BUDGET UPDATE:MID-YEAR REVIEW AND BUDGET CALENDAR

MARY SIMON, SR. DIRECTOR

BUDGET PLANNING AND DEVELOPMENT

FEBRUARY 18, 2015

AGENDA

• 84th Legislative Process

• Trend - Paying Semester Credit Hours (SCH)

• Tuition and Student Fee Revenue Projections

• Revenue Projections and Assumptions (Mid Year FY 2015 and Budget

2016)

• Revenue / Expense Budget Planning

• Hyperion Public Sector Planning & Budgeting (PSPB)

• 2016 Budget Planning Calendar

• Q&A

3

84TH LEGISLATURE 2016-2017LEGISLATIVE APPROPRIATION REQUESTS (LAR) PROCESS

State of Texas’ two-year budget takes roughly twice that amountof time to prepare, produce, and administer. Agencies developLegislative Appropriations Requests in the first year and thelegislature approves the General Appropriations Act in the secondyear. The approved budget is implemented over the next twoyears.

Strategic Planning – Spring 2014 LAR Submission – Summer 2014 Legislative Budget Board (LBB) and Governor’s Office Budget

Recommendations – Fall 2014 General Appropriations Act (GAA) – Spring 2015

4

84TH LEGISLATIVE SESSION 2016-2017FISCAL NOTES PROCESS AND POTENTIAL IMPACTS

Fiscal Notes Process State statute requires a fiscal note be prepared and accompany a bill or joint resolution as it goes through the legislative process. A fiscal note is a written estimate of the costs, savings, revenue gain, or revenue loss that may result from implementation of requirements in a bill or joint resolution.

Bills to Watch: Set-Aside Tuition for Financial Assistance Tuition Exemptions – Hazlewood Concealed Handguns

632.4 632.5 614.9575.3 582.3

15.9 25.4 32.029.4 27.0

62.1 65.3 61.8

58.7 56.1

3.9 4.8 4.9

4.3 4.8

0

100

200

300

400

500

600

700

800

FY 2011 FY 2012 FY 2013 FY 2014 FRCST FY 2015

Grad Non-Res

Grad Resident

UG Non-Res

UG Resident

TREND - PAYING SEMESTER CREDIT HOURS

728.0713.6

667.7

(SCH in thousands)

714.3

670.2

  FALL 14 FALL 14 FALL 13 FALL over FALL BUDGET Certified Certified Incr. (Decr.) % Change

UG - Resident 271,144 281,710 277,221 4,489 1.6%

UG - Non-Resident 12,902 12,809 14,257 (1,448) (10.2%)

G - Resident 21,705 20,153 20,510 (357) (1.7%)

G - Non-Resident 1,815 2,040 1,835 205 11.2%

Doctoral - Resident 5,247 5,182 5,172 10 0.2%

Doctoral - Non-Resident 49 134

80 54 67.5%

Total – Paying SCH 312,862 322,028 319,075 2,953 0.9%

YEAR OVER YEAR - PAYING SCHFALL AND SPRING COMPARISON

  SPRING 15 SPRING 15 SPRING 14 SPRING over SPRING

BUDGET Pre- Certified Est. Certified Incr. (Decr.) % Change

UG - Resident 245,534 249,882 249,195 687 0.3%

UG - Non-Resident 11,684 11,811 12,963 (1,152) (8.9%)

G - Resident 19,655 20,864 19,923 941 4.7%

G - Non-Resident 1,643 2,128 1,671 457 27.3%

Doctoral - Resident 4,752 4,800 4,806 (6) (0.1%)

Doctoral - Non-Resident 44 130

130 0 0.0%

Total – Paying SCH 283,312 289,615 288,688 927 0.3%

TUITION AND STUDENT FEE REVENUE PROJECTIONS (PRELIMINARY)

TOTAL Tuition Statutory Tuition Designated Tuition

Lab & Supplemental Fees

TOTAL Mandatory Student Fees Designated - Mandatory Fees Auxiliary - Mandatory Fees

TOTAL Incidental Student Fees Designated Program, Course Fees Auxiliary Student ParkingTuition and Student Fees LESS: Tuition Set Asides

NET Tuition and Student Fees

Budget FY2015

$147,25148,34898,903

294

$70,06643,49926,567

$19,28615,410

3,876$236,897

(5,060)

$231,837

Forecast FY2015

$151,03349,797

101,236

294

$71,04944,13726,912

$19,28615,410

3,876$241,662

(5,180)

$236,482

$ Change

$ 3,7821,4492,333

0

$983638345

000

4,765(120)

4,645

% Change

2.6% 3.0% 2.4%

0.0%

1.4%1.5%1.3%

0.0%0.0%0.0%2.0%

(2.4%)

2.0%

($000)

Note: Forecast based on PAYING SCH Certified FALL, Pre-Certified SPRING (est) and Budget SUMMER

REVENUE PROJECTIONS & ASSUMPTIONS MID YEAR FY 2015 AND BUDGET 2016

Methodology: • Revenue projections are based on Paying SCH and/or student headcount (i.e.

