Upload
ofira
View
26
Download
2
Tags:
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)