23
University of Arkansas University of Arkansas FY06 & FY07 Finances FY06 & FY07 Finances Faculty Senate Faculty Senate March 8, 2006 March 8, 2006

University of Arkansas FY06 & FY07 Finances

  • Upload
    ofira

  • View
    26

  • Download
    2

Embed Size (px)

DESCRIPTION

University of Arkansas FY06 & FY07 Finances. Faculty Senate March 8, 2006. - PowerPoint PPT Presentation

Citation preview

University of ArkansasUniversity of ArkansasFY06 & FY07 FinancesFY06 & FY07 Finances

University of ArkansasUniversity of ArkansasFY06 & FY07 FinancesFY06 & FY07 Finances

Faculty SenateFaculty Senate

March 8, 2006March 8, 2006Faculty SenateFaculty Senate

March 8, 2006March 8, 2006

Ordinary folk (parents, the public, university students, staff & faculty, etc.) at right after 20 minutes of trying to

understand the in’s and out’s of university financial operations (after The

Scream by Edvard Munch below)

FY06 Financial IssuesE&G utility budgets are less than projected expenditures by $1.75 million. With a $660K reserve, the deficit carried forward to FY07 is expected to be $1.09 million.

Annual expenditures of about $3 million for new faculty start-up and matching funds for grants are NOT in the FY06 budget.

Uncommitted & unrestricted year-end balances that are used to supplement inadequate contingencies are decreasing as a result of the carry-forward policy. Thus, it is harder to find funds for activities, like start-ups & matches, that the university cannot decide to stop doing.

FY07 RevenuesState Appropriations

FY06 $104,180,511FY07

RSA “A” $94,980,287 RSA “B” $6,861,071 RSA Total $101,841,358 EETF (9/2/05) $8,338,715

FY07 $110,180,073FY07 Increase $5,999,562

FY06 SSCH Growth in FY06 Tuition Dollars$5,064,106

Additional Revenue from Tuition Rate Increase $658K/ (% of increase)

FY07 Revenues ContinuedFY07 Projected Enrollment

IncreasesUndergraduate 6.3%Graduate 5.1%Law (0.7%)Revenue Growth $5 million

Remaining Unrestricted & Undesignated Revenue Adjustment (primarily to reduce expected earnings on cash management)

($267K)Generally positive financial picture for FY07 though it is doubtful that there will be sufficient funding to do “all good things that should be done”.

Unrestricted but Dedicated Fee RevenuesMandatory fees are part of the cost

of educationStudent initiated new mandatory fees:

Readership FeeConcert Fee

Institutionally initiated fees such as:

Teaching Enhancement & Laboratory Equipment Fee (varies by College or School) has provided increased teaching support to offset the lack of departmental maintenance increases

Mandatory fees are not available for general budget considerations.

Tuition and Mandatory Fee (30 credit hours) History

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Fiscal Year Ending June 30

TuitionTuition & MandatoryFees

4-Year US Public vs UA Tuition & Fees

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

77 81 85 89 93 97 01 05 09

Fiscal Year

Resident Tuition & Mandatory Fees

$UA Tuition $US Tuition

Source: Trends in College Pricing, College Board, 2004 & NASULGC for FY06

UA Enrollment

14,000

14,500

15,000

15,500

16,000

16,500

17,000

17,500

18,000

89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05

Fall

Headcount Enrollment

UA Enrollment (FTE)

Note: FY06 is an estimate.

13,000

13,500

14,000

14,500

15,000

15,500

16,000

16,500

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

Fiscal Year

FTE Enrollment

UA State Appropriation

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Fiscal Year ending June 30

UA Appropriation per FTE Student

$5,000

$5,200

$5,400

$5,600

$5,800

$6,000

$6,200

$6,400

$6,600

$6,800

$7,000

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

Fiscal Year

Annual Appropriation/FTE Student

Note: FY06 is an estimate.

$3,700

$3,900

$4,100

$4,300

$4,500

$4,700

$4,900

$5,100

$5,300

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

Fiscal Year

Annual Appropriation/FTE Student

UA Appropriation per FTE Student

Note: FY06 is an estimate.

