2011-13 Biennial Budget Update

transcript

Robert Cramer -Assistant ChancellorMarch 29, 2011

Presentation Outline

• HRS and Campus Climate Survey Reminder• Background on State and UW-Platteville• Proposed 2011-13 Budget

– Funding Impacts and Financial Aid Impacts– UW Madison Authority– Other Budget Items– Procurement and Economic Development

• Next Steps

UW Human Resources Project

• Coming in April• Impacts 67,000• Payroll• Benefits• HR Processes

• See http://hrs.uwsa.edu/index.html for details

Campus Climate Survey

• https://online.survey.psu.edu/uwplatt/

Background - Funding Sources• General Purpose Revenue (GPR) – includes general funding,

specific purpose funding, and earmarked funding from the state, primarily from state sales and income taxes

• Program Revenue (PR) – includes tuition, auxiliaries, and segregated fees, as revenues received for services or from users

• Federal Revenue (PR-F) – includes federal grants, financial aid, direct loans, as revenues from a federal agency

• Segregated Funds (SEG) – includes transportation fund and other separate state accounts, credited by law to a specific state fund

• Gifts and Grants – includes revenues from the Foundation, non federal grants

2009-11 State BudgetAll Revenue Sources - $65.8 B

General Purpose Revenue; 27671651200; 42%

Federal Revenue; 18190433100; 28%

Program Revenue; 8700116100; 13%

Segregated Revenue;

7629911900; 12%

Bond Revenue; 3581172100; 5%

http://www.legis.state.wi.us/lfb/LFBPublications_ButtonPages/2009-11_budget.htm

Ten Largest General Fund Programs in 2009-11

Program 2009-11 % Cumulative %

Elementary and Secondary School Aids $10,296,746,200 37.2% 37.2% Medical Assistance $2,331,348,900 8.4 45.6 UW System $2,236,656,800 8.1 53.7

Correctional Operations $1,988,035,800 7.2 60.9 Shared Revenues $1,857,718,900 6.7 67.6

School Levy/First Dollar Tax Credits $1,697,625,200 6.2 73.7

Appropriation Obligation Bonds $728,715,000 2.6 76.3

Community & Juvenile Correctional Services $503,577,700 1.8 78.1

Judicial and Legal Services $486,265,500 1.8 79.9

State Residential Institutions $378,485,700 1.4 81.3 Subtotal $22,505,175,700 81.4% All Other Programs $5,166,475,500 18.6% 100% Total $27,671,651,200 100.0%

UW-Platteville 2010-11 All Funds Budget is $148.9 Million

General Purpose Tax Dollars18402962

12%Specific Purpose

Tax Dollars11435118

Tuition43852004

29%Federal

4119131028%

Gifts and Grants1216604

Auxiliary En-terprises

3227025022%

Extension560106

General Purpose Tax Dollars Specific Purpose Tax Dollars Tuition FederalGifts and Grants Auxiliary Enterprises Extension

Funding Impacts - Compensation

• Retirement Contribution 5.8% (50% of total)• Health Insurance Contribution 12.6% (up from

6%)• UWS GPR Impact $22,274,900 each year• UW-Platteville – TBD

• UW-Platteville appears to keep program revenue savings associated with increased contributions

Funding Impacts

• GPR Cuts – $250 million total, $125 million per year– UW Madison $62,500,000 per year; UWS

$62,500,000 per year– $2.8 million estimated annual reduction in UW-

Platteville (11% of GPR and 4.7% of UWS share)– $2.4 million reduction for UW System (25% of UW

System GPR)

Funding Impacts

• Tuition – 5.5% increase annually– UWS total is $35,750,000 in 2011-12 and

$71,500,000 in 2012-13– UW-Platteville increase is between $1 million and

$1.2 million each year

Funding Impacts

• Prior Year Tuition Increases – As requested, reflect prior year changes including $109,765,900 increase each year to reflect GPR reduction offset ($35,000,000), differential tuition increases ($34,208,400), enrollment ($20,557,500), and vets remissions ($20,000,000)

• Student Technology Fee – Increase appropriation by $1,471,400 in FY12 and $2,701,300 in FY13 as requested by the Board of Regents (BOR)

Funding Impacts

• Fuel and Utilities – Increase GPR funding by $1,303,100 in FY12 and $2,461,200 in FY13

• Debt Service – Re-estimate debt service payments, reducing funding by $129.1 million in 2011-12 and increasing by $57.8 million in 2012-13– Reductions include -$23.4 million PR in 2011-12 and -$16.4

million PR in 2012-13– Impact on UW-Platteville PR debt service – TBD - (budget

for PR debt service is $6.2 million in FY11)

Funding Impacts

• Standard Budget Adjustments – Fully fund requested adjustments for continuing position salaries and benefits, reclassifications and pay progression, leases and moves, and minor appropriation transfers

FY12FY13

– GPR $61,693,800$61,693,800

– PRO $34,040,400$34,040,400

– PRS $34,200 $34,200

– SEG $50,400 $50,400

Bottom Line - Funding Impacts

• Bottom Line not yet known– Estimated $2.8 million annual GPR cut – not

cumulative– Estimated $1 million to $1.2 million annual tuition

increase offsets some of GPR cut• Other Variables Include

– Enrollment including TSI– Retention of PR savings– New Tools to Manage Cuts (WI Idea Partnership)

Wisconsin Idea Partnership

• Tools to manage UW-Platteville effectively for students, faculty, employees, and citizens

