Chris Carter, Budget DirectorSarah Mangum, Principal AnalystBudget and Institutional Analysis

UC Davis Budget and Professional Degree Supplemental Tuition OverviewProfessional Student ForumApril 12, 2012

BUDGET AND INSTITUTIONAL ANALYSIS

Budget Context: Revenues, Enrollment, Awards, Workforce

Enrollment – fall 201125,325 Undergraduates (4.2% national/international)

6,755 Graduate and Professional(18% national/international)

Research Awards – 2011-12$700+ million

Workforce (FTE) – October 2011Faculty/academic 4,000Staff 14,195 Students 3,380

Revenue – 2010-11$3.4 Billion

BUDGET AND INSTITUTIONAL ANALYSIS

Budget Context: State Funding vs. Student Tuition & Fees

BUDGET AND INSTITUTIONAL ANALYSIS

Academic Wages19.1%

Staff Wages29.9%

Management and Sr. Professional Wages4.6%

Benefits15.3%

Scholarship5.8%

Medical Supplies6.4%

Supplies and Equipment18.9%

Budget Context: Operating Expenses

Total Campus Expenses 2010-11: $2.9 Billion

Category Amount (millions)

% of total

Instruction and Academic Support

$711.3 24%

Research $510.6 17%

Student Services and Financial Aid

$285.4 10%

Operation and Maintenance

$92.8 3%

Auxiliary $86.5 3%

Institutional Support

$83.8 3%

Public Service $58.5 2%

Medical Center $1,104.7 38%

TOTAL EXPENSES $2,933.5 100%

BUDGET AND INSTITUTIONAL ANALYSIS

Incremental changes (amounts in millions)

2011-12 Estimate

2012-13 Budget

1 Prior year shortfall not addressed in base ($18.9)

2 State Budget Act (2011-12 Final = $650M reduction; 2012-13 Governor’s Proposal = net $72M increase)

($87.8) $8.2

3 Fixed costs (Post-employment benefits, salary, health care benefits, instruction)

($31.2) ($26.7)

4 TOTAL SHORTFALL ($119.0) ($37.4)

5

6 Funds from 2010-11 state augmentation and set-aside

$25.8 $0.0

7 Tuition increases (net of financial aid) $38.7 Pending

8 NET SHORTFALL ADDRESSED BY CAMPUS PLAN

($54.5) ~($37.4)

9

10

New Revenue – Non-resident, summer, other $16.8 $5.5

11

Efficiencies – OE/SSC, Energy, Streamline orgs $13.0 $4.0

12

Cost Reductions – research support, travel, other

$5.8 Pending

13

REMAINING SHORTFALL ($18.9) ~ ($27.9)

Budget Context: State Fund and Tuition Budget Shortfall

BUDGET AND INSTITUTIONAL ANALYSIS

Professional Fees: HistoryTimeline of UC Systemwide Actions on Professional Degree Supplemental Tuition

Professional Fees Used to Offset State Budget Cuts

Professional Fees Used to Maintain Program Quality

BUDGET AND INSTITUTIONAL ANALYSIS

Professional Fees: UC PolicyKey Components of Current Policy

• Professional Degree Supplemental Tuition (PDST) shall be assessed to sustain and enhance the quality of the professional schools’ academic programs and services

• Revenue from PDST will remain with the campuses and will not be used to offset reductions in State Support (at UC Davis revenue remains with the Professional Schools)

• PDST levels are approved by the Regents within the context of a multi-year plan that is subject to annual reconsideration.

• Multi-year plans should take into consideration:• Resources required to sustain the academic quality and

enrollment in the professional degree program.• Remaining competitive with other institutions of similar

quality.• The cost of education for each specific degree.

• Financial aid should be supplemented in an amount equivalent to at least 33% of new PDST or an amount necessary to ensure that financial aid sources are equivalent to at least 33% of all PDST revenue.

BUDGET AND INSTITUTIONAL ANALYSIS

Professional Fees: UC PolicyInformation Included in Multi-Year PDST Plans

• Description of academic and/or programmatic reasons for increase.

• Programmatic goals and an expenditure plan for new revenue.

