Texas A&M University Corpus Christi President: Flavius C. Killebrew Established: 1947 Joined A&M System 1989

Transcription

1 EXECUTIVE BUDGET SUMMARY Fiscal Year Ending August 31, 2012

2 System Members Universities Prairie View A&M University President: George C. Wright Established: 1876 Tarleton State University President: F. Dominic Dottavio Established: 1899 Joined A&M System: 1917 Texas A&M International University President: Ray M. Keck, III Established: 1970 Joined A&M System: 1989 Texas A&M University President: R. Bowen Loftin Established: 1876 Texas A&M University at Galveston President/CEO: Robert Smith III Texas A&M University Central Texas President: Marc A. Nigliazzo Established: 2009 Texas A&M University Commerce President: Dan R. Jones Established: 1889 Joined A&M System: 1996 Texas A&M University Corpus Christi President: Flavius C. Killebrew Established: 1947 Joined A&M System 1989 Texas A&M University San Antonio President: Maria Hernandez Ferrier Established: 2009 Texas A&M University Kingsville President: Steven Tallant Established: 1925 Joined A&M System 1989 Texas A&M University Texarkana President: Carlisle Rathburn Established: 1971 Joined A&M System: 1996 West Texas A&M University President: J. Patrick O Brien Established: 1910 Joined A&M System: 1990 Health Science Center Texas A&M Health Science Center President: Nancy W. Dickey Established: 1999 Agencies Texas AgriLife Research Director: Craig L. Nessler agriliferesearch.tamu.edu Established: 1887 Texas AgriLife Extension Service Director: Edward G. Smith agrilifeextension.tamu.edu Established: 1915 Texas Forest Service Director: Thomas G. Boggus texasforestservice.tamu.edu Established: 1915 Texas Veterinary Medical Diagnostic Laboratory Director: Tammy Beckham tvmdl.tamu.edu Established: 1967 Texas Engineering Experiment Station Director: G. Kemble Bennett, Jr. tees.tamu.edu Established: 1914 Texas Engineering Extension Service Director: Gary F. Sera teexweb.tamu.edu Established: 1948 Texas Transportation Institute Director: Dennis L. Christiansen tti.tamu.edu Established: 1950 System Offices Texas A&M University System Interim Chancellor: Jay Kimbrough Established: 1948

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4 TEXAS A&M UNIVERSITY SYSTEM Introduction BUDGET NARRATIVE The Texas A&M University System remains committed to serving the citizens of the State of Texas and understands that the valuable, but limited, resources provided to us must be utilized in the most efficient and effective manner. The A&M System will continue to make every effort possible to keeping the cost of attending our universities affordable, expanding student access, improving existing programs, and being good stewards of the State s limited resources. In doing so, the A&M System will ensure the benefit to the State taxpayer is considered in every academic, research and service activity performed, which includes cost-cutting efficiencies achieved through the implementation of shared services. Currently, the final implementation steps are being taken to consolidate the College Station-based research administration activities within the System Offices. This initiative will reduce costs and increase efficiencies by creating a new centralized Office of Sponsored Research Services (OSRS) which will be responsible for all pre- and post- award services for all contracts and grants sought by, and awarded to, System members. The recent appropriations for the 2012/2013 biennium take into account a previous 5% state-mandated biennial appropriation reduction of $84.2 million, a FY % state-mandated reduction of $19.9 million, and an additional current 2012/2013 appropriation reduction of $128.8 million. For the upcoming biennium, these reductions total approximately $232.9 million (12.8%). However, given the A&M System s commitment to costcutting efficiencies and keeping the cost of attending our universities affordable, there were no increases to the overall designated tuition rates, with the exception of specific targeted differential designated tuition increases. At Texas A&M University, the overall tuition and fee increase was 0.42%. Please see Supplemental Information - Tabs #2 and #3 for additional appropriation and tuition and fee information. Revenues FY 2012 budgeted revenues are expected to exceed FY 2011 projected actual revenues by $75.9 million (2%). The FY 2012 budgeted increase is primarily due to increases in Tuition and Fees revenue associated with increased enrollment and Available University Fund (AUF) income. Overall, the FY 2012 budget shows a $72 million increase in State Appropriations. However, when the impact of the emergency wildfires reimbursement appropriated to the Texas Forest Service ($121 million) is excluded, State Appropriations are budgeted to decrease by $49 million (4.9%) when compared to FY 2011 projected actuals, and by $67.4 million (6.7%) when compared to the FY 2011 budgeted amount. Both the FY 2011 budgeted and projected amount take into consideration the 5% state-mandated reduction. 1

5 TEXAS A&M UNIVERSITY SYSTEM BUDGET NARRATIVE CONTINUED Overall funding from the Higher Education Fund (HEF) will remain level with FY 2011 since this allocation is made for a 5 year period (FY ). In general, HEF can be used to acquire land; construct, repair, and rehabilitate buildings; and purchase capital equipment and library books. AUF income is budgeted at $196.9 million, or $23 million more than FY 2011 projected actuals. This is due to a one-time increase in the PUF payout from 4.75% to 5.5%. The System Offices AUF excellence allocation will be $12.6 million per year. In addition, TAMU and PVAMU will receive $90.9 million and $15.1 million per year, respectively. In addition to projected increases in enrollment, several new and increased fees approved by student referendums have resulted in an overall increase to Tuition and Fees of $37.7 million (4%) over FY 2011 projections. Please see Supplemental Information - Tab #3 for designated tuition rates and total tuition and fees by member. Investment Income has been budgeted conservatively at $56.9 million for FY This is $8.9 million less than FY 2011 projected earnings and is based primarily on the Cash Concentration Pool estimated returns of 2.75% and the System Endowment Fund return of 28 cents per unit per year estimate, both of which are provided by the System Office s Treasury Services. Contracts and Grants reflect a decrease of $24.4 million (3%) primarily due to the expected decrease in Federal financial aid. Gifts were budgeted conservatively and therefore reflect a decrease when compared to FY 2011 projections. Expenditures FY 2012 Total Expenditures are budgeted at $3.3 billion. This is a decrease of $70.7 million (2%) when compared to FY 2011 projected actuals. In FY 2012, revenues are budgeted to exceed expenditures by a net $166 million. This increase in reserves is primarily associated with the $121 million repayment to the Texas Forest Service for the costs incurred associated with fighting wildfires. In addition, the Texas A&M Health Science Center received a total of $21 million via HB 4 for use over both years of the biennium. In general, institutional reserves are not being used for recurring operational needs. The explanation for the use of any reserves can be found at the end of each member s section. 2

6 TEXAS A&M UNIVERSITY SYSTEM BUDGET NARRATIVE CONTINUED Personnel Costs are budgeted at $1.9 billion and are expected to remain relatively level with FY 2011 projected actuals. Faculty and staff salaries are budgeted to increase by 1.1% over the FY 2011 projections but decrease by $13.1 million, when compared to the FY 2011 budget. The $13.1 million decrease is the result of various flexible hiring freezes and reductions in force implemented throughout the A&M System. System-wide personnel costs account for almost 61% of total expenditures (excluding debt service expenditures). Please see Supplemental Information Tab #1 for individual salary plans by member. Utilities are budgeted at $119.2 million, which is a decrease of $6 million (5%) from FY 2011 projected actuals. This overall net decrease is the result of a continued effort throughout the System to improve ongoing conservation efforts and better management of purchased utilities. Scholarships are projected to increase by $4.9 million (1%) over FY 2011 projections due, in part, to increases in the state mandated financial aid setasides associated with designated tuition. Capitalized Equipment and Operations and Maintenance costs are budgeted to decrease by a net $71.4 million (7.4%) when compared to FY 2011 projected actuals. The FY 2012 budgeted amounts are lower as a result of members implementing various cost cutting measures in anticipation of legislative appropriation reductions. Debt Service expenditures are budgeted to increase by $6.8 million (3%). Of the total debt service amount of $251.5 million, approximately $169.6 million (67.4%) and $81.9 million (32.6%) will be financed through the A&M System RFS and PUF debt financing programs, respectively. 3

7 THE TEXAS A&M UNIVERSITY SYSTEM FY 2012 Budget Graphs (In Thousands) FY 2012 BUDGET REVENUES $3,492,844 Total Tuition and Fees Available (Gross) University Fund Higher Education Fund Federal Appropriations State Appropriations Contracts and Grants Investment Income Other Income See Executive Budget Summary for amounts and percentages Gifts Sales and Services Operations and Maintenance (Net) Equipment (Capitalized) Scholarships FY 2012 BUDGET EXPENDITURES $3,326,854 Total Debt Service Utilities See Executive Budget Summary for amounts and percentages Personnel Costs FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Scholarships & Fellowships Student Service $120, Academic c Support $136,123 4% $412,254 4% 12% Research $558,157 17% Auxiliary $337,575 10% Public Service $171,408 5% Institutional Support $306,808 9% Operation & Maint of Plant $462,137 14% Instruction $822,234 25% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 4 Executive Budget Graphs Printed: 8/3/2011

