The University of Tennessee at Chattanooga

Operating & Capital Budget Presentation

Dr. Richard L. Brown, Jr.Vice Chancellor of Finance & Operations

UTC 2010-11 Budget and Financial Planning

Financial Re-Balancing For Efficiency and Effectiveness Year TwoYear Two

Campus Master Plan Facilities Growth Sustainability

Campus Master Plan Facilities Growth Sustainability

Tuition and Fees Benchmarking

Tuition and Fees Benchmarking

Reduced State Allocations New Funding Formula Performance Metrics

New UniversityAdvancement ModelCapital CampaignAthletics Master Plan

Academic Quality Accreditation Instruction Gen Ed QEP

IT Strategic Plan Services Governance Communication

Transparency Resource Allocations Accountability

Student Support Services

Alignment of Resources to the Strategic Initiatives2010-2011

2011-12 Budget Issues Looking Forward

• Support of Instruction and Academic Quality• SACS Reaffirmation• QEP• Compensation (Faculty & Staff)• Operating Budget Support• Maintenance and Operations (Energy)• Control of System Cost• Complete College Act• New Funding Formula• Development as a Source of Revenue Enhancement• Continuous Program Review

Summary of New Allocations Requested Total Requested

$7,363,562

2011-12 Fixed CostsFaculty positions due to enrollment growth; To address the Tennessee Complete College Act; Mandated faculty promotions; Operating budget needs; SACS requirements for the QEP

Amount needed to fund aggregate 3% ACB pay raise and equity pool (1.4% - Campus; Gap to fund 1.6% state salary improvement)

Energy cost; Technology needs due to increased enrollment; Square footage increase and utility rate hike increases

Student Development, Safety and University Relations operational needs due to enrollment increase

Recalibration of state appropriations

Total equals 9.9% Fee Increase (net of Scholarship Cost)

$ 1,141,000

$ 1,563,000

$ 517,375

$ 499,845

$ 577,334

$ 4,298,554

Aggregate Compensation Pool of 4%• 3% Across the Board Raises - All eligible Faculty and Staff. Cost embedded in the Base 9.9%

Tuition and Fee request.

• 1% Non-Recurring “BONUS” Pool recognizes exceptional performance and talent management. $660,000 identified from reserve accounts.

• $150,000 Equity Adjustment Pool for competitive salary benchmarking. Cost embedded in the Base 9.9% Tuition and Fee request.

Assumptions

• Final aggregate Tuition and Fees Request for 2011-12 will remain at 9.9%. • Salary projections based on January 1, 2011 cost of $55,000,000.• 1% tuition increase yields $437,000 net of scholarships.

* Consistent with Martin compensation plan * Great momentum towards comprehensive compensation strategy* Acknowledges exceptional performance * Limited compression/equity adjustments

2011-12 Proposed Revenue

Tuition 9.9% Tuition Increase 5,263,665

Total $5,263,665

State Funding Formula Effect (201,200)Appropriations Insurance Enrollment 300,700

2% Reduction (779,400)1.6% Salary Improvement (Only 60% Funded) 605,000 4% Insurance Improvement 173,100 Access & Diversity Funds (5,481)

Total $92,719

Fees Athletic Fee 1,290,000 Library Fee 537,500

Total $1,827,500

Total Revenue $7,183,884

2011-12 Proposed Expenditures

Chancellor Raise Employee Minimum to $8.50/hour 232

Funding for 40% of Salary Increase and Add'l 1.4% (Tuition) 8,388

1.6% Salary Improvement (State Appropriation) 3,691

Funding Formula Effect (1,227)

Insurance Enrollment 1,834

2% State Appropriation Reduction (4,754)

