2013-14 Budget Priorities Preview

David L. Buhler, Commissioner of Higher Education

November 27, 2012

Governor’s Education Excellence Commission

Financing of Higher Education

Funding per Student FTE 2008

Tax Funds 63%

Tuition37%

Funding per Student FTE 2012

Tax Funds 49%

Tuition51%

Total funding per student has decreased $600

$19,316

$26,355 $30,632

$41,273

$59,843 8.2%

7.6%

5.5%

4.1%

1.4%

Benefits of Higher Education – for Utahns

Median Wage Unemployment Rate

Utahns’ Wage Earnings and Unemployment (by educational attainment)

Benefits of Higher Education – for the State

12%

40%

48%

34%38%

28%

Taxes Paid Population

State Tax Contributions & Population (by educational attainment)

Top Budget Priorities

1) Compensation

• Same state funded increase offered to all other state and public education employees– State portion (75%) of 1% increase: ~$7M– State portion of 1% benefits increase: ~$900K

• USHE competes regionally and nationally for talent• Full-time and adjunct faculty averages are currently

below national peer group institutions

2) Mission Based Performance Funding - $16 million

Two of four priorities requested:1. Distinctive Mission $8

million(Participation, Completion, Economic Development)

2. Equity $8 million– Target 55-70% of state funds based on mission– Addresses inequities in funding mix

3. New Enrollment Growth Not requested4. Historic Unfunded Growth Not requested

2) Mission Based Performance Funding

Institution Participation Completion Economic Development

UU $300,000 $602,200

USU $595,000 $173,000 $75,000

WSU $412,400

SUU $40,000 $91,300 $57,000

Snow $20,797 $88,503

Dixie $156,000

UVU $70,939 $297,404 $102,557

SLCC $472,700

TOTAL: $1,139,136 $1,490,404 $925,260

Distinctive Mission Implementation (2012-13)

3) 66%: Expand Teaching Capacity & Completions by 2020

• USHE must increase degrees & certificates awarded by 4% each year to reach 66% by 2020

• This is the first step to create a highly-educated workforce

9

InnovationLeverage use of technologyBroaden reach to K-12 students

• College readiness• 1st generation college-

goersFocus on industry needs

• STEM & Health Professions

InvestmentIn Capacity and Completion $30M increases capacity in critical programs+ $10M scholarships to assist in completion_________________________________ Total: $40 million investment $20M/$20M Investment Plan $20M state contribution+ $20M institutional innovation & investment_________________________________ Total: $40 million investment

3) 66% : Expand Teaching Capacity & Completions by 2020

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-2030000

32000

34000

36000

38000

40000

42000

44000

46000

45,000+

31,339

Annual Growth in Certificates (>1 yr) and Degrees to USHE students

• Total FY13 request: $20 million state funds– Increase capacity for completion: $15 million– Scholarships/incentives - $5 million– Institutions to also invest $20 million– Focus on high-growth, high wage degree areas

(STEM and health professions)

$20M State + $20M Institution Match = $40M Total Investment

3) 66% : Expand Teaching Capacity & Completions by 2020

Other Higher Education Priorities

4) Operational Imperatives - $10,446,000

• O&M for Non-State funded projects $4,396,000– University of Utah– Utah State University– Weber State University

• U of U Utility Rates$3,900,000

• Higher Ed Tech Initiative (HETI) $2,150,000– Leverages combined volume purchasing

power of all institutions for IT purchases

5) USHE Programs - $2,950,000• Student Access

– Success Stipends: (need based financial aid): $2 million• work-study & grants (average award: $850/student)

– Regents and New Century Scholarships: $500,000• Projected ~25% growth

– Tech Intensive Concurrent Enrollment: $150,000• Ongoing course maintenance, consultation,

articulation, transfer

• Collaboration– Utah Academic Library Consortium $300,000

• Database acquisition for use by all institutions

State Initiatives

1) University of Utah School of Medicine - $ 10 million

• To increase class by 40 students per year (160 more)• $62,500/student/year (avg. natl. cost: $100-110k)• 1,500 applicants for 82 slots last year• To help address Utah’s primary care physician

shortage• $3.5 million one-time reduction in first year

2) DSC - University Implementation - $4 Million

• Assuming Regents approve mission change• Expected to meet agreed upon benchmarks by end of

2012• Will help implement new mission• To enhance capacity, including technology

One-time Increases$1,750,000

1. Higher Education Technology Initiative (HETI) $750,000– Security software & ongoing license/maintenance ($150,000)

2. Utah Academic Library Consortium (UALC)$300,000– Training for digital preservation of historical materials

3. Tech. Intensive Concurrent Enrollment (TICE) $600,000– To complete last 7 General Education courses– Full delivery planned for Fall 2014

4. Utah Women and Education Initiative (UWEI) $100,000– Continued implementation of the Utah Women’s

College Task Force recommendations

One-time Increases

Supplemental Increases

• O&M Requests for non-state funded projects– One-time funds on projects approved by Legislature

that did not receive funding in FY2012-13– 9 projects at U of U, USU, WSU

Supplemental Increases - $2,873,600

Capital Development Projects

Capital Development Prioritization for 2013-14

Priority Institution & Project State Funds

1 WSU New Science Lab Building (STEM) $60,900,000

1 UVU Classroom Building (Enrollment) $53,200,000

3 Snow Science Building Reconstruction (STEM) $11,800,000

4 USU Biological Sciences Building (STEM) $60,000,000

5 USU-CEU Central Instruction Building $20,000,000

6 SLCC CTE Classroom & Learning Service Building (STEM)

$15,000,000

7 DSC East Elementary School Purchase(also included in Land Bank Request)

$1,500,000

Land Bank Requests (Not Prioritized)

Institution Property Amount

Dixie State College

• East Elementary School• University Plaza• Larkin Property• Commercial Property (adjacent to campus)

$1,500,000$4,200,000$1,500,000$1,500,000

Southern Utah University

•7 Residential Lots (proximate to campus)•6 Residential Lots (proximate to campus)•2 Residential Lots (contiguous to campus)

$1,150,000$1,200,000$370,000

Utah Valley University

• Old Geneva Steel Site $12,500,000

Questions/Discussion