UWM Campus Budget Briefing

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UWM Campus Budget Briefing

• 2007-09 Biennial Budget
• Spring Semester, 2007

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Briefing Agenda

• Introduction and overview Sherwood Wilson
• Capital budget Claude Schuttey
• Operating budget Andy Richards
• Impact on UWM Sherwood Wilson
• Questions All

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Building the 2007-09 Budget

• Building Commission and Operating Budget
  Processes
• Two roads in parallel with brief intersections

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Building the 2007-09 Budget

• System built budget Jan. Aug. 2006
• BOR submitted budget to DOA Sept. 2006
• DOA/Governor worked on budget Aug. to Jan. 2007
• Governor proposes budget Feb. 2007
• Legislature works on budget Feb. to June 2007
• Legislature approves budget July 2007
• Governor signs and enacts partial vetoes July
  2007

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Capital Budget
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• CAPITAL BUDGET 101
• ALL CAMPUS BUILDING PROJECTS REQUIRE STATE
  APPROVAL
• FUNDING SOURCES ltgeneral funds, program
  revenue, gifts/grants, building trust fund gt
• FUNDING TYPE ltcapital projects, all agencygt
• BIENNIUM BUDGETS ltoverlapping nature / 05-07,
  07-09, 09-11gt
• SIX YEAR PLAN ltstatutory requirementgt

enumeration / advanced enumeration
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CAPITAL BUDGET PROCESS TIMELINE 07-09 6 YEAR
PLAN
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2007-2013 LONG RANGE CAPITAL DEVELOPMENT SIX YEAR
MAJOR PROJECT LIST estimated costs 2007-2009
General Purpose Revenue Columbia / St. Marys
Hospital Campus - Planning Phase 28,300,000 Phys
ics Building North Wing Remodeling
3,800,000 Research Grant Initiative /
Engineering Applied Science Research to be
determined Water Institute Aquatic Science
Biotechnology Facilities Remodeling
1,500,000 2007-2009 Non-General Purpose
Revenue Columbia / St. Marys Hospital Campus -
Planning Phase 27,800,000 Research Grant
Initiative / Engineering Applied Science
Research to be determined Water Institute
Aquatic Science Biotechnology Facilities
Remodeling 1,500,000 2009-2011 General
Purpose Revenue Columbia / St. Marys Hospital
Campus - Construction Phase 28,300,000 Physics
Building Research Addition 19,400,000 Golda
Meir Library Remodeling Phase Two Technology
Center Addition 30,300,000 Mitchell Hall North
Wing Remodeling 8,800,000 Arts Center
Remodeling, Lecture, Music, and Theatre
Buildings 7,500,000 Water Institute West Site
Facilities Development 4,400,000 2009-2011
Non-General Purpose Revenue Columbia / St. Marys
Hospital Campus - Construction Phase 27,800,000
2011-2013 General Purpose Revenue Physics
Building South Wing Plaza Remodeling
11,700,000 EMS Building Remodeling
15,000,000 Mitchell Hall South Wing
Remodeling 8,200,000 Cunningham Hall
Addition Remodeling 17,800,000 Water
Institute West End Facilities Remodeling
14,100,000 Water Institute Replacement of R/V
Neeskay 6,000,000 Mellencamp Hall to
be determined
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• 2007-09 UW SYSTEM MAJOR PROJECTS ALL FUNDS

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• 2007-09 UW SYSTEM STATE BUILDING COMMISSION
  CAPITAL BUDGET

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2007-09 UW SYSTEM MAJOR PROJECTS FUNDING
UW-Milwaukee
Funding in Millions
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• 2007 2009 UWM MAJOR PROJECTS
• CLASSROOM RENOVATIONS / INSTRUCTIONAL TECHNOLOGY
  Total System Projected to be 3.5M UWM
  portion typically 10 of total
• CAMPUS MASTERPLAN
• ENGINEERING CAMPUS Programming 3.0M from
  Building Trust Fund
• SCHOOL OF PUBLIC HEALTH Programming 300K
  from Building Trust Fund
• PHYSICS BUILDING NORTH WING RENOVATION
• Amount Requested 3.9M Project assigned to
  All Agency
• COLUMBIA CAMPUS ACQUISITION
• Enumerated for 2009-11 State Funding 28.2M
  Program Funding 27.8M.
• Proposed for 2011-13 State Funding 28.2M
  Program Funding 27.8M