(’89-’90 constant dollars*)

* Based on HEPI inflation rates

Two Primary Sources of UA E&G Revenue:Tuition & Fees and State Appropriations as % of E&G

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Fiscal Year ending June 30

State Appropriations as % E&G

Tuition & Fees as % E&G

Unrestricted E&G and 2010 Goal

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Fiscal Year ending June 30

Total E&G (Unrestricted)

E&G Goal

$45 million

Discipline Conversions for the Need-Based Model*Discipline CIP

Cost Category Code Discipline Description

23 English Language and Literature/Letters

24 Liberal Arts, General Studies

27 Mathematics

30 Multi/Interdisciplinary Studies

34 Health-Related Knowledge & Sk

35 Interpersonal Skills

36 Leisure And Recreational Acts

37 Personal Awareness/Self Improvement

38 Philosophy & Religion

42 Psychology

43 Philosophy & Religion

44 Public Administration And Services

45 Social Sciences & History

5 Area, Ethnic, & Cultural Studies

8 Marketing And Distribution

9 Communications

12 Cons. Per. & Misc. Ser.

13 Education

16 Foreign Languages and Literature

19 Home Economics

20 Vocational Home Economics

22 Law And Legal Studies

26 Biological Sci/Life Sciences

31 Parks,Recreation & Leisure Studies

32 Basic Skills

46 Construction Trades

47 Mechanics And Repairers

48 Precision Production Trades

49 Transprtation & Material Moving

52 Business Management & Administration

1 Agricultural Business and Production

2 Agricultural Sciences

3 Conservation and Renewable Natural Resources

4 Architecture & Related Program

10 Communications Tech

11 Computer & Informational Sciences.

25 Library Science

40 Physical Sciences

41 Sciences Tech.

50 Visual & Performing Arts

51 Health Professions & Related Science

14 Engineering

15 Engineering-Related Technology

*Based upon a multi-year study of expenditures of 175 Institutions by the University of Delaware

Cost Category I

Cost Category II

Cost Category III

Cost Category IV

Table 1 Fiscal Year 2006 Enrollment (Spring 06 Projected from Fall 05 growth)Discipline Cost Categories Undergraduate Graduate Doctoral Total

Category I 143,377 6,107 3,645 153,129Category II 144,004 38,146 4,378 186,528Category III 84,249 6,824 3,698 94,771Category IV 17,539 2,823 1,558 21,920

456,348Table 2 SSCH to Produce a FTE FacultyDiscipline Cost Categories Undergraduate Graduate Doctoral

Category I 645 170 130Category II 480 250 145Category III 365 160 120Category IV 230 102 70

Table 3 FTE Faculty Generated by SSCH*

Discipline Cost Categories Undergraduate Graduate Doctoral Total

Category I 222.3 35.9 28.0Category II 300.0 152.6 30.2Category III 230.8 42.7 30.8Category IV 76.3 27.7 22.3Total 829.4 258.8 111.3 1,199.5

* Table 1 divided by Table 2

Table 4 Average Faculty Salaries for Each Level

Undergraduate Graduate DoctoralAverage Faculty Salary $56,221 $57,761 $74,752

Table 5 Teaching Salary Funds Produced by the Formula**

Discipline Cost Categories Undergraduate Graduate Doctoral Total

Category I $12,497,362 $2,074,979 $2,095,931Category II $16,866,769 $8,813,404 $2,256,995Category III $12,976,885 $2,463,507 $2,303,607Category IV $4,287,218 $1,598,621 $1,663,766Total $46,628,233 $14,950,511 $8,320,299 $69,899,043** Table 3 Column Totals X Table 4

University of Arkansas Fayetteville for FY2006

University of Arkansas Fayetteville for FY2006FY06 Prelim

Summary of Model Production Calculated

Expense Category Explanation Square Feet Funding

Teaching Salaries $69,899,043Other Instructional Costs 45% of Teaching Salaries $31,454,569Library Cost 11% of Teaching Salaries + Other Instructional Costs $11,148,897General Institutional Support 54% of Teaching Salaries + Other Instructional Costs $54,730,951Research 5% of Undergrad + 25% of Graduate + 50% of Doctoral Teach. Sal. $10,229,189Public Service 3% of Teaching Salaries $2,096,971Facilities Maintenance & Operation $4.85 and $2.40 Square Foot 3,506,054 $17,467,412Special Mission:

Land Grant 10 % of Teaching Salaries 1 $6,989,904 Minority Mission 10 % of FTE Generated Funding

Diseconomy of Scale 3,500 FTE

Total $204,016,938Less Tuition and Mandatory Fees Per SSCH - Undergraduate $130, Graduate $190, Doctoral $230 $69,355,879State Appropriation Required $134,661,059FY06 State Appropriation $104,180,511

