ALL FUNDS OPERATING BUDGET FY2018 · An increase of $35.5M was allocated in the FY18 budget, of this amount $27M to colleges and $8.5M to institutional & support center units. The

Institutional Budget Document Page 1

ALL FUNDS OPERATING BUDGET

FY2018


Table of Contents Introduction ............................................................................................................................................................ 3

Budget Highlights .................................................................................................................................................... 4

General Fund Changes .................................................................................................................................... 4

Base Tuition Rate Increase % .......................................................................................................................... 4

Mandatory Fees Increase ................................................................................................................................ 4

Enrollments ..................................................................................................................................................... 5

Utilities ............................................................................................................................................................ 5

Institutional base budget remains at $35.05M in FY18. ................................................................................. 5

Leases .............................................................................................................................................................. 5

ASC Rate .......................................................................................................................................................... 5

Facilities and Administrative Cost Recovery ................................................................................................... 6

Responsibility Centered Management (RCM) ................................................................................................ 6

Organizational Changes .................................................................................................................................. 7

Financial Aid .................................................................................................................................................... 7

All Funds Operating Budget .................................................................................................................................... 7

Permanent Allocated Funding Base Report ............................................................................................................ 7

Spending Authority ................................................................................................................................................. 7

Gross Tuition & Fees Detail ..................................................................................................................................... 7

Auxiliary Report ...................................................................................................................................................... 8

Capital Development Plan ...................................................................................................................................... 8

Financial Status ....................................................................................................................................................... 8

Appendix 1-1: All Funds Operating Budget FY2018 ................................................................................................ 9

Appendix 1-2: All Funds Operating Budget FY2017 vs. FY2018 ............................................................................ 10

Appendix 2: Permanent Allocated Funding Report (1 of 2) ................................................................................. 11

Appendix 2: Permanent Allocated Funding Report (2 of 2) ................................................................................. 12

Appendix 3: Spending Authority ........................................................................................................................... 13

Appendix 4: Gross Tuition and Fees Detail ........................................................................................................... 14

Appendix 5: Auxiliary Report (1 of 3) .................................................................................................................... 15



Appendix 6: Capital Development Plan (2 of 3) .................................................................................................... 19

Appendix 6: Capital Development Plan (3 of 3) .................................................................................................... 20

Appendix 7: Financial Status ................................................................................................................................. 21


Introduction The University of Arizona’s FY2018 budget is a reflection of its strategic plan to improve rankings and enrollments through external engagement, brand management, student experience, research and a renewed focus on Health Science. After last year’s $18 million increase in State General Fund appropriation, the University of Arizona will receive $1.8 million increase in FY2018 to help fulfill its operational and educational needs. Key features of the proposed FY2018 All Funds Operating Budget include: Sources:

• $1.8 million increase in General Fund appropriations • 1% increase in both non-guaranteed and guaranteed tuition • Projected 330 enrollment growth in FY2018 • Increase in other sources primarily due to grants and contracts

Uses: • $46.85 million increase in Research and $30.82 million increase in Auxiliary enterprises

With these key features in place, the FY2018 budget of $2.586 billion represents a $79.3 million or 3.2% increase over the FY2017 budget. The Educational and General portion of the budget is $1.246 billion and represents a $22 million or 2% increase over the FY2017 budget. The sources and uses associated with the proposed $79.3 million increase in the budget are highlighted in the table below.

Proposed Increase in Sources and Uses:Change

FY'17 vs. FY'18(In Millions)

Sources:1. General Fund 1.80$ 2. Tuition & Student Fees 48.10 3. Other 29.40 Total Sources 79.30$

Uses:5. Compensation and Benefits (50.93)$ 6. Professional & Outside Services 19.18 7. Travel, Library Acquisitions & Other Operation Expenses 105.72 8. Capital Equipment, Land & Building (22.06) 9. Utilities 28.24 10. Financial Aid (Scholarship & Fellowship) (8.18) 11. Plant & Facilities Renovations (0.77) 12. Debt Service 5.39 13. Administrative Service Charge 2.70 14. Indirect Cost Recovery 0.00 Total Uses 79.30$


Budget Highlights General Fund Changes The table below explains general fund changes from FY17 to FY18:

FY17 General Fund $ 267,124,400 Elimination of One-Time Capital Investment (8,000,000) Change in Research Infrastructure 270,900 Freedom Center 1,000,000 Arizona Geological Survey 941,000 Arizona Financial Aid Trust (AFAT)* 2,729,400 Resident Student Investment 3,157,700 Health Insurance Trust Fund Adjustment 2,102,100 State Risk Insurance Premium Reduction (286,900) FY18 General Fund $ 269,038,600 *Previously appropriated to ABOR

Base Tuition Rate Increase % FY18 represents a general 1% tuition increase for Resident and Non-Resident students, 0.4% increase for College of Medicine Resident students and 0.6% increase for College of Medicine Non-Resident students.

FY17 FY18 Increase % Undergraduate-Resident $10,160 $10,262 $102 1% Undergraduate-Resident (UA South) $8,296 $8,380 $84 1% Undergraduate-Resident Guaranteed Tuition $10,752 $10,860 $108 1% Undergraduate-Non-Resident $30,759 $31,067 $308 1% Undergraduate-Non-Resident Guaranteed Tuition $33,950 $34,290 $340 1% Graduate-Resident $11,372 $11,486 $114 1% Graduate-Non-Resident $31,124 $31,436 $312 1% College of Medicine-Resident* $30,616 $30,730 $114 0.4% College of Medicine-Non-Resident* $52,290 $52,602 $312 0.6%

*These amounts include base tuition and program fees. Mandatory Fees Increase FY18 represents a $350 increase in Mandatory Fees which only applies to new incoming students beginning Fall 2017 and not on the Tuition Guarantee Program. The fee increases comprise of the following: $55 increase in Library Tech fee, $70 increase in Student Services fee, $125 increase in Health and Recreation fee and a new $100 Athletics fee. The Library Tech fee, Student Services fee and Health and Recreation fee will support costs associated with the development of the Bear Down Student Success District and Honors Village in addition to new technology and software, ongoing operations and programmatic services, and strategic initiatives. The Athletics Fee will support Athletics facilities, programs and operations, and graduate students will be charged half ($50) with the choice of opting out.


