The University for Kentucky uky.edu/uk4ky FY 2016-17 Operating and - - PowerPoint PPT Presentation

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The University for Kentucky

DRAFT

uky.edu/uk4ky

FY 2016-17 Operating and Capital Budget AY 2016-17 Tuition and Mandatory Fees

uky.edu/uk4ky

Budget Development Principles

• Maintain student access and affordability
• Competitive pay for faculty and staff
• Strategically plan to prevent across-the-board cuts

and maintain and enhance academic quality

• Enhance diversity and inclusion

uky.edu/uk4ky

$0.0 $0.9 $1.8 $2.7 $3.6 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17

$3.5 $3.4 $3.0 $2.7 $2.6 $2.7 $2.5 $2.4 $2.2 $2.1

Consolidated Operating Budget

University of Kentucky

in billions

uky.edu/uk4ky

Where does the money come from and how is it used?

University of Kentucky

FY 2016-17 Operating Budget $3.5 Billion

uky.edu/uk4ky

Where does the money come from and how is it used?

University of Kentucky

7% 1% 13%

FY 2016-17 Operating Budget $3.5 Billion

Undesignated General Funds – 21%

Money comes from:

• State Appropriations
• Tuition
• Investment Income
• Service Assessments

Pays for:

• Instruction
• Public Service
• Utilities
• Administrative Support
• Scholarships

State Appropriations Other Tuition

uky.edu/uk4ky

Where does the money come from and how is it used?

University of Kentucky

11% 44%

FY 2016-17 Operating Budget $3.5 Billion

Designated General Funds – 55%

Money comes from:

• UK HealthCare
• County Appropriations
• Mandatory Fees
• Course and Program Fees

Pays for:

• Public Service
• Instruction
• Student Services
• Academic Support

UK HealthCare Other

uky.edu/uk4ky

Where does the money come from and how is it used?

University of Kentucky

6%

FY 2016-17 Operating Budget $3.5 Billion

Auxiliary Funds – 6%

Money comes from:

• UK Athletics
• Housing
• Dining
• Parking and Transportation
• Student Center

Pays for:

• Auxiliary units pay for all of

their expenses; receive no taxpayer or tuition support

uky.edu/uk4ky

Where does the money come from and how is it used?

University of Kentucky

10%

FY 2016-17 Operating Budget $3.5 Billion

Restricted Funds – 10%

Money comes from:

• Research Grants and Contracts
• Endowment
• Gifts
• Federal and State Grants and

Contracts Pays for:

• Research
• Student Aid
• Public Service

uky.edu/uk4ky

Where does the money come from and how is it used?

University of Kentucky

8%

FY 2016-17 Operating Budget $3.5 Billion

Fund Balance – 8%

Money comes from:

• Savings from Prior Year

Pays for:

• Capital Projects
• Faculty Start-Up Packages

uky.edu/uk4ky

Where does the money come from and how is it used?

University of Kentucky

Revenue by Fund Source, FY 2016-17 (in millions)

$1,549 $283 $510 $780 $187 $267

(35)% 0% 35% 70% 105% 140%

70.1%

• 17%

56.8% 38.8% 99.9% 88.2% 125.1%

Percentage Change by Fund Source, FY 2008-17

Hospital Sales/Service and Other Income Tuition and Fees Gifts, Grants, Contracts and Other Income Auxiliary State Appropriations Total Operating Budget

uky.edu/uk4ky

Annual Debt Service as a Percent of Adjusted Operating Budget,
 FY 2007-08 to FY 2016-17

$36.7 $45.1 $61.6 $71.8 $75.8 $58.6 $71.0 $76.9 $76.2 $85.3 2.3% 2.7% 3.5% 3.7% 3.6% 3.8% 3.3% 3.2% 2.9% 2.9% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 Debt Service Debt Service as % of Opera@ng Budget

in millions

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Building the University’s Budget

