1 florida atlantic university funding opportunities for strategic priorities

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Florida Atlantic University

Funding Opportunities for Strategic Priorities

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Florida Atlantic University2005-2006 Initial Operating Budget*

Expenditure Budget Amount

Educational and General $212,432,849

Contracts and Grants 58,258,912

Auxiliary Enterprises 54,318,913

Student Government 6,715,000

Student Financial Aid 119,553,276

Athletics Local Budget 10,993,300

Concessions 572,575

Total $462,844,575

* Including Budget Transfers

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Potential Sources to Fund Strategic Priorities• Educational and General• Contracts and Grants• Auxiliary Enterprises• Student Government

Limited Funding Opportunities• Student Financial Aid• Athletics Local• Concessions

Florida Atlantic University

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Educational and

General Budget

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Florida Atlantic University Educational and General Budget

The Educational and General Budget consists of state appropriated General Revenue, Enhancement (lottery) funding, and student tuition and matriculation payments.

Incremental funding is provided by three primary mechanisms:

• Enrollment Growth• Tuition Increases• Special Legislative Appropriations

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• Funding to support the University’s growth in enrollment is appropriated by the Legislature based upon the Board of Governors’ approved enrollment plan and on a funding formula adopted in 2004.

• Funding is used to support instruction, research, technology infrastructure, library staffing and resources, student services, partner campus operations, and university support.

Florida Atlantic UniversityEnrollment Growth Budget

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Florida Atlantic UniversityEnrollment Growth Funding

• The amount of funding received is determined by applying the funding formula to the total FTE (Full-time Equivalent) enrollment growth by level (lower level, upper level and graduate).

• Approximate formula funding by level is:

Lower level $ 6,550 per FTE

Upper level $ 9,250 per FTE

Graduate $15,300 per FTE

• For 2005-2006, FAU received enrollment growth funding of $2,004,327 to support 73 lower level FTE and 165 upper level FTE. No graduate funding was received.

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2005-2006 Funded FTE Enrollment Plan

Lower Level 4,514Upper Level 7,896Graduate 2,140 Total 14,550

2012-2013 Projected Funded FTE Enrollment Plan

Lower Level 6,074Upper Level 9,622Graduate 2,608 Total 18,304

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Average Annual FTE Growth Rates: 2005-2006 to 2012-2013

Lower Level 4.33 percent

Upper Level 2.86 percent

Graduate 2.87 percent

Combined Overall 3.33 percent

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Enrollment New Year Growth FTE Funding

2006-2007 1,143 $ 8,338,5502007-2008 334 $ 3,212,1002008-2009 575 $ 5,492,3002009-2010 636 $ 6,050,9502010-2011 267 $ 2,588,5502011-2012 478 $ 4,570,5002012-2013 321 $ 3,090,550

Total 3,754 $33,343,900

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Key Issues and Concerns

• Enrollment growth funding is needed to support additional enrollments.

• Maintain or improve quality of programs while meeting FTE targets.

• Where pedagogically sound and appropriate:

• Increase class sizes in limited cases.

• Increase faculty instructional assignments.

• Increase use of well qualified adjunct faculty and instructors.

• Examine partner campus program expansion.

• Examine partner campus course duplication.

• Expand use of technology to lower costs.

• Reallocate existing resources to achieve greater efficiency/productivity.

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Florida Atlantic UniversityTuition Increase Funding

• The Florida Legislature establishes tuition for undergraduate Florida residents.

• The Florida Atlantic University Board of Trustees establishes non-Florida resident and graduate tuition subject to parameters established by the Florida Legislature.

• In 2005-2006, undergraduate, graduate and non-resident tuition increased by 5 percent, generating approximately $2.6 million in new funding.

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• Estimated funding associated with five percent per year tuition increases adjusted for funded enrollment plan:

Amount Year Generated2006-2007 $ 3,000,0002007-2008 $ 3,250,0002008-2009 $ 3,500,0002009-2010 $ 3,800,0002010-2011 $ 4,100,0002011-2012 $ 4,400,0002012-2013 $ 4,700,000 Total $26,750,000

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• Florida resident undergraduate tuition is second only to Nevada in terms of affordability ($108.64 per credit hour for 2005-2006 tuition and fees).

• National Average $183• Nevada $ 86• Pennsylvania $280

• Florida ranted 45 in 2004 per capita tax appropriations (state and local) for higher education.

• Florida $165.21• Nevada (ranked 32) $215.26

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• Average annual tuition and fee increases since 2000-2001:

Undergraduate Residents 6.34 percentUndergraduate Non-residents 10.98 percentGraduate Residents 9.32 percentGraduate Non-residents 11.28 percent

• Non-resident tuition may be at short-term limit to maintain competitiveness.

• Elasticity of demand.• $46 million reduction for unfunded change-in-mix system-

wide since 2002-2003 ($3.5 million reduction for FAU).

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• Florida Bright Futures Program.

• Florida Pre-paid Program.

• Legislative Mandates on Use of Tuition Increases.

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Florida Atlantic UniversitySpecial Legislative Appropriations

• Legislative appropriations tied to specific University requested projects.

• Funding is based upon University’s Legislative Budget Request and may be recurring or non-recurring.

Examples:

• FAU-UMMSM Medical Partnership Program - $2 million recurring 2005-2006

• St. Lucie Charter Lab School - $500,000 non-recurring 2004-2005

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2006-2007 Legislative Budget Request

Need-based Financial Aid $4,000,000Deferred Maintenance $3,500,000Professional and Workforce Needs $7,000,000Faculty Salaries and Start-up Expenses $5,500,000Technology Support $4,000,000Access to and Production of Degrees $6,500,000Increased Retention, Reduce Time-to-Degree $2,000,000Support Services and Infrastructure $6,500,000Medical Partnership Program $8,000,000World Class Academic Programs $3,000,000

and Research CapacityLibrary Collection $1,850,000Meeting Community Needs $1,250,000Branch Campus Operating Costs $5,400,000

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• Limited Support by BOG and Legislature for Special Issues.

• Issues of system-wide importance may have a greater chance of success:

• Financial Aid• Critical Needs• Technology Support• Market Salaries• Deferred Maintenance• Utilities

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Contracts and Grants Budget

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Florida Atlantic UniversityContracts and Grants Budget

• The Contracts and Grants Budget consists of funding from Federal agencies, State agencies, Foundations, and private sources that enables the University to conduct specific research projects or to provide specific services or deliverables.

• Expenditures to support grants include:

• Direct Costs such as salaries, wages, and benefits of research personnel, materials, supplies, travel, equipment, and rental of space that are directly attributed to the research project.

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• Indirect Costs such as building and equipment use and depreciation, physical plant and maintenance, hazardous waste disposal, libraries, general administration costs (legal, purchasing, accounting), janitorial services, and utilities.

Indirect costs are not included in the direct costs of a specific research project because they are incurred for common projects or activities of the University.

Indirect costs related to the overall research program of the University must be paid regardless of a specific project and must be applied to all contracts and grants.

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• Federal Grant awards generally allow for indirect cost recovery rates, currently 41.5 percent.

• Many Federal, State, Foundation and Private Grant Awards do not provide for full or partial recovery of indirect costs:

State: 5 percent limitFoundations: 0-25 percentPrivate: Negotiated


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2004-2005 Total Expenditures: $45,950,718

2004-2005 Indirect Costs Recovered: $ 5,537.850

Average Indirect Cost Recovered: 12.05 percent


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• Moneys received for overhead or indirect costs shall be applied to the cost of operating the Division of Sponsored Research. Any surplus moneys shall be used to support other research or sponsored training programs in any area of the university (F.S. 1004.22(5)).

• 32 percent of indirect costs recovered are returned to the colleges as reinvestment in research.

• 68 percent of indirect costs recovered are used to support the Division of Sponsored Research, Administration and Environmental Health and Safety.


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• Florida Statutes limit how indirect cost recovery is expended.

• The majority of the indirect cost recovery is needed to support the administration of the Division of Sponsored Research.

• Funds returned to the colleges should be directed to strategic priorities.


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Auxiliary Enterprises Budget

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Florida Atlantic UniversityAuxiliary Enterprises Budget

The Auxiliary Enterprises Budget consists of University businessoperations that are self-supporting through user fees, paymentsand charges. These budgets include:

• Food Services • Postal Services

• Housing • Student Health Center

• Bookstore • Traffic and Parking

• Printing/Duplicating • Student Center

• Telecommunications • College Continuing Education

• Lifelong Learning Society• Ocean Engineering Boat

• University Theatre• College of Science Machine Shop

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• “Auxiliary Enterprises” includes activities that directly and indirectly provide a product or service, or both, to a university or its students, faculty, or staff and for which a charge is made.

• These Auxiliary Enterprises are business activities of a university which require no support from the General Revenue Fund.

Florida Statute 1011.47:


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• Expenditures to support Auxiliary Enterprises include:

• Direct costs such as salaries, wages, and benefits of personnel, materials, supplies, travel, equipment and debt service directly attributed to the enterprise operation.

• Auxiliary overhead charges to cover the costs of support services such as security, payroll, purchasing, facilities planning, grounds, utilities, personnel services, computing services, and finance and accounting functions.

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• Overhead charges are administered by a University Auxiliary Fees and Chargeback Committee.

• Overhead charges range from 0 percent to 8.26 percent of expenditures depending upon the services provided by the auxiliary and university costs incurred in the administration of the auxiliary.

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2004-2005 Total Expenditures: $49,904,018

(including Athletics)

2004-2005 Overhead Charges: $ 1,711,822

Average Overhead Charged: 3.43 percent


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• Increase the overhead rate to include a tax or profit payment to the university to fund strategic priorities.

• Elasticity of demand and affordability of auxiliary services.

• Users of auxiliary services could pay a disproportional share of the cost of university-, community-, or state-wide strategic priorities.


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Student Government Budget

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• Funds from student Activities and Services (A&S) fees to support student government operations and student activities such as clubs and organizations.

• The Activity and Service fee of $10.00 per credit hour generates approximately $5,700,000 per year.

The Student Government Budget consists of:

Florida Atlantic UniversityStudent Government Budget

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• The Student Activity and Services fees shall be expended for lawful purposes to benefit the student body in general.

• The allocation and expenditure of the fund shall be determined by the Student Government Association of the University, except that the President of the University may veto any line item or portion thereof within the budget when submitted by the Student Government Association legislative body.

Florida Statute 1009.24:


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• To the extent a specific priority benefits the student body in general, the Student Government Association MAY consider funding the request in order to meet strategic University goals.

• Any subsequent increase in the Activity and Services fee must be recommended by a committee, at least one-half of whom are students appointed by the student body president.

• The sum of the Activity and Services fee, health fee, and athletic fee may not exceed 40 percent of the tuition established by law or in the General Appropriations Act.


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Capital Funding

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• Public Education Capital Outlay (PECO) – Funded by the Gross Receipts Tax, which is a 2.5 percent levy on the gross receipts of electric, gas and telecommunications. This tax is devoted entirely to the Public Education Capital Outlay and Debt Service Trust fund (PECO) and is the major state source of revenue dedicated to repair, renovation and expansion of public schools (K-12), community colleges and state universities.

• Building and Capital Improvement Trust Fund Fee (CITF) – Funded by student fees that are remitted to appropriate funds for distribution as required for debt service or used to fund student related projects approved by the Florida Legislature.

Florida Atlantic UniversitySources of Capital Funding

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• PECO appropriations to Universities are not growing.

• SUS Presidents and BOG are currently reviewing proposals to solve Fixed Capital Outlay deficiencies.

• Expand tax base (internet access).• Increase PECO levy.• Increase CITF fees.• Establish statutory percentage of PECO allocated to SUS.• Delegation of DSO bonding to BOT.• Expand Fixed Capital flexibility.

Florida Atlantic UniversitySources of Capital Funding

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• University sources of funding to support strategic priorities are available but limited.

• Budget reductions of approximately $30 million over the past 11 years have greatly restricted financial flexibility.

• All funding and budgetary consideration will involve trade-offs.

• Direct Support Organizations, such as the Florida Atlantic University Foundation, Inc., may provide additional funding opportunities.

• Statutory changes in tuition and fees may provide additional flexibility to fund strategic priorities (technology fee).

Florida Atlantic UniversitySummary

1 florida atlantic university funding opportunities for strategic priorities

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