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STATE BUILDING PROGRAM GFSB Inflation
adjusted dollars using ENR Index
7.1 real growth
5 real decline
In Millions
Actual Dollars
Inflation Adjusted Dollars
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• STATE BUILDING COMMISSION CAPITAL BUDGET TRENDS

• General fund borrowing in the state building
  program has declined.
• Actual
• 2001-03 GFSB authorized 445 million
• 2003-05 430 million
• 2005-07 400 million
• 2007-09 GFSB Recommended 460 million
• 460M is about 98 million less than construction
  inflation since 2001-03.
• (Engineering News Record (ENR) Index 445M
  7/1/01 adjusted for inflation 543M 1/1/07)
• At 460 million, the Capital Budget leaves 430
  million of state agency requests unfunded.
• The state has kept general fund debt service at
  3.5 to 4.0 of annual Wisconsin revenue. If all
  authorized borrowing occurs, debt service is
  projected to peak at 3.93.
• UW institution requests for 2009-11 Major
  Projects already total 442 million GFSB.
  (Compared to 218M GFSB in the 2007-09 SBC
  budget.)

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LOOKING AHEAD
Joint Finance Proposed Revision
Projections based on 3.5 annual inflation
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• A BRIGHT FUTURE

High Tech Economic Development
Improved Community Health
Business Workforce Development
Serving Wisconsin
Education Workforce Training
Environmental Sustainability
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Operating Budget
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Building UWMs Budget

• Incremental budgeting base plus increases or
  decreases
• No enrollment formula or automatic increases!
• No additional funding to support new space!

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Building UWMs Budget

• Start with 2006-07 Legislative budget not Redbook
  budget
• 2006-07 Legislative budget is 967.7 M GPR
• 2006-07 Redbook budget is 1,044.9 M GPR
• Difference mostly Cost-To-Continue -- bills
  that we have today!

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Cost-To-Continue (Base Funds)

• Pay plan increases for 2005 and 2006 (30.4 M)
• Fringe benefit cost increases (30.5 M)
• Utility cost increases (23.7 M)
• AOP/Lawton Financial Aid (1.4 M)
• Student Technology Fees (1.4 M)
• Application Fee Increase (1.8 M)
• Total of 89.2 M -- 64.3 M is GPR, 24.9 M is
  Fees

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Biennial Math Example

• Second year equals ongoing base budget
• Its the starting point for the next biennial
  budget.

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Governors Budget (GPR/Fee)
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New Funding for UWM (GPR/Fee)
All dollars are base and biennial unless
otherwise noted
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Powering Southeastern Wisconsins Knowledge
Based Economy

• Leveraging existing research potential with seed
  funding (2 M and 18 FTE)
• Seizing key opportunities through cluster hires
  (2.350 M and 20 FTE)
• Providing an advanced, highly skilled and diverse
  workforce (1.25 M and 50 FTE)
• Undergraduate research experience (2.146 M and
  22 FTE)
• Fringe benefits (2.254 M)

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Other Notes of Interest

• Biomedical Technology Alliance -- 2.5 M
• UWM School of Public Health -- 200 K
• WHEG financial aid program -- 26.4 M
• Veteran tuition remission reimbursement
• Wisconsin Covenant -- 860 K
• Annual efficiency savings -- 40 M

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Other Notes of Interest

• Domestic partner benefits
• Health insurance contribution (3 months)
• Nonresident tuition for certain undocumented
  persons
• Collective bargaining for academic staff and
  faculty
• No positions in the budget

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Tuition

• Tuition -- 2.5 average annual increase
• Projection -- does not include pay plan

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Pay Plan

• Board of Regents requested 5.23 pay plan per
  year
• Requested -- 100 state funding
• Pay plan traditional split 2.6 tuition per
  year

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Challenges

• Veteran Remissions
• Free Credits in the Plateau
• Tuition Remissions
• Summer Session Revenue
• Position Caps Fringes
• DOA/System Charge-backs
• Infrastructure Needs

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Impact on UWM

• Research Program
• Access To Success
• Regional Campuses

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What Can You Do?

• Stay Informed
• Write letters to the editor personal time
• Contact your legislator personal email
• Join Panther Advocates UWM Alumni Site or
• http//www.pantheradvocates.uwm.edu

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Questions?