UNIVERSITY OF WISCONSIN-MILWAUKEE

BUDGET IN BRIEF2017 –18

From the ChancellorThe University of Wisconsin-Milwaukee provides a valuable education. Together with our students, faculty, staff and partners, we create powerful learning experiences that transform lives, lift communities and boost the Wisconsin economy.

Budgets at a public university are multifaceted and complex. We believe it is critical to share how we use investments we receive from students, the state and its taxpayers, and all who support UWM. Our goal with this UW-Milwaukee Budget in Brief is to share details on how we manage our valuable resources.

UWM is an administratively lean and fiscally responsible public university, and we recognize our responsibility to Wisconsin that goes beyond being good stewards.

We are Wisconsin’s only public urban research university and are distinguished by our access mission, serving the largest urban population in the state. We provide higher educational opportunities that stresses affordability. Indeed, our dual mission is one of Wisconsin’s greatest assets that just keeps on giving: we have produced almost 185,000 alumni of whom 80% remain in Wisconsin to live and work, providing our state with highly-skilled, innovative, and valued employees. However, the reality of a research university is that costs will be higher than those of a university whose only mission is to offer accessible education.

After reviewing our Budget in Brief, I hope that you see how fiscally responsible we are and agree that UWM is one of the best values in Wisconsin in terms of return on investment for taxpayers. Now is the time to re-invest in UWM. We will continue to maximize that support by graduating talented employees, creating and advancing research and entrepreneurial partnerships that matter, and continuing and growing engagements with community business, education, healthcare, non-profits, arts, and other sectors.

Mark Mone UW-Milwaukee Chancellor

“UWM is one of the best values in Wisconsin in terms of return on investment for taxpayers. Now is the time to re-invest in UWM.”

Revenue Sources

State Taxes19%

Student Tuition27% Auxiliary Enterprises

16%

Federal Financial Aid26%

Federal Grants & Contracts7%

Non-federal Gifts & Grants

2%Other Operating Receipts

2%

All Other1%

Source of FundsUW–Milwaukee gets revenue from multiple sourcesfor its $653 million "redbook" budget. The university’s mission is supported by state and federal government investments, tuition, research grants, andcontributions from friends of the university.

• The largest portion of the university’s published budget, more than $213 million, or 33 percent, is from the federal government. Most of this is student financial aid and supports tuition and fees for students

• The second-largest amount ($177 million, or 27 percent) comes from student tuition and fees.

• Revenues from state government totaled $125 million, or 19 percent of the overall budget. State revenue includes general purpose revenue ($83 million), over which the university has some discretion, and specific-purpose revenue ($43 million), which goes to predetermined programs.

• Revenues from auxiliary enterprises, such as University Housing and the Student Union, account for $102 million, or 16 percent, of the overall budget. This money is collected and spent entirely within these units and typically cannot be used for other university purposes.

• Revenue from gifts from donors and private grants are 2 percent ($15 million) of the budget.

It is important to note that UWM’s actual operating budget is different than its published budget. $170 million in federal financial aid is included in UWM’s published budget but is passed through to students and eventually a portion is received by UWM in the form of tuition revenues or other receipts. Also, UWM has access to another revenue source - credit online or outreach fees -that is not included in the published budget. With the subtraction of financial aid pass-through funds, and the addition of credit outreach fees, UWM’s budgeted revenues for operating purposes are $517 million.

3-Revenue Sources

Revenue SourcesUW-Milwaukee gets revenue from multiple sources for its $653 million “Redbook” budget. The university’s mission is supported by state and federal government investments, tuition, research grants, and contributions from friends of the university.

• The largest portion of the university’s published budget, more than $213 million, or 33 percent, is from the federal government. Most of this is student financial aid and supports tuition and fees for students.

• The second-largest amount ($177 million, or 27 percent) comes from student tuition and fees.

• Revenues from state government totaled $125 million, or 19 percent of the overall budget. State revenue includes general-purpose revenue ($83 million), over which the university has some discretion, and specific-purpose revenue ($43 million), which goes to predetermined programs.

