Local Funds / All Funds Budget Seminar January 2019 FY 2020 Budget - PowerPoint PPT Presentation

Local Funds / All Funds Budget Seminar January 2019

FY 2020 Budget Challenges/Considerations • State Funding • Building Renewal & Deferred Maintenance • Enrollments & Mix • Tuition & Fees • 5th Year of RCM (RCM Review) • ERE Rates • Administrative Service Charge • Salary Adjustments & Minimum Wage Initiative

Budget Cycle • State Legislative Session Begins (Jan. 14) • UA Local/All Funds Budget Seminars Winter 2019 • Governor’s FY20 State Budget Proposal (Jan. 17) • Legislative FY20 State Baseline Budget (Jan. 18) • UA Local Funds/All Funds Budgets Reviewed • ABOR Approval of UA FY20 Tuition Rates (April) • Spring 2019 Begin Development of UA FY21 State Budget Request • FY20 State Legislative Budget Finalized & Approved • Finalize UA FY20 Budget • Close UA FY19 Budget Summer 2019 • ABOR Approval of UA FY20 Budget • ABOR Approves UA FY21 Budget Request Fall 2019 • UA FY21 Budget Request Submitted to the State • UA Develops Tuition Plan for FY21

UA Revenue Sources Estimated FY 2019 -- $2.1B Other Revenues 7% Gifts 4% Auxiliary Enterprises 10% Tuition & Fees 31% Grants & Contracts 34% State General Fund 13% TRIF 1%

State of Arizona

University System FY 2019 General Fund Appropriations - $725.5M AZ Board of Regents 1% UA 38% ASU 45% NAU 16% University System $ in millions AZ Board of Regents $ 6.9 1% ASU $ 328.8 45% NAU $ 112.1 16% UA $ 277.7 38% Total $ 725.5 100% Source: FY2019 JLBC Appropriations Report

FY 2019 CHANGE to STATE APPROPRIATION University of Arizona ($ in millions) Capital Infrastructure Funding $ 10.6 One-time Funding FY19 2.2 Statewide Adjustments (0.9) Remove FY18 One-time Funding (3.2) Total $ 8.7

CAPITAL INFRASTRUCTURE FUNDING University of Arizona (Result of FY18 State Budget) • Appropriation of $10.6M beginning FY19 • Annual appropriation for 25 years • For new facility construction and/or Deferred Maintenance projects • Grows by lesser of inflation or 2% per year • New requirements for legislative review for projects • Requires matching funds if used to pay debt service

State Budget Request FY 2020 • Resident Student Investment Model – State as partner in providing for cost of educating a resident student • Currently State funds about 32% of cost  Goal is 50% • Total required to reach that goal is $69M, request is for 3-year phase-in, equating to $23M for FY20 • $3.1M for Resident Student Enrollment Growth • Make FY19 One-time Funding permanent $2.2M • FY19 Health Insurance Trust Fund (HITF) Supplement $4.8M

Undergraduate Tuition and Mandatory Fees 36,366 35,678 34,967 $35,000 32,630 34,588 35,216 32,382 30,228 29,566 $30,000 27,934 28,431 31,144 29,421 25,329 23,990 $25,000 27,073 23,076 26,231 22,131 25,495 24,597 20,803 19,907 $20,000 22,264 18,676 $15,000 16,282 12,248 12,467 14,972 11,403 11,769 10,957 13,682 10,403 10,211 9,794 9,418 $10,000 8,314 8,005 10,968 7,670 7,576 10,416 10,488 10,035 10,391 10,035 10,591 6,972 10,410 8,237 $5,000 6,855 5,542 5,048 4,766 4,498 $0 Peers Median Non-Resident UA Non-Resident Peers Median Resident UA Resident

UA Student Enrollments (FTE) Compare fall census FY2018 to FY2019 Fall 2017 Fall 2018 Change Resident 26,435 26,252 (183) Non-Resident 15,320 15,207 (113) Subtotal On-Campus 41,755 41,459 (296) Online 2,374 2,919 545 Total FTE 44,129 44,378 249