8 THE TEXAS A&M UNIVERSITY SYSTEM FY 2012 EXECUTIVE BUDGET SUMMARY (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 1 1,805,308 1,783,516 1,903,101 1,978,856 2,118,332 2,133,233 14,902 1% REVENUES State Appropriations 990,136 1,006, ,370 1,011, ,174 98% 1,065, % 72,023 7% Federal Appropriations 35,122 43,213 37,308 42,931 38,923 91% 36, % (1,978) -5% Higher Education Fund 28,230 29,096 29,096 27,137 27, % 27, % 0 0% Available University Fund 154, , , , , % 196, % 23,038 13% Tuition and Fees (Gross) 689, , , , , % 950, % 37,717 4% Contracts and Grants 682, , , , , % 821, % (24,437) -3% Gifts 94, , ,354 76,169 85, % 79, % (6,249) -7% Sales and Services 373, , , , , % 427, % (2,335) -1% Investment Income (6,168) (59,160) 98,281 49,407 65, % 56, % (8,894) -14% Other Income 77,427 53,436 59,489 49,994 56, % 54, % (2,104) -4% Discounts (147,052) (190,498) (225,076) (190,241) (213,193) 112% (224,159) -6.4% (10,966) 5% TOTAL REVENUES 2,971,648 3,140,445 3,435,896 3,307,524 3,416, % 3,492, % 75,935 2% EXPENDITURES Salaries - Faculty 492, , , , , % 560, % 4,197 1% Salaries - Non-Faculty 719, , , , ,782 97% 815, % 10,848 1% Wages 116, , , , , % 129, % (11,010) -8% Benefits 321, , , , ,903 97% 356, % 1,553 0% Personnel Costs 1,649,936 1,783,075 1,861,230 1,878,788 1,856,448 99% 1,862, % 5,587 0% Utilities 112,807 94, , , ,195 93% 119, % (5,997) -5% Scholarships 264, , , , , % 429, % 4,903 1% Discounts (146,508) (189,959) (224,657) (189,851) (212,586) 112% (223,154) -6.7% (10,568) 5% Equipment (Capitalized) 91,976 72,379 86,028 72,708 85, % 74, % (10,424) -12% Operations and Maintenance (Net) 739, , , , , % 813, % (60,976) -7% Debt Service 203, , , , , % 251, % 6,786 3% TOTAL EXPENDITURES 2,915,717 3,153,076 3,207,824 3,330,794 3,397, % 3,326, % (70,688) -2% TRANSFERS RFS Debt Service (To System Office) (0) n/a 0 (0) n/a Other (78,181) (59,490) (47,631) 5,129 (4,465) -87% 5,323 9, % NET TRANSFERS (78,181) (59,490) (47,631) 5,129 (4,465) -87% 5,323 9, % NET INCREASE (DECREASE) (22,250) (72,121) 180,441 (18,140) 15,945-88% 171, ,368 >500% ENDING CURRENT FUND BALANCE 1,783,058 1,905,870 2,118,332 1,960,715 2,133, % 2,304, ,313 8% * Excludes estimated expense associated with Other Post-Employment Benefits ("OPEB"). TAMUS amount for FY 2008 is $140.3 million, FY 2009 $79.6 million, FY 2010 $122.5 million. 1 Actual Beginning Current Fund Balance may not equal prior year Ending Current Fund Balance due to Member restatements on their Annual Financial Report. Executive Budget Summary Printed: 8/3/2011 5

9 THE TEXAS A&M UNIVERSITY SYSTEM ACADEMICS and HEALTH SCIENCE CENTER FY 2012 Budget Graphs (In Thousands) Tuition and Fees (Gross) FY 2012 BUDGET REVENUES $2,593,106 Total Contracts and Grants Operations and Maintenance (Net) FY 2012 BUDGET EXPENDITURES $2,390,168 Total Available University Fund Higher Education Fund State Appropriations Federal Appropriations Other Income See Executive Budget Summary for amounts and percentages Gifts Sales and Services Investment Income Equipment (Capitalized) Scholarships Utilities See Executive Budget Summary for amounts and percentages Personnel Cost Scholarships & Fellowships $135,346 6% FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Student Service $120,157 5% Academic Support $412,254 17% Research $191,926 8% Public Service $47,169 2% Operation & Maint of Plant $198,162 8% Instruction $707,766 30% Auxiliary $337,575 14% Institutional Support $239,813 10% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 6 Executive Budget Graphs Printed: 7/29/2011

10 THE TEXAS A&M UNIVERSITY SYSTEM ACADEMICS and HEALTH SCIENCE CENTER FY 2012 EXECUTIVE BUDGET SUMMARY (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 1 976, , , ,599 1,087,360 1,181,393 94,033 9% REVENUES State Appropriations 785, , , , ,240 99% 752, % (36,313) -5% Federal Appropriations 5,833 6,526 7,761 9,383 8,518 91% 9, % 1,040 12% Higher Education Fund 28,230 29,096 29,096 27,137 27, % 27, % 0 0% Available University Fund 95, , , , , % 106, % 4,850 5% Tuition and Fees (Gross) 668, , , , , % 917, % 38,526 4% Contracts and Grants 385, , , , , % 493, % (21,191) -4% Gifts 90, , ,059 72,008 81, % 75, % (6,661) -8% Sales and Services 325, , , , , % 372, % (4,518) -1% Investment Income (15,369) (54,795) 74,765 32,817 47, % 39, % (8,116) -17% Other Income 28,057 28,743 25,704 18,277 24, % 22, % (1,328) -6% Discounts (146,619) (190,069) (224,714) (189,851) (212,216) 112% (223,154) -8.6% (10,938) 5% TOTAL REVENUES 2,249,492 2,370,193 2,643,517 2,531,049 2,637, % 2,593, % (44,528) -2% EXPENDITURES Salaries - Faculty 442, , , , ,515 99% 506, % 6,439 1% Salaries - Non-Faculty 494, , , , ,790 97% 566, % 5, % Wages 87, , ,965 99, , % 107, % (4,274) -4% Benefits 241, , , , ,146 98% 273, % 2,665 1% Personnel Costs 1,265,578 1,371,521 1,446,169 1,457,938 1,443,867 99% 1,454, % 10,418 1% Utilities 108,948 90, , , ,506 93% 108, % (6,210) -5% Scholarships 255, , , , , % 415, % 4,413 1% Discounts (146,508) (189,959) (224,657) (189,851) (212,586) 112% (223,154) -9.3% (10,568) 5% Equipment (Capitalized) 54,215 52,139 61,106 51,049 57, % 53, % (3,245) -6% Operations and Maintenance (Net) 506, , , , ,792 97% 581, % 28,209 5% Debt Service % 0 n/a (197) -100% TOTAL EXPENDITURES 2,044,929 2,189,575 2,325,825 2,376,150 2,367, % 2,390, % 22,820 1% TRANSFERS RFS Debt Service (To System Office) (144,388) (164,807) (146,497) (163,024) (168,824) 104% (163,194) 5,631-3% Other (54,416) (53,583) (28,165) 3,207 (7,432) -232% 6,763 14, % NET TRANSFERS (198,804) (218,390) (174,662) (159,818) (176,256) 110% (156,430) 19,826-11% NET INCREASE (DECREASE) 5,759 (37,772) 143,031 (4,919) 95,072 >500% 46,507 (48,565) -51% ENDING CURRENT FUND BALANCE 982, ,059 1,087, ,680 1,181, % 1,227,900 46,511 4% *Exclude estimated expense associated with Other Post-Employment Benefits ("OPEB"). Academic members and TAMHSC amount for FY 2008 is $96 million, FY 2009 $60.9 million, FY 2010 $94.1 million. 1 Actual Beginning Current Fund Balance may not equal prior year Ending Current Fund Balance due to Member restatements on their Annual Financial Report. Executive Budget Summary Printed: 8/3/2011 7

11 The Texas A&M University System Academics and Health Science Center Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 150,301 $ 154,699 $ 4,398 Designated 685, ,274 4,724 Auxiliary 169, ,928 12,764 Restricted 176, ,999 24,622 Total Net Change in Fund Balance $ 1,181,393 $ 1,227,900 $ 46,507 For detailed explanations, please see member schedules. K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 8/3/2011 8