• Revenues from auxiliary enterprises, such as university housing and the student union, account for $102 million, or 16 percent, of the overall budget. This money is collected and spent entirely within these units and typically cannot be used for other university purposes.

Revenue from gifts from donors and private grants is 2 percent ($15 million) of the budget.

It is important to note that UWM’s actual operating budget is different from its published budget. $170 million in federal financial aid is included in UWM’s published budget but is passed through to students and eventually a portion is received by UWM in the form of tuition revenues or other receipts. Also, UWM has access to another revenue source – credit online or outreach fees – that is not included in the published budget. With the subtraction of financial aid pass-through funds, and the addition of credit outreach fees, UWM’s budgeted revenues for operating purposes are $517 million.

Changing Budget LandscapeUWM's funding sources have shifted over the decades. As thechart below indicates, the amount of support we receive in state fundsrelative to our overall budget has declined, and the university has becomeincreasingly reliant on private donations, federal dollars, and tuition payments.

The federal funding shown below includes federal financial aid that is passed through to students.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source of Funds

State Support Tuition Gifts/Grants Federal Auxiliaries

4-Changing Landscape

Changing Budget LandscapeUWM’s funding sources have shifted over the decades. As the chart below indicates, the amount of support we receive in state funds relative to our overall budget has declined, and the university has become increasingly reliant on private donations, federal dollars, and tuition payments.

The federal funding shown below includes federal financial aid that is passed through to students.

Tuition and Fees

Undergraduate:KNARTNUOMAKNARTNUOMAYTISREVINU

856,61elpmeT $ 1 28,418$ 3580,41kraweN-sregtuR $ 2 30,026$ 1407,31ogacihC-sionillI fo .U $ 3 26,560$ 7927,21etatS enyaW $ 4 27,203$ 5825,11sallaD-saxeT fo .U $ 5 29,656$ 2462,11ellivsiuoL fo .U $ 6 26,286$ 8000,11itannicniC fo .U $ 7 27,334$ 4072,01norkA fo .U $ 8 18,801$ 13828,9olaffuB-YNUS $ 9 27,068$ 6877,9etatS dnalevelC $ 10 13,829$ 14565,9eekuawliM-WU $ 11 20,844$ 10745,9odeloT fo .U $ 12 18,885$ 12211,9etatS aigroeG $ 13 23,971$ 9484,8snaelrO weN fo .U $ 14 13,320$ 15

U. of Missouri-Kansas City 8,011$ 15 19,793$ 11

2017-2018 Academic Year Tuition & Required Fees

Non-ResidentResident

Resident Tuition and Fees$9,588 39.2%

Misc. & Travel$3,370 13.8%

Room & Board$10,728 43.8%

Books & Supplies$800 3.3%

2018-19 Cost of Attendance for Typical UWM UndergraduateTotal = $23,277

Tuition and fees are part of the overall cost of attending UW-Milwaukee. Tuition currently is frozen for in-state undergraduates enrolled at UW System campuses. UW-Milwaukee is consistently ranked one of the nation’s best values among public colleges and universities.

UW–Milwaukee ranked eleventh among peer institutions in 2017–18 for in-state resident undergraduate tuition and fees and eleventh fornon-resident undergraduate students.

5-Tuition and Fees

Tuition and Fees

Tuition and Fees

Undergraduate:KNARTNUOMAKNARTNUOMAYTISREVINU

856,61elpmeT $ 1 28,418$ 3580,41kraweN-sregtuR $ 2 30,026$ 1407,31ogacihC-sionillI fo .U $ 3 26,560$ 7927,21etatS enyaW $ 4 27,203$ 5825,11sallaD-saxeT fo .U $ 5 29,656$ 2462,11ellivsiuoL fo .U $ 6 26,286$ 8000,11itannicniC fo .U $ 7 27,334$ 4072,01norkA fo .U $ 8 18,801$ 13828,9olaffuB-YNUS $ 9 27,068$ 6877,9etatS dnalevelC $ 10 13,829$ 14565,9eekuawliM-WU $ 11 20,844$ 10745,9odeloT fo .U $ 12 18,885$ 12211,9etatS aigroeG $ 13 23,971$ 9484,8snaelrO weN fo .U $ 14 13,320$ 15