• Efforts taken to avoid PDST increases (cost-cutting and/or fundraising).

• A market comparison of total fees charged by similar programs at comparison institutions. Policy requires that fees be at or below comparison institutions, however the Regents can approve proposals that do not meet this requirement.

• Information on program diversity and actions taken or planned to maintain or improve access for underrepresented groups.

• Description of financial aid goals and strategies , including: • Outreach to students regarding financial aid.• Encouraging public service careers.• Information and viewpoint on student indebtedness.

• Information on the views of the program’s student body and faculty on the proposed increase and documentation of how consultation occurred.

BUDGET AND INSTITUTIONAL ANALYSIS

Student Fees: Uses of Professional Degree Supplemental Tuition at UC Davis

Professional Degree Supplemental Tuition at UC

Davis 2012-13 Estimate: $38.8 M Revenue

Financial Aid• Student Grants &

Scholarships• Loan Repayment Programs

Instructional Programs• Curriculum revisions,

development, & support• Clinical Activities & Support• Student Surgery & Labs• Legal Writing, Law Review,

Student Journals

Student Services• Career Services• Advising• Financial Aid Support• Registrar and Admissions• Student Diversity Office

Examples of Activities Funded by Category

BUDGET AND INSTITUTIONAL ANALYSIS

Student Fees: Professional Degree Fee Levels

BUDGET AND INSTITUTIONAL ANALYSIS

Student Fees: Fee Types, Uses, and Approval

Fee Type Amount 2011-12 Rates

Description and Uses Approval Process

School or Discipline-Based Fees

Varies by Program $36-$4,025

Includes: Student Association Fees, Course Materials Fees

Required Summer Session Tuition for selected programs: MD, MPH, DVM-4th year only

Some set by Referendum

Some Approved by Chancellor after review by relevant fee committees.

Summer session tuition and student service fees follow same process described below.

Professional Degree Supplemental Tuition

Varies by Program $4,002-$31,218

All income retained and administered by the professional schools.

Used for professional school operating budget support.

Financial Aid: 33% of the fee increase over prior year must be used for financial aid

Developed by professional schools Proposed by campus Approved by Regents

Tuition

$11,220 Universitywide operating budget support.

Beginning in 2011-12 campuses will retain all tuition revenue generated by their students less a 1.6% tax paid to UC for systemwide programs.

Financial Aid: 33% of the fee increase over prior year must be used for financial aid

Approved by Regents

Tuition is the same amount for all students in all programs at all UC campuses.

BUDGET AND INSTITUTIONAL ANALYSIS

Student Fees: Fee Types, Uses, and Approval

Fee Type Amount 2011-12 Rates

Description and Uses Approval Process

Student Service Fee

$972 Student Support Services that benefit students but not a part of the instructional program.

Fee income retained by the campus and administered as part of the campus budget process.

Approved by Regents Student Service Fee is the same amount for all students in all programs at all UC campuses. Program uses reviewed by Student Fee Advisory Committee.

Health Insurance $2,130-$2,166 Health insurance premiums Required unless proof of

comparable coverage is provided.

MD students pay slightly lower amount but are subject to additional disability insurance fee.

Rate Determined by UC Office of the President for all student health programs.

Campus-Based Fees Varies by Program $464-$1,043

Specific capital projects Operating budget support for

specific student services and recreation programs.

Most established by Referendum Some Approved by Chancellor to upgrade facilities for life safety.

BUDGET AND INSTITUTIONAL ANALYSIS

Student Fees: Budget and Fee Approval Process

BUDGET AND INSTITUTIONAL ANALYSIS

• Budget News Campus, UC system, state budget information– budgetnews.ucdavis.edu

• Data, analysis, reports– facts.ucdavis.edu/ Campus Facts– budget.ucdavis.edu Campus Budget Office

• Advocacy– www.ucforcalifornia.org

• Annual financial schedules and reports– http://www.ucop.edu/corpacct/finschd/

• Regents Policy on Professional Degree Supplemental Tuition– http://www.universityofcalifornia.edu/regents/policies/3103.html

Budget and Fees: Information Sources