• Budgeting – Provide “block grants” to campuses and allow funding reallocations

• Tuition – Provide the Board of Regents with authority to set tuition

• Human Resources – Allow the Board of Regents to set pay plans and approve collective bargaining agreements

Wisconsin Idea Partnership

• Capital Planning and Construction – Provide the Board of Regents with authority over non state funded projects following Building Commission approval

• Financial Management – Allow the Board of Regents to oversee revenue and invest earnings

• Purchasing – Delegate to the Board of Regents authority over University-related purchasing

BOR Requests Not Approved

• Growth Agenda• Financial Aid• Recruitment and

Retention• OSER and DOA

Procurement Chargebacks

• Tuition Increase Grants

• Restoration of 2% Pay Plan

• UW Madison Intercollegiate Athletics

• Expanded Tuition Authority

• $12,000 Overload Cap Elimination

Financial Aid

• No additional funding for WHEG and elimination of statutory link to increase appropriations with tuition

• Funding is provided for Wisconsin Covenant Scholars in 2011-12 and 2012-13

• HEAB administers the Wisconsin Covenant Scholars• Enrollment in the Covenant Scholars will cease after

September 30, 2011• Re-estimate MN – WI reciprocity funding

Financial Aid

• WI GI Bill is extended to UW-Madison Authority• $6.5 GPR million is provided for the WI GI Bill• Lawton Minority Retention Grants – suspend the

formula that increases grants by the same percentage as tuition in 2011-13.

• No Increases for Lawton, Advanced Opportunity Program, Tuition Increase Grant, Study Abroad or Student Aid.

• Limit Tuition Increase Grant to students enrolled in 2010-11.

UW Madison Authority

• Establishes a separate authority with Board of Trustees (21 members)

• Provides $378 million GPR in 2011-12 and $462 million GPR in 2012-13

• Authority has complete control over tuition and employee compensation but must comply with statutory requirements on benefits

• Classified employees part of state civil service system until June 30, 2012

• Authority has control over revenue and interest earnings related to tuition, auxiliaries, and other PR

• UW Madison – s. 16.71(4) delegation to UW Madison Trustees authority to contract for materials, supplies, equipment or services related to higher education.

• UW Madison – s. 16.73 (4m) allows UW Madison trustees to enter into agreements with other higher education institutions for purchasing – does not appear to include UWS

• Capital Projects - UW Madison – delegated authority for non GPR / GFSB projects – s. 16.85 (1), 16.85 (12), 16.855 (22), 16.89

• Capital Projects – Enumeration of state funded projects (GFSB or GPR)

• Building Commission approval of all projects over $500,000

• State management of state funded projects• Leases require Building Commission approval

• Section 49 ((s. 13.48 (12) (b) 6. ) – the board may allow privately owned or operated facilities on University land without Building Commission approval

• Section 1087 ((s. 37.11 (11)) – the board may invest surplus moneys … that may be issued by such nonprofit sharing corporation as may be contracted with by the board for the construction or equipment of dormitories, commons, or field houses…

Other Items

• Lapses – DOA secretary authorized to lapse GPR and PFR from all employee compensation reductions, elimination of positions, across the board cuts, and elimination of the 2% wage increase. UW System is not included in this lapse.

• DOA Secretary authorized to lapse an unallocated $145 million GPR and PR from executive agencies. UW System is not included in this lapse.

Other Items

• ECB – removes requirement that UW System provide that the board grant part time use of equipment and space necessary for the operations of the state educational radio and television networks (section 968) (36.25 (5)

• Sale of Land – if the board sells any real property, the board shall credit 20.285 (1) (iz) net of public debt (section 1003) (s. 36.335)

Other Items

• Undocumented Persons – eliminate nonresident tuition and fee exemptions

• UW-Milwaukee – Require Board of Regents to allocate $250,000 for development of a plan to convert UW-Milwaukee to an authority.

• Reports – eliminate required annual reports on excess expenditures

• Appropriations – convert lab modifications and master’s level business programs to continuing appropriations.

Other Items

• Allow any UW campus to establish a charter school with BOR approval

Procurement

• Increase threshold for sealed bids and proposals from $25,000 to $50,000

• Eliminate uniform cost-benefit analyses for contractual services

• Revise requirements related to prison industries• Exempt equipment under $5,000 from energy

standards• Permit DOA to maintain a list of bidders and

contractors who have been convicted of criminal convictions

Economic Development

• Require the Board of Regents to coordinate economic development with the Wisconsin Economic Development Corporation (section 950 and 960) (s. 36.09 (1) (am) and s. 36.11 (29r) (b) 1.

• Create an Office of Business Development in DOA with 2.0 FTE

Next Steps

• Legislative Process – Joint Committee on Finance, Senate, and Assembly

• Decision on UW Madison as separate authority

• Pursue Wisconsin Idea Partnership to manage financial challenges going forward

References / Useful Sites• UW System Government Relations -

http://www.uwsa.edu/govrel/ • Department of Administration -

http://doa.wi.gov/index.asp?locid=166 • Wisconsin Legislature - http://legis.wisconsin.gov/ • Joint Committee on Finance -

http://legis.wisconsin.gov/lfb/jfc.html • Legislative Fiscal Bureau -

http://legis.wisconsin.gov/lfb/index.html • Wheeler Report - http://www.thewheelerreport.com/ • Wispolitics - http://www.wispolitics.com/ • Poll Everywhere – www.polleverywhere.com

2011-13 Biennial Budget Update

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