university of georgia financial overview where does it come from, where does it go?

1

University of Georgia

Financial Overview

Where does it come from, where does it

go?

October 15, 2013Ryan Nesbit– Interim Vice President for Finance & Administration

UGA - FY 2014 Budget Sources

$ 402 M – State Appropriations$ 402 M – State Appropriations

$ 13 M – Federal Appropriations$ 13 M – Federal Appropriations

$ 515 M – Internal Revenue$ 515 M – Internal Revenue

$ 293 M – Sponsored Sources$ 293 M – Sponsored Sources

$ 196 M – Auxiliary Enterprises$ 196 M – Auxiliary Enterprises

$ 34 M $ 34 M – Private Funding– Private Funding

$1.454 Billion $1.454 Billion

UGA - Funding Source Summary

Internal35%

Federal1%

Sponsored20%

Auxiliary14% State

28%

Private2%

Internal19%

Federal1%

Sponsored20%

Auxiliary12%

State47%

Private1%

FY 2014 FY 2002

FY 2014 State Budget (by Policy Area)

Transport4% Health

23%

Other6%

Public Safety9%Debt

6%

K - 1239%

USG9%

Other Education5%

As Percent of Total State Fund Budget - $19.9 As Percent of Total State Fund Budget - $19.9 BillionBillion

FY 2002 State Budget (by Policy Area)

Transport5% Health

19%

Other7%

Public Safety9%Debt

5%

K - 1239%

USG11%

Other Education4%

As Percent of Total State Fund Budget - $15.8 As Percent of Total State Fund Budget - $15.8 BillionBillion

University System of Georgia - State Funds (Total University System funding in Billions)(Total University System funding in Billions)

$1.66$1.81

$1.93$2.13

$2.30 $2.17

$1.95 $1.74 $1.75

$1.88

$0.00$0.25$0.50$0.75$1.00$1.25$1.50$1.75$2.00$2.25$2.50

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014(est.)

USG - State Funding Per Student FTE

$5,412 $5,643

$6,059 $6,539

$6,930

$7,972

$8,257 $8,294

$8,128

$7,422

$6,857 $6,746 $7,266

$7,503 $7,937

$8,191

$7,239

$6,297

$5,561 $5,930

$6,067

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,00019

94

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014


Internal35%

Federal1%

Sponsored20%

Auxiliary14% State

28%

Private2%

Internal19%

Federal1%

Sponsored20%

Auxiliary12%

State47%

Private1%

FY 2014 FY 2002

UGA State Funding Trend (in millions)

$398.3 $371.6$302.9 $288.4 $303.7 $292.8 $313.2

$72.6 $70.4$73.7

$70.5$74.6

$87.9$97.0

$0

$100

$200

$300

$400

$500

FY09 FY10 FY11 FY12 FY13 FY13A FY14

Resident Instruction ("A") B Units & Other

$495.3

$459.5

$377.5

7% cut

24% cut28% cut$358.9

27% cut$363.2

24% cut$376.3 $386.9

22% cut

State Funding Trend

FY 2014FY 2014$ $ 386.9M386.9M

FY 1999FY 1999

$ 387.9 M$ 387.9 M

34,500 34,500 studentsstudents

29,69329,693studentsstudents

MoreMoreStudents, Buildings Students, Buildings andandSalary/Benefit Salary/Benefit ObligationsObligations

Increased “Nondiscretionary” Costs

FY2000 FY2013•Salaries/Benefits: (40% Increase) $422M $590M

o Health/Life Insurance: (More than doubled) $33M $72M

o Retiree Benefits: (More than tripled) $7M $25M

•Utilities: (54% Increase) $14M $22M


Internal35%

Federal1%

Sponsored20%

Auxiliary14% State

28%

Private2%

Internal19%

Federal1%

Sponsored20%

Auxiliary12%

State47%

Private1%

FY 2014 FY 2002

Tuition Growth Trend (in millions)

$87 $95 $105$123 $131 $141

$154$167

$190$217

$251$275

$298$312

$193

$308$333

$346

$277

$228

$0

$50

$100

$150

$200

$250

$300

$350

$400

FY01FY02

FY03FY04

FY05FY06

FY07FY08

FY09FY10

FY11FY12

FY13FY14

Tuition Tuition & Special Fee

State + Tuition Funding

FY 2001FY 2001

$ 408.1 M$ 408.1 MStateState$ 86.7 M$ 86.7 MTuitionTuition$ 494.8 M$ 494.8 MTotalTotal

