FY 2012 Budget & Legislative Changes

1. FY 2012 Budget & Legislative Changes USRPC August 31, 2011

2. F&A Rate Proposal Negotiation • Signed 4 Year agreement with DHHS on 8/25/11, effective 9/1/2011 – 8/31/2015 • On Campus Organized Research & Instruction • Increase of 2.5% to 47% • On Campus Other Sponsored Activities • Established at 35% • Off Campus Rate • Capped at 26% (Administrative rate maximum)

3. FY 2012 Budget • Changes to UTSA’s state budget represent a loss of $11 million in discretionary funding and deep reductions in Special Items • Total GR reduction = <$12.8 million>, or 12.5% less than amount originally funded in the last biennium

4. FY 2012 Budget • Permanent Base Reductions passed on to Special Items: • Institute of Texan Cultures <$488,282> • Center for Water Research <$131,250> • Texas State Data Center <$113,813> • TexPREP <$139,298> • SALSI <$1,265,000> • P-16 Council <$250,000>

5. FY 2012 Budget • Balance of permanent reductions to state appropriations will be covered by: • Increases in base tuition revenue budgets: • Statutory tuition – enrollment growth & change in mix between UG and GR SCH • Designated tuition – enrollment growth & rate change • Overhead recovery from auxiliary enterprises • Prior year ‘savings’ of unallocated base designated tuition revenue

6. FY 2012 Budget • No permanent budget reductions will be passed on to E&G and 19-7 accounts other than “Special Items” previously mentioned • After covering the $11 M in discretionary reductions, funds are available for: • $3.4 Million in E&G merit, Faculty Tenure & Promotion & equity salary increases • $1 Million - FY12 permanent budget requests • $2+ Million - FY12 one time budget priorities

7. Salary Increases • 2.25% Merit pool for base salary adjustments • Effective November 1, paid with December payroll • For meritorious performance 2/1/10 – 1/31/11 • Must be hired as of 2/28/11 to be eligible • Staff Equity $112,000 • Effective September 1 • To address compression, market • Faculty Tenure & Promotion Awards $247,000

8. FY12 Base Budget Allocations Total $1,000,000 (See attached list for details) Academic Affairs $792,500 Business Affairs 47,500 Research 50,000 Student Affairs 75,000 Marching Band 35,000

9. FY12 One Time Funding Awards (See attached list for details) Academic Affairs $1,033,000 Business Affairs 195,521 Community Services 164,000 Research 177,650 Student Affairs 301,829 President’s Office 194,500 Univ Advancement 483,000 Renovations 225,000

10. Legislative Changes Impacting Higher Education • SB 5 – effective June 17, 2011 • We are no longer required to follow Gov Code Ch 2254 B, re: consulting contracts. • Consulting contracts may be treated as any other contract for services. • No finding of facts • No publication on Texas Register & notifications to the Governor and LBB

11. Legislative Changes Impacting Higher Education • SB 5 – effective June 17, 2011 • Electronic Funds Transfer –a reference to payment of salary or wages has been removed to facilitate EFT usage. • Internet Access to Financial Transactions – must link to transparency reports on comptroller’s website. (UTSA IMPLEMENTED) • Allows electronic & digital signatures to improve efficiency and lower costs of operations.

12. Legislative Changes Impacting Higher Education • SB 5 – effective June 17, 2011 • Expedited process for THECB approval of construction projects and real estate purchases. • Project must be on campus master plan, certify compliance with institutional standards, with no outstanding deficiencies from recent facilities audit. • Open Meetings for Fee Committees • Requires committees to post notice & hold open meeting, under institutional rules. Final recommendations of the student fee advisory committees must be made public.

