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uky.edu/uk4ky The University for Kentucky DRAFT
uky.edu/uk4ky
FY 2016-17 Operating and Capital Budget
AY 2016-17 Tuition and Mandatory Fees
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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 BudgetUniversity 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
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
DebtService DebtServiceas%ofOpera@ngBudget
in m
illio
ns
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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
uky.edu/uk4ky
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
254267274280284284
303306310310335
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
uky.edu/uk4ky
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
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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%
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*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 out-of-pocket
$1,801 out-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 2015University 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% of 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
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