4% Insurance Improvement 1,056

Total $9,218

2011-12 Proposed ExpendituresAcademic QEP 150,000

Affairs Graduate Assistantships (Phase 1) 80,375 Doctorate of Nursing Program - 2 Positions 141,000 Completion of Faculty Hires 500,000 Institutional Research Compliance Officer 70,000 Faculty Senate 30,000 Faculty Promotions and Rollovers 150,000 Raise Employee Minimum to $8.50/hour 26,348 Funding for 40% of Salary Increase and Add'l 1.4% (Tuition) 953,398 1.6% Salary Improvement (State Appropriation) 419,495 Funding Formula Effect (139,508)Insurance Enrollment 208,499 2% State Appropriation Reduction (540,420)4% Insurance Improvement 120,024 Program Adjustments 133,385 Library Fee 537,500

Total $2,840,096

2011-12 Proposed Expenditures

Athletics Raise Employee Minimum to $8.50/hour 3,181

Funding for 40% of Salary Increase and Add'l 1.4% (Tuition) 115,088

1.6% Salary Improvement (State Appropriations) 50,639

Funding Formula Effect (16,840)

Insurance Enrollment 25,169

2% State Appropriation Reduction (65,236)

4% Insurance Improvement 14,488

Athletic Fee Increase 965,938

Total $1,092,425

2011-12 Proposed ExpendituresFOIT Safety Officer 30,000

Facilities Staffing (New Square Footage) 50,000

Mandated Safety Compliance (Sprinklers & Fire Alarms) 55,000

OED Position (Stimulus Supported) 35,000

Rollover Banner Position 70,000

Raise Employee Minimum to $8.50/hour 5,980

Funding for 40% of Salary Increase and Add'l 1.4% (Tuition) 216,370

1.6% Salary Improvement (State Appropriations) 95,203

Funding Formula Effect (31,661)

Insurance Enrollment 47,318

2% State Appropriation Reduction (122,646)

4% Insurance Improvement 27,239

Total $477,802

2011-12 Proposed Expenditures

Student Student Development Judicial Officer 76,845

Development McClellan Gym 100,000

Raise Employee Minimum to $8.50/hour 2,123

Funding for 40% of Salary Increase and Add'l 1.4% (Tuition) 76,821

1.6% Salary Improvement (State Appropriations) 33,801

Funding Formula Effect (11,241)

Insurance Enrollment 16,800

2% State Appropriation Reduction (43,545)

4% Insurance Improvement 9,671

Athletic Fee Increase (Recalibration of Student Activity Fee) 324,062

Total $585,338

2011-12 Proposed Expenditures

University University Relations - 2 Positions (Stimulus Supported) 75,000

Advancement Raise Employee Minimum to $8.50/hour 136

Funding for 40% of Salary Increase and Add'l 1.4% (Tuition) 4,936

1.6% Salary Improvement (State Appropriations) 2,172

Funding Formula Effect (722)

Insurance Enrollment 1,080

2% State Appropriation Reduction (2,798)

4% Insurance Improvement 621

Total $80,425

2011-12 Proposed Expenditures

Institutional Sustainability Office Position (Stimulus Supported) 75,000

Operating Budgets - Administration & Academic 100,000

Merit Increases 150,000

System Recalibration (1/3 in FY 11-12) 577,334

Technology Upgrades 70,000

Utilities 300,000

Program Adjustments 30,347

Total $1,302,681

Scholarships Institutional Scholarships $801,379

Access & Diversity Scholarships ($5,481)

Total $795,898

Total Expenses $7,183,884

Proposed Expenditures

Proposed Expenditures$7,183,884

  Chattanooga  

  FY 2010-11 Annual Tuition and Fees  

CHANGEFY 2010-11   FY 2011-12 Amount Percent

                   

IN-STATE            

UndergraduateTuition $4,912 $5,398 $486 9.9%Other Fees:Programs & Services * $590 $590 $0 - Athletics 240 360 120 50%Library Fee 0 50 50 100%Green Fee 20 20 - - Technology 200 200 - - Facilities 100 100 - - Total Other Fees $1,150 $1,320 $170 15%

Total Tuition and Fees $6,062 $6,718 $656 10.8%

GraduateTuition $5,890 $6,473 $583 9.9%Other Fees:Programs & Services * $590 $590 $0 - Athletics 240 360 120 50%Library Fee 0 50 50 100%Green Fee 20 20 - - Technology 200 200 - - Facilities 100 100 - - Total Other Fees $1,150 $1,320 $170 15%