U. of Missouri-Kansas City 8,011$ 15 19,793$ 11

2017-2018 Academic Year Tuition & Required Fees

Non-ResidentResident

Resident Tuition and Fees$9,588 39.2%

Misc. & Travel$3,370 13.8%

Room & Board$10,728 43.8%

Books & Supplies$800 3.3%

2018-19 Cost of Attendance for Typical UWM UndergraduateTotal = $23,277

Tuition and fees are part of the overall cost of attending UW-Milwaukee. Tuition currently is frozen for in-state undergraduates enrolled at UW System campuses. UW-Milwaukee is consistently ranked one of the nation’s best values among public colleges and universities.

UW–Milwaukee ranked eleventh among peer institutions in 2017–18 for in-state resident undergraduate tuition and fees and eleventh fornon-resident undergraduate students.

5-Tuition and Fees

Tuition and fees are part of the overall cost of attending UW-Milwaukee. Tuition currently is frozen for in-state undergraduates enrolled at UW System campuses. UW-Milwaukee is consistently ranked one of the nation’s best values among public colleges and universities.

UW-Milwaukee ranked eleventh among peer institutions in 2017-18 for in-state resident undergraduate tuition and fees and tenth for non-resident undergraduate students.

Research Funding

Health and Human Department of

Department of

Services31%

Department of Defense1%

Department of Energy8%

National Science Foundation

47%

Other4%

Education5%

US Department of Agriculture2%

National Oceanic and Atmospheric Administration

2%

Sources of Federal Research Funding

UW-Milwaukee’s research enterprise is the largest among southeastern Wisconsin universities. The research is wide-ranging and includes fundamental research, business collaboration, and community engagement. The research and resulting skilled workforce stimulate the economy and support entrepreneurship across the state.

• Over the last four years, UWM has spent an average of almost $30 million per year from federal and non-federal sources for research. Federal research programs are the major sources.

• The largest source of external funding is the National Science Foundation, followed by Health and Human Services.

• These research dollars are awarded through competitive review processes that require faculty to develop cutting-edge proposals for specific projects.

FY2014 FY2015 FY2016 FY2017

$28.3 million $32.2 million $27.6 million $29.8 million

Trend in Total Research Funding

6-Research Funding

Research FundingResearch Funding

Health and Human Department of

Department of

Services31%

Department of Defense1%

Department of Energy8%

National Science Foundation

47%

Other4%

Education5%

US Department of Agriculture2%

National Oceanic and Atmospheric Administration

2%

Sources of Federal Research Funding

UW-Milwaukee’s research enterprise is the largest among southeastern Wisconsin universities. The research is wide-ranging and includes fundamental research, business collaboration, and community engagement. The research and resulting skilled workforce stimulate the economy and support entrepreneurship across the state.

• Over the last four years, UWM has spent an average of almost $30 million per year from federal and non-federal sources for research. Federal research programs are the major sources.

• The largest source of external funding is the National Science Foundation, followed by Health and Human Services.

• These research dollars are awarded through competitive review processes that require faculty to develop cutting-edge proposals for specific projects.

FY2014 FY2015 FY2016 FY2017

$28.3 million $32.2 million $27.6 million $29.8 million

Trend in Total Research Funding

6-Research Funding

UW-Milwaukee’s research enterprise is the largest among southeastern Wisconsin universities. The research is wide-ranging and includes fundamental research, business collaboration and community engagement. The research and resulting skilled workforce stimulate the economy and support entrepreneurship across the state.

• Over the last four years, UWM has spent an average of almost $30 million per year from federal and non-federal sources for research. Federal research programs are the major sources.

• The largest source of external funding is the National Science Foundation, followed by Health and Human Services.

• These research dollars are awarded through competitive review processes that require faculty to develop cutting-edge proposals for specific projects.