• Loss of state

appropriations

• Increase in institutional

student aid

• Increase in faculty


& staff pay

• Increase in fixed costs
• Strategic investments

TOTAL ADDITIONAL FUNDS NEEDED STEP 1 AVAILABLE RESOURCES

• New revenues
• Increase in efficiencies
• Strategic reallocations

STEP 2 TUITION AND FEE REVENUE STEP 3

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STEP 1: Operating Budget Impact of the 2016 
 Session of the Kentucky General Assembly

2% mid-year reduction FY 2015-16 (pending) $5.6 million in current year ending June 30, 2016 4.5% reduction
 $12.6 million effective July 1, 2016 5% set aside in Performance Funding Account
 $13.4 million effective in FY 2017-18

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Budgetary Impact of Decline in State Appropriations

$0 $50 $100 $150 $200 $250 $300 $350 $400 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

254 267 274 280 284 284 303 306 310 310 335 University of Kentucky State Appropriations, net of debt service (in millions) Actual Original Budget, if different Performance Funding Account Public Funds, FY08 and FY17 State Funds 34% Tuition and Fees 66% State Funds 57% Tuition and Fees 43% Fiscal Year 2017 Fiscal Year 2008

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STEP 1: Identify Financial Needs

Decrease in State Appropriations Increase in Institutional Student Aid Increase in Faculty/Staff Pay (2% Merit) Increase in Fixed Costs Strategic Investments Total Additional Funds Needed $12.6 $12.6 $7.6 $7.8 $7.9 $48.5

Financial Needs, Undesignated General Funds (in millions) FY 2016-17

uky.edu/uk4ky

Available Resources, Undesignated General Funds (in millions)

STEP 2: Available Resources

Total Available Resources $10.8 $6.9 $6.0 $23.7

FY 2016-17

New Tuition Revenues

Residency mix change in pipeline, new masters and targeted program growth, increase freshman class size, increase retention, etc. This growth is not affected by any rate increase

Increased Efficiencies

E-payables, operating cash returns, campus sponsorships and other revenues, and energy conservation program

Strategic Reallocation

Academic Excellence, Agriculture, Medicine, Facilities Management, and Adjust Unit to Self-Operating

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Funding Needs Less Available Resources, Undesignated General Funds (in millions)

STEP 3: Tuition and Fee Revenue Rate Increase

Additional Revenues from Tuition Rate Increase $48.5 (23.7) $24.8 $24.8

FY 2016-17

Funding Needs Less Available Resources Funding Gap

uky.edu/uk4ky

Illinois

$7,813

Flagship Universities in Surrounding States

Fall 2015 Tuition and Fee Rates - Resident Undergraduate

$2,000 $4,000 $6,000 $ 8,000

Virginia

$7,234

Tennessee

$6,218

Missouri

$5,511

UK

$5,468

Indiana

$5,194

Ohio

$5,019

West Virginia

$3,816

Source: www.Collegedata.com

Maryland

$4,998

uky.edu/uk4ky

Flagship Universities in Surrounding States

Fall 2015 Tuition and Fee Rates - Non-resident Undergraduate

Indiana

$16,871

Illinois

$15,393

Tennessee

$15,313

Ohio

$13,683

Missouri

$13,024

UK

$12,134

West Virginia

$10,716

0 $4,000 $8,000 $12,000 $16,000 $20,000 $ 24,000

Source: www.Collegedata.com

Maryland

$15,572

Virginia

$21,541

uky.edu/uk4ky

Kentucky Council on Postsecondary Education Tuition and Mandatory Fee Parameters

• 5% ceiling on resident undergraduate tuition and

mandatory fee increases for academic year 2016-17 for research universities.


• Revised policy regarding non-resident students: Average

net tuition and fee revenue generated per non-resident student should equal or exceed 100% of direct instructional and student services costs per student.