13. Legislative Changes Impacting Higher Education • SB 5 – Elimination of Reports: • Eff 9/1/11 these reports are no longer required: • Crime statistics report (Ed Cd 51.216) • Class size reports (Ed Cd 51.403(b)(c)) • Timely Graduation report (Ed Cd 51.4033) • Matching scholarship report (Ed Cd 61.087(c)) • Annual Debt Report to AG (Gov Cd 2107.005) • Non Financial Data report (Sq ft. of state buildings; details of who was paid a professional fee and the amount; HUB strategic plan progress, vehicles purchased, vacation leave payments made to employees, employees with assigned state owned or leased vehicles)

14. Legislative Changes Impacting Higher Education • SB 5 – Elimination of Reports: • Effective 9/1/13 state law is repealed re: • Technology Workforce Grants (Ed Cd 51.859) • Veteran’s Tuition Exemptions (Ed Cd 54.203(h)) • Institution TPEG Guidelines (Ed Cd 56.034(c)) • Deferred maintenance report (Ed Cd 61.0582) • Total Cost of Attendance (Ed Cd 61.066(c)) • Report on ARP/ATP progress (Ed Cd 142.005-006) • Report on customer service (Gov Cd 2114) • Annual aircraft use (Gov Cd 2205.041)

15. Legislative Changes Impacting Higher Education • HB 9 - Higher Education Outcomes-Based Funding Act • To ensure student outcomes are aligned with state’s education goals • Applies only to general academic teaching institutions • Establishes a committee (one representative per university system) to review formula funding issues

16. Legislative Changes Impacting Higher Education • HB9 – not more than 10% of the total amount of base general revenue funding may be based on the following success measures: • # of degrees awarded • # of degrees in critical fields (engineering, computer sci, math, physical science, allied health, nursing & teaching certification in math or science) • # of degrees awarded to “at risk” students (Pell grant recipient or a student who is over 20 yrs old; had SAT/ACT scores lower than national mean, is a part time student, or earned a GED w/in past 6 yrs)

17. Legislative Changes Impacting Higher Education • HB 9 – Board shall adopt rules to administer the act’s requirements including data submission by institutions & various reports to the Joint Oversight Committee (including highlighting best practices on improving student outcomes & higher ed governance). • Expires August 31, 2013

18. Legislative Changes Impacting Higher Education • HB 399 – Personal Financial Literacy Training • THECB will make rules regarding requirements; training will begin no later than the Fall 2013 semester • HB 452 Temporary Housing between academic terms for students under the protection of Family & Protective Services

19. Legislative Changes Impacting Higher Education • HB 736 – Internet Access to Information (not an exhaustive list) • SFR • % of T/TT w/teaching responsibilities • % of SCH Lower Division courses taught by T/TT • Faculty Rank by Gender & Ethnicity • Avg Faculty Salaries by Rank • State funding & total revenue spent per FTEF & FTES • Research expenditures per FTEF • # of Endowed chairs & professorships

20. Legislative Changes Impacting Higher Education • HB 736 – Internet Access to Information (not an exhaustive list) • % of UG students receiving student loans & avg annual amount • % of UG students receiving federal or state grants & avg annual amount • Total academic costs (TAC) & % of budget that revenue represents • % increase in TAC in each of the 5 most recent years • % of first time UG that are transfer students

21. Legislative Changes Impacting Higher Education • HB 1163 (SB 32) Peace Officers Exemptions • Exempts tuition & lab fees for a criminal justice or law-enforcement related degree program for eligible peace officers that apply for the exemption at least 1 week before the last date of registration. • THECB responsible for rules • If funds are not appropriated to cover cost of HB 1163, report is made to Senate Finance Committee and House Appropriations Committee

22. Legislative Changes Impacting Higher Education • SB 28 Texas Grant Readiness Reform Act • Changes eligibility beginning awards for 2013-2014 • SB 36 Academic Advising Quality • Empowers THECB to develop a method of assessing academic advising effectiveness • SB 639 Tuition Exemptions for Dependents of Residents Deployed for Combat Duty • Requires legislative funding but if sufficient $’s are not available, THECB will prorate available funding