State Appropriation Increase Required $30,480,548

University of Arkansas Fayetteville for FY 2008 DRAFTTable 1 Annualized Enrollment Calendar Year 2005Discipline Cost Categories Undergraduate Graduate Doctoral TotalCategory I 140,664 6,027 3,605 150,296Category II 140,828 37,918 4,360 183,106Category III 85,692 6,627 3,779 96,098Category IV 17,611 3,007 1,479 22,097

451,597Table 2 SSCH to Produce a FTE FacultyDiscipline Cost Categories Undergraduate Graduate Doctoral 3/5/06

Category I 645 170 130 Macintosh HD:Users:dop:Desktop:NC Model for Colleges:[Model2007-08SSCHfordist.xls]uaf

Category II 480 250 145Category III 365 160 120Category IV 230 102 70

Table 3 FTE Faculty Generated by SSCH*Discipline Cost Categories Undergraduate Graduate Doctoral TotalCategory I 218.1 35.5 27.7Category II 293.4 151.7 30.1Category III 234.8 41.4 31.5Category IV 76.6 29.5 21.1Total 822.8 258.0 110.4 1,191.3* Table 1 divided by Table 2

Table 4 Average Faculty Salaries for Each LevelUndergraduate Graduate Doctoral

Average Faculty Salary $57,919 $60,093 $77,868

Table 5 Teaching Salary Funds Produced by the Formula**Discipline Cost Categories Undergraduate Graduate Doctoral TotalCategory I $12,631,155 $2,130,483 $2,159,329Category II $16,992,903 $9,114,466 $2,341,399Category III $13,597,755 $2,488,988 $2,452,181Category IV $4,434,820 $1,771,573 $1,645,231Total $47,656,633 $15,505,509 $8,598,140 $71,760,282** Table 3 Column Totals X Table 4

Summary of Model ProductionExpense Category Explanation Funding Square Feet

Teaching Salaries $71,760,282Other Instructional Costs 45% of Teaching Salaries $32,292,127Library Cost 11% of Teaching Salaries + Other Instructional Costs $11,445,765General Institutional Support 54% of Teaching Salaries + Other Instructional Costs $56,188,300Research 5% of Undergrad + 25% of Graduate + 50% of Doctoral Teach. Sal. $10,558,279Public Service 3% of Teaching Salaries $2,152,808Facilities Maintenance & Operation $6.40 and $3.20 Square Foot $22,995,213 3,506,054 Special Mission:

Land Grant 10 % of Teaching Salaries $7,176,028 1 Minority Mission 10 % of FTE Generated Funding

Diseconomy of Scale 3,500 FTE

Total $214,568,801Less Tuition and Mandatory Fees Per SSCH - Undergraduate $145, Graduate $210, Doctoral $250 $70,352,615State Appropriation Required $144,216,186

FY07 State Appropriation $110,180,073State Appropriation Increase Required $34,036,113

QuickTime™ and a decompressor

are needed to see this picture.

FY05 Expenses by Function

Financial Report Budget*

Instruction $96,087,697 $86,947,457Research $87,513,517 $11,583,474Public Service $57,677,724 $4,998,619Academic Support $28,909,057 $22,745,887Student Services $16,292,007 $14,121,582Institutional Support $25,239,057 $19,279,045Scholarships & Fellowships $24,370,475

$22,858,145Plant Operations & Maintenance $29,503,679 $22,755,944Auxiliary Enterprises $63,467,384Debt Service $5,805,302Reserves $1,856,128Depreciation $38,875,804Total Operating Expenses $467,936,401 $212,951,583

*0102, 0112 & 0372Unrestricted OnlyRevised Q4

FY07 Budget Have to budget those expenditures not previously budgeted but for activities for which the institution does not or cannot made the decision to quit doing.

Classified pay plan requires $896K GA stipend increases cost $63K/(% of increase) N/C Non-faculty salary increases cost $272K/(% of increase)

Faculty salary increases cost $701K/(% of increase)

Faculty promotion increases $318K Utility E&G budget increase for FY07 cost only is $1.48 million

Additional funding for faculty positions under review

General Financial Challenges Diversity enhancements

Student centered Full formula funding Budgeting revenue enhancements (i.e., investments vs.

improvements; e.g. SSCH growth and grants & contracts with indirect costs)

Capital needs Need-based scholarships Balance need for flexibility with demonstrating full and

effective use of funding Faculty, GA, & Staff salary improvement Base support for activities made possible by development Unrelated business & private sector competition Public sense that universities are not controlling costs Deferred maintenance & renovations to modernize

“Universities share one characteristic with compulsive gamblers and exiled royalty; there is never enough money to satisfy their desires.”

—Derek Bok (1930- ) President, Harvard University (1971-1991)