Distribution of Research Funds

Letters & Science66.7%

Freshwater Sciences

4.6% Engineering and Applied Sciences

10.1%

Education2.9%

Information Studies1.6%

Public Health4.5%

Nursing1.7%

Health Sciences6.3%

Student Affairs1.7%

Distribution of Research Funds

This chart shows how research funding is distributed across the UW–Milwaukee campus. Faculty and staff across the university—in science, engineering, business, education, social sciences, arts and humanities—compete for research dollars and help grow UWM's research profile. This research fuels economic growth and development through the money spent here in the state of Wisconsin to support this research infrastructure. The research reputation of UW–Milwaukee attracts businesses and generates new start-up

7-Distrib. of Research Funds

Distribution of Research FundsThis chart shows how research funding is distributed across the UW-Milwaukee campus. Faculty and staff across the university — in science, engineering, business, education, social sciences, arts and humanities — compete for research dollars and help grow UWM’s research profile. This research fuels economic growth and development through the money spent here in the state of Wisconsin to support this research infrastructure. The research reputation of UW-Milwaukee attracts businesses and generates new start-up companies.

Gift and Grant Funds

Higher Education$7,316,490

State Government$3,405,576

UWM Foundation$3,463,809

Industry/Commerce$1,989,005

Non‐Profit Organizations$5,049,241

Local Government$2,445,375

Non Fed ‐ Other$602,534

Professional Assoc/Busn Coop

$465,770

Fiscal 2017 Gifts and Non‐Federal Grants/Awards

UW–Milwaukee also receives a significant amount of funding, $25 million in 2016-17, from private gifts, non-federal grants, private contracts, and licensing fees. These funds are typically earmarked for very specific purposes.

The funds received must be spent on preapproved projects. They are not allocated for discretionary use.

Both private and public universities across the country increasingly depend upon support from their alumni and friends to help them invest in special programs.

The majority of gift funds at UW–Milwaukee are spent to provide need-based financial aid to students, to improve facilities, to spur innovation, and to enrich the academic experience.

8-Gift and Grant Funds

Gift and Grant FundsUW-Milwaukee also receives a significant amount of funding — $25 million in 2016-17 — from private gifts, non-federal grants, private contracts, and licensing fees. These funds are typically earmarked for very specific purposes.

The funds received must be spent on preapproved projects. They are not allocated for discretionary use.

Both private and public universities across the country increasingly depend upon support from their alumni and friends to help them invest in special programs.

The majority of gift funds at UW-Milwaukee are spent to provide need-based financial aid to students, to improve facilities, to spur innovation, and to enrich the academic experience.

Auxiliary Funds and Other Revenue

University Housing28%

Food Services19%

Student Union10%

Athletics8%

Student Health Center6%

Parking 6%

Children's Center4%

Student Shuttle/Bus Pass3%

International Education3%

University Recreation

2%

Student Life & Organized Activities

2%Other9%

Auxiliary Funds

Business School24%

Letters & Science20%

Student Affairs14%

Continuing Education7%

School of the Arts6% School of Education

5% Health Sciences6%

Academic Affairs4%

Freshwater Sciences4%

Information Studies3%

Engineering & App Sci

2%

Graduate School2%

Nursing2%

Other1%

Other Revenue

Auxiliary funds are user fees paid for services the university provides to the campus community and general public, such as our residence halls or parking services. UW–Milwaukee budgeted $102 million in auxiliary revenues in 2017–18. These funds are used to support the units for which they are collected and typically cannot be used for other university purposes.

The university budgeted $11.6 million in revenue in 2017–18 from other sources, including certificationsprovided to the public by the College of Letters and Science and the Business School.

9-Auxiliary Funds & Other Rev

Auxiliary Funds and Other Revenue

Auxiliary funds are user fees paid for services the university provides to the campus community and general public, such as our residence halls or parking services. UW-Milwaukee budgeted $102 million in auxiliary revenues in 2017-18. These funds are used to support the units for which they are collected and typically cannot be used for other university purposes.

The university budgeted $11.6 million in revenue in 2017-18 from other sources, including certifications provided to the public by the College of Letters and Science and the Business School.