FY01: $4.70 in State Funds per $1 FY01: $4.70 in State Funds per $1 TuitionTuition

FY14: $1.29 in State Funds per $1 FY14: $1.29 in State Funds per $1 TuitionTuition

FY 2014FY 2014

$ 402.3 M$ 402.3 M$ 311.8 M$ 311.8 M$ 714.1 M$ 714.1 M

UGA General Fund (RI) Sources (millions)

$336

$401

$288 $288$313

$163

$193

$308$333

$346

$303

$318

$277

$99

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

FY01 FY06 FY09 FY11 FY12 FY13 FY14

State Tuition & Special Fee

UGA - FY 2014 Budget Sources







$1.454 Billion $1.454 Billion

“Unrestricted” Budget Sources







$ 688 M or 47% of $ 688 M or 47% of

$1.454 Billion Total Budget$1.454 Billion Total Budget



Funding Formula BasedFunding Formula Based

1.1. Measures ProductivityMeasures Productivity

2.2. Estimates Resources RequiredEstimates Resources Required

3.3. State Support to Board of RegentsState Support to Board of Regents

4.4. NOT Allocations to InstitutionsNOT Allocations to Institutions

Shifting to Performance-Based FormulaShifting to Performance-Based Formula



Tuition = $312 M ($34 M Special Fee)Tuition = $312 M ($34 M Special Fee)

Tuition/Fee Set by Board of RegentsTuition/Fee Set by Board of Regents

1.1. Growing Differentiation by SectorGrowing Differentiation by Sector

Research UniversitiesResearch Universities

Regional UniversitiesRegional Universities

Two-Year CollegesTwo-Year Colleges

2.2. Differentiation by ProgramDifferentiation by Program

Law, Business, Vet Med, PharmacyLaw, Business, Vet Med, Pharmacy

Tuition - Peer Institutions

Tuition - Aspirational Institutions

FY2014 Budgeted Expenditures

$ 300.0 M (20.6%) – Instruction$ 300.0 M (20.6%) – Instruction

$ 380.5 M (26.2%) – Research$ 380.5 M (26.2%) – Research

$ 178.7 M (12.3%) – Public Service$ 178.7 M (12.3%) – Public Service

$ 89.0 M ( 6.1%) – Student $ 89.0 M ( 6.1%) – Student Services/ScholarshipsServices/Scholarships

$ 98.6 M ( 6.8%) – Academic Support$ 98.6 M ( 6.8%) – Academic Support

$ 98.0 M ( 6.7%) – Physical Plant$ 98.0 M ( 6.7%) – Physical Plant

$ 92.6 M ( 6.4%) – Institutional Support$ 92.6 M ( 6.4%) – Institutional Support

$ 163.7 M (11.3%) – Auxiliary Enterprises$ 163.7 M (11.3%) – Auxiliary Enterprises

