UNC Budget Outlook

UNC Budget OutlookUNC Budget Outlook

November 7, 2008November 7, 2008November 7, 2008November 7, 2008The University of North Carolina

UNC Faculty CouncilUNC Faculty Council

The University of North Carolina2

UNC Summary – Revenues2006-07

UNC Summary – Revenues2006-07

Auxiliaries13%

Federal Appropriations,

Contracts & Grants11%

Tuition & Fees

12%

State Appropriations,


HospitalsSales & Services

10%

Investment Income, Endowments

& Gifts9%

Other Revenues

2%

Capital Appropriations, Grants & Gifts

10%

Local Grants & Contracts

2%

Source: IPEDS Data

Total = $8.2 billion


UNC-CH Summary – Revenues2006-07

UNC-CH Summary – Revenues2006-07

Auxiliaries20%

Federal Appropriations,


Tuition & Fees

8%

State Appropriations,


Investment Income, Endowments

& Gifts18%

Other Revenues

1%

Capital Appropriations, Grants & Gifts

8%

Local Grants & Contracts

4%

Source: IPEDS Data

Total = $2.5 billion


All Other 33%

UNC-CH22%

NCSU20%

ECU11%

UNCC7%

UNCG7%

* Excludes capital improvements

UNC-CH = 22% of UNC System State Appropriations

UNC System = $2.6 billion*2008-09

UNC System = $2.6 billion*2008-09


Education$11.453.8%

Justice & Public Safety

$2.09.4%

Health & Human Services

$4.923.1%

Other$1.25.5%

Reserves$1.15.2%

Debt Service

$0.63.0%

* Excludes capital improvements

UNC = 12% of overall state budget and 23% of Education budget

NC State Budget - $21.2 billion*2008-09

NC State Budget - $21.2 billion*2008-09


UNC as a % of State BudgetUNC as a % of State Budget

2008-09

2003-04

1998-99

1993-94

1988-89

2008-09

2003-04

1998-99

1993-94

1988-89

12.0%

12.2%

13.2%

14.2%

16.5%

12.0%

12.2%

13.2%

14.2%

16.5%


Education Budget Breakdown2008-09

Education Budget Breakdown2008-09

DPI: $7.8 billion UNC: $2.6 billion NCCCS: $.9 billion Private Colleges: $.1 billion

DPI: $7.8 billion UNC: $2.6 billion NCCCS: $.9 billion Private Colleges: $.1 billion


Fiscal Year 2008-09Fiscal Year 2008-09

2008-09 revenue projections are based on 3.9% growth

Each 1% of growth = $200 million Currently, revenues are approximately

$300 million behind projections. This is a significant deficit for the 1st quarter.

Governor has issued 4% reversions Other Factors:

State Health Plan has at least a $300 million deficit for 2008-09

2008-09 revenue projections are based on 3.9% growth

Each 1% of growth = $200 million Currently, revenues are approximately

$300 million behind projections. This is a significant deficit for the 1st quarter.

Governor has issued 4% reversions Other Factors:

State Health Plan has at least a $300 million deficit for 2008-09


2009-11 Budget2009-11 Budget North Carolina is a fast growing state

North Carolina will be the 7th largest state by 2030

Pressures on state budget Economy, declining revenues State Health Plan deficit – $600 to $700

million over biennium Medicaid – $50 million K-12 requirements

Enrollment – $100 million ABC Bonuses – $100 million

State Employee Salary Increases – each 1% is $130 million

New Governor, Legislators, & Treasurer

North Carolina is a fast growing state North Carolina will be the 7th largest state

by 2030 Pressures on state budget

Economy, declining revenues State Health Plan deficit – $600 to $700

million over biennium Medicaid – $50 million K-12 requirements

Enrollment – $100 million ABC Bonuses – $100 million

State Employee Salary Increases – each 1% is $130 million

New Governor, Legislators, & Treasurer


UNC State BudgetUNC State Budget

“A single, unified recommended budget for all of public senior higher education.” G.S. 116-11

Statute prescribes form of budget requests – three categories:

1. Continuing Operations (enrollment, utilities, vehicle replacement) – allocated to institutions

2. Academic Salary Increases – lump sum to Board of Governors and then allocated to campuses

3. Expansions/Improvements Items – lump sum to Board of Governors and then allocated to campuses

New and expanded programs Capital improvements

“A single, unified recommended budget for all of public senior higher education.” G.S. 116-11

Statute prescribes form of budget requests – three categories:

1. Continuing Operations (enrollment, utilities, vehicle replacement) – allocated to institutions

2. Academic Salary Increases – lump sum to Board of Governors and then allocated to campuses

3. Expansions/Improvements Items – lump sum to Board of Governors and then allocated to campuses

New and expanded programs Capital improvements


UNC State BudgetUNC State Budget Legal Basis

State Executive Budget Act – G.S.143C Higher Education Reorganization Act of 1971 – G.S. 116

Board of Governors’ Role: Presents comprehensive financial plans to General

Assembly Modifies plans based on resources made available by

Legislature Establishes annual budgets which are administered by

the constituent institutions Advocacy

Legal Basis State Executive Budget Act – G.S.143C Higher Education Reorganization Act of 1971 – G.S. 116