Auxiliary Funds and Other Revenue

University Housing28%

Food Services19%

Student Union10%

Athletics8%

Student Health Center6%

Parking 6%

Children's Center4%

Student Shuttle/Bus Pass3%

International Education3%

University Recreation

2%

Student Life & Organized Activities

2%Other9%

Auxiliary Funds

Business School24%

Letters & Science20%

Student Affairs14%

Continuing Education7%

School of the Arts6% School of Education

5% Health Sciences6%

Academic Affairs4%

Freshwater Sciences4%

Information Studies3%

Engineering & App Sci

2%

Graduate School2%

Nursing2%

Other1%

Other Revenue

Auxiliary funds are user fees paid for services the university provides to the campus community and general public, such as our residence halls or parking services. UW–Milwaukee budgeted $102 million in auxiliary revenues in 2017–18. These funds are used to support the units for which they are collected and typically cannot be used for other university purposes.

The university budgeted $11.6 million in revenue in 2017–18 from other sources, including certificationsprovided to the public by the College of Letters and Science and the Business School.

9-Auxiliary Funds & Other Rev

Fiscal 2016‐17 Expenditures by UnitFiscal 2016-17 Expenditures by Unit

Academic Units All Funds% of

Total Support Units All Funds% of

TotalAcademic Affairs $19.40 2.8% General Educational Administration $13.10 1.9%Health Sciences $18.10 2.6% Finance & Administrative Affairs $70.10 10.0%Architecture & Urban Planning $5.60 0.8% Student Affairs $91.00 13.0%Business Administration $22.10 3.2% Unit Wide $34.60 4.9%Education $15.10 2.2% Subtotal $208.80 29.8%Engineering & Applied Science $25.00 3.6%Arts $15.40 2.2%Freshwater Sciences $9.00 1.3% Student Financial Aid (Loans) $189.40 27.0%Office of Research $5.10 0.7%Graduate School $2.70 0.4%Letters & Science $105.80 15.1% TOTAL $701.10 100.0%Library $9.80 1.4%Information Studies $5.50 0.8%Nursing $14.20 2.0%Public Health $6.50 0.9%Social Welfare $12.30 1.8%Continuing Education $8.20 1.2%Academic Support $3.10 0.4% Subtotal $302.90 43.2%

UW-Milwaukee Expenditures by Unit 2016-17(In Millions)

All Revenue Sources

Expenditures at UW–Milwaukee reflect our core missions of education, research, and outreach.

• In the 2016–17 academic year, $303 million, or 43 percent of our total expenditures, was allocated to our academic units.

• In addition, 30 percent was spent on support units necessary to the academic and research mission of the university, including auxiliary units, information technology, facilities planning and management, the police department, etc.

10-Expenditures by Unit

Expenditures at UW-Milwaukee reflect our core missions of education, research, and outreach.

• In the 2016-17 academic year, $303 million, or 43 percent of our total expenditures, was allocated to our academic units.

• In addition, 30 percent was spent on support units necessary to the academic and research mission of the university, including auxiliary units, information technology, facilities planning and management, the police department, etc.

Faculty and Staff

Executive and Administrative155

Faculty700

Graduate Student Assistants1,210

Employees-in-training89

Academic Staff--Other912Academic Staff--

Instructional819

Classified Staff1,044

At UW–Milwaukee, people are our greatest asset. Accordingly, a large portion of our budget—roughly 50 percent—goes toward compensating the faculty, academic staff, and classified staff who support our education and research missions. In addition to the more than 4,900 members of the faculty and staff, the university also employs almost 2,800 undergraduate students.

Faculty and Staff Positions

11-Faculty and Staff

Faculty and StaffAt UW-Milwaukee, people are our greatest asset. Accordingly, a large portion of our budget —roughly 50 percent — goes toward compensating the faculty, academic staff, and classified staff who support our education and research missions. In addition to the more than 4,900 members of the faculty and staff, the university also employs almost 2,800 undergraduate students.