$ 52.9 M$ 52.9 M ( 3.6%) – Capital Improvements ( 3.6%) – Capital Improvements

$1.454 Billion$1.454 Billion






$ 98.6 M $ 98.6 M ( 6.8%)( 6.8%) – Academic Support – Academic Support

72% to Core Missions72% to Core Missions






$ 76.1 M $ 76.1 M ( 8.0%)( 8.0%) – Academic Support – Academic Support

72% to Core Missions72% to Core Missions

UGA – Budgeted Expense Summary

FY 2014 FY 2002

State of Georgia - oversees all State Agencies

Board of Regents - oversees 31 Institutions

University of Georgia - 17 Schools & Colleges

1. Senior Administration

2. Academic Deans

Roles & Responsibilities

Appoint & Empower Presidents

Set Broad Policies

Strategic Plan for Higher Ed in Georgia

Allocate Resources

1. Allocate Formula-Based State Support

2. Establish Tuition Policy & Rates

Role of Board of Regents

1. Senior Administration

2. Academic Deans

Role of UGA

Appoint & Empower Academic Deans

Establish Policies & Procedures

1. Faculty Governance/Academic Policy

2. Hiring/Compensation Guidelines

3. Fiscal Responsibility & Financial Controls

Develop Strategic Plan for UGA

Academic Program Planning Process

Role of UGA Senior Administration

Deans establish Specific Program Priorities

Deans identify key Resource Needs

Deans/Provost establish Performance Measures

Reviewed annually during Budget Process

Gauge progress towards goals

Considered by Provost in Allocation decisions

DEFINES ACCOUNTABILITY


Appoint & Empower Academic Deans

Establish Policies & Procedures

1. Faculty Governance/Academic Policy

2. Hiring/Compensation Guidelines

3. Fiscal Responsibility & Financial Controls

Develop Strategic Plan for UGA


Allocate Resources to Schools & Colleges

Hold Deans Accountable

Role of UGA Senior Administration

Develop Academic Program Plan

DEFINES ACCOUNTABILITY

Implement Academic Program Plan

1. Develop & Manage Academic Programs

2. Develop & Manage Budget

3. Hire & Manage Faculty/Staff

4. Measure & Report Performance

Role of UGA’s Academic Deans

Scope of Budgetary Responsibilities

(department, college, institution, etc.)

1. Where the funding comes from?

2. Where does it go?

3. Changes/trends you have observed

Small Group Discussion

34

University of Georgia

Financial Overview

Where does it come from, where does it

go?

October 15, 2013Ryan Nesbit– Interim Vice President for Finance & Administration

UGA Cost of Attendance (Georgian undergrad)

FY 2014FY 2014 FY 2011FY 2011 FY FY 20012001

Tuition Tuition $8,028 $8,028 $7,070 $7,070 $2,506$2,506

Fees Fees $2,234 $2,234 $1,666 $1,666 $770$770

Books/SuppliesBooks/Supplies $ 916 $ 916 $1,030 $1,030 $610$610

HousingHousing $5,290 $5,290 $4,772 $4,772 $2,804$2,804

BoardBoard $3,956$3,956 $3,688$3,688 $2,276$2,276

TOTALTOTAL CostsCosts $20,424 $20,424 $18,226 $18,226 $8,966$8,966


FY 2014FY 2014 FY 2011FY 2011 FY FY 20012001

Tuition Tuition $8,028 $8,028 $7,070 $7,070 $2,506$2,506

Fees Fees $2,234 $2,234 $1,666 $1,666 $770$770


HousingHousing $5,290 $5,290 $4,772 $4,772 $2,804$2,804

BoardBoard $3,956$3,956 $3,688$3,688 $2,276$2,276


HOPE ScholarshipHOPE Scholarship $6,554$6,554 $8,240$8,240 $3,576$3,576

Due from StudentDue from Student $13,870 $13,870 $9,986 $9,986 $5,390$5,390

Zell Miller ScholarZell Miller Scholar (Add to HOPE)(Add to HOPE) $1,474$1,474Due from StudentDue from Student $12,396 $12,396

HOPE Coverage: HOPE Coverage: FY 2014FY 2014 Z. Miller HOPE Z. Miller HOPE FY 2011FY 2011 FY FY

20012001Tuition Tuition 100% 82% 100% 82% 100% 100% 100% 100%FeesFees 0%0% 0% 0% 70% 70% 100% 100%Total CostsTotal Costs 39% 32% 39% 32% 45% 45% 40% 40%


FY 2014FY 2014 FY 2011FY 2011 FY FY 20012001

Tuition Tuition $8,028 $8,028 $7,070 $7,070 $2,506$2,506

Fees Fees $2,234 $2,234 $1,666 $1,666 $770$770


HousingHousing $5,290 $5,290 $4,772 $4,772 $2,804$2,804

BoardBoard $3,956$3,956 $3,688$3,688 $2,276$2,276


HOPE ScholarshipHOPE Scholarship $6,554$6,554 $8,240$8,240 $3,576$3,576

Due from StudentDue from Student $13,870 $13,870 $9,986 $9,986 $5,390$5,390

Zell Miller ScholarZell Miller Scholar (Add to HOPE)(Add to HOPE) $1,474$1,474Due from StudentDue from Student $12,396 $12,396

HOPE Coverage: HOPE Coverage: FY 2014FY 2014 Z. Miller HOPE Z. Miller HOPE FY 2011FY 2011 FY FY

20012001Tuition Tuition 100% 82% 100% 82% 100% 100% 100% 100%FeesFees 0%0% 0% 0% 70% 70% 100% 100%Total CostsTotal Costs 39% 39% 32%32% 45% 45% 40%40%

Need-Based Scholarships

Georgia Access: Need-BasedGeorgia Access: Need-Based

Originally provided up to $1,000Originally provided up to $1,000

Currently up to $2,500Currently up to $2,500

Awarded to 199 students in 2012-2013Awarded to 199 students in 2012-2013

Georgia Gateway General: Need-based, Georgia Gateway General: Need-based, merit based, and to attract students with merit based, and to attract students with special talents. special talents.