Enrollments Below is a history of enrollment for the past four years, FY18 Enrollment Growth projected for FY18 Budget Submission, and FY18 Total Projected Enrollment:

Utilities Institutional base budget remains at $35.05M in FY18. Leases No change in FY18 base budget from FY17. ASC Rate The purpose of the Administrative Service Charge (ASC) is to recover overhead costs incurred by the institution on behalf of accounts which are not directly funded by either state appropriations or sponsored grants and contracts. There are currently two components of the Administrative Service Charge (ASC). The first component is the ASC assessed at 9.5%; this rate is charged on external revenues on accounts that fall within the Auxiliary and Designated fund groups. Only revenues from external sources are used to calculate the ASC. The following revenues (identified as internal by object code used as internal revenues) are excluded: 1. Revenues from interdepartmental billings and gifts. 2. Institutional fees (such as tuition, art fees, indirect cost, and utility pass-through charges). The second component of the ASC is an assessment of 1.0% on operational expenditures (excluding student aid, cost of goods sold – including animal and feed, the ASC revenue component – Object Code 7955, and transfers) on all auxiliary and designated funds unless protected, for example, institutionally mandated accounts, service centers, mission support agreements, and allocated designated funds. Splitting the ASC rate into a revenue and expenditure component broadens the base of funds, provides greater flexibility in recovering funds across a fiscal period instead of all at once, balances out recovery mechanisms between auxiliary units that have greater rate variability, and encourages strategic investments and savings. The revenues generated from the Administrative Service Charge (ASC) are used specifically to support overhead costs (activities on campus which benefit the entire institution, but which are not easily assignable to any one unit, for example, utilities, payroll and procurement processing). History of ASC rates is listed below.

FTE FY13 FY14 FY15 FY16 FY17FY18 Proj Change

FY18 Proj Total

Grad Non-Resident 3,718 3,627 3,821 3,795 3,855 14 3,869 Grad Resident 3,670 3,883 3,908 4,069 4,053 16 4,069 Undergrad Non-Resident 10,277 10,445 11,551 12,321 12,566 108 12,674 Undergrad Resident 21,949 22,117 22,351 22,379 22,275 192 22,467 College of Med - MD 700 719 757 759 821 - 821 Total 40,314 40,791 42,388 43,323 43,570 330 43,900 *Note - Unclassified FTE was apportioned based on Classified to create Residency.


Facilities and Administrative Cost Recovery The university receives reimbursement for facilities and administrative costs, or indirect costs, associated with external research. A portion of this reimbursement is returned to the colleges to support research activities that cannot be directly charged to Grants. Rates Charged to Grants & Contracts: The indirect cost rate varies depending upon type and location of the research activity. Current FY18 on-campus rate is 53.5% and off-campus rate is 26%. These rates, which are approved in the Colleges and Universities Rate Agreement, are generally for use on grants, contracts and other agreements with the Federal Government. Indirect Cost Revenue Distribution to the University and the Colleges: Indirect Cost Allocation was historically 75% to the university and 25% to the colleges through FY15. Beginning in FY16 with the implementation of RCM, incremental changes in total Indirect Cost revenues are attributed and allocated to colleges net of assessments using the RCM distribution model. The Facilities & Administrative Perm Base Recovery projections remained at $77.8M for FY18. Responsibility Centered Management (RCM) In FY16, the University adopted an RCM framework for allocating incremental budget. Allocations for the FY18 budget were based upon the level of activity change incurred by responsibility center units for the prior fiscal year (i.e., the change in activity from FY16 to FY17). Revenues allocated through the RCM framework are base undergraduate & graduate tuition, program fees, differential tuition, and facility & administrative cost recovery from grants. These incremental revenues are allocated net of Regents set aside and other institutional financial aid and assessments for institutional & support center costs, strategic investment and facilities space use. An increase of $35.5M was allocated in the FY18 budget, of this amount $27M to colleges and $8.5M to institutional & support center units. The FY18 allocations were based upon the following model elements:

• Undergraduate Tuition Allocation – 75% based upon weighted student credit hours (SCH), 25% based upon student major/college of enrollment

• Graduate Tuition Allocation – 75% based upon student major/college of enrollment, 25% based upon student credit hours

• Program Fees & Differential Tuition – 100% allocated to the college that owns the fee or differential tuition • Facilities & Administration (F&A) Cost Recovery from Grants – 100% to the college associated with the grant

award

ASC Rate - Revenue ASC Rate - ExpenditureFY08/09 8.00%FY09/10 9.00%FY10/11 9.00%FY11/12 9.00%FY12/13 9.00%FY13/14 9.00%FY14/15 9.00%FY15/16 9.50% 1.00%FY16/17 9.50% 1.00%FY17/18 9.50% 1.00%


• Institutional & Support Center Expense Recovery – 30.96% of undergraduate tuition and 12.38% of graduate tuition revenue, program fees, differential tuition and F&A cost recovery revenues

• Strategic Investment Rate– 2.75% • Facilities Rate – $25.19 per net assignable square foot (NASF)

Organizational Changes New organizations were created for the Mining and Mineral Museum, AZ Data Science Initiative, College of Medicine Phoenix Translational Neuroscience and Oncology, Center for Buddhist Studies, and the Center for Digital Humanities. University Information Technology Services (UITS) reorganized departments and divisions into one new division reporting to the AVP for Information Strategy and University Libraries. A new academic organization, Political Economy and Moral Science (housing the Freedom Center) was created in the Social and Behavioral Sciences College. The University Instrumentation Center was closed and merged with Arizona Research Labs. Workforce Systems was closed and merged with Human Resources. Several organizations previously under the AVP for External Relations were closed and merged into one organization and division under the VP for Government and Community Relations. A new division was created for the Health Sciences Centers and Division. Two new divisions were created and organizations moved under the SVP for Research, Discovery, and Innovation; specifically, a Museums division and a division for Centers and Institutes. A new division and organization was created to support Veterinary Medicine. Finally, new divisions were created for Alumni Relations and UA Presents.