Student Financial Aid

Federal Government69%

Funded by UW-Milwaukee

12%

Private8% State

11%

Sources for Financial Aid$265,088,911

Though UW–Milwaukee strives to keephigher education affordable, for manystudents and families, additional help is needed. In 2016-17, 4 out of 5 UW–Milwaukee students receivedsome form of financial aid, including studentloans.

• Through a combination of federal, state, and gift funding, many students received some financial aid. Although we have less aid available than some peer institutions, we work to be good stewards of limited resources by targeting available funds to students with the greatest need.

• The bottom pie chart shows annual grants, scholarships, loans and other aid for UW–Milwaukee students. Loans includesubsidized, unsubsidized, private, state, and institutional.

• Private aid is provided by sources otherthan the federal/state government and UW–Milwaukee funds, including private donors, non profits, and serviceorganizations.

Loans57%

Need-Based Grants28%

Merit-Based Scholarships

5%

Other Aid10%

Types of Financial Aid$265,088,911

12-Student Financial Aid

Student Financial AidThough UW-Milwaukee strives to keep higher education affordable, for many students and families, additional help is needed. In 2016-17, 4 out of 5 UW-Milwaukee students received some form of financial aid, including student loans.

• Through a combination of federal, state, and gift funding, many students received some financial aid. Although we have less aid available than some peer institutions, we work to be good stewards of limited resources by targeting available funds to students with the greatest need.

• The bottom pie chart shows annual grants, scholarships, loans and other aid for UW- Milwaukee students. Loans include subsidized, unsubsidized, private, state, and institutional.

• Private aid is provided by sources other than the federal/state government and UW-Milwaukee funds, including private donors, nonprofits, and service organizations.

Year-End Fund BalancesYear-End Fund Balances

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

2014 2015 2016 2017

Tuition Carryover RatioIn response to directives from the State Legislature and UW System Board of Regents, UW–Milwaukee is working hard to manage fund balances with greater transparency. The university’s tuition balance, as calculated by Legislative Audit Bureau methodology, declined from 15 percent in 2014 to 11 percent in 2017.

• All of the tuition fund balance is already fully committed to various university programs. Most of the dollars are designated for commitments that have been made but are not yet paid for, such as start-up costs for new schools of Public Health and Freshwater Sciences and faculty and staff hiring.

• UWM has a very small amount of reserves. Reserves comprise less than 1% of annual expenditures and are held as a safeguard against revenue fluctuations caused by enrollment shifts.

13-Fund Bal

In response to directives from the State Legislature and UW System Board of Regents, UW-Milwaukee is working hard to manage fund balances with greater transparency. The university’s tuition balance, as calculated by Legislative Audit Bureau methodology, declined from 15 percent in 2014 to 11 percent in 2017.

• All of the tuition fund balance is already fully committed to various university programs. Most of the dollars are designated for commitments that have been made but are not yet paid for, such as start-up costs for new schools of Public Health and Freshwater Sciences and faculty and staff hiring.

• UWM has a very small amount of reserves. Reserves comprise less than 1% of annual expenditures and are held as a safeguard against revenue fluctuations caused by enrollment shifts.

Administrative Overhead

14.1%

13.2%12.5%

11.9%

11.0%10.4% 10.4% 10.3%

9.3%

8.3% 8.2%7.5%

6.9%6.6%

4.5%

2.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Fiscal 2016 Institutional Support ExpensesUW-Milwaukee and Peer Universities

UW–Milwaukee’s central administration costs are low compared to its peers. According to 2016 data, the amount spent on day-to-day administrative support as a percentage of total operating expenses at UW–Milwaukee is 12 percent less than our peer average. These support services include general administrative services, legal and fiscal operations, purchasing and printing, employee personnel and records, and information technology.

14-Administrative Overhead

Administrative OverheadUW-Milwaukee’s central administration costs are low compared to its peers. According to 2016 data, the amount spent on day-to-day administrative support as a percentage of total operating expenses at UW-Milwaukee is 12 percent less than our peer average.These support services include general administrative services, legal and fiscal operations, purchasing and printing, employee personnel and records, and information technology.

For further information, please visit our State Budget Information website at uwm.edu/budget