FY2020 Planning Assumptions ERE – rates are not final Proposed FY19 FY20 ERE Group Rates Rates Change Full-Benefit Employee 31.2% 31.4% 0.2% Faculty Ancillary 21.0% 20.0% -1.0% Classified Temporary 15.1% 15.9% 0.8% Student Employees 2.0% 2.0% 0.0% Graduate Assistants 14.1% 11.0% -3.1% Administrative Service Charge – no change Salary Adjustments • suggest planning 1.5% to 2.0% pool based upon full benefits positions, need to be cognizant of inflation and not lose ground • plan for impacts of Arizona Minimum Wage – Prop 206 • Increase to $11/hr Jan 2019 from $10.50 • Increase to $12/hr Jan 2020 from $11.00

FY2020 RCM Budget Impacts Undergrad Net Tuition Revenues FY19 – ($6M Decrease) • Due to decline in total enrollments & increased institutional aid Facilities & Administrative (F&A) Cost Recovery – $14M Increase • Impacts particularly in Health Sciences Facilities Support & Strategic Investment Pool Rates • Facilities Rate increasing from $25.19 to $25.48 • Strategic Investment Pool Rate increasing from 2.00% to 2.33% Institutional Assumptions FY18 FY19 FY20 FY21 FY22 Undergrad Net Tuition Revenue (from Prior Year) $ 27,687,988 $ (15,144,255) $ (6,000,000) $ 2,000,000 $ 2,000,000 Support Center Tax Rate 30.96% 30.96% 30.96% 30.96% 31.50% Strategic Investment Tax Rate 2.75% 2.00% 2.33% 2.66% 3.00% Facilities Rate $ 25.19 $ 25.19 $ 25.48 $ 25.62 $ 25.64 Salary Investment Pool 2.00% 2.00% 2.00% 2.00% 2.00% ERE -- Full Benefits Rate 32.0% 31.2% 31.4% 31.9% 32.4%

FY2020 Planning: Other Considerations • Online Enrollments & Revenues Growing • Significant Fund Balances Throughout the University • Sponsored Projects Funding is Strong • Direct costs • Increased F&A • Philanthropy is Increasing • Strategic Plan Impacts

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LFB Detailed Instructional Seminars • Monday, January 14, 2019 at 2:00 – 3:00 pm • Tuesday, January 15, 2019 at 11:00 – 12:00 pm • Wednesday, January 16, 2019 at 9:00 – 10:00 am • Thursday, January 17, 2019 at 1:00 – 2:00 pm • Friday, January 18, 2019 at 1:00 – 2:00 pm Registration for seminars completed through UAccess Learning

AFMY Detailed Instructional Seminars • Monday, January 14, 2019 at 3:00 – 4:00 pm • Tuesday, January 15, 2019 at 12:00 – 1:00 pm • Wednesday, January 16, 2019 at 10:00 – 11:00 am • Thursday, January 17, 2019 at 2:00 – 3:00 pm • Friday, January 18, 2019 at 2:00 – 3:00 pm Registration for seminars completed through UAccess Learning

Budget and Planning Resources and Contacts  https://budget.arizona.edu  “Forms and Resources” • Access Provisioning Tool Instructions  “Training Materials” • LFB Presentation • LFB Videos • LFB Entry Quick Reference Guide Mario Calderon 621-3322 calderom@email.arizona.edu Senior Analyst, Budget and Financial Veronica Chu 621-3725 galavizv@email.arizona.edu Senior Analyst, Budget and Financial Carol Corry 621-1496 ccorry@email.arizona.edu Analyst, Budget and Financial Matt Kennedy 626-4002 kennedym@email.arizona.edu Senior Analyst, Budget and Financial

Completed and Received by the Office of Budget and Planning by Monday, March 4, 2019 Questions? Comments?