Texas A

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Texas AM UniversityCommerce

• Fiscal Year 2003
• Budget Kick-off Presentation
• April 15, 2002
• http//www7.tamu-commerce.edu/vpba/

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Agenda

• Review of FY 2001 and FY 2002
• Responsibility-Centered Budgeting
• Review of Sources and Uses of Funds
• Value of an FTE

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Agenda (continued)

• FY 2003
• Current Financial Position and Five-Year
  Projections
• FY 2003 Financial Management Strategies
• FY 2003 budget allocations
• Presidents Opportunity Fund
• Priority List of Unfunded Items
• Performance Indicators
• Associate VP Mitzi Money
• Detailed Budget Preparation instructions
• Budget Preparation forms and spending history
• Budget Preparation timelines
• Questions and Answers

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ResponsibilityCentered Budgeting

• Decentralized decision making
• Delegated authority with tiered approvals
• Personal accountability
• Empowerment
• Oversight, not gatekeeping!
• Management Reports and Training
• Information Access
• Use of Business Planning and Cost-Benefit
  Analysis required
• Use of Technology
• Each University Division and Vice President
  establishes their own budget review process and
  decisionmaking style

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Management Reports and Training

• System Executive Management Reports
• http//tamusystem.tamu.edu/semr/
• Executive Level Summary Reports
• http//www7.tamu-commerce.edu/vpba/exec20financia
  ls/default.htm
• Five-Year Financial Plan (Projected)
• Being updated
• Physical Plant Project Status Reports
• http//www.ppwos/project-public
• Classroom and Laboratory Utilization
• www.thecb.state.tx.us/divisions/cplan/utilf99.htm
  
• AM System Policy and Regulation Manual
• sago.tamu.edu/policy/tocmain.htm
• AM-Commerce rules linked

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Use of Technology

• Budget preparation instructions are on-line
• http//www7.tamu-commerce.edu/vpba/Budget20Info/D
  efault.htm
• Department web pages procedures, electronic
  forms
• On-line purchasing/Purchasing Card
• On-line budget transfers
• On-line Print Shop orders (pending)
• On-line Catering orders (pending)
• On-line time sheet reporting
• Direct Deposit of TE reimbursements
• WebCam for construction projects
• On-line Book Store

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Multiple Fiscal Years

• Fiscal Year 2002
• Revenues earned above initial projections
• One-time supplemental appropriations
• Contingencies
• Fiscal Year 2003
• Projection of new and recurring revenues
• Projection of new spending
• Fiscal Year 2004
• Legislative Appropriation Requests (LARs)
• Changes in funding models

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Sources of Funds

• Recurring Sources of Funds
• Non-recurring Sources of Funds
• Auxiliary Funds
• Service Centers
• Capital projects
• AM-Commerce Foundation

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Revenue Budget by SourceFY 2002
77.6 Million
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Semester Credit Hours(Fall, Spring Summer)
Projected
Projected
Note FY 97-01 THECB Certified, FY 02 is
Unofficial Projected, FY 03 is Projected
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Value of an FTE

• Enrollment is measured by semester credit hours.
  One full-time equivalent (FTE) is 30 semester
  credit hours.
• Base Period Summer 2000, Fall, Spring 2001
  provided funding for current and next fiscal year
• Lower Division enrollments
• Upper Division enrollments
• Masters enrollments
• Doctorates enrollments
• Each weighted enrollment is funded at a value
  determined by the Legislature for Instruction and
  Operations
• Base Period Summer 2002, Fall, Spring 2003 will
  provide funds for fiscal years 2004 and 2005

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Texas AM University-Commerce Base Period SCH
Production by Level
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Value of an FTE Instruction and Operations

• 2002-03 56.65 per weighted SCH
• Discipline and level
• Twenty funding categories
• Based on historical cost study and averages
• Teacher Education (2003 weights)
• Lower division 1.28 72.51 per SCH
• Upper division 1.96 111.03 per SCH
• Masters 3.23 182.98 per SCH
• Doctoral 9.95 563.67 per SCH

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Value of an FTE Instruction and Operations

• Operations Formula and four supplements
• Teaching Experience Supplement (10) for lower
  and upper division courses
• Short-term Fluctuations Supplement (3-6)
• Hold-harmless
• Growth
• Program Sharing Incentive Supplement
• Economically Disadvantaged Students Supplement
• Funding Caps
• Doctoral 99 SCH
• Undergraduate 45 SCH beyond degree requirements
• Developmental 18 SCH

