Local Funds / All FundsBudget Seminar

January 2019

FY 2020 Budget Challenges/Considerations

• State Funding• Building Renewal & Deferred Maintenance• Enrollments & Mix• Tuition & Fees• 5th Year of RCM (RCM Review)• ERE Rates• Administrative Service Charge• Salary Adjustments & Minimum Wage

Initiative

Budget Cycle

• State Legislative Session Begins (Jan. 14)• UA Local/All Funds Budget Seminars• Governor’s FY20 State Budget Proposal (Jan. 17)• Legislative FY20 State Baseline Budget (Jan. 18)

• UA Local Funds/All Funds Budgets Reviewed• ABOR Approval of UA FY20 Tuition Rates (April)• Begin Development of UA FY21 State Budget Request• FY20 State Legislative Budget Finalized & Approved• Finalize UA FY20 Budget

• Close UA FY19 Budget• ABOR Approval of UA FY20 Budget

• ABOR Approves UA FY21 Budget Request• UA FY21 Budget Request Submitted to the State• UA Develops Tuition Plan for FY21

Winter 2019

Spring 2019

Summer 2019

Fall 2019

UA Revenue SourcesEstimated FY 2019 -- $2.1B

Tuition & Fees 31%

State General Fund 13%

TRIF 1%

Grants & Contracts 34%

Auxiliary Enterprises 10%

Gifts 4%

Other Revenues 7%

State of Arizona

University SystemFY 2019 General Fund Appropriations - $725.5M

Source: FY2019 JLBC Appropriations Report

AZ Board of Regents 1%

ASU 45%

NAU 16%

UA 38%

University System $ in millionsAZ Board of Regents 6.9$ 1%ASU 328.8$ 45%NAU 112.1$ 16%UA 277.7$ 38%Total 725.5$ 100%

FY 2019 CHANGE to STATE APPROPRIATIONUniversity of Arizona

($ in millions)

Capital Infrastructure Funding 10.6$ One-time Funding FY19 2.2 Statewide Adjustments (0.9) Remove FY18 One-time Funding (3.2) Total 8.7$

CAPITAL INFRASTRUCTURE FUNDINGUniversity of Arizona

(Result of FY18 State Budget)

• Appropriation of $10.6M beginning FY19• Annual appropriation for 25 years• For new facility construction and/or Deferred

Maintenance projects• Grows by lesser of inflation or 2% per year• New requirements for legislative review for projects• Requires matching funds if used to pay debt service

State Budget Request FY 2020

• Resident Student Investment Model – State as partner in providing for cost of educating a resident student

• Currently State funds about 32% of cost Goal is 50%• Total required to reach that goal is $69M, request is for 3-year phase-in,

equating to $23M for FY20• $3.1M for Resident Student Enrollment Growth

• Make FY19 One-time Funding permanent $2.2M

• FY19 Health Insurance Trust Fund (HITF) Supplement $4.8M

Undergraduate Tuition and Mandatory Fees

19,907 20,803

22,131 23,076

23,990 25,329

27,934 28,431 29,566

30,228

31,144

32,382

34,588 35,216

13,682 14,972

16,282 18,676

22,264

24,597 25,49526,231 27,073

29,421

32,630

34,967 35,678

36,366

6,972 7,576 7,670 8,005 8,314 9,418 9,794 10,211 10,403

10,410 10,416 10,488 10,591 10,968

4,498 4,766 5,048 5,542 6,855

8,237 10,035 10,035 10,391

10,957 11,403 11,769 12,248 12,467

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

Peers Median Non-Resident UA Non-Resident Peers Median Resident UA Resident

UA Student Enrollments (FTE)Compare fall census FY2018 to FY2019

Fall 2017 Fall 2018 ChangeResident 26,435 26,252 (183) Non-Resident 15,320 15,207 (113) Subtotal On-Campus 41,755 41,459 (296)

Online 2,374 2,919 545 Total FTE 44,129 44,378 249

FY2020 Planning Assumptions

ERE – rates are not final

Administrative Service Charge – no change

Salary Adjustments• suggest planning 1.5% to 2.0% pool based upon full benefits positions,

need to be cognizant of inflation and not lose ground• plan for impacts of Arizona Minimum Wage – Prop 206