Awarded up to $600 to students who had Awarded up to $600 to students who had lost Pell Grant funding due to federal lost Pell Grant funding due to federal budget cuts. budget cuts.

Need-Based Scholarships

Provost Need-Based Scholarship Program Provost Need-Based Scholarship Program & Financial Aid Emergency Funds & Financial Aid Emergency Funds

Awarded on a case by case basis for Awarded on a case by case basis for extenuating circumstances. extenuating circumstances.

UGA Advantage ScholarshipUGA Advantage Scholarship

Freshman in the middle income rangeFreshman in the middle income range

2010 AGI between $25K and $75K (not 2010 AGI between $25K and $75K (not qualify qualify for Federal Pell Grants) for Federal Pell Grants)

Renewable for a total of 8 semesters (FT) Renewable for a total of 8 semesters (FT)

Return on Investment - Earnings

$ 33,200 – High School Diploma$ 33,200 – High School Diploma

$ 54,750 – Bachelor’s Degree$ 54,750 – Bachelor’s Degree

$ 65,675 – Master’s Degree$ 65,675 – Master’s Degree

$ 80,650 – Doctoral Degree$ 80,650 – Doctoral Degree

$ 86,580 – Professional Degree$ 86,580 – Professional Degree

Return on Investment - Earnings

$ 33,200 – High School Diploma$ 33,200 – High School Diploma

$ 54,750 – Bachelor’s Degree$ 54,750 – Bachelor’s Degree

$ 65,675 – Master’s Degree$ 65,675 – Master’s Degree

$ 80,650 – Doctoral Degree$ 80,650 – Doctoral Degree

$ 86,580 – Professional Degree$ 86,580 – Professional Degree

$1.3 Million Lifetime earnings$1.3 Million Lifetime earnings

Return on Investment - Unemployment

9.4% – High School Diploma9.4% – High School Diploma

4.9% – Bachelor’s Degree4.9% – Bachelor’s Degree

3.6% – Master’s Degree3.6% – Master’s Degree

2.5% – Doctoral Degree2.5% – Doctoral Degree

2.4% – Professional Degree2.4% – Professional Degree

Return on Investment - Unemployment

24% – Recent High School Graduates24% – Recent High School Graduates

7% – Recent College Graduates7% – Recent College Graduates

UGA – Internal Revenue AnalysisGrowth

Tuition $311,758,288 60.5% 230.7% $94,273,855 53.4%

Student Fees $68,506,856 13.3% 284.3% $17,828,707 10.1%

Indirect Cost Recovery $27,021,634 5.2% 106.4% $13,094,383 7.4%

Miscellaneous Income $12,580,125 2.4% $0 0.0%

Dept. Sales & Service $95,248,931 18.5% 85.9% $51,239,669 29.0%

TOTAL BUDGET $515,115,834 192.0% $176,436,614

ENROLLMENT 34,500 32,317

FY 2014 FY 2002


Growth

State Appropriation $402,349,065 27.7% -9.0% $442,236,809 46.5%

Federal Appropriation $12,839,219 0.9% -1.8% $13,078,308 1.4%

Internal Revenue $515,115,834 35.4% 192.0% $176,436,614 18.5%

Sponsored $292,728,629 20.1% 52.0% $192,553,970 20.2%

Auxiliary Enterprises $196,419,200 13.5% 75.5% $111,938,091 11.8%

Private Funding $34,428,007 2.4% 131.1% $14,900,000 1.6%

TOTAL BUDGET $1,453,879,954 52.9% $951,143,792

ENROLLMENT 34,500 32,317

FY 2014 FY 2002

university of georgia financial overview where does it come from, where does it go?

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