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Value of an FTEInfrastructure Support

• Space Projection Model Five Factors
• Teaching Space
• Standards X SCH Predicted Assignable Space
• Laboratory Use 25.0 weekly average hours (11.6)
• Classroom Use 38.0 weekly average hours (21.5)
• Library Space
• Research Space
• Office Space
• Support Space
• Does not include Auxiliary space
• Average Rate per Square Foot is 7.56 currently
• Operations and Maintenance
• Purchased utilities
• Excess space at AM-Commerce 197,611 sq ft
• 20 of Formula Funding from this factor

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AM-CommerceSemester Tuition and Fees (15 hrs
Undergrad Resident)

• Statutory Tuition 660
• Designated Tuition 570
• Total Tuition 1,230
• Student Service Fee 190
• Technology Fee 90
• Student Center Fee 25
• Recreation Fee 20
• Library Access Fee 45
• Other Fees 12
• Total Fees 382

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Value of a Teacher Education FTE during Non-Base
Period

• New student taking 15 undergraduate hours during
  each semester
• Instruction and Operations -0-
• Infrastructure and Space -0-
• Annual Tuition and Fees 3,224
• Total 3,224

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Value of a Teacher Education FTE during Base
Period

• New student taking 15 lower division hours during
  each semester
• Instruction and Operations 2,175
• Infrastructure and Space 435
• Annual Tuition and Fees 3,224
• Total 5,834
• Increase of 2,610
• Increases 1,330 more for upper division!
• Remember delay in state funding!

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Recurring Sources of Funds from State of Texas

• Formula funding Instructional and Operations
  Support
• Infrastructure and Space Support
• Higher Education Fund (HEF)
• Fringe Benefits Appropriation
• Recurring Line Item Appropriations

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Recurring Line Item Appropriations

• Staff Group Insurance Premiums
• Workers Compensation Insurance
• Unemployment Compensation Insurance
• Texas Public Education Grants
• Indirect Cost Recovery (50)
• Organized Activities
• Tuition Revenue Bond Payments (State)

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Non-Recurring Line Item Appropriations

• Special Item Support 1.4 million
• Continue Northeast Texas Educational Partnership
• Establish BS Degree Program in Industrial
  Technology
• Texas Excellence Fund 29,627

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Non-Recurring Line Item Appropriations (continued)

• Institutional Enhancement 2.3 million
• Access to higher education
• Program enhancement
• Student Success to complete courses and programs
• Capital Equity Excellence Funding .8 million
• Research enhancement
• Student Services
• Recruitment, retention, and graduation efforts

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Revenue Budget by SourceFY 2002
77.6 Million
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Auxiliary Funds

• Housing
• Athletics
• Food Services
• Student Center
• Recreation Center
• Childrens Learning Center
• Summer Music Camps
• University Parking
• Vending

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Uses of Funds

• Personnel Costs
• Other Operating Costs
• Institutional Scholarships and Fellowships
• Service Centers
• Moveable Equipment
• Capital Construction/Renovation
• Technology Infrastructure
• Debt Service

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Uses of Funds
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Expenditure Budget by Function - FY 2000
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Actual Expenditures by Function
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New Academic Programs

• 1987-97 No new programs
• 1998 Master of Social Work
• 1999 MS Management
• Ph.D. Counseling
• Ph.D. English

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New Academic Programs

• 2000 BFA Art Direction
• BFA Design Communication
• BFA New Media
• BS Environmental Science
• BS Technology Management
• 2001 BA/BS Athletic Training
• BS Industrial Engineering
• MS Marketing
• MS E-Commerce

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Service Centers

• Printing Services
• Telecommunication Services
• Transportation
• Copy Machines
• Duplicating Services
• Bulk Mail Center

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FY 2003 Base Budget

• Funding level same as in fiscal year 2002 for
  recurring All Other category of funds
• VPs have the authority to move All Other Funds
  from one account to another at their discretion
• Account Managers will follow the process for a
  Presidents Opportunity Fund grant to request new
  program funds beyond the preliminary base budget

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FY 2003 Base Budget (cont)

