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2015 Legislative Report &Budget Update (Tab HH)

COMMISSIONER DAVID L. BUHLER

Session Overview• New revenue• First weeks’ focus on existing budget

• 2% base budget reduction• Record number of bills passed (528), over

half received final approval in last week• Big budget items up for consideration:

• Medicaid expansion• Fuel tax revision• Prison relocation• Criminal justice reform

• K-12 support (WPU+Growth, etc.)

1) LegislationBills directly impacting

higher education in Utah

2) BudgetOperating and Capital Development Budget

3) Next StepsEfforts during interim and

in preparation for 2016

Legislative Impact on USHE

Legislation of Note• Higher Education Performance Funding (SB 232, Sen. Urquhart)• Math Competency Initiative (SB 196, Sen. Millner)• UESP Amendments (SB 64, Sen. Weiler)• College and Career Readiness (HB 198, Rep. Arent )• House Resolution Regarding Math Proficiency (HR 5, Rep. Eliason )• Exceptions to Privately Funded Scholarships (SB 253, Sen. Jenkins)• Utah Education Amendments (HB 360, Rep. Christensen)

Other Legislation• Amendments to the Procurement Code (HB 409, Rep. Snow)• CTE Comprehensive Study (HB 337, Rep. Cunningham)• Military Education Amendments (HB 233, Rep. Oda)• Student Privacy Study (HB 68, Rep. Anderegg)• Educator Licensing Amendments (HB 197, Rep. Coleman)

A lot of Effort• Input on several bills that could have harmed USHE• Provided fiscal input on 118 pieces of legislation• Data inquiries, presentations, coordination with institutions• Didn’t happen, but could have…

• Reduced requirements of Regents’ Scholarship• Reduced award amounts of Regents’ Scholarship• Prohibit higher ed institutions from accessing a high school

transcript without parent approval• Open carry of guns on campus• Allow concurrent enrollment courses to be offered by noncredit

institutions• Etc.

Budget UpdateIncreased overall state tax revenues

• $389 million ongoing funds• $250 million one-time funds

2012 2013 2014 2015

$408m $425m $397m

$639m

Historical Increases (State Tax Funds)(Ongoing Funds)

7.2%

5.0%

12.6%

4.8%

-11.5%

-1.9%

3.2%

6.0%

11.3%

4.9%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

USHE Priorities – Partially Funded• Compensation $ 15,164,200• Health Insurance $ 4,682,800• Research | Graduate Programs $ 4,000,000• Performance Based Funding $ 9,000,000

Ongoing $2,000,000One-time $7,000,000

• Regents’ Scholarship $ 3,000,000Ongoing $ 500,000One-time $2,500,000

USHE Priorities – Not Funded• Mission Based Funding

• Student Participation• Distinctive Mission

• Statewide Programs• Enhanced Cyber Security

Other Legislative Funding• Engineering and Computer Science Initiative $ 4,500,000

Ongoing $3,500,000One-time $1,000,000

• Math Competency Initiative (SB 196) $ 1,925,000• Utah Wellness Program $ 1,500,000• STEM Tech Pipeline - SUU/DSU (one-time) $ 560,000• Demographic Decision Support - U of U $ 450,000• Veterans Tuition Gap Coverage (one-time) $ 60,000• Etc.

Capital Development

Regents’ Priority Institution Project Appropriated

1 University of Utah Crocker Science Center $34,000,000

2 Snow College New Science Building $19,927,000

3 Salt Lake Community CTE Learning Resource & Classroom Bldg. (Design) $ 3,000,000

4 Utah State Clinical Services Center $10,000,000

N/A University of Utah Huntsman Cancer Research Ctr. $ 9,500,000

Capital Development/ImprovementOperation and Maintenance• New state-funded projects $ 3,485,200• Non state-funded $ 1,424,200

Capital Improvement*• 2015-16 Appropriation $64,769,600

*Capital Improvement ongoing basebudget is now $111,942,100, of which

higher education receives 50-60%.

Next Steps• Performance Funding (SB 232)

• Work with Higher Ed Co-Chairs and Presidents to implement • Degrees and certificates granted• Services provided to traditionally underserved populations• Responsiveness to workforce needs• Institutional efficiency• Graduate research metrics (for research universities only)

• For Board Approval by July 2015• Implement requirements from legislation• Intent language

Thank YouRegents

PresidentsInstitutional StaffLegislative Reps

Commissioner’s Staff

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