• Increase to $11/hr Jan 2019 from $10.50• Increase to $12/hr Jan 2020 from $11.00

ProposedFY19 FY20

ERE Group Rates Rates ChangeFull-Benefit Employee 31.2% 31.4% 0.2%Faculty Ancillary 21.0% 20.0% -1.0%Classified Temporary 15.1% 15.9% 0.8%Student Employees 2.0% 2.0% 0.0%Graduate Assistants 14.1% 11.0% -3.1%

FY2020 RCM Budget Impacts

Undergrad Net Tuition Revenues FY19 – ($6M Decrease)• Due to decline in total enrollments & increased institutional aid

Facilities & Administrative (F&A) Cost Recovery – $14M Increase

• Impacts particularly in Health Sciences

Facilities Support & Strategic Investment Pool Rates• Facilities Rate increasing from $25.19 to $25.48• Strategic Investment Pool Rate increasing from 2.00% to 2.33%

Institutional Assumptions FY18 FY19 FY20 FY21 FY22Undergrad Net Tuition Revenue (from Prior Year) 27,687,988$ (15,144,255)$ (6,000,000)$ 2,000,000$ 2,000,000$ Support Center Tax Rate 30.96% 30.96% 30.96% 30.96% 31.50%Strategic Investment Tax Rate 2.75% 2.00% 2.33% 2.66% 3.00%Facilities Rate 25.19$ 25.19$ 25.48$ 25.62$ 25.64$ Salary Investment Pool 2.00% 2.00% 2.00% 2.00% 2.00%ERE -- Full Benefits Rate 32.0% 31.2% 31.4% 31.9% 32.4%

FY2020 Planning: Other Considerations

• Online Enrollments & Revenues Growing• Significant Fund Balances Throughout the

University• Sponsored Projects Funding is Strong

• Direct costs• Increased F&A

• Philanthropy is Increasing• Strategic Plan Impacts

Requesting Access

Access Managed with UAccess Provisioning Tool

Access Provisioning Tool Instructions

Security Dashboard for Existing Access

LFB System Changes

Access Local Fund Budget 2020 in Budget System

Local Fund Budget Redesign

Local Fund Budget Redesign

Local Fund Budget Redesign

Local Fund Budget Redesign Videos

AFMY Submission

Planning Link on UAccess Page

Academic Unit or Support Unit

Select Level

Enter Other Drivers, Sources, and Uses by Natural Classification

Uses by Program is Optional

Enter Drivers, Sources, and Uses by Natural Classification (Uses by Program is Optional)

Submit Completed AFMY Plan

Additional Information

LFB Detailed Instructional Seminars

• Monday, January 14, 2019 at 2:00 – 3:00 pm

• Tuesday, January 15, 2019 at 11:00 – 12:00 pm

• Wednesday, January 16, 2019 at 9:00 – 10:00 am

• Thursday, January 17, 2019 at 1:00 – 2:00 pm

• Friday, January 18, 2019 at 1:00 – 2:00 pm

Registration for seminars completed throughUAccess Learning

AFMY Detailed Instructional Seminars

• Monday, January 14, 2019 at 3:00 – 4:00 pm

• Tuesday, January 15, 2019 at 12:00 – 1:00 pm

• Wednesday, January 16, 2019 at 10:00 – 11:00 am

• Thursday, January 17, 2019 at 2:00 – 3:00 pm

• Friday, January 18, 2019 at 2:00 – 3:00 pm

Registration for seminars completed throughUAccess Learning

Budget and Planning Resources and Contacts

Mario CalderonSenior Analyst, Budget and Financial

621-3322 calderom@email.arizona.edu

Veronica ChuSenior Analyst, Budget and Financial

621-3725 galavizv@email.arizona.edu

Carol CorryAnalyst, Budget and Financial

621-1496 ccorry@email.arizona.edu

Matt KennedySenior Analyst, Budget and Financial

626-4002 kennedym@email.arizona.edu

https://budget.arizona.edu “Forms and Resources”

• Access Provisioning Tool Instructions “Training Materials”

• LFB Presentation• LFB Videos• LFB Entry Quick Reference Guide

Completed and Received by the Office of Budget and Planning by

Monday, March 4, 2019

Questions? Comments?