FY 2006 USM Operating Budget

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FY 2006 USM Operating Budget
Approved by Board of Regents

• January 26, 2005

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Approach to the Budget

• Unique process
• Discussions with Administration throughout fall
  and up to New Years Eve
• Acknowledged mandatory costs of 105M
• E E contribution of 17M
• Net mandatories of 88M

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Goals for the Budget

• Increase the general fund to extent possible
• Moderate resident tuition increases
• Ensure all institutions can cover mandatory costs
• Support enrollment growth at comprehensive
  institutions
• Protect quality

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Budget Outcome

• Governor recommended
• 4.8 general fund increase
• 5.8 weighted resident tuition increase (top rate
  5.9)
• Supports enrollment growth
• Mandatories covered at all institutions
• Prevents further erosion in quality
• a good starting point for reinvestment

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Todays Agenda

• Endorse Governors Allowance
• Consider Chancellors tuition and fee
  recommendations

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FY 2006 USM Summary

• FY 2005 Legislative Approp. 757.7
• JCR-UMB Psych Ctr Reorganization 3.8
• Revised Beginning FY 2006 761.5
• Operating Budget Increase 36.7 4.8
• FY 2006 Governors Allowance 798.2

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FY 2006 Governors Announcement

• FY 2005 Legislative Appropriation
  757.7
• Additional GFs allocated to USM 36.7
• JCR-UMB Psych Ctr Reorganization 3.8
• MHEC-UMBC Ctr on Aging 2.5
• Total New Funds 43.0
• increase over FY 2005 Appropriation 5.7

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FY 2006 Governors Allowance

• Governor accepted USM recommended allocation of
  33.7M
• Considerations
• Mandatory Costs
• Enrollment growth
• No/Low tuition generating institutions
• Funding Guideline (quality/competitiveness)
• GF per FTES
• In addition, 3.0M provided for
• Employees Retirement rate increase (22)
• Workers Compensation premium increases

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Total Operating Budget
Total 3.3 billion
10
State-Supported Budget
Total 1.9 billion
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Benefits of the General Fund Increase

• Affordability
• Enables tuition stabilization
• Reduces projected resident tuition increase by
  almost half
• Enables greater institutional financial aid set
  aside
• Access
• Enables USM to support enrollment growth
• Targets enrollment at comprehensive institutions
• Establishes academic programs at Hagerstown and
  expand academic programs at Shady Grove

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Benefits (continued)

• Quality
• Strengthens academic programs in high demand
  areas workforce shortages
• Enables expanded use of information technology
  online courses to enrich education
• Provides resources to retain best faculty and
  staff
• Stabilizes research capacity at the research
  centers
• Funds mandatory costs

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Other Benefits

• 10M increase in Financial Aid (MHEC)
• One-time funding of 2.5M for Center on Aging at
  UMBC (MHEC)

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Areas of Concern

• Level funding of OCR Program
• Nano/BioTech initiative unfunded
• Changes in employee health benefit costs
• No matching funds for capital campaign
• Sustainability of recovery

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Enrollment Status
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Undergraduate Tuition

• Full-time resident rates held to no greater than
  5.9
• Two institutions below 5.9
• UMES 5.0 and UMUC 4.0
• Increases range from 196 at UMES CSU to 366
  at UMCP
• Full-time non-resident rates
• Increases range from 3.0 at SU to 9.5 at BSU
• Increases range from 368 at SU to 1,390 at UMCP

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Mandatory Fees

• Self supporting auxiliary fees
• Fees pay for student unions, auxiliary
  construction, shuttle buses, athletics
• Increases cover additional costs
• Increases range from no increase at BSU to 9.7
  at FSU
• Amounts range from no increase at BSU to 110 at
  TU
• Technology Fee (state-support fee)
• Revenue supports campus technology initiatives
• Range of inc. from 0 at UMB UMCP to 25 at UB

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Resident Tuition Fees

• UMBC 8,520 FSU 6,230
• UMCP 7,821 UMES 5,808
• Towson 7,096 UMUC 5,525
• UB 6,794 Bowie 5,481
• Salisbury 6,376 Coppin 4,714

New full-time rate established in FY 2006
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Non resident Tuition Fees

• UMCP 20,145 FSU 14,480
• UB 18,373 Salisbury 14,054
• UMBC 16,596 UMES 11,964
• Towson 16,030 Coppin 11,235
• Bowie 14,786 UMUC 10,157

New full-time rate established in FY 2006
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Approval Recommendations

• Endorse the Governors Allowance
• Approve Chancellors tuition and fee
  recommendations