Board of Governors’ Role: Presents comprehensive financial plans to General

Assembly Modifies plans based on resources made available by

Legislature Establishes annual budgets which are administered by

the constituent institutions Advocacy


2009-11 Budget - Continuation2009-11 Budget - Continuation

Campuses work with Office of State Budget & Management (OSBM): Building Reserves for new State-funded

Facilities opening during the biennium

Replacement Vehicles & Equipment

Inflationary Increases (library books, utilities)

Required Staff Benefits & Continuing Personnel

Campuses and GA work together, then submit to OSBM:

Enrollment

Campuses work with Office of State Budget & Management (OSBM): Building Reserves for new State-funded

Facilities opening during the biennium

Replacement Vehicles & Equipment

Inflationary Increases (library books, utilities)

Required Staff Benefits & Continuing Personnel

Campuses and GA work together, then submit to OSBM:

Enrollment


Expansion Budget ProcessExpansion Budget Process

Budget PreparationCampus Submissions (Sept)UNC-GA Review (Sept-Oct)24 Chancellors’ & Affiliates

one-on-one discussions (Sept-Oct)

BOG Workshops (Oct-Nov)Final Recommendations (Nov)

Budget PreparationCampus Submissions (Sept)UNC-GA Review (Sept-Oct)24 Chancellors’ & Affiliates

one-on-one discussions (Sept-Oct)

BOG Workshops (Oct-Nov)Final Recommendations (Nov)


2009-11 Expansion Budget – Operating


Campus Safety Our Citizens & Their Future:

Access to Higher Education UNC Need-Based Grant Regional Partnerships Student-focused Programs:

Community College/transfer Under-represented populations Retention and graduation

Campus Safety Our Citizens & Their Future:

Access to Higher Education UNC Need-Based Grant Regional Partnerships Student-focused Programs:

Community College/transfer Under-represented populations Retention and graduation




Increase Efforts to Recruit & Retain High Quality Faculty 80th Percentile Across the Board Merit Increases Distinguished Professors Recruitment & Retention Fund

Increase Efforts to Recruit & Retain High Quality Faculty 80th Percentile Across the Board Merit Increases Distinguished Professors Recruitment & Retention Fund




Our Global Readiness Graduates with 21st Century Skills

Critical and creative thinking Analysis Problem-solving Verbal and written communication

Our Health Dental Program

Medical Programs

Our Global Readiness Graduates with 21st Century Skills

Critical and creative thinking Analysis Problem-solving Verbal and written communication

Our Health Dental Program

Medical Programs




Our University’s Outreach & Engagement Regional Issues

Our Communities & Their Economic Transformation NC Research Campus at Kannapolis NC Research Competitiveness Fund Graduate Student Recruitment &

Retention

Our University’s Outreach & Engagement Regional Issues

Our Communities & Their Economic Transformation NC Research Campus at Kannapolis NC Research Competitiveness Fund Graduate Student Recruitment &

Retention




Our Children & Their Future: Improving Public Education Programs focused on producing

math & science teachers

Our Environment Campus sustainability programs Research related to sustainability

Efficient Use of Available Resources Fiscal Integrity

Affiliated Entities

Our Children & Their Future: Improving Public Education Programs focused on producing

math & science teachers

Our Environment Campus sustainability programs Research related to sustainability

Efficient Use of Available Resources Fiscal Integrity

Affiliated Entities


Fire Safety Improvements

Funding for projects which have been approved for planning

Planning funds for other important priorities

Repair and Renovation funds

Land

Fire Safety Improvements

Funding for projects which have been approved for planning

Planning funds for other important priorities

Repair and Renovation funds

Land

2009-11 Budget – Capital2009-11 Budget – Capital


Results of Working TogetherResults of Working Together2006 Session (2006-07 Budget)

UNC began the session with $2.1 billion and ended legislative session with a budget of $2.3 billion

$140 million in capital support

2007 Session (2007-08 Budget)UNC started continuation budget process at

$2.4 billion; ended legislative session with budgetof $2.7 billion – $300 million increase

$1 billion in capital support

2008 Session (2008-09 Budget)UNC received $159 million in increased appropriations$623 million in capital support

2006 Session (2006-07 Budget)UNC began the session with $2.1 billion and ended

legislative session with a budget of $2.3 billion$140 million in capital support

2007 Session (2007-08 Budget)UNC started continuation budget process at

$2.4 billion; ended legislative session with budgetof $2.7 billion – $300 million increase

$1 billion in capital support

2008 Session (2008-09 Budget)UNC received $159 million in increased appropriations$623 million in capital support


2009 NC Legislative Process“Long Session”

2009 NC Legislative Process“Long Session”

Governor’s Budget Proposal – January 2009General fund availability is determined

Two budgets may be submitted

General Assembly convenes – January 28, 2009

Senate Budget – May

House Budget – June

Conference Process Results in Final Budget –

June/July

Governor’s Budget Proposal – January 2009General fund availability is determined

Two budgets may be submitted

General Assembly convenes – January 28, 2009

Senate Budget – May

House Budget – June

Conference Process Results in Final Budget –

June/July

UNC Budget Outlook

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