Financial Overview: Budget & Planning

January 2013

Kathy CutshawVice Chancellor for Administration, Finance & Operations

FACULTY SENATE

1

State Budget General Fund Distribution

Budget and Finance, $1.79 B (32%)

Education, $1.44 B (26%)

Human Services, $1.03 B (19%)

Health, $489 M (9%)

University of Hawaii, $385

M (7%)

Other, $423 M (8%)

Total State Budget: $5.56 Billion

FY 2013

Other Departments include: * Public Safety* Accounting & General Services* Governor's Office* Lt. Governor's Office* Business & Economic Development* Agriculture, Labor & Industrial Relations* Defense* Taxation* Human Resources Management* Attorney General's Office* Land & Natural Resources

2

UH Share over time

FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013$ M

$50 M

$100 M

$150 M

$200 M

$250 M

$300 M

$350 M

$400 M

$450 M

$500 M

$311 M(8.4%) $313 M(8.4%)

$374 M(8.5%)

$383 M(8.1%)

$429 M(8.3%)

$460 M(8.7%) $423 M

(8.2%)$361 M(7.3%)

$386 M(7.1%)

$385 M(6.9%)

3

University Budget Cycle

• Fiscal Year: July 1 – June 30• Biennium and Supplemental• Timeline: • May–July: Manoa prepares and submits budget• July–Aug: System reviews and prioritizes• August: Budget presentation to the BOR• September: BOR approval of budget request• December: Governor’s Budget finalized• Jan–May: Legislative Session• June: Governor sign budget bill

4

System-wide General Fund Allocation

Manoa47.95%

JABSOM4.24%

Hilo7.41%

SBDC0.26%

West Oahu1.35%

Community College28.42%Aquaria

0.16%

Systemwide10.21%

FY 2013

5

Manoa’s Budget Components

• State Appropriated Funds• General Funds

• 100% used for personnel costs• State pays fringe• Lapse

• Special and Revolving Funds• Established by Statute• Expenditures restricted to Statute language• Do not lapse• Legislative Expenditure Ceiling• Includes tuition & Fees• Includes Return of Overhead (RTRF)

• State Appropriated Maintenance & Capital Improvement• Health and Safety• Capital Renewal/Deferred Maintenance (CRDM)• CIP (Capital Improvements)

• Federal Contracts and Grants• Restricted

6

Where Does The Money Come From

Federal Grants/Con-

tracts35%

State Appropria-tions24%

Tuition and Fees26%

Private Gifts, Grants and Contracts

5%

State Grants/Con-tracts

2%

Auxiliary Services3%

Federal Appropria-tions3%Other

2%

FY 2011

Federal Grants/Con-

tracts34%

State Appropria-tions26%

Tuition and Fees24%

Private Gifts, Grants and Contracts

5%

State Grants/Con-tracts

3%

Auxiliary Services3%

Federal Appropria-tions3%Other

3%

FY 2010

7

Where Does The Money Go

Instruction30%

Research37%

Public Service4%

Academic Support8%

Student Services5%

Operation/Main-tenance

of Physical Plant6%

Scholarships/Fel-lowships

6%

Auxiliary En-terprises

2%

Other2%

FY 2011

Instruction31%

Research39%

Public Service5%

Academic Support8%

Student Services4%

Operation/Main-tenance

of Physical Plant6%

Scholarships/Fel-lowships

5%Auxiliary Enterprises

2%Other

1%

FY 2010

8

Mānoa Operating Funds

04 05 06 07 08 09 10 11 12 13 04 05 06 07 08 09 10 11 12 13 04 05 06 07 08 09 10 11 12 13General RTRF Net Tuition

$ M

$50 M

$100 M

$150 M

$200 M

$250 M

$300 M

$257 M

$196 M

$87 M

$128 M

Allocated Funds Over Time -- FY2004-2013

Fiscal Year / Fund Type

9

Mānoa Appropriated Fund (G/R/S) Distribution to Units

Academic, $172 M (50%)

Administrative, $12 M (4%)

Infrastructure, $48 M (14%)

Law, $9 M (2%)

Medicine, $35 M (10%)

Research, $54 M (16%)

Students, $13 M (4%)

FY 2013

10

Operating Funds FlowchartYear End Allocated Fund Distribution for FY 2012

11

Operating Funds FlowchartYear End Allocated Fund Distribution for FY 2012

12

Approaches to University Budgeting

• Incremental • Budget for current year become base for incremental allocations

for the next year• Zero Based• No continuing base budget• Everything re-evaluated and re-allocated yearly

• Formula Based• Typical allocation is based on enrollment or graduation rates

• Responsibility Centered Budgeting • Each unit gets all available resources• Pays for all costs (admin, overhead, space, etc)

13

Going Forward

• UH Budget Approach - Biennium FY2013-15• Hawaii Graduation Initiative

• Outcome Funding• Focus on graduate outcomes• Focus on transfer outcomes• Additional weighting for:

• Native Hawaiian student success• STEM student success

Low income student success• Five Program Change Requests (PCRs)

• Hawaii Innovation Initiative• Adds 50 new researchers over next 3 bienniums

• Stewardship of Facilities/Renovate to Innovate 14

Fiscal Biennium 2013-15UH Budget Request

15

Initiative/Description

UH Budget Request Executive

2013-2014 2014-2015 2013-2014 2014-2015

$$ FTE $$ FTE $$ FTE $$ FTE

Hawaii Graduation Initiative

Outcome Based Funding 20,000 30,000 2,387 2,387

Distance Learning & Educational Technology 1,000 4 1,500 7

Engineering Consortium 1,200 12 2,900 28

Na Pua Noeau 700 12 700 12

Statewide Longitudinal Data system 200 2 400 4

West Oahu Campus Build-out support 913 22 913 22 913 913

Subtotal 24,013 52 36,413 73 3,300 3,300

Hawaii Innovation Initiative 5,875 6 13,960 20 1,000 1,000

STEM Initiative - Governor's 0 0 0 0 1,500 1,500

Total 29,888 58 50,373 93 5,800 5,800

Outcome Based FundingManoa

16

Systemwide Program Change Requests

• Distance Learning & Educational Technology• Distance delivery• Increase student engagement and learning