Financial Aid ABOR Policy 4-321 states that the Regents set aside for financial aid for each university shall be 14% of the result of multiplying the resident tuition rate for the academic year by the estimated sum of resident full pay equivalents and non-resident full pay equivalents. The Board may consider additional Regents set aside amounts at its discretion. In years FY09 and prior, the university set aside 15%. From FY10 to FY13 the regents required the universities to set aside 17%. Beginning in FY14, per ABOR, the set aside amount is to be calculated on 14% of the margin. Beginning in FY16, Regent’s set aside is no longer being collected on Mandatory Fees.

All Funds Operating Budget Appendix 1-1: All Funds Operating Budget FY2018 includes 2018 Operating Budget for All Funds, presented in total sources, total uses by program, and total uses by natural expense category. Appendix 1-2: All Funds Operating Budget FY2017 vs. FY2018 includes All Funds Operating Budget for FY2017, FY2018, and change from FY2017 to FY2018.

Permanent Allocated Funding Base Report FY18 Permanent Allocated Funding Base report including State and Locally Allocated information is listed in Appendix 2: Permanent Allocated Funding Base.

Spending Authority FY18 Spending Authority includes State Expenditure Authority for FY2018 Original Budget, FY2017 Revised Budget, and the changes. See Appendix 3: Spending Authority for details.

Gross Tuition & Fees Detail The table in Appendix 4: Gross Tuition and Fees Detail lists five-year history (FY2013-FY2017) and one-year estimate (FY2018) of Gross Tuition and Fee Revenues.


Auxiliary Report The tables in Appendix 5: Auxiliary Report (1 of 3), Appendix 5: Auxiliary Report (2 of 3), Appendix 5: Auxiliary Report (3 of 3) list five-year history (FY2013-FY2017) and one-year estimate (FY2018) of Revenues, Expenditures & Net Transfers, and Ending Fund Balance for Auxiliary Enterprise.

Capital Development Plan The table in Appendix 6: Capital Development Plan (1 of 3) includes board approval status and other detailed information about new and previously approved capital projects. The table in Appendix 6: Capital Development Plan (2 of 3) includes annual debt service funding sources for new and previously approved capital projects. The table in Appendix 6: Capital Development Plan (3 of 3) includes operational and maintenance funding sources for new and previously approved capital projects.

Financial Status The table in Appendix 7: Financial Status includes FY2016-FY2017 actual financial status with FY18, FY21, and FY25 projection


Appendix 1-1: All Funds Operating Budget FY2018

STATE/COLLECTIONS AUX. TOTAL Percent

% 28.2% 35.5% 11.2% 100.0%Admin.

State Exp. Ret. Indirect Invest. Servc. Other TRIF Rstr. Fin AidSOURCES Authority Tuition Cost Income Charge Dsgn. Auxiliary 301 Gifts Grant Federal Other AEF

General Fund 269.0 269.0 10.4%Tuition & Student Fees 453.1 320.0 156.5 0.5 930.1 36.0%Other 6.7 77.8 7.8 25.5 331.1 290.6 28.9 61.8 54.1 309.0 174.9 18.7 1,386.9 53.6%

TOTAL SOURCES 728.8 320.0 77.8 7.8 25.5 487.6 290.6 28.9 61.8 54.6 309.0 174.9 18.7 2,586.0 100.0%

USES BY PROGRAM Instruction 347.1 34.5 3.9 113.3 20.4 1.6 6.6 5.6 533.0 20.6%Research 68.1 31.3 56.3 18.6 20.8 272.4 77.7 16.5 561.7 21.7%Public Service 24.7 0.9 9.6 13.4 0.1 29.1 31.2 109.0 4.2%Academic Support 129.5 2.6 3.7 0.3 182.6 3.3 36.2 2.2 360.4 14.0%Student Services 6.9 19.3 0.5 41.6 1.1 0.9 70.3 2.7%Institutional Support 138.3 42.3 22.5 7.8 22.9 67.1 5.4 1.1 1.3 308.7 11.9%Auxiliary 257.4 257.4 10.0%Financial Aid (Stud. Sppt) 188.3 5.5 5.3 0.1 52.9 22.9 275.0 10.6%Plant & Facilities Renovations 4.8 1.2 0.3 1.3 2.5 1.6 11.7 0.5%Debt Service 14.2 28.2 8.8 1.5 15.8 25.4 4.9 98.8 3.8%