• Resident and non-resident graduate and professional

tuition and mandatory fees are to be market competitive.

uky.edu/uk4ky

FALL 2015 Undergraduate–Lower Division $5,390

Recommended Tuition and Mandatory Fees Per Semester

FALL 2016 % CHANGE Undergraduate–Upper Division Graduate Resident Nonresident $12,052 $5,546 Resident Nonresident $12,216 $5,660 $13,078 $5,823 $13,256 5.0% 8.5% 5.0% 8.5% $5,826 Resident Nonresident $13,077 $6,118 $14,190 5.0% 8.5%

uky.edu/uk4ky

*Freshmen and Sophomores

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

$125 $117 $104 $89 $75 $67 $57 $52 $51 $51 $49

38,000 36,000 34,000 32,000 30,000 28,000 26,000 24,000 * * $140 $120 $100 $80 $60 $40 $20 *Budgeted

UK Undergraduate Resident Students Receiving Grants or Scholarships

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 FALL 2007 FALL 2015

Average Net Tuition and Mandatory Fees, Per Student* Tuition and Mandatory Fees Per Semester

2007 $3,548 9.0% 11.8% 2008 $3,868 9.0% 10.6% 2009 $4,062 5.0% 8.8% 2010 $4,305 6.0% 7.3% 2011 $4,564 6.0% 6.5% 2012 $4,838 6.0% 5.8% 2013 $4,983 3.0% 5.3% 2014 $5,232 5.0% 5.0% 2015 $5,390 3.0% 4.3% 2016 $5,660 5.0% 4.0% FALL SEMESTER UG RESIDENT RATE* ANNUAL % CHANGE 4-YEAR AVERAGE % CHANGE Tuition & Fees Sticker Price Total Aid

*Resident, full-time undergraduate students; excludes loans.

UK FUNDED STUDENT FINANCIAL AID

(IN MILLIONS)

TOTAL STUDENT ENROLLMENT $1,437

• ut-of-

pocket $1,801

• ut-of-

pocket

uky.edu/uk4ky

$0 $1,250 $2,500 $3,750 $5,000

$4,257 $3,821 $2,077 $245

Net Price by Income Quartile, Fall 2015

University of Kentucky

Average Tuition and Mandatory Fees Sticker Price, $5,377 Median Net Price by Quartile

Chart based upon 8,884 full-time undergraduate, resident students who filed the FAFSA as dependents. Median family income based on adjusted gross income as reported.

Low Median Family Income $18,893 Low-Mid Median Family Income $57,177 Mid-High Median Family Income $100,448 High 
 Median Family Income $163,409

25% of UK undergraduate full-time resident students are from families with a median income of $18,893. For these students, grants and scholarships cover 95%

• f tuition and mandatory

fees.

uky.edu/uk4ky

Average Debt of Resident Baccalaureate Graduates from the 
 Fall 2009 Entering Freshman (full-time, resident) Cohort

$75,000+ $60,001 - $75,000 $50,001 - $60,000 $35,001 - $50,000 $25,001 - $35,000 $15,001 - $25,000 $1 - $15,000 $0 250 500 750 1000

926 261 182 267 143 52 39 54 WITH DEBT 52% NO DEBT 48%

• 3,178 KY residents enrolled as first-time

freshmen in Fall 2009

• 1,924 students graduated by 2015 (61%)
• 48% of graduates had no student loans
• The average debt of graduates with

loans was $30,143

uky.edu/uk4ky

FALL 2015 RESIDENT

$5,390

Direct Cost of Attendance

FALL 2016 % CHANGE Tuition/Mandatory Fees Housing* Dining** Books Total Resident Direct Costs

$4,021 $5,660 $4,142 5.0% 3.0%

What will a freshman pay per semester?

$2,150 $2,150 0% $1,000 $1,000 0% $12,561 $12,952 3.1%

FALL 2015 NON-RESIDENT

$12,052

FALL 2016 % CHANGE Tuition/Mandatory Fees Housing* Dining** Books Total Non-resident Direct Costs

$4,021 $13,078 $4,142 8.5% 3.0% $2,150 $2,150 0% $1,000 $1,000 0% $19,223 $20,370 6.0%

* Per-semester cost for a 2-person suite (P3 Type B Units) ** Per-semester cost for the “All You Care To Eat” (AYCE) meal plan

uky.edu/uk4ky

Budget Development Principles

• Maintain student access and affordability
• Competitive pay for faculty and staff
• Strategically plan to prevent across-the-board cuts

and maintain and enhance academic quality

• Enhance diversity and inclusion

uky.edu/uk4ky