Mandatory fee projections). • Paying SCH Total 670,169 based on Certified FALL 14, Pre-Certified SPRING 15 and

Budgeted SUMMER 15• Incidental Fee projections are under review and will be based on trend analyses

Full Year Forecast FY 2015 Budget adjustments will be recorded for Mandatory and Incidental Fees based on

current projections Fee Administrators & Area Reps will be notified in early March following Paying

SCH pre-certified data

Operating Budget 2016Tuition and Mandatory Fee Budgets are expected to remain relatively flat at current budget levels Incidental Fee Budgets will be reviewed and recommendations provided in March Any deviations to projections will need to be discussed and approved by Sr. Budget

Director prior to departmental submissions

EXPENSE BUDGETS - STATUS QUO BUDGETS DEPARTMENTAL ACCOUNTS FUNDED WITH DESIGNATED TUITION

Status Quo Base Budgets• Departmental Operating budget preparation assumes no new money,

i.e. ‘same base budgets’• Budget Development process begins before budget planning is complete

• University Strategic Resource Planning Council will review budget

recommendations in Spring for tuition, fees and semester credit hour projections

• Budget Office will update Annual Operating budgets for impacts based on final allocations

Exception: Budgets funded by fees will be coordinated with areas should estimates be further modified.

HYPERION FOR BUDGET 2016 (1 OF 2)PUBLIC SECTOR PLANNING & BUDGETING (PSPB)

• UT Share Hyperion-Public Sector Planning & Budgeting (PSPB) will be used for developing Budget 2016

• Budget Development will be semi-centralized with Area Budget Coordinators identified by VP Areas

• Approximately 50 Budget Coordinators have been selected• UTSA is only campus with update access to Department Area Budget Coordinators • Area Budget Coordinators will review, reconcile and update final budgeted amounts• Final Budgets will route from Area Budget Coordinators to each VP Budget Coordinator

• Hyperion PSPB planning tool is a flexible web based application• Base Line Budget will be established using Budget 2015 + Permanent Transfers • System is loaded with converted data based on DEFINE BUD System and PeopleSoft

HCM position data, reflecting the latest salaries upon data load• Position attributes (i.e. FTE, % funding distribution, etc.) are used to calculate budgets • Non-transactional based system and will reflect ending balances by cost center • Updates to budget amounts can be made via spreadsheet uploads• Permanent position updates require data entry in system to reflect changes and/or

updates processed in PeopleSoft HCM

HYPERION FOR BUDGET 2016 (2 OF 2)PUBLIC SECTOR PLANNING & BUDGETING (PSPB)

• Training will be provided by Central Budget to Area Budget Coordinators • Hyperion training materials are being provided by UT Share • Central Budget will be sending information to Area Budget Coordinators and

provide system training towards the end of March • Budget Office will provide preliminary reports to Area Budget Coordinators

• Report data will assist in the review of Hyperion data prior to training • Reports to include Original Budgets, Permanent Positions and Permanent

transfers by cost center

• Reporting will be downloadable to MS Excel by Area Budget Coordinators • Hierarchical reporting capabilities (department hierarchy; roll up by VP)• MS Excel spreadsheets will display positions and comparative Budgets • Decentralized reporting with flexible report formats (i.e. groupings by Fund,

Department and Cost Center)• Area Budget Coordinators will coordinate and distribute budget reports to

Department Administrators for the final budget development

2016 BUDGET PLANNING CALENDARFeb 18 Planning Calendar to Financial Area Reps (FAR)

March 10 Mid-Year Revenue Adjustments Coordinated with Fee Administrators

March 12 Draft 2016 Revenue Projections (Mandatory and Incidental Fees) provided to Fee Administrators

March 24 Hyperion PSPB - Opens to “Area Budget Coordinators” (Baseline Budget 2016)

Mar 24 - 27 Hyperion PSPB Budget Training to Area Budget Coordinators (T&D booklet– closed enrollment)

TBA - Areas Internal Department Deadlines coordinated by VP Areas for Hyperion Data Review

March 30 Benefits Template posted to website and Non-E&G Longevity Report information

April 7 Draft Debt Service Budgets provided to Financial Area reps

April 8-14 Hyperion PSPB Hands on training to Area Budget Coordinators (T&D booklet– closed enrollment)

April 24 - 30 Hyperion PSPB – Reconciliation by Area Budget Coordinators – Budget 2016 Version 1

May 1 - 8 Hyperion PSPB – Reconciliation by Central Budget Office – Budget 2016 Version 2

TBD Strategic Resource Planning Council meeting to review FY16 Revenue projections; Resources and Requirements for Annual Operating Budget

May 27 - June 10 Preparation for UT System Budget Goals & Priorities Hearing

June 10 UT System/UTSA Budget Goals & Priorities Hearing

June 29 Draft FY16 Operating Budget due to UT System

July 15 Final FY15 Operating Budget due to UT System

Aug 21-22 FY15 Operating Budgets approved by Board of Regents