• Personnel and Benefits base will be same as
  fiscal year 2002 budget
• Plus twelve additional faculty positions
• Plus Capital Campaign staff
• Salary increases are deferred pending legislative
  results
• Mandated 3 increase for non-faculty plus a
  discretionary increase for faculty
• Salary equity adjustments for non-faculty
• Account Managers will follow the process for a
  Presidents Opportunity Fund grant to request new
  program funds beyond the preliminary base budget

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FY 2003 Base Budget (cont)

• Reserves will not be used to fund any other
  projected needs beyond debt repayment
• Unspent funds from fiscal year 2002 will be
  reappropriated on a case-by-case basis
• Auxiliary accounts will be done separately.
• Spending is limited to projected cost increases
• Surplus revenues considered for other
  University-wide auxiliary needs

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Current Fund Operations
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New Recurring RevenuesFiscal Year 2003
(Projected)

• Available for General Operating Budget
• Designated Tuition 2,045,000
• Statutory Tuition 1,040,000
• Graduate Tuition Differential 185,000
• Capital Equity Excellence 341,028
• Technology Fee 130,000
• Application Fees 208,000
• Reduced Investment Earnings (450,000)
• Total 3,499,028
• Course Fees 150,000

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New Recurring RevenuesFiscal Year 2003

• Committed to Specific Programs
• Special Item Industrial Engr 224,649
• Library Fee 384,840
• Student Service Fee 796,500
• Student Center Fee 51,940
• Mayo College Fee 7,500
• Transcript Fee 76,580
• ID Fee 27,034
• Installment, Check Fee 59,160
• Parking Permit 12,000
• Assessment Services 9,500

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Potential New SpendingFiscal Year 2003

• Institutional Scholarships 999,190
• Institutional Marketing 200,000
• Capital Campaign Operating 600,000
• Additional Faculty Hires (8) 525,000
• Increased costs of Employee Benefits 235,000
• General Revenue Assessment 45,000
• Utility Savings (290,000)
• Mandated 3 Salary Increase 800,000 3.1M
• Discretionary Salary Increase
• Graduate Assistants 90,000
• Reclassifications 104,976
• Salary Equity Adjustments 238,988
• Recreation Center Operating Support ?

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Presidents Opportunity Fund

• http//www7.tamu-commerce.edu/vpba/Presidents20Op
  portunity20Fund/Default.htm
• Two-step process
• Simple Concept Paper to responsible Vice
  President
• If supported, Business Plan submitted
• Program costing more than 25,000
• Impact increased enrollments
• Provides initial funding for new programs

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Priority List of Unfunded Items

• New requests not funded by Opportunity Fund
• Any significant needs which cannot be
  accommodated within the base budget will be
  presented to the President and Vice Presidents
  for consideration for new funding.
• It is expected that the highest priority needs
  will be funded in the base budget already.
• Each request for additional funding will be
  considered and funded to the extent funds are
  available. Those which cannot be funded
  immediately will be placed in priority order for
  later consideration

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Available Operating Funds
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Capital Construction Projects

• Energy Management System completed in fiscal
  year 2000 2,963,930
• Whitley Hall Code Compliance completed in
  fiscal year 2001 2,000,000
• Student Apartments Housing Program completed in
  fiscal year 2002 6,905,000
• Dormitory Fire Marshal Compliance to be
  completed in fiscal year 2003 1,700,000
• Instructional Recreation Center to be completed
  in fiscal year 2003 12,000,000
• Renovation of Temple Building to be completed
  in fiscal year 2003 4,668,000
• Renovation of Student Center to be completed in
  fiscal year 2004 2,000,000
• Science and Technology Building to be completed
  in fiscal year 2005 25,000,000
• Mayo Hall Faculty Apartments to be completed in
  fiscal year 2005 2,000,000

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Performance Indicators

• What gets measured gets done!
• Legislative Budget Board
• of Course Completers
• of Lower Division courses taught by tenure
  track faculty
• Freshmen earning degrees within six years
• Freshman retention rate
• TASP Retention rate
• Pass rate on EXCET exam
• Institutional Performance Indicators
• Leads to Benchmarks

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Outlook for the Future

• Fiscal year 2004-2005
• Sustained enrollment growth
• Additional funding for the biennium
• Invest in expansion of programs, restoration of
  staff?
• Successful Capital Campaign
• Legislative Concerns
• New leadership
• Change in funding patterns
• State economy and competing needs

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What is the highest and best use of our limited
resources?
John_Harper_at_tamu-commerce.edu