $172.6 Million (all funds)

Final 2012-2013 UW-Platteville Budget$126.1 Million (excluding federal aid)

General Purpose Tax

Dollars17004951

13%

Specific Purpose Tax

Dollars11452271

9%

Tuition53804157

43%

Federal1646700

1%

Gifts and Grants

13149001%

Auxiliary En-terprises

4024233532% Extension

6161850%

State Funding of 22%

StateFunding of 17%

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• August 2012 – Board of Regents submitted a budget request to Wisconsin Department of Administration

• February 2013 – Governor Walker proposed 2013-15 biennial budget

• April – June 2013 – Legislature acts on 2013-15 budget recommendations– Joint Committee on Finance– State Assembly– State Senate

• June 2013 (or after?) – Governor Walker exercises veto authority• Legislature has ability to override vetoes• July 2013 – Board of Regents determines 2013-14 tuition

Biennial Budget Timeline

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2014-15 Sources of Funds($ millions)

Proposed 2014-15 Total - $33.5 billion

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Ten Largest GPR Programs($ millions)

Program 2014-15 % Cumulative % Elementary and Secondary School Aids $5,328.4 34.4% 34.4%

Medical Assistance $2,438.0 15.7% 50.1%

UW System $1,231.0 7.9% 58.0%

Correctional Operations $1,162.8 7.5% 65.5%

Shared Revenues $904.5 5.8% 71.3%

State Property Tax Credits $897.4 5.8% 77.1%

Homestead, Earned Income, and other Credits $336.9 2.2% 79.3%

Community and Social Service Aids $175.6 1.1% 80.4%

Wisconsin Works and Economic Support $159.9 1.0% 81.5%

Supplemental Security Income, State Share $151.6 1.0% 82.4%

Subtotal $12,786.1 82.4%

All Other Programs $2,721.7 17.6% 100.0%

Total $15,507.8 100.0%

GPR – General Purpose Revenue – state taxes funds from income, sales, corporate, and other

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• No budget cuts or lapses proposed - $181.4 million in new state funds recommended:– Funding for new programs including economic development - $28.75 million over two years

including $20 million over two years for:• Economic Development-Activities must encourage the establishment and growth of business in Wisconsin• Skilled Workforce- Activities must relate to: a) Increasing the number of degrees awarded in fields

identified as high-demand by the Department of Workforce Development and WTCS; b) Increasing the number of student internship and cooperative work experience opportunities; c) Enhancing research and development

• Affordability of Post-Secondary Education- Reducing the time required to obtain a degree, increasing opportunities for high school students to earn credit toward a post-secondary degree, or improving the transfer of credit between institutions

– Costs to continue funding included - $63.2 million over two years– Funding for pay increases and fringe benefits, utilities and other items - $89.4 million over two

years.• No tuition cap or limit.• $650,000 and 6.5 FTE in 2013-14, increasing to $1.3 million and 13 FTE in 2014-15, to

develop new UW Flexible Option degree programs. ($2 million GPR biennially that is part of the $28.75 million above)

UW System Overview

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• Authority for the UW System to establish compensation plans for its employees.

• Removal of restrictions on use of all funds for salary increases and the types of adjustments that can be made with base funds.

• Not clear how much funding is in the block grant for compensation.

Employee Compensation

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• $4 million in 2013-14, increasing to $8.1 million in 2014-15, in the Higher Educational Aids Board budget to fund grants for Wisconsin Covenant Scholars. ($12.1 million biennially)

• Indexing the college tuition tax deduction to inflation using the same methodology to adjust state income tax brackets.

• No change in funding for the UW Wisconsin Higher Education Grant (WHEG) program.

Financial Aid

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• A veteran from any state may qualify for the Wisconsin GI Bill by living in the state for five consecutive years.

• The spouse and children of any disabled veteran who lives in Wisconsin for 5 consecutive years are eligible for the Wisconsin GI Bill.

• Eliminate the ten-year eligibility limit on the spouse or surviving spouse of an eligible disabled or deceased veteran.

• Establish a requirement that all Wisconsin GI Bill participants maintain a 2.0 cumulative GPA.

Wisconsin GI Benefits Expansion

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• The UW System and WTCS would be required to enter into an agreement that ensures that no less than 30 credit hours of core general undergraduate courses would transfer between institutions without loss of credit toward graduation or completion of a specific course of study.

• Independent and tribal colleges would be permitted to enter into and implement the 30 core credit agreement. The Governor recommends including information on the agreement in the annual report submitted to the Governor and the Legislature.

30 Credits of Core Course Transfer

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• Create a Course Options program to allow any student attending K-12 to take up to 2 university courses at a time.

• These students would have all of the rights and privileges given to all other UW students.

Course Options Program

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• The Group Insurance Board is required to impose a health insurance premium surcharge of $50 per month for eligible employees who use tobacco in in 2014 and 2015.

• The Group Insurance Board must offer all state employees the option for a high-deductible healthcare plan that includes a health savings account.

• Under current law, health insurance plans are assigned to three different tiers, depending on cost. Currently, the state may not pay more than 88 percent of the average premium costs of the lowest cost health insurance plans. This bill provides that the state may not pay more than 88 percent of the average premium costs of the health insurance plans in each tier. In addition, the bill provides that if any tier contains no health insurance plans, but is used to establish the premiums for employees who work and reside outside of the state, the amount these employees must pay is based on the premium contribution amount for that tier in the prior year, adjusted by the average percentage change of the premium contribution amount of the other tiers from the prior year.

Health Insurance Proposals

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• Rehired annuitants are no longer permitted to receive an annuity if working more than two-thirds time.

• The Governor recommends increasing the break in service requirement from 30 days to 75 days. Rehired annuitants may not receive an annuity if they began work within 75 days of retirement.

Rehired Annuitants

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• The Governor recommends language that enables the sale of state heating plants.

• The university’s exemption to the sale or lease of property under 13.48 (14) (a) has been deleted. The building commission’s authority to sell or lease state-owned buildings and lands has been expanded to include all real property. [13.48 (14) (am)] The commission may sell or lease property without the approval of the agency having jurisdiction over the property.

• The statute exempting the university from DOAs authority to sell or lease state property and facilities is repealed. [18.848 (2) (b)]

• DOA is required to let all construction projects that exceed $185,000 through a modified single prime contracting process. The university must submit a biennial inventory to DOA with the estimated fair market value of all real property. [13.48(14)(d)]

Sale of BOR Property and Projects

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• UW System Government Relations - http://www.uwsa.edu/govrel/ • Department of Administration -

http://doa.wi.gov/index.asp?locid=166 • Wisconsin Legislature - http://legis.wisconsin.gov/ • Joint Committee on Finance -

http://legis.wisconsin.gov/lfb/jfc.html • Legislative Fiscal Bureau - http://legis.wisconsin.gov/lfb/index.html • Wheeler Report - http://www.thewheelerreport.com/ • Wispolitics - http://www.wispolitics.com/ • Poll Everywhere – www.polleverywhere.com

Reference / Useful Sites