• Engineering Consortium• Increase numbers & retention of pre-engineering students• Cyber-Mentoring/Tutorial Program

• Na Pua No’eau• Become model indigenous service institution• Promote college going among (K-12) Native Hawaiians

• Statewide Longitudinal Data System• Statewide student data tracking system

• West Oahu Campus• Provide infrastructure support

17

Hawaii Innovation Initiative

HI2 Initiative will: • Adds 50 new researchers overtime• Doubles research funding• create new businesses • diversify, deepen state economy • Estimated Total Cost: • Year 1 $5.9M 6 FTE• Year 2 $13.9M 20 FTE

18

Stewardship of Facilities

• Health, Safety, and Code Requirements • Capital Renewal and Deferred Maintenance • Project Renovate to Innovate • Minor Renovation CIP • Major Construction Projects (Shovel Ready) • Financially Leveraged Projects • Various Planning and Design Projects

19

FB13-15 Capital Improvement Projects Health and Safety Priorities (Manoa)

20

BOR Request ExecutivePriority Project Title MOF FY 2014 FY 2015 FY 2014 FY 2015

1 Campuswide Accessibility Improvements Phase I C $ 2,400,000 $ 2,500,000 $ -

$ -

1 College of Education Water System Upgrade C $ 1,500,000 $ -

$ -

$ -

1 Colleoe of Education Retaining Wall C $ 1,500,000 $ -

$ -

$ -

1 Campuswide Sewer and Storm Drain Upgrade C $ - $ 9,500,000

$ -

$ -

1 Hawal'l Institute of Marine Biology Seawall C $ - $ 9,200,000

$ -

$ -

1 Lower Campus Automotive Guardrail C $ 500,000 $ -

$ -

$ -

1 Lyon Arboretum Health and Safety Improvements C $ 2,000,000 $ 3,000,000 $ -

$ -

1 Campuswlde Upgrade Walkways C $ 1,500,000 $ 2,500,000 $ -

$ -

1 Stan Sherrif Center Emergency Generator Replacement C $ 485,000 $ -

$ -

$ -

1 Bilger Addition Replace Asbestos Containino Flooring C $ 274,000 $ -

$ -

$ -

Total - Health, Safety & Code Requirements $ 10,159,000 $ 26,700,000 $ -

$ -

FB13-15 Capital Improvement ProjectsCapital Renewal/Deferred Maintenance (Manoa)

21

BOR Request ExecutivePriority Project Title MOF FY 2014 FY 2015 FY 2014 FY 2015

2 Capital Renewal C $ 31,396,000 $ 45,724,000 $ -

$ -

2 Reduction of Backlog in 6 years C $ 63,908,000 $ 67,103,000 $ -

$ -

Total - CRDM $ 95,304,000 $ 112,827,000 $ -

$ -

FB13-15 Capital Improvement ProjectsOther CIP Projects (Manoa)

22

BOR Request ExecutivePriority Project Title MOF FY 2014 FY 2015 FY 2014 FY 2015

5 Snyder Hall Renovation C $ 19,000,000 $ - $ - $ - 5 Snyder Hall Renovation E $ 19,000,000 $ - $ - $ - 6 Holmes Hall Renovation C $ 2,000,000 $ 20,000,000 $ - $ - 6 Holmes Hall Renovation E $ 2,000,000 $ 20,000,000 $ - $ -

10 Pacific Health Research Laboratory C $ 5,000,000 $ - $ - $ -

10 Pacific Health Research Laboratory N $ 1,000 $ - $ - $ - 12 Kuykendall Hall Renovation C $ 18,000,000 $ - $ - $ - 12 Kuykendall Hall Renovation E $ 18,000,000 $ - $ - $ - 17 Hawai'inulakea School of Hawaiian Knowledge C $ 500,000 $ - $ - $ - 18 Marine Fisheries Building Renovation to Research C $ - $ 3,000,000 $ - $ - 21 Instructional Building - College of Education Site C $ - $ 25,000,000 $ - $ - 24 Law Library Center C $ 3,000,000 $ - $ - $ - 26 University of Hawaii Marine Center Relocation C $ 6,000,000 $ - $ - $ - 29 Transportation Relocation to Lower Campus C $ 1,500,000 $ - $ - $ - 32 Research Facilities at Loc C in Kaka`ako C $ 27,000,000 $ - $ - $ - 32 Research Facilities at Loc C in Kaka`ako N $ 1,000 $ - $ - $ - 34 Campuswide Master Plan C $ 2,000,000 $ - $ - 35 Law School Expansion C $ 3,500,000 $ - $ - $ - 35 Law School Expansion E $ 3,500,000 $ - $ - $ -

40 Campuswide Chilled Water Piping Upgrages & Repairs C $ 300,000 $ 2,500,000 $ - $ - n/a Student Housing B $ 4,100,000 $ - $ - $ -

n/a Student Life Center, Phase II B $ - $ 350,000 $ - $ - n/a New Parking Structure for Kaka`ako Campus E $ 17,000,000 $ - $ - $ -

Total - Other Projects $ 151,402,000 $ 70,850,000 $ - $ -