Total Tuition and Fees $7,040 $7,793 $753 10.7%

  Chattanooga  

  FY 2010-11 Annual Tuition and Fees  

CHANGEFY 2010-11   FY 2011-12 Amount Percent

                   

OUT-OF-STATE            

UndergraduateTuition 17,226 $18,931 $1,705 9.9%Other Fees:Programs & Services * $590 $590 $0 - Athletics 240 360 120 50%Library Fee 0 50 50 100%Green Fee 20 20 - - Technology 200 200 - - Facilities 100 100 - - Total Other Fees $1,150 $1,320 $170 15%

Total Tuition and Fees $18,376 $20,251 $1,875 10.2%

GraduateTuition $18,205 $20,007 $1,802 9.9%Other Fees:Programs & Services * $590 $590 $0 - Athletics 240 360 120 50%Library Fee 0 50 50 100%Green Fee 20 20 - - Technology 200 200 - - Facilities 100 100 - - Total Other Fees $1,150 $1,320 $170 15%

Total Tuition and Fees $19,355 $21,327 $1,972 10.2%

Fee Analysis

Athletic Fee Analysis           

 Fee Increase

Revenue

Current Revenue at

$120 per Semester

Return 1/2 Student

Activity Fee Funds

Total Athletic

Fee Revenue Net Increase

Est. Revenue Generated at $60 per Semester $ 1,290,000 $ 2,385,108

$(324,062) $ 3,351,046 $ 965,938

Library Fee Analysis           

Est. Revenue Generated at $25 per Semester

$537,500        $ 537,500

UTC IT Strategic Plan – Top Five Results1. New IT Leadership - New position will synergize IT resources

and dollars

2. Establish Effective IT Governance Model

3. Create IT Service Catalog• Streamline roles and responsibilities across campus• Clarify roles between System IT and UTC IT

4. Promote a Culture of Continuous Service Improvement

5. Develop a Comprehensive Five-Year Planning Strategy• Financial (Tech Refresh)• Governance (Alignment with UTC Strategic Priorities)• Customer Service (Creating a University-Wide Help Desk)

Capital Project Status UpdateFund Source Project Name Budget Current Status Milestone Date

State New Library Building $48,000,000 Contract Award Complete Spring 2013

Student Fees ARC Natatorium $8,600,000 Construction Complete July 2011

State Boiler Repl. Ph2 $3,360,000 Construction Complete July 2011

State Metro Renovation, Ph2 $4,600,000 Design Bid Oct 2011

Auxiliary Stagmaier Housing $3,500,000 Design Complete Fall 2012

State ADA/Founders Elevator $250,000 Design Pending additional funds

Operating South Stadium Demo $500,000 Design Complete Fall 2011

Stimulus Academic Math Mall $450,000 Construction Complete Aug 2011

Stimulus Patten House Exterior Rpr $700,000 Construction Complete Fall 2011

Stimulus Fire Alarm Upgrades $200,000 Design Under TFM Review

Stimulus Window Replacements $500,000 Phased Construction Complete Dec 2011

Stimulus Roof Replacement $600,000 Construction Complete Fall 2011

Stimulus Restroom Upgrades $600,000 Construction Complete August 2011

Stimulus Bretske Hall Renovation $1,540,000 Design Bid Sept 2011

Stimulus Maclellan Gym Imprvmts $1,350,000 Design TBD

Facility Fee Campus Landscape, Ph2 $2,300,000 Design Bid Spring 2012

State Holt Hall Improvements $7,450,000 Awaiting Designer Design start Fall 2011

2010 Master Plan

• Master Plan Goals and Objectives Development• Strategic Plan relationship to the Physical Campus• Evaluation of 2000 Campus Master Plan• Comprehensive Housing Master Plan• Sustainable Campus Perspective• Greenspace Plan• Athletics & Recreation Spaces• Circulation & Transportation• Land Use & Acquisition Plan • Campus Infrastructure• Campus Renewal, Reprogramming, & Asset Maintenance Plan• Space Utilization and affinity program alignment