TOTAL USES BY PROGRAM 728.8 320.0 77.8 7.8 25.5 487.6 290.6 28.9 61.8 54.6 309.0 174.9 18.7 2,586.0 100.0%

USES BY EXPENSEPersonal Services 460.1 30.8 26.1 12.9 237.2 74.3 0.5 25.1 1.7 88.4 50.8 9.9 1,017.8 39.4%Employee Related Exp. 166.9 6.5 9.3 2.6 41.2 22.4 0.2 8.8 31.3 18.2 3.4 310.8 12.0%Prof. & Outside Srvc. 8.1 1.5 3.1 3.8 60.2 13.9 5.1 39.9 46.3 0.6 182.5 7.1%Travel In-State 0.5 0.1 0.7 0.6 0.2 0.6 0.5 3.2 0.1%Travel Out-of-State 0.1 1.8 6.5 7.3 1.7 4.1 1.8 0.3 23.6 0.9%Other Oprn. Exp. 43.7 56.2 17.5 7.8 1.7 97.4 92.6 23.3 16.2 65.4 38.4 3.0 463.2 17.9%Library Acquisitions 7.1 0.5 7.5 15.1 0.6%Capital Equip, Land & Bldg 3.0 3.4 7.6 3.5 1.6 6.5 2.1 1.5 29.2 1.1%Utilities 25.1 3.2 4.1 2.7 29.9 0.8 0.1 1.0 66.9 2.6%Financial Aid (Schlshp & Fllwshp) 188.3 2.4 2.4 5.3 2.3 52.9 8.6 2.1 264.3 10.2%Plant & Facilities Renovations 4.8 1.2 0.3 1.3 2.5 10.1 0.4%Debt Service 14.2 28.2 8.8 1.5 15.8 25.4 4.9 98.8 3.8%Administrative Svc Chg 9.8 12.9 22.7 0.9%Indirect Cost Recovery 64.1 13.7 77.8 3.0%

TOTAL USES BY EXPENSE 728.8 320.0 77.8 7.8 25.5 487.6 290.6 28.9 61.8 54.6 309.0 174.9 18.7 2,586.0 100.0%

Grant/Contract

University of ArizonaFY 2017-18 All Funds Operating Budget

(in millions)

UNRESTRICTED RESTRICTED25.1%


Appendix 1-2: All Funds Operating Budget FY2017 vs. FY2018

FY2017 FY2018 Change Budget Budget from FY2017

BudgetSources:

General Fund 267.20$ 269.00 1.80$ Tuition & Student Fees 882.00 930.10 48.10 Other 1,357.50 1386.90 29.40

Total Sources 2,506.70 2,586.00 79.30

Uses by Program:Instruction 544.12$ 533.00$ (11.12)$ Research 516.25 561.70$ 45.45 Public Service 86.59 109.00$ 22.41 Academic Support 383.21 360.40$ (22.81) Student Services 78.59 70.30$ (8.29) Institutional Support 288.56 308.70$ 20.14 Auxiliary 226.58 257.40$ 30.82 Financial Aid (Stud. Sppt) 274.69 275.00$ 0.31 Plant & Facilities Renovations 14.71 11.70$ (3.01) Debt Service 93.41 98.80$ 5.39

Total Uses by Program 2,506.70 2,586.00 79.30

Uses by Expense:Personal Services 1,024.41$ 1,017.80$ (6.61)$ Employee Related Exp. 355.12 310.80$ (44.32) Prof. & Outside Srvc. 163.32 182.50$ 19.18 Travel In-State 3.40 3.20$ (0.20) Travel Out-of-State 23.48 23.60$ 0.12 Other Oprn. Exp. 357.63 463.20$ 105.57 Library Acquisitions 14.87 15.10$ 0.23 Capital Equip, Land & Bldg 51.26 29.20$ (22.06) Utilities 38.66 66.90$ 28.24 Financial Aid (Schlshp & Fllwshp) 272.48 264.30$ (8.18) Plant & Facilities Renovations 10.87 10.10$ (0.77) Debt Service 93.41 98.80$ 5.39 Administrative Svc Chg 20.00 22.70$ 2.70 Indirect Cost Recovery 77.80 77.80$ 0.00

Total Uses by Expense 2,506.70 2,586.00 79.30

UNIVERSITY OF ARIZONAProposed All Funds Operating Budget

FY2018(In Millions)


Appendix 2: Permanent Allocated Funding Report (1 of 2)

University of ArizonaFY 2018 Perm Base Report by RCU

State Indirect Cost

Revenue Admin Svc

Charge Retained

Fees Total Base

Administrative and Institutional Support Academic Affa i rs and Provost 11,130,988$ 618,540 424,044 - 12,173,572 Academic Ini tiatives and Student Success 576,713 - - 1,163,485 1,740,198 Arizona Heal th Sciences Center 6,607,341 - 1,175,000 - 7,782,341 Bus iness Affa i rs (Non-Faci l i ties ) 26,346,238 2,320,547 3,016,594 - 31,683,379 Bus iness Affa i rs/HR (Non-Faci l i ties ) 5,689,143 1,787,815 152,053 83,125 7,712,136 Col leges of Letters , Arts and Science 1,094,754 - - - 1,094,754 Development Office - - 7,047,556 - 7,047,556 Executive Office of the Pres ident 5,997,903 188,013 2,628,298 - 8,814,214 Global Ini tiatives and Outreach 2,623,841 95,660 222,603 50,329 2,992,433 Office of the Genera l Counsel 2,878,092 50,000 218,676 - 3,146,768 SVP Univers i ty Relations 2,295,985 99,471 450,100 - 2,845,556 Tech Launch Arizona 202,121 2,268,608 - - 2,470,729 Univers i ty Information and Technology Services 18,936,459 1,611,412 56,000 - 20,603,871 Univers i ty Libraries 21,377,847 348,593 - 726,200 22,452,640

Administrative and Institutional Support Total 105,757,425 9,388,659 15,390,924 2,023,139 132,560,147

Auxiliary Student Union 775,500$ - - 1,139,193 1,914,693

Auxiliary Total 775,500 - - 1,139,193 1,914,693

College and Related AZ Heal th Sciences Centers/Divis ions 2,411,429$ - - - 2,411,429 CALS - Cooperative Extens ion 16,358,100 - - - 16,358,100 Col lege of Agricul ture and Li fe Sciences 42,375,994 459,945 - 598,998 43,434,937 Col lege of Archi tecture & Landscape Archi tecture 7,783,448 - - 763,700 8,547,148 Col lege of Education 12,178,310 - - - 12,178,310 Col lege of Engineering 24,773,595 603,400 - 2,255,000 27,631,995 Col lege of Fine Arts 17,693,724 - - - 17,693,724 Col lege of Humanities 23,762,467 - - 13,482 23,775,949 Col lege of Medicine (Phoenix) 25,570,274 - - - 25,570,274 Col lege of Medicine (Tucson) 51,836,042 30,000 - - 51,866,042 Col lege of Nurs ing 6,748,036 - - 3,290,184 10,038,220 Col lege of Optica l Sciences 3,837,440 1,621,227 - - 5,458,667 Col lege of Pharmacy 7,511,342 - - 5,783,500 13,294,842 Col lege of Science 89,161,450 105,380 - - 89,266,830 Col lege of Socia l and Behaviora l Sciences 66,106,091 37,200 - 1,443,250 67,586,541 El ler Col lege of Management 36,973,575 379,892 - 7,707,900 45,061,367 James E Rogers Col lege of Law 12,784,282 395,364 - 2,614,300 15,793,946 Mel and Enid Zuckerman Col lege of Publ ic Heal th 9,427,518 - - 907,200 10,334,718 Univers i ty of Arizona South 7,881,130 - - - 7,881,130 School of Veterinary Medicine - - - - -

College and Related Total 465,174,247 3,632,408 - 25,377,514 494,184,169


Appendix 2: Permanent Allocated Funding Report (2 of 2)

University of ArizonaFY 2018 Perm Base Report by RCU

State Indirect Cost

Revenue Admin Svc

Charge Retained

Fees Total Base

Facilities Arizona Heal th Sciences Center 132,000$ - - - 2,411,429 Bus iness Affa i rs (Faci l i ty Related) 82,307,814 15,585,167 12,118,112 36,359,844 16,358,100

Facilities Total 82,439,814 15,585,167 12,118,112 36,359,844 146,502,937

Institutional Costs Academic Affa i rs & Provost 1,172,780$ - - - 1,172,780 Bus iness Affa i rs (Non-Faci l i ties ) 5,328,000 2,405,666 1,612,300 468,200 9,814,166

Institutional Costs Total 6,500,780 2,405,666 1,612,300 468,200 10,986,946

Public Service Bus iness Affa i rs/HR (Non-Faci l i ties ) 2,423,549$ - - - 2,423,549 Col lege of Fine Arts / UA Presents 174,669 - - 24,600 199,269 SVP Research / Arizona State Museum 1,455,046 187,905 - - 1,642,951 SVP Research / Ctr for Creative Photography 1,043,477 - - - 1,043,477 SVP Research / Museum of Art 275,597 9,357 - - 284,954 SVP Research / Mining and Minera l Museum - - - - -

Public Service Total 5,372,338 197,262 - 24,600 5,594,200

Research SVP Research 11,250,839$ 8,056,321 - - 19,307,160 SVP Research / AZ Rsch Labs-Interdiscipl inary 1,004,819 384,690 - - 1,389,509 SVP Research / BIO5 Insti tute 599,722 674,537 - - 1,274,259 SVP Research / Biosphere 2 34,500 51,508 - - 86,008 SVP Research / Confluence Ctr for Creative In 357,076 - - - 357,076 SVP Research / Insti tute for LGBT Studies 152,690 - - - 152,690 SVP Research / Insti tute of the Envi ronment 6,380 146,835 - - 153,215 SVP Research / Udal l Center 289,258 74,642 - - 363,900

Research Total 13,695,284 9,388,533 - - 23,083,817

Strategic Investments Academic Affa i rs & Provost 2,515,542$ - - - 2,515,542 Bus iness Affa i rs (Non-Faci l i ties ) 38,511,551 4,603,269 (4,128,483) 232,976,163 271,962,500 SVP Research 1,814,880 30,256,450 - - 32,071,330

Strategic Investments Total 42,841,973 34,859,719 (4,128,483) 232,976,163 306,549,372

Student Support Graduate Col lege 3,435,327$ 2,045,183 - 1,251,266 6,731,776 Honors Col lege 1,311,708 - 21,360 2,172,000 3,505,068 Student Affa i rs 1,577,904 294,503 485,787 18,079,483 20,437,677

Student Support Total 6,324,939 2,339,686 507,147 21,502,749 30,674,521

Grand Total 728,882,300 77,797,100 25,500,000 319,871,402 1,152,050,802


Appendix 3: Spending Authority

UNIVERSITY OF ARIZONA FY 2018 STATE EXPENDITURE AUTHORITY

UNIVERSITY TOTAL ($ IN THOUSANDS)

ORIGINAL BUDGET

INCREASE/ DECREASE

BUDGET

INCREASE/ DECREASE

BUDGET FY 2017 $ FY 2017 $ % FY 2018

STATE GENERAL FUND APPROPRIATION

267,124.4

-

267,124.4

1,914.2

0.7%

269,038.6

UNIVERSITY GENERATED REVENUES

Tuition Revenue

Resident Undergraduate Tuition 228,387.7 (17,941.2) 210,446.5 6,382.2 3.0% 216,828.7 Resident Graduate Tuition 50,231.1 (5,703.8) 44,527.3 597.3 1.3% 45,124.6 Non Resident Undergraduate Tuition 344,632.8 2,096.3 346,729.1 16,067.4 4.6% 362,796.5 Non Resident Graduate Tuition 59,325.8 (2,213.5) 57,112.3 797.3 1.4% 57,909.6 Online 8,900.0 18,522.00 27,422.0 7,000.00 25.5% 34,422.0 Subtotal Tuition 691,477.4 (5,240.2) 686,237.2 30,844.2 4.5% 717,081.4

Differential Tuition/Special Program Fees Revenue

College of Architecture & Landscape Architecture 847.2 (91.70) 755.5 8.2 1.1% 763.7 College of Agriculture and Life Sciences 2,373.0 (1,534.60) 838.4 519.6 62.0% 1,358.0 College of Engineering 3,450.0 3.80 3,453.8 81.2 2.4% 3,535.0 College of Fine Arts 512.8 (3.20) 509.6 (9.2) -1.8% 500.4 College of Medicine-Tucson 37.4 13.80 51.2 (2.2) -4.3% 49.0 College of Medicine-Tucson-MD Program 8,581.5 818.20 9,399.7 0.0 0.0% 9,399.7 College of Medicine-Phoenix-MD Program 6,218.8 126.00 6,344.8 0.0 0.0% 6,344.8 College of Nursing 2,300.0 (314.70) 1,985.3 1,304.9 65.7% 3,290.2 College of Pharmacy 5,610.0 (245.00) 5,365.0 418.5 7.8% 5,783.5 College of Public Health 563.0 400.00 963.0 (55.8) -5.8% 907.2 College of Science 993.8 (165.70) 828.1 (24.2) -2.9% 803.9 College of Social and Behavorial Science 2,291.8 (317.80) 1,974.0 (43.4) -2.2% 1,930.6 Eller College of Management 12,656.2 (1,645.40) 11,010.8 659.9 6.0% 11,670.7 Honor's College 2,100.0 - 2,100.0 72.0 3.4% 2,172.0 James E Rogers College of Law 5,459.4 (2,928.60) 2,530.8 83.5 3.3% 2,614.3 Distributed 0.0 1,800.00 1,800.0 0.0 0.0% 1,800.0 Subtotal Differential Tuition/Special Program Fees Revenue 53,994.9 (4,084.90) 49,910.0 3,013.0 6.0% 52,923.0

Other Revenues

Summer Session Reimbursement 2,900.0 - 2,900.0 - 0.0% 2,900.0 State Land Grant Endowments 500.0 - 500.0 1,900.00 380.0% 2,400.0 Federal Transfer Payment - Agriculture 3,719.0 - 3,719.0 581.00 15.6% 4,300.0 Distribution to AG 0.0 - 0.0 - 0.0% 0.0 Distribution to UA South 0.0 - 0.0 - 0.0% 0.0 Distribution to AHS 0.0 - 0.0 - 0.0% 0.0 Miscellaneous 229.4 - 229.4 - 0.0% 229.4 Subtotal Other Revenues 7,348.4 - 7,348.4 2,481.00 33.8% 9,829.4

TOTAL UNIVERSITY REVENUES 752,820.7 (9,325.1) 743,495.6 36,338.2 4.9% 779,833.8

LESS: University Revenues Retained for Local Uses

Operating Budgets 42,914.7 18,522.0 61,436.7 (4,192.8) -6.8% 57,243.9 Program Fees/Differential Tuition 32,452.8 - 32,452.8 (1,823.9) -5.6% 30,628.9 Regents Financial Aid Setaside 47,997.2 - 47,997.2 866.7 1.8% 48,863.9 Other Financial Aid 143,894.6 - 143,894.6 6,429.9 4.5% 150,324.5 Plant Funds 4,776.5 - 4,776.5 - 0.0% 4,776.5 Debt Service / COPs / Lease Purchase 28,152.4 - 28,152.4 - 0.0% 28,152.4 Total Retained for Local Uses 300,188.2 18,522.0 318,710.2 1,279.9 0.4% 319,990.1

UNIVERSITY REVENUES REMITTED TO STATE (STATE COLLECTIONS) 452,632.5

(27,847.1)

424,785.4

35,058.3 8.3%

459,843.7 PLUS: STATE GENERAL FUND APPROPRIATION 267,124.4 - 267,124.4 1,914.2 0.7% 269,038.6

TOTAL STATE EXPENDITURE AUTHORITY 719,756.9

(27,847.1)

691,909.8

36,972.5 5.3%

728,882.3


Appendix 4: Gross Tuition and Fees Detail University of Arizona Gross Tuition and Fees Revenue Detail (in thousands)

FY2013 FY2014 FY2016 FY2017 FY2018 EST Fall/Spring Base Tuition $520,260.0 $541,615.0 $642,060.1 $653,244.7 $682,659.4

NR UG $229,727.0 $243,313.0 $324,574.9 $345,204.7 $362,796.50 RES UG $186,128.0 $192,235.0 $205,515.8 $209,887.2 $216,828.70 NR Grad $51,383.0 $51,996.0 $55,748.2 $55,658.1 $57,909.60 RES Grad $53,022.0 $54,071.0 $56,221.2 $42,494.7 $45,124.60

Online n/a n/a $10,615.9 $29,851.2 $34,422.0 NR UG n/a n/a n/a $2,686.6 $3,829.2 RES UG n/a n/a n/a $2,388.1 $3,549.6 NR Grad n/a n/a n/a $12,537.5 $13,397.5 RES Grad n/a n/a n/a $12,239.0 $13,645.7 Prog Fees/Diff $27,933.0 $30,253.0 $38,240.8 $50,779.1 $52,913.00 UG $8,628.0 $10,589.0 $15,798.2 $17,955.4 $16,622.2 Grad $19,305.0 $19,664.0 $22,442.6 $32,823.7 $36,290.8 Course Fees $2,973.0 $2,946.0 $5,976.4 $5,863.4 $5,846.10 UG $2,391.0 $2,357.0 $4,781.2 $5,394.3 $4,677.0 Grad $582.0 $589.0 $1,195.3 $469.1 $1,169.1 Ext Ed Fees $9,145.0 $9,597.0 $13,268.2 $11,511.2 $11,085.00 Non Degree $4,466.0 $5,369.0 $4,408.0 $4,393.4 $4,327.00 Summer Session $33,430.0 $23,887.0 $35,095.4 $40,943.6 $34,100.6 Mandatory Fees $33,837.0 $37,937.0 $40,128.8 $39,898.7 $42,574.60 UG $27,754.0 $31,108.0 $32,905.6 $33,115.9 $34,911.0 Grad $6,083.0 $6,829.0 $7,223.2 $6,782.8 $7,663.6 Other Miscellaneous $12,712.0 $18,718.0 $18,652.2 $19,324.9 $18,926.00 Uncollectible Bad Debt -$3,302.3 -$1,516.4 Total Tuition & Fees $644,756.0 $670,322.0 $805,143.6 $854,293.8 $886,853.7


Appendix 5: Auxiliary Report (1 of 3)

UNIVERSITY - AUXILIARY ENTERPRISE REVENUES FY13 FY14 FY15 FY16 FY17 FY18 EST AUXILIARY ENTERPRISES Bookstore 36,078,500 35,346,900 33,420,300 31,589,026 29,817,643 28,719,300 Campus Recreation 1,793,800 1,958,900 2,107,000 2,161,922 2,200,187 2,122,000 Facilities Management 25,023,900 22,288,900 23,971,600 25,444,482 51,318,482 47,852,400 Intercollegiate Athletics 58,893,500 64,185,100 76,347,200 71,541,616 76,873,732 73,375,200 Parking 20,200,100 20,629,200 21,621,500 18,150,454 19,271,511 19,313,000 Residence Life 47,105,100 47,308,800 49,712,800 50,905,769 52,132,290 52,737,600 Student Health 5,817,400 5,897,300 6,353,100 6,586,458 7,048,639 7,600,100 Student Union 32,429,100 33,822,700 34,603,200 35,816,266 35,949,879 35,681,300 Other Auxiliaries 22,410,347 (4,653,336) 20,984,008 23,282,619 22,342,601 24,190,239 TOTAL AUXILIARY 249,751,747 226,784,464 269,120,708 265,478,613 296,954,964 291,591,139

*Includes transfers which are eliminated at fiscal year end.



UNIVERSITY - AUXILIARY ENTERPRISE EXPENDITURES AND NET TRANSFERS OUT(IN) FY13 FY14 FY15 FY16 FY17 FY18 EST AUXILIARY ENTERPRISES Bookstore 35,336,500 34,782,400 33,221,900 31,715,927 28,979,652 30,249,600 Campus Recreation 2,165,700 1,665,400 1,764,100 1,789,246 3,286,539 2,158,400 Facilities Management 23,494,300 20,395,900 27,511,000 21,679,725 51,973,130 47,895,800 Intercollegiate Athletics 58,635,800 60,329,400 72,593,200 74,066,178 77,653,934 72,855,700 Parking 19,995,800 20,614,300 21,477,000 18,347,119 17,767,020 18,110,000 Residence Life 46,848,600 47,848,000 49,452,300 50,914,998 52,395,791 52,737,600 Student Health 6,094,900 6,011,300 5,814,000 6,546,423 7,293,158 8,267,400 Student Union 32,727,600 33,430,700 34,660,100 35,199,378 35,267,461 35,904,400 Other Auxiliaries 22,739,984 (2,934,166) 22,003,115 22,665,991 20,855,370 23,660,300 TOTAL AUXILIARY 248,039,184 222,143,234 268,496,715 262,924,986 295,472,056 291,839,200

*Includes transfers which are eliminated at fiscal year end.



UNIVERSITY - AUXILIARY ENTERPRISE ENDING FUND BALANCE FY13 FY14 FY15 FY16 FY17 FY18 EST AUXILIARY ENTERPRISES Bookstore 10,249,700 10,814,200 11,012,500 11,491,719 12,329,709 10,799,409 Campus Recreation 287,800 581,300 924,200 1,296,889 210,537 174,137 Facilities Management 5,306,700 7,199,700 3,660,300 7,425,011 6,770,363 6,726,963 Intercollegiate Athletics 1,341,300 5,197,100 8,951,100 6,426,511 5,646,309 6,165,809 Parking 321,000 335,900 480,400 283,762 1,788,253 2,991,253 Residence Life 1,047,500 508,400 768,900 759,620 496,119 496,119 Student Health 1,135,700 1,021,800 1,560,900 1,600,978 1,356,459 689,159 Student Union 267,200 659,400 602,300 1,154,719 1,837,137 1,614,037 Other Auxiliaries 4,334,179 2,615,008 1,595,902 2,212,530 3,699,762 4,229,701 TOTAL AUXILIARY 24,291,079 28,932,808 29,556,502 32,651,739 34,134,647 33,886,586

Fund balances in auxiliary enterprises enable the university to develop sufficient resources *Includes transfers which are required for emergency maintenance, replacement equipment, library acquisitions, IT eliminated at fiscal year end.

upgrades and debt service payments.


Appendix 6: Capital Development Plan (1 of 3) THE UNIVERSITY OF ARIZONA

FY 2018 CAPITAL DEVELOPMENT PLAN

Board Approval

Status Gross Square

Footage

Project Cost Amount

Financed

Funding Method

Annual Debt

Service

Debt Ratio

New Capital Project

College of Pharmacy, Skaggs Building Addition and Renovation

Pending CDP June 2017

19,000 (new) 24,000

(renovation)

$31,500,000

Gifts/Foundation Funds/OLF

Student Success District

CIP FY 2017-2019 CIP FY 2018-2019 Pending CDP June

2017

173,425

$71,000,000

$68,000,000

System Revenue

Bonds

$4,319,000

.07%

University of Arizona Health Sciences Building 201 Renovations

Pending CDP June 2017 120,000 $30,000,000

Local Funds

Deferred Maintenance Project – Building 90 Renovations

Pending CDP June 2017 59,914 $18,000,000 $18,000,000 System Revenue

Bonds $1,214,000 .08%

Honors College Public-Private Partnership • Honors Housing/Parking • Campus Recreation Facility • Office Building

Pending CDP June 2017

484,207

$157,000,000

Public-Private Partnership

New Capital Projects Total $307,500,000 $86,000,000 $5,533,000 .15%

Previously Approved Projects North Campus Infrastructure Phase 2

(on hold) CDP 6/12 N/A $ 16,000,000

SRB

Engineering Innovation Building (on hold) CDP 6/12 107,000 $ 63,000,000

Public Private Partnership

Previously Approved Projects Total

$ 79,000,000

Total $ 386,500,000 $86,000,000 $5,533,000 .15




CAPITAL DEVELOPMENT PLAN - ANNUAL DEBT SERVICE BY FUNDING SOURCE

Project

Amount Financed

TUI

AUX

ICR

OLF

SLP

FGT

DFG

TOTAL ANNUAL DEBT SERVICE

New Capital Project

College of Pharmacy, Skaggs Building Addition and Renovation

Student Success District $68,000,000 $3,973,000 (1) $346,000 $4,319,000

University of Arizona Health Sciences Building 201 Renovations

Deferred Maintenance Project – Building 90 Renovations $18,000,000

$1,214,000

$1,214,000


New Capital Project Total $86,000,000 $5,187,000 $346,000 $5,533,000

Previously Approved Projects

North Campus Infrastructure Phase 2 (on hold)

Engineering Innovation Building (on hold)

Previously Approved Projects Total

Total $86,000,000 $5,187,000 $346,000 $5,533,000

Debt Service Funding Source Codes: (TUI) Tuition (ICR) Indirect Cost Recovery (FGT) Federal Grant (AUX) Auxiliary (OLF) Other Local Funds (DFG) Debt Financed by Gifts (SLP) State Lottery Allocation Proceeds (1) The (OLF) Student Success Debt Service will be paid with student services fees




CAPITAL DEVELOPMENT PLAN - OPERATION AND MAINTENANCE BY FUNDING SOURCE

Project TOTAL ANNUAL O&M TUI AUX ICR OLF GFA FGT DFG OTH

New Capital Project

College of Pharmacy, Skaggs Building Addition and Renovation $166,000

$166,000

Student Success Collaborative District $431,745 $431,745 (1)

University of Arizona Health Sciences Building 201 Renovations $877,900

$877,900

Deferred Maintenance Project – Building 90 Renovations


$1,115,100

$695,400

$419,700 (2)

New Capital Project Total $2,590,745 $1,739,300 $851,455

Previously Approved Projects

North Campus Infrastructure Phase 2 (on hold) N/A

Engineering Innovation Building (on hold) $ 1,124,000

Previously Approved Projects Total $1,124,000

Total $3,714,745 $1,739,300 $851,445 Operation and Maintenance Funding Source Codes:

(TUI) Tuition (ICR) Indirect Cost Recovery (GFA) General Fund Appropriation (AUX) Auxiliary (OLF) Other Local Funds (FGT) Federal Grant (OTH) Other (DFG) Debt Financed by Gifts

(1) The Student Success O&M will be paid with student services fees (2) The Recreation Center portion of the Honor project O&M will be paid with recreation center fees


Appendix 7: Financial Status

UNIVERSITY OF ARIZONA

UNIVERSITY OPERATING BUDGETFY 2016-2017 ACTUAL WITH PROJECTIONS($ thousands)

FY 2016 ACTUAL

FY 2017 ACTUAL

FY 2018 OPERATING

BUDGET

FY 2021 OPERATING

BUDGET

FY 2025 OPERATING

BUDGETRevenues State General Fund Appropriation 241,257$ 253,146$ 254,700$ 290,100$ 326,500$ State Appropriation - Research Infrastructure 9,594 13,978 14,300 25,070 27,130

Tuition and Fees 805,144 854,294 886,900 988,190 1,141,797 less Scholarship Allowance (196,465) (200,568) (223,300) (256,900) (302,600) Net Tuition and Fees 608,679 653,726 663,600 731,290 839,197

Grants and Contracts 706,377$ 674,321$ 660,600$ 722,700$ 797,600$ Financial Aid Grants (Primarily Pell Grants) 47,040 49,990 55,900 66,700 82,800 Private Gifts 80,890 80,060 80,500 111,000 127,500 Technology & Research Initiative Fund (TRIF) 25,025 27,618 28,900 31,950 35,900 Auxiliary Revenues, Net 206,710 210,496 215,600 228,800 247,800 Other Revenues 115,306 146,452 133,500 141,700 153,300 Total Revenues 2,040,878$ 2,109,787$ 2,107,600$ 2,349,310$ 2,637,727$

Expenses Salaries and Wages 920,110$ 915,309$ 944,114$ 1,052,100$ 1,169,900$ Benefits 328,637 314,631 321,297 357,700 397,800 All Other Operating 454,216 482,529 516,981 563,900 627,100 Scholarships & Fellowships, Net of Scholarship 54,094 57,656 60,483 72,100 87,900 Depreciation 125,455 132,727 126,900 140,200 150,100 Interest on Indebtedness 49,748 51,253 59,700 75,900 71,000 Total Expenses 1,932,261$ 1,954,103$ 2,029,475$ 2,261,900$ 2,503,800$

Net Increase (Decrease) 108,617$ 155,683$ 78,125$ 87,410$ 133,927$

ACTUAL PROJECTED

Documents

ALL FUNDS OPERATING BUDGET FY2018 · An increase of $35.5M was allocated in the FY18 budget, of this amount $27M to colleges and $8.5M to institutional & support center units. The