12 THE TEXAS A&M UNIVERSITY SYSTEM AGENCIES FY 2012 Budget Graphs (In Thousands) FY 2012 BUDGET REVENUES $793,099 Total Tuition and Fees (Gross) Federal Appropriations Contracts and Grants Operations and Maintenance (Net) FY 2012 BUDGET EXPENDITURES $654,674 Total Gifts Personnel Costs State Appropriations Sales and Services Investment Income Equipment (Capitalized) Scholarships Other Income See Executive Budget Summary for amounts and percentages Utilities See Executive Budget Summary for amounts and percentages FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Institutional Support $40,016 6% Instruction $114,469 17% Operation & Maint of Plant $12,485 2% Research $363,465 56% Public Service $124,239 19% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 9 Executive Budget Graphs Printed: 7/26/2011

13 THE TEXAS A&M UNIVERSITY SYSTEM AGENCIES FY 2012 EXECUTIVE BUDGET SUMMARY (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 1 247, , , , , ,598 (78,919) -30% REVENUES State Appropriations 196, , , , ,587 96% 309, % 113,174 58% Federal Appropriations 29,288 36,687 29,546 33,549 30,405 91% 27, % (3,018) -10% Tuition and Fees (Gross) 20,988 19,583 18,917 19,624 33, % 33, % (809) -2% Contracts and Grants 290, , , , ,822 95% 323, % 4,169 1% Gifts 4,331 4,177 5,949 3,968 3,435 87% 3, % % Sales and Services 47,407 49,129 51,266 45,094 52, % 55, % 2,783 5% Investment Income (4,057) (6,964) 12,916 8,159 9, % 8, % (529) -6% Other Income 32,505 32,665 32,337 31,717 32, % 31, % (776) -2% Discounts (432) (429) (361) (390) (977) 251% (1,005) -0.1% (28) 3% TOTAL REVENUES 617, , , , ,645 99% 793, % 115,454 17% EXPENDITURES Salaries - Faculty 49,752 54,349 56,159 53,166 53, % 51, % (2,125) -4% Salaries - Non-Faculty 213, , , , ,772 97% 237, % 4,088 2% Wages 28,787 29,096 26,348 24,319 28, % 22, % (6,408) -22% Benefits 77,315 80,560 83,360 84,674 80,962 96% 79, % (1,643) -2% Personnel Costs 369, , , , ,484 98% 391, % (6,088) -2% Utilities 3,746 3,532 10,352 10,451 10,206 98% 10, % 214 2% Scholarships 8,944 10,540 14,033 11,419 12, % 12, % (188) -1% Equipment (Capitalized) 18,944 19,980 24,182 21,567 23, % 20, % (2,571) -11% Operations and Maintenance (Net) 215, , , , , % 219, % (92,415) -30% Debt Service n/a 0 n/a 0 n/a TOTAL EXPENDITURES 616, , , , , % 654, % (101,048) -13% TRANSFERS RFS Debt Service (To System Office) (264) (490) (4,552) (3,409) (3,805) 112% (4,777) (972) 26% Other 1,120 9,832 (1,988) 1,942 2, % 1,800 (1,167) -39% NET TRANSFERS 857 9,342 (6,540) (1,467) (838) 57% (2,977) (2,139) 255% NET INCREASE (DECREASE) 1,686 (2,429) 15,771 1,858 (78,915) >-500% 135, , % ENDING CURRENT FUND BALANCE 249, , , , ,602 69% 317, ,445 75% *Exclude estimated expense associated with Other Post-Employment Benefits ("OPEB"). Agency Members amount for FY 2008 is $42.3 million, FY 2009 $17.4 million, FY 2010 $26.7 million. 1 Actual Beginning Current Fund Balance may not equal prior year Ending Current Fund Balance due to Member restatements on their Annual Financial Report. 10 Executive Budget Summary Printed: 8/3/2011

14 The Texas A&M University System Agencies Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ (13,741) $ 126,401 $ 140,142 Designated 161, ,499 (3,564) Auxiliary Restricted 34,277 33,147 (1,130) Total Net Change in Fund Balance $ 181,598 $ 317,047 $ 135,448 For detailed explanations, please see member schedules. K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 7/29/

15 PRAIRIE VIEW A&M UNIVERSITY BUDGET NARRATIVE Revenues Prairie View A&M University is projecting FY 2012 Total Revenues to decrease 1%, or $1.9 million, as compared to FY 2011 projected actuals. This decrease is primarily due to a $5.7 million reduction in general revenue appropriations and a $2.2 million reduction in Contracts and Grants, the majority of which is a reduction in the Texas Grant Program. In addition to the revenue line item decreases, Prairie View A&M University is also projecting a $3 million, or 25%, increase in Available University Fund, and an increase in Fees in the amount of $5 million. These increases are somewhat offset by a budgeted decrease in state and designated tuition of $2.1 million. The increase in fees is a result of several new and increased fees including the Recreational Sports Fee, Instructional Enhancement Fee, Transportation Fee, and Health Center Fee. Gifts, Sales and Services, and Other Income are budgeted conservatively and therefore reflect a decrease when compared to FY 2011 projected actuals. Expenditures FY 2012 Total Expenditures are estimated to increase 5%, or $7.95 million, over FY 2011 projected actuals. This increase in the expenditure budget is primarily attributable to the following items: Personnel Costs are budgeted to increase 2% over FY 2011 projected actuals as a result of budgeting non-faculty unallocated salaries for contingency purposes. This increase is somewhat offset by a decrease in faculty salaries due to a review and phaseout of low producing classes. Operations and Maintenance budget increases are primarily the result of new and increased student fees, including the Recreational Sports Fee and contingency funds set aside for future needs. The Recreational Sports Fee will be used to provide recreational, intramural and leisure activities for our students. Associated costs with this facility include hiring of additional staff, equipment purchases, maintenance and repair of current equipment, planning and design for a new facility, as well as 1

16 PRAIRIE VIEW A&M UNIVERSITY BUDGET NARRATIVE CONTINUED estimated facilities construction debt service. Other fee increases will be used for specific purposes such as instructional enhancement, equipment enhancement, and health center uses. Because of the expected decrease in financial aid, PVAMU budgeted additional scholarship funding, targeting both graduate and undergraduate students at the main campus and at the Northwest Houston Center. Transfers RFS Debt Service transfers are budgeted at $10.8 million. The transfer includes funds for the Student Center and for projects related to Juvenile Justice, Electrical Engineering, the parking garage at the College of Nursing, and various rehabilitation projects. 2

17 THE TEXAS A&M UNIVERSITY SYSTEM Prairie View A&M University FY 2012 Budget Graphs (In Thousands) FY 2012 BUDGET REVENUES $183,682 Total FY 2012 BUDGET EXPENDITURES $170,908 Total Available University Fund Tuition and Fees (Gross) Contracts and Grants Gifts Operations and Maintenance (Net) Equipment (Capitalized) Personnel Costs Sales and Services State Appropriations Federal Other Income Appropriations See Executive Budget Summary for amounts and percentages Investment Income Scholarships Utilities See Executive Budget Summary for amounts and percentages FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Scholarships & Fellowships $21,462 12% Research $11,682 7% Student Service $9,981 6% Academic Support $20,060 12% Auxiliary $26,943 16% Public Service $8,003 5% Institutional Support $21,249 12% Operation & Maint of Plant $14,931 9% Instruction $36,598 21% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 3 Executive Budget Graphs Printed: 7/26/2011

18 THE TEXAS A&M UNIVERSITY SYSTEM Prairie View A&M University FY 2012 Executive Budget Summary (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 87, , , , , ,289 11,924 11% REVENUES State Appropriations 65,231 60,648 59,628 62,616 60,520 97% 54,842 30% (5,678) -9% Federal Appropriations 5,821 6,514 7,746 9,383 8,500 91% 9,558 5% 1,058 12% Available University Fund 12,150 12,150 12,150 12,150 12, % 15,140 8% 2,990 25% Tuition and Fees (Gross) 50,837 51,938 57,763 56,312 60, % 63,088 34% 2,913 5% Contracts and Grants 31,905 37,185 43,234 37,122 42, % 40,322 22% (2,178) -5% Gifts , % 472 0% (478) -50% Sales and Services 13,857 14,527 15,652 14,294 15, % 15,118 8% (382) -2% Investment Income 1,048 (379) 4,450 4,806 3,750 78% 4,172 2% % Other Income 3,490 3,430 3,265 2,725 2,551 94% 2,339 1% (212) -8% Discounts (16,339) (21,529) (24,006) (20,442) (21,000) 103% (21,368) -12% (368) 2% TOTAL REVENUES 168, , , , , % 183, % (1,914) -1% Percent Change 3.9% -2.2% 9.6% -0.9% 2.5% 2.4% EXPENDITURES Salaries - Faculty 25,198 26,650 27,098 28,932 27,500 95% 26,939 16% (561) -2% Salaries - Non-Faculty 33,660 35,644 36,821 42,779 38,500 90% 40,618 24% 2,118 6% Wages 5, ,527 4,603 4,639 4,500 97% 4,035 2% (465) -10% Benefits 15,460 16,027 17,250 19,065 18,500 97% 19,041 11% 541 3% Personnel Costs 79,870 82,848 85,771 95,414 89,000 93% 90,633 53% 1,633 2% Utilities 5,245 4,981 5,380 5,877 5,400 92% 5,141 3% (259) -5% Scholarships 28,927 37,811 41,893 38,509 42, % 44,384 26% 1,884 4% Discounts (16,339) (21,529) (24,006) (20,442) (21,368) 105% (21,368) -13% 0 0% Equipment (Capitalized) 2,478 4,446 3,563 2,058 3, % 3,109 2% (91) -3% Operations and Maintenance (Net) 37,849 42,747 42,771 45,029 44,108 98% 49,009 29% 4,901 11% Debt Service n/a 0 0% (117) -100% TOTAL EXPENDITURES 138, , , , ,957 98% 170, % 7,951 5% Percent Change 3.9% 9.6% 2.7% 7.0% 4.8% 2.7% TRANSFERS RFS Debt Service (To System Office) (11,581) (11,648) (11,404) (10,880) (10,803) 99% (10,772) 31 0% Other 436 (1,471) (7,268) 0 80 n/a 0 (80) -100% NET TRANSFERS (11,145) (13,119) (18,672) (10,880) (10,723) 99% (10,772) (49) 0% NET INCREASE (DECREASE) 19, ,853 2,112 11,916 >500% 2,002 (9,914) -83% ENDING CURRENT FUND BALANCE 106, , , , , % 127,291 2,010 2% * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). PVAMU amount for FY 2008 is $6.69 million, FY 2009 $3.9 million, FY 2010 $5.8 million. Executive Budget Summary 4 Printed:8/3/2011

19 Prairie View A&M University Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 46,000 $ 46,000 $ - Designated 56,489 58,628 2,139 Auxiliary 8,800 8,661 (139) Restricted 14,000 14,002 2 Net Change in Fund Balance - Current Funds $ 125,289 $ 127,291 $ 2,002 Explanation for Net Decrease* Auxiliary $ (139) Use of fund balance in this fund group is due to the Auxiliary Support Services Unit. This unit will be scheduled for review during FY 2012 in order to right-size the operations of this unit. * if applicable 5 A\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 8/3/2011

20 TARLETON STATE UNIVERSITY BUDGET NARRATIVE Revenues Tarleton is projecting FY 2012 revenues to increase $5.4 million, or 4%, over the FY 2011 projected actuals. State Appropriations will decrease in total by $2.3 million due to reductions in the appropriation bill and in employee health insurance funding. Tuition and Fees revenue growth of $3 million, or 6%, is forecast for FY 2012 as the result of a projected increase in enrollment and an increase in mandatory fee rates. Mandatory fees for undergraduate students will increase by $5.31, or 2.53% per SCH. Contracts and Grants will increase by $1.1 million over FY 2011 projections due to increases in Pell Grant awards and in Rural Law Enforcement grant funding. Total Sales and Services are budgeted to increase by $4.3 million, or 26%, as a result of the addition of two new student housing facilities along with other room and board rate increases averaging 3%. Expenditures Overall expenditure projections are budgeted to increase by $6.1 million, or 5%, over FY 2011 projected actuals. Personnel costs will increase by $1.4 million, or 2%, due to salary increases for existing faculty and staff. The 12%, or $3.9 million, increase in Operations and Maintenance is the result of costs associated with the operation of two new residence halls along with increased costs connected with the new Multi-Institution Teaching Center and the Rural Law Enforcement grant. Scholarships will increase due to additional mandated tuition set-aside funding and Pell Grant contract revenues. Transfers A decrease of $312,000 in FY 2012 Debt Service is the result of lowered TRB funding offset partially by debt on new student housing. Other transfers include PUF funds provided by the System Offices for equipment purchases. 1

21 THE TEXAS A&M UNIVERSITY SYSTEM Tarleton State University FY 2012 Budget Graphs (In Thousands) FY 2012 BUDGET REVENUES $135,670 Total FY 2012 BUDGET EXPENDITURES $126,975 Total Tuition and Fees (Gross) Contracts and Grants Operations and Maintenance (Net) Gifts Personnel Costs State Appropriations Other Income Investment Income See Executive Budget Summary for amounts and percentages Sales and Services Equipment (Capitalized) Scholarships Utilities See Executive Budget Summary for amounts and percentages FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Scholarships & Fellowships $15,467 12% Student Service $5,472 4% Academic Support $8,194 7% Auxiliary $21,146 17% Research $9,175 7% Public Service $4,323 3% Institutional Support $15,919 13% Operation & Maint of Plant $10,564 8% Instruction $36,716 29% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) T 2 Executive Budget Graphs Printed: 7/26/2011

22 THE TEXAS A&M UNIVERSITY SYSTEM Tarleton State University FY 2012 Executive Budget Summary (dollars in thousands) FY12 Budget to FY 2008* / ** FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 39,048 37,334 41,324 37,750 40,901 40,900 (1) 0% REVENUES State Appropriations 47,773 38,913 38,035 39,705 38,273 96% 36,015 27% (2,258) -6% Tuition and Fees (Gross) 44,046 49,109 46,394 48,703 52, % 55,414 41% 3,014 6% Contracts and Grants 17,969 25,444 32,311 25,213 32, % 33,051 24% 1,051 3% Gifts 967 1,683 1, % 642 0% (83) -11% Sales and Services 15,078 15,385 15,542 16,520 16,400 99% 20,670 15% 4,270 26% Investment Income (231) (1,463) 4,534 2,647 2, % 2,733 2% 33 1% Other Income % 345 0% (221) -39% Discounts (8,328) (11,061) (12,556) (9,900) (12,800) 129% (13,200) -10% (400) 3% TOTAL REVENUES 117, , , , , % 135, % 5,406 4% Percent Change 7.0% 0.9% 6.2% -1.8% 3.4% 9.6% EXPENDITURES Salaries - Faculty 25,298 22,559 23,362 22,329 23, % 24,120 19% 490 2% Salaries - Non-Faculty 23,224 23,401 22,249 24,303 24, % 25,390 20% 717 3% Wages 3,513 3,977 4,182 3,169 3,100 98% 3,059 2% (41) -1% Benefits 13,801 13,657 13,041 14,412 13,550 94% 13,741 11% 191 1% Personnel Costs 65,837 63,593 62,832 64,212 64, % 66,311 52% 1,358 2% Utilities 4,357 3,959 4,057 4,445 4, % 4,771 4% 171 4% Scholarships 17,244 21,838 24,101 22,268 29, % 30,047 24% 1,047 4% Discounts (8,328) (11,061) (12,556) (9,900) (12,800) 129% (13,200) -10% (400) 3% Equipment (Capitalized) 1,694 3,021 1,142 2,030 1,550 76% 1,555 1% 5 0% Operations and Maintenance (Net) 23,168 27,151 29,945 31,641 33, % 37,490 30% 3,929 12% TOTAL EXPENDITURES 103, , , , , % 126, % 6,111 5% Percent Change 5.1% 4.4% 0.9% 4.7% 10.4% 10.7% TRANSFERS RFS Debt Service (To System Office) (9,639) (10,366) (10,735) (11,952) (12,065) 101% (11,753) 312-3% Other (2,849) 4,179 (6,183) 3,171 2,665 84% 3, % NET TRANSFERS (12,489) (6,187) (16,918) (8,781) (9,400) 107% (8,607) 793-8% NET INCREASE (DECREASE) 1,182 3,990 (423) n/a n/a ENDING CURRENT FUND BALANCE 40,230 41,324 40,901 38,009 40, % 40, % * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). TARLETON amount for FY 2008 is $5.83 million, FY 2009 $3.5 million, FY 2010 $4.7 million. ** FY 2008 Actuals include TAMU-CT activity Executive Budget Sumary 3 Printed: 7/28/2011

23 Tarleton State University Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 2,500 $ 2,385 $ (115) Designated 27,150 26,864 (286) Auxiliary 8,150 8, Restricted 3,100 3,075 (25) Net Change in Fund Balance - Current Funds $ 40,900 $ 40,989 $ 89 Functional and General $ (115) Designated $ (286) Restricted $ (25) Explanation for Net Decrease* Funds remaining unspent from THECB allocation for the Nursing shortage reduction program have been budgeted in Debt transfers for the Thompson student development center exceeded designated tuition allocated for that purpose, and $200,000 in balances were utilized. The Tarleton School Leadership Alliance program budgeted $108,000 in remaining 2011 balances. These were partially offset by $21,726 in net increases in fund balance in numerous other accounts. Remaining small balances of numerous scholarship and other restricted balances were budgeted. * if applicable 4 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 7/27/2011

24 TEXAS A&M INTERNATIONAL UNIVERSITY BUDGET NARRATIVE Revenues Total Revenues in FY 2012 are projected to decrease 7%, or $7.1 million, from FY 2011 projected revenue primarily as a result of reductions in state appropriations, contracts and grants, and gifts. State appropriations have decreased by $4.6 million, or 12%. Uncertainty with the future of financial aid has led to a projected decrease in enrollment, resulting in a budgeted decrease in statutory tuition revenue of $463,000 and a $602,000 decrease in designated tuition revenue. However, increases in the technology, library, energy, athletics, and various voluntary fees are expected to generate an additional $1.6 million in fees, resulting in a net increase in Tuition & Fees of $526,000. Contracts and Grants are budgeted to decrease $2 million, due to changes in financial aid grant programs. Gifts are expected to decrease by $991,000 based on conservative estimates. Investment Income and Sales and Services are expected to generate an additional $40,000 over FY 2011 projected actuals. Expenditures Total budgeted expenditures in FY 2012 are projected to decrease 4%, or $3.9 million, from FY 2011 projected actual expenditures. Faculty and non-faculty salaries are expected to increase by a total of $870,000 as follows: $39,000 in faculty promotions and market driven adjustments, and $831,000 in new salaries and graduate assistant stipends funded by grants. Wages are expected to decrease by $49,000 due to a reduction in work-study program funding. Benefits are projected to increase by $59,000 due to the personnel items mentioned above. Utility expenditures are expected to increase by $30,000 due to minor construction projects coming online. Scholarships are projected to decrease by $4.5 million due to a decrease in federal financial aid grant awards and delays in philanthropic pledge collections. Equipment expenses are expected to increase by $524,000 due to increased equipment purchases associated with contract awards and increased library subscription costs (both physical and virtual). Operations and Maintenance is expected to decrease by $837,000 in response to reduced appropriations. 1

25 TEXAS A&M INTERNATIONAL UNIVERSITY BUDGET NARRATIVE CONTINUED Transfers RFS Debt Service transfers are budgeted at $10.4 million. This is comprised of TRB debt service funded with general revenue ($8.4 million), higher education funds ($425,000), fees ($543,000), and auxiliary revenue ($1 million). Of the $10.4 million, $8.9 million will be used for the recent and previous construction of the University Success Center, the Fine Arts Theater, the loop road extension, the Science Building, the Fine Arts Building, and the Kinesiology Building. The remaining $1.6 million will be used for the Student Center Building and Residential Learning Center. 2

26 T THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M International University FY 2012 Budget Graphs (In Thousands) Contracts and Grants Gifts FY 2012 BUDGET REVENUES $94,889 Sales and Services Total Investment Income Other Income State Appropriations Equipment (Capitalized) Operations and Maintenance (Net) FY 2012 BUDGET EXPENDITURES $84,444 Total Personnel Costs Tuition and Fees (Gross) See Executive Budget Summary for amounts and percentages Higher Education Fund Scholarships Utilities See Executive Budget Summary for amounts and percentages Scholarships & Fellowships $6,383 8% Research $2,123 2% Public Service $1,665 2% FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Student Service $6,716 8% Academic Support $22,365 26% Auxiliary $5,445 6% Institutional Support $10,861 13% Operation & Maint of Plant $8,983 11% Instruction $19,902 24% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 3 Executive Budget Graphs Printed: 8/3/2011

27 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M International University FY 2012 Executive Budget Summary (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 11,242 13,073 20,522 21,346 26,890 29,567 2,677 10% REVENUES State Appropriations 44,574 43,733 39,356 38,423 38, % 33,785 36% (4,639) -12% Higher Education Fund 3,130 3,202 3,202 3,796 3, % 3,796 4% 0 0% Tuition and Fees (Gross) 22,717 25,984 29,286 30,618 32, % 33,258 35% 526 2% Contracts and Grants 18,690 22,698 31,145 29,561 29, % 27,952 29% (2,037) -7% Gifts 2,236 5,040 4,067 2,923 4, % 3,019 3% (991) -25% Sales and Services 3,630 3,835 4,535 3,900 4, % 4,031 4% 30 1% Investment Income , % 904 1% 10 1% Other Income % 644 1% (1) 0% Discounts (8,271) (10,419) (14,935) (9,400) (12,500) 133% (12,500) -13% 0 n/a TOTAL REVENUES 87,154 94,673 98, , , % 94, % (7,102) -7% Percent Change 21.2% 8.6% 4.2% 2.3% 3.3% -6.0% EXPENDITURES Salaries - Faculty 13,579 14,459 15,921 17,037 16,097 94% 16,856 20% 759 5% Salaries - Non-Faculty 15,653 16,704 17,968 18,894 19, % 19,491 23% 111 1% Wages 2,194 2,666 3,125 2,436 2, % 2,936 3% (49) -2% Benefits 7,389 7,926 9,182 8,665 9, % 9,248 11% 59 1% Personnel Costs 38,815 41,755 46,195 47,032 47, % 48,531 57% 880 2% Utilities 1,899 2,180 1,975 2,351 2,135 91% 2,165 3% 30 1% Scholarships 17,317 18,000 26,781 27,230 29, % 25,141 30% (4,539) -15% Discounts (8,271) (10,419) (14,935) (9,400) (12,500) 133% (12,500) -15% 0 n/a Equipment (Capitalized) 1,105 1,865 2,189 4,457 4,409 99% 4,933 6% % Operations and Maintenance (Net) 16,316 16,378 18,076 17,338 17,011 98% 16,174 19% (837) -5% TOTAL EXPENDITURES 67,181 69,760 80,282 89,008 88,386 99% 84, % (3,942) -4% Percent Change 10.1% 3.8% 15.1% 10.9% 10.1% -5.1% TRANSFERS RFS Debt Service (To System Office) (18,704) (18,680) (13,392) (11,971) (11,971) 100% (10,446) 1,525-13% Other , ,043 n/a 0 (1,043) -100% NET TRANSFERS (18,141) (17,934) (12,046) (11,971) (10,928) 91% (10,446) 482-4% NET INCREASE (DECREASE) 1,831 6,979 6, ,677 n/a 0 (2,677) -100% ENDING CURRENT FUND BALANCE 13,073 20,052 26,890 21,346 29, % 29,567 (0) 0% * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). TAMIU amount for FY 2008 is $3.29 million, FY 2009 $1.9 million, FY 2010 $3 million. 4 Executive Budget Summary Printed: 7/27/2011

28 Texas A&M International University Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 150 $ 150 $ - Designated 8,800 8,800 - Auxiliary 2,100 2,100 - Restricted 18,517 18,517 - Net Change in Fund Balance - Current Funds $ 29,567 $ 29,567 $ - Explanation for Net Decrease* * if applicable 5 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 7/27/2011

29 TEXAS A&M UNIVERSITY BUDGET NARRATIVE Introduction In preparation for additional 2012/2013 appropriation reductions, Texas A&M began planning through the Vice Presidents and Deans for a $60 million budget reduction/reallocation, which included a worst-case scenario of a $39 million reduction in state appropriations to be implemented September 1, The remaining $21 million would be reallocated to high priority needs across the campus. During this process, key constituent groups were engaged regarding the allocation process to anticipate consequences and analyze impacts to Education First, the university s 5-year strategic plan. Additionally, President Loftin hosted a series of Town Hall meetings to allow faculty, staff and students an opportunity to provide input. A budget reallocation working group convened to review all the inputs and determine the appropriate priorities to apply to the identified funds. The group developed the following Recommended Strategic Objectives and Allocations, and these reallocations are reflected in the FY 2012 budget: Foundational Strategic Objective: Address compliance, health, safety, and stewardship of facilities at TAMU. Overarching Strategic Objective 1: Improve undergraduate and graduate student learning and faculty engagement through high-impact educational practices. Overarching Strategic Objective 2: Without increasing the current total student enrollment on our main campus, reduce the time to degree and increase the number of graduating students annually while continuing to increase the quality and diversity of the student body. Overarching Strategic Objective 3: Create a campus culture that values and supports the contributions of a diverse community of faculty, staff, and students dedicated to the educational mission of Texas A&M and makes it the employer of choice. Overarching Strategic Objective 4: Maintain our facilities by strategically allocating funding to address deferred maintenance. Note: Because the university s reallocation process began in FY 2010, many areas began implementing cost-cutting measures immediately, thereby impacting FY 2011 projected expenses. 1

30 TEXAS A&M UNIVERSITY BUDGET NARRATIVE CONTINUED Revenues Overall, the FY 2012 revenue budget for TAMU will decrease 4%, or $54.2 million, compared to FY 2011 projections. As a result of a decrease in state funding for the FY biennium, State Appropriations are down approximately $20.2 million, or 7%, when compared to FY 2011 projections. State Appropriations are down $35.8 million, or 13.5%, when compared to the original FY 2011 State Appropriation budgeted amount. TAMU will receive an increase in Available University Funding (AUF) of $1.86 million, or 2%. Despite the implementation of Differential Tuition for three additional colleges within the university, increases in Hazlewood exemptions offset projected Tuition & Fee revenue increases. Differential Tuition programs were approved for and will be implemented by the College of Agriculture & Life Sciences, the College of Architecture, the Dwight Look College of Engineering, and the Mays Business School. Approved Differential Tuition for the College of Veterinary Medicine will be implemented in the Fall of The increase in revenue from these sources adds $6.8 million to Designated Tuition. However, Designated Tuition exemptions are projected to increase $12.7 million in FY 2012 as compared to the FY 2011 budget. There was no increase in the overall Designated Tuition rate for FY Contracts and Grants revenue is budgeted to decrease by $12.5 million from FY 2011 projections. This is primarily driven by a reduction in Texas Grant funding, the loss of performance incentive funding (provided by the Coordinating Board) and federal stimulus funding. Due to slowly improving economic conditions, outside personal donations to the university are budgeted to increase. Therefore, Gifts are projected to increase by 2%, or $1.1 million, compared to FY 2011 projections. The decrease to Sales and Services of $13.4 million is primarily the result of an accounting change in how utility costs associated with space occupied on the A&M campus are allocated to the A&M Service Agencies and the Health Science Center. Previously, the revenue and associated costs were transferred to and paid for by TAMU. These costs will now be a direct bill to the A&M Service Agencies and the Health Science Center. 2

31 TEXAS A&M UNIVERSITY BUDGET NARRATIVE CONTINUED Investment Income has been budgeted conservatively due to the unpredictability of the financial markets. This amount does not include an estimate for any realized gains that may be earned during the year. The increase in budgeted Discounts is directly related to the expected increase in Tuition & Fees from differential tuition and the growth in exemptions. Expenditures Overall expenditures for TAMU are budgeted to decrease by $17.5 million compared to FY 2011 projections and $46.2 million compared to the FY 2011 budget. As noted earlier, many areas of the university implemented cost-cutting measures in FY 2010 as a result of the budget reallocation process. Despite reductions in State Appropriations, the university continues to move forward with planned initiatives, using internally reallocated funds. Personnel Costs, comprising 64% of the total university expenditure budget, are budgeted to decrease 1% for FY 2012, or almost 2% when compared to the FY 2011 budget. Total Salaries are budgeted to decrease by 1%; the elimination of vacant positions was partially offset by required tenured faculty promotions, pay increases for lowest paid employees, and additional funding for graduate assistantships through the budget reallocation process. Also, as a result of the reduction in State Appropriations, many departments were forced to move salaries from general revenue funded accounts to other institutional sources of funding. Wages are budgeted to decrease by 2%, or $1.3 million, due to the use of fewer temporary personnel and student positions in response to budget reductions. Total Benefits are budgeted to decrease 1% compared to FY 2011 projections and 5.5% compared to the FY 2011 budget. Utilities are budgeted to decrease $8.8 million, largely due to the utility accounting change mentioned earlier and as a result of the continued emphasis on energy conservation. Scholarships are budgeted to decrease $1.5 million, or 1%, compared to projections, primarily due to a reduction in financial aid funding provided by the state. 3

32 TEXAS A&M UNIVERSITY BUDGET NARRATIVE CONTINUED Capital Equipment is budgeted to decrease $2.3 million, or 9%, due to budget reductions. Operations and Maintenance (O&M) is expected to increase $6.8 million, or 3%, over FY 2011 projections. However, when compared to the FY 2011 budget, O&M costs are budgeted to decrease by 6%, or $17.2 million. Again, departments began implementing cost cutting measures late in FY 2010 in anticipation of budget reductions. The anticipated decrease for FY 2012 in O&M costs is offset by the reallocation of resources to fund future strategic objectives (as discussed in the introduction). Transfers Transfers to the System Offices to cover Revenue Financing System (RFS) Debt Service obligations are decreasing by 8% compared to FY 2011 projections as several bond issues are being retired. The Department of Athletics made $4 million in principal payments in FY 2011 that were not part of the original budget. 4

33 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University FY 2012 Budget Graphs (In Thousands) Sales and Services Gifts Investment Income FY 2012 BUDGET REVENUES $1,285,178 Total Other Income State Appropriations Available University Fund FY 2012 BUDGET EXPENDITURES Operations and Maintenance (Net) $1,180,873 Total Equipment (Capitalized) Personnel Costs Contracts and Grants Tuition and Fees (Gross) Scholarships Utilities See Executive Budget Summary for amounts and percentages See Executive Budget Summary for amounts and percentages Scholarships & Fellowships $32,582 3% Research $86,878 7% Public Service $17,748 1% Operation & Maint of Plant $87,043 7% FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Student Service $51,267 4% Academic Support $281,185 24% Auxiliary $195,076 17% Instruction $349,093 30% Institutional Support $80,002 7% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 5 Executive Budget Graphs Printed: 7/26/2011

34 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University FY 2012 Executive Budget Summary (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 602, , , , , ,827 65,885 11% REVENUES State Appropriations 299, , , , ,191 98% 285,952 22% (20,239) -7% Available University Fund 83,300 91,100 88,500 89,000 89, % 90,860 7% 1,860 2% Tuition and Fees (Gross) 367, , , , , % 453,732 35% 182 0% Contracts and Grants 212, , , , , % 239,338 19% (12,544) -5% Gifts 63,388 92,906 75,080 55,601 56, % 57,918 5% 1,193 2% Sales and Services 218, , , , , % 240,386 19% (13,440) -5% Investment Income (16,556) (49,660) 40,381 12,459 24, % 18,393 1% (6,525) -26% Other Income 21,341 21,512 18,957 13,821 18, % 17,296 1% (818) -5% Discounts (78,799) (100,401) (113,734) (103,066) (114,813) 111% (118,697) -9% (3,884) 3% TOTAL REVENUES 1,171,693 1,244,062 1,345,178 1,288,943 1,339, % 1,285, % (54,214) -4% Percent Change 2.5% 6.2% 8.1% -4.2% -0.2% -0.3% EXPENDITURES Salaries - Faculty 244, , , , ,414 99% 262,936 22% (2,478) -1% Salaries - Non-Faculty 268, , , , ,030 98% 284,570 24% (2,460) -1% Wages 52,960 68,454 75,966 68,308 76, % 75,630 6% (1,322) -2% Benefits 129, , , , ,801 96% 135,343 11% (1,458) -1% Personnel Costs 694, , , , ,197 99% 758,479 64% (7,717) -1% Utilities 73,047 55,189 66,838 79,353 73,319 92% 64,511 5% (8,808) -12% Scholarships 120, , , , , % 181,528 15% (1,520) -1% Discounts (78,799) (100,401) (113,734) (103,066) (114,813) 111% (118,697) -10% (3,884) 3% Equipment (Capitalized) 34,555 30,415 36,449 26,714 26,352 99% 24,025 2% (2,326) -9% Operations and Maintenance (Net) 275, , , , ,160 92% 271,026 23% 6,866 3% Debt Service n/a 0 0% (80) -100% TOTAL EXPENDITURES 1,119,340 1,171,120 1,201,778 1,227,056 1,198,342 98% 1,180, % (17,469) -1% Percent Change 9.7% 4.6% 2.6% 2.1% -0.3% -3.8% TRANSFERS RFS Debt Service (To System Office) (54,899) (72,998) (58,882) (64,722) (68,519) 106% (63,221) 5,298-8% Other (33,806) (42,123) (7,885) 1,582 (6,645) -420% 3,464 10, % NET TRANSFERS (88,705) (115,121) (66,767) (63,140) (75,164) 119% (59,757) 15,407-20% NET INCREASE (DECREASE) (36,351) (42,180) 76,634 (1,253) 65,885 >500% 44,548 (21,337) -32% ENDING CURRENT FUND BALANCE 566, , , , , % 711,375 44,548 7% * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). TAMU amount for FY 2008 is $47.65 million, FY 2009 $32.2 million, FY 2010 $49.9 million. 6 Executive Budget Summary Printed: 7/27/2011

35 Texas A&M University Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 12,078 $ 11,757 $ (321) Designated 426, ,548 7,141 Auxiliary 116, ,211 12,612 Restricted 111, ,859 25,115 Net Change in Fund Balance - Current Funds $ 666,827 $ 711,375 $ 44,548 Explanation for Net Decrease* Functional and General (321) $159,000 Graduate Enhancement funding, $46,924 Indirect Cost funding and $115,000 from FY 2011 to be spent in the College of Geosciences in FY * if applicable 7 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 7/27/2011

36 TEXAS A&M UNIVERSITY at GALVESTON BUDGET NARRATIVE Introduction Texas A&M University at Galveston s enrollment success continued in FY 2011 and is trending toward another growth year in FY Beginning with the highly successful enrollment recovery from Hurricane Ike (all students lost in the fall semester of Ike have returned), Texas A&M University at Galveston (TAMUG) continues to grow at remarkable rates. For example, enrollment statistics show solid growth for the fall semester (Fall 2009 to Fall 2010 was 5%) and record growth for the spring semester of FY 2011 (Spring 2010 to Spring 2011 was 12%). This growth has, to some extent, mitigated the FY 2011 and FY 2012 budget cuts that affected agencies throughout the state. TAMUG weathered these cuts through reallocation of resources and use of some reserves during FY Looking to FY 2012, the good news is that no reductions in force will be necessary. However, in order to prudently budget the resources available, no merit pool will be funded for FY The only increases in salaries for FY 2012 will occur due to faculty promotions and a $600 annual increase for those employees with salary levels at or below $34,500 annually. There is some concern about the impact of two years with no reward for meritorious employees and it is hoped that a merit pool can be funded as soon as possible. Continuing the good news, demand is predicted to skyrocket for our students as a result of the planned completion of the Panama Canal Project, which is scheduled to open in This project will dramatically change the routing of cargo to and from the United States, and Texas is preparing for it. The Port of Houston is already experiencing an explosion of terminal, warehouse, and intermodal facility construction which will double its container capacity. Big box retailers are also becoming players in port activity by joining in the current mix of facilities owned by oil companies, large chemical and other industrial businesses. Wal-Mart and Home Depot will add $5M of distribution capability by opening distribution centers in the Houston Ship Channel area. TAMUG s degree programs are filling the jobs that will be needed by the increased demand on the Maritime Industry described above. Additionally, our Science Education and Research Programs (undergraduate to Ph.D.) are filling an increasing demand for tackling tough issues such as hurricanes, oil spills, sustainable coastal communities, economic development, coastal engineering and mitigation, and seafood life cycle, inventory life and safety. 1

37 TEXAS A&M UNIVERSITY at GALVESTON BUDGET NARRATIVE CONTINUED With increased demand come increases in infrastructure resulting in increased operating costs. Some of the increases in costs described below are directly attributable to this growth. Revenues Overall, FY 2012 revenues are budgeted to increase 5%, or $2.6 million. This increase is primarily attributable to Sales and Services, Contracts and Grants, and Tuition and Fees. State Appropriations are estimated to increase by 2%, or $279,000, over the estimated actual appropriations received from the state for FY This small increase is a direct result of state cuts mitigated by enrollment growth. Tuition and Fee revenue is estimated to increase by 2%, or $352,000, over FY 2011 projected actuals. This is mainly attributable to approved increases in mandatory fees and general course fees, while a small portion of the increase is a result of additional tuition revenue that will be generated by the projected increase in enrollment. Total Contracts and Grants are estimated to increase by 12% over FY 2011 projected actual amounts. The budget reflects an increase of approximately $585,000 in new or renewed grant awards. Gifts are budgeted to increase 6% over FY 2011 projected amounts. This increase is much smaller than the increase experienced last budget cycle and is directly related to losing a development officer for the majority of FY Development efforts should resume at a normal rate once a new development officer is identified and placed on campus. Sales and Services are expected to increase by $1 million, or 12%, over FY 2011 projected amounts as a direct result of expected enrollment growth. Also, due to a better outlook in the market, TAMUG has increased budgeted Investment Income $180,000, or 20%, over FY 2011 projected actuals. 2

38 TEXAS A&M UNIVERSITY at GALVESTON BUDGET NARRATIVE CONTINUED Expenditures FY 2012 Total Expenditures are projected to increase $4.5 million, or 11%, when compared to FY 2011 projected actual expenses. This is directly related to increases in sales and services projections associated with enrollment growth and corresponding increases in certain costs such as utilities and housing maintenance. TAMUG has budgeted a small increase in salaries for FY 2012 when compared to FY 2011 projected amounts. This increase is associated with the increased demand for part-time teaching faculty (due to increased enrollment), and faculty promotions for FY An increase in utility costs of approximately 18% is anticipated in FY This is mainly due to an increase in usage from new buildings either online now or coming on-line in the near future. The new Ocean and Coastal Studies Complex has been occupied for an entire year, giving us better estimates for consumption, and a new student service building is expected to come on-line in late FY Additionally, new residence hall construction will increase utility consumption. TAMUG has generously budgeted utilities due to concern about the impact of the new construction projects and time line estimates for occupancy. Equipment costs are budgeted to decrease 65%. During FY 2011, equipment purchases increased as a result of planned purchases for the new Ocean and Coastal Studies building. As this building is now equipped, the budget has been adjusted. Operations and Maintenance expenses for FY 2012 are budgeted to increase $3.7 million, or 29%, when compared to FY 2011 projected actuals. This is directly attributable to fixed cost increases such as shared service assessments, expenses related to fire alarm contracts, insurance premiums and general operating budget increases resulting from increases in enrollment growth. 3

39 TEXAS A&M UNIVERSITY at GALVESTON BUDGET NARRATIVE CONTINUED Transfers Overall, debt service has remained almost static with FY 2011 actual amounts. Total FY 2012 budgeted debt service transfers include approximately $4.9 million to the System Offices to cover the following capital projects: Ocean and Coastal Studies Complex-$2.7 million, Powell Engineering Complex-$708,000, Marine Terminal Renewal and Shore-Line Erosion-$464,000, Residence halls and dining services renovations-$720,000, Student Life Center and Parking lot Expansions-$61,000, and Sea Aggie Center purchase-$253,000. Fund Balances Fund balances are budgeted to decrease in both Designated and Auxiliary funds. Student Fees are collected and used to pay for the debt service on the Student Recreation Center. This year a request was made to pay the debt service from accumulated prior year fund balance, which has been approved for $70,576. Auxiliary fund balances will be used to pay approximately $563,000 of debt service due in FY 2012 for the new projects under construction. The revenue stream to cover this debt service will not become available until occupancy of the complexes being built, which is expected in approximately a year. 4

40 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University at Galveston FY 2012 Budget Graphs (In Thousands) Sales and Services FY 2012 BUDGET REVENUES $49,805 Total Investment Income Other Income State Appropriations Operations and Maintenance (Net) FY 2012 BUDGET EXPENDITURES $45,541 Total Gifts Personnel Costs Contracts and Grants Tuition and Fees (Gross) See Executive Budget Summary for amounts and percentages Equipment (Capitalized) Scholarships Utilities See Executive Budget Summary for amounts and percentages Scholarships & Fellowships $1,956 4% Research $4,620 10% Public Service $1,407 3% FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Student Service $2,860 6% Academic Support $2,293 5% Auxiliary $7,539 17% Institutional Support $7,734 17% Operation & Maint of Plant $5,187 12% Instruction $11,944 26% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 5 Executive Budget Graphs Printed: 7/26/2011

41 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University at Galveston FY 2012 Executive Budget Summary (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 17,312 18,238 24,402 24,638 24,988 24, % REVENUES State Appropriations 18,609 24,843 18,734 18,484 17,634 95% 17,913 36% 279 2% Tuition and Fees (Gross) 11,439 12,763 13,740 14,355 16, % 16,668 33% 352 2% Contracts and Grants 4,375 11,032 6,703 5,318 4,884 92% 5,470 11% % Gifts , % 851 2% 51 6% Sales and Services 6,825 6,183 8,001 8,179 8,100 99% 9,110 18% 1,010 12% Investment Income (376) (626) 1, % 1,080 2% % Other Income % 325 1% (50) -13% Discounts (1,689) (2,496) (2,716) (1,697) (1,676) 99% (1,611) -3% 65-4% TOTAL REVENUES 40,412 53,475 46,980 47,315 47, % 49, % 2,591 5% Percent Change 12.9% 32.3% -12.1% 0.7% 0.5% 5.3% EXPENDITURES Salaries - Faculty 7,592 8,384 8,893 8,003 8, % 9,151 20% 331 4% Salaries - Non-Faculty 8,796 9,190 9,169 9,331 9,147 98% 9,169 20% 22 0% Wages 1,285 1,159 1,554 1,072 1, % 1,281 3% 81 7% Benefits 4,347 4,500 4,748 4,019 4, % 3,958 9% (142) -3% Personnel Costs 22,021 23,232 24,365 22,425 23, % 23,559 52% 292 1% Utilities 1,873 1,518 1,930 2,229 2,000 90% 2,354 5% % Scholarships 2,421 3,460 3,997 4,284 4, % 4,626 10% 305 7% Discounts (1,689) (2,496) (2,716) (1,697) (1,676) 99% (1,611) -4% 65-4% Equipment (Capitalized) , % 140 0% (260) -65% Operations and Maintenance (Net) 9,908 16,642 12,795 14,219 12,750 90% 16,472 36% 3,722 29% Debt Service n/a 0 0% 0 n/a TOTAL EXPENDITURES 34,738 42,804 41,008 42,510 41,062 97% 45, % 4,479 11% Percent Change 6.3% 23.2% -4.2% 3.7% 0.1% 7.1% TRANSFERS RFS Debt Service (To System Office) (4,539) (4,567) (5,270) (4,805) (4,805) 100% (4,898) (93) 2% Other (210) 59 (117) 0 (1,347) n/a 0 1, % NET TRANSFERS (4,748) (4,508) (5,387) (4,805) (6,152) 128% (4,898) 1,254-20% NET INCREASE (DECREASE) 926 6, ,043 n/a (634) (1,677) -161% ENDING CURRENT FUND BALANCE 18,238 24,402 24,988 24,638 24, % 24,354 (633) -3% * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). TAMUG amount for FY 2008 is $2.07 million, FY 2009 $1.1 million, FY 2010 $1.9 million. 6 Executive Budget Summary Printed: 7/27/2011

42 Texas A&M University at Galveston Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 9,330 $ 9,330 $ - Designated 10,907 10,836 (71) Auxiliary 3,000 2,437 (563) Restricted 1,751 1,751 - Net Change in Fund Balance - Current Funds $ 24,988 $ 24,354 $ (634) Explanation for Net Decrease* Designated $ (71) Auxiliary $ (563) Designated balances increased because expenses typically budgeted on these funds were moved to one-time appropriated Hurricane Ike "Lost Revenue" relief. This resulted in net savings to local accounts for possible use for FY2012 budget cuts. Auxiliary fund balances will be used to pay an approximate $563,000 of debt service due in FY 2012 for the new projects under construction. The revenue stream to cover this debt service will not become available until occupancy of the complexes being built which is expected in approximately one year. * if applicable 7 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 7/27/2011

43 TEXAS A&M UNIVERSITY - CENTRAL TEXAS BUDGET NARRATIVE Introduction Although the State of Texas and The Texas A&M University System recognize TAMU-CT as an independent university, the Southern Association of Colleges and Schools (SACS), the accrediting body of the higher education institutions in the southern states, does not. TAMU-CT plans to submit an application for accreditation to SACS in Summer Until full accreditation is attained, TAMU-CT is accredited under Tarleton State University. Under a Memorandum of Agreement signed by TAMU-CT and Tarleton, Tarleton provides support in the areas of student information systems, financial aid, tuition payments, student registration, and state and federal reporting. In FY 2012, TAMU-CT will contract with Tarleton for services in the amount of $1.6 million. Revenues Texas A&M University Central Texas (TAMU-CT) is budgeting FY 2012 revenues of $26.4 million. State Appropriations account for 54%, or $14.2 million, of the total budgeted revenue. Of this, $5.7 million is appropriated as a Special Item in support of the transition to a stand-alone university, $1.5 million is estimated state paid benefits, $1.6 million is for Tuition Revenue Bond Retirement, and $1.7 million is Infrastructure Support and Small School Supplement. The State Appropriations for FY 2012 is $1.3 million more than the appropriated amount in FY 2011 due to TRB funds. The effect of the 25% state mandated reduction in Special Item funds was offset, in part, by the increase in formula funding due to the enrollment increase at the university. Tuition and Fees are budgeted to increase by 12%, or $1.2 million, over FY 2011 projected. The increase is based on a 6% increase in enrollment and an increase in online course enrollment. Mandatory fees were increased by $3.80 per SCH or $57.00 per semester for a student enrolled in 15 SCH s. An increase in Gifts of $178,000, or 146%, is budgeted for FY The increase is based upon an increase in scholarship funding from the Texas A&M University Central Texas Foundation. Other Operating Income is budgeted to increase $85,000, or 292%, from bookstore and food service operations the university will receive when the new building opens. 1

44 TEXAS A&M UNIVERSITY - CENTRAL TEXAS BUDGET NARRATIVE CONTINUED Expenditures TAMU-CT is budgeting expenditures of $26.2 million, which is a 17% increase over FY 2011 projected expenditures. The increase is primarily attributed to personnel costs that have increased due to additional faculty and staff positions needed to accommodate growth in academic and student support areas. Wages are expected to increase by 31% as the university employs more students and part-time employees. Utilities are expected to increase $175,000, or 47%, with the completion of the university s first building. Equipment (Capitalized) purchases are projected to increase $368,000, or 88%, over FY 2011 projected actuals as the result of distance education equipment and other miscellaneous equipment required for the operation of a new building and new campus. 2

45 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University - Central Texas FY 2012 Budget Graphs (In Thousands) Sales and Services FY 2012 BUDGET REVENUES $26,438 Total Investment Other Income Income Gifts FY 2012 BUDGET EXPENDITURES Operations and Maintenance (Net) $26,172 Total Contracts and Grants State Appropriations Equipment (Capitalized) Personnel Costs Tuition and Fees (Gross) Scholarships Utilities See Executive Budget Summary for amounts and percentages See Executive Budget Summary for amounts and percentages Scholarships & Fellowships $3,197 12% Public Service $100 0% FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Student Service $2,560 10% Academic Support $2,419 9% Auxiliary $134 1% Institutional Support $6,280 24% Operation & Maint of Plant $3,175 12% Instruction $8,307 32% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 3 Executive Budget Graphs Printed: 7/29/2011

46 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University - Central Texas FY 2012 Executive Budget Summary (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 0 2, ,092 9,927 12,480 2,552 26% REVENUES State Appropriations 0 8,992 13,937 12,958 12,887 99% 14,217 54% 1,330 10% Tuition and Fees (Gross) 0 0 9,203 9,676 9,554 99% 10,746 41% 1,192 12% Contracts and Grants 0 0 3,134 1,773 2, % 2,800 11% 202 8% Gifts >500% 300 1% % Sales and Services % 8 0% (150) -95% Investment Income % 52 0% 8 18% Other Income >500% 114 0% % Discounts 0 0 (1,535) (2,044) (1,958) 96% (1,798) -7% 160-8% TOTAL REVENUES 0 9,112 25,188 22,646 23, % 26, % 3,005 13% Percent Change 176% -7.0% 16.7% EXPENDITURES Salaries - Faculty 0 4,749 5,134 6,091 5,329 87% 6,012 23% % Salaries - Non-Faculty 0 2,070 4,241 4,985 4,723 95% 6,497 25% 1,774 38% Wages % 488 2% % Benefits 0 1,096 2,370 2,650 2,586 98% 3,162 12% % Personnel Costs 0 8,135 11,993 14,105 13,010 92% 16,159 62% 3,149 24% Utilities % 550 2% % Scholarships ,507 3,199 4, % 4,669 18% (50) -1% Discounts 0 0 (1,535) (2,044) (1,958) 96% (1,798) -7% 160-8% Equipment (Capitalized) % 784 3% % Operations and Maintenance (Net) 0 1,768 4,031 7,006 5,889 84% 5,808 22% (81) -1% Debt Service n/a 0 0% 0 n/a TOTAL EXPENDITURES 0 10,417 19,731 22,714 22,451 99% 26, % 3,721 17% Percent Change 89% 13.8% 15.2% TRANSFERS RFS Debt Service (To System Office) n/a (1,647) (1,647) n/a Other 0 (1,591) 4,471 (64) 1,571 >-500% 470 (1,101) -70% NET TRANSFERS 0 (1,591) 4,471 (64) 1, % (1,177) (2,748) -175% NET INCREASE (DECREASE) 0 (2,896) 9,927 (132) 2,553 >-500% (911) (3,464) -136% ENDING CURRENT FUND BALANCE 0 0 9,927 4,960 12, % 11,569 (912) -7% * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). OPEB expenses were included as part of Tarleton's FY 2008 and FY 2009 calculation, FY 2010 is $551 thousand. 4 Executive Budget Sumary Printed: 7/28/2011

47 Texas A&M University - Central Texas Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 2,881 $ 2,949 $ 69 Designated 9,599 8,847 (752) Auxiliary Restricted - (228) (228) Net Change in Fund Balance - Current Funds $ 12,480 $ 11,569 $ (911) Explanation for Net Decrease* Designated $ (752) It is anticipated approximately $750,000 may be needed to implement the Banner Student Information System which is needed for TAMU-CT to separate records and processes from Tarleton State University. TAMU-CT will be submitting accreditation application to the Southern Association of Colleges and Schools in Summer 2011 and the implementation is needed prior to full accreditation. The 25% cut to Special Item funding has necessitated the use of Fund Balances. Restricted $ (228) The use of scholarship balances is anticipated based on the reduction of state supported scholarship programs and uncertainty of the level of Pell grant awards. * if applicable 5 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 7/29/2011

48 TEXAS A&M UNIVERSITY - COMMERCE BUDGET NARRATIVE Revenues TAMU-C is budgeting revenue growth of $5 million, or 4%, over FY 2011 projected actuals. State Appropriations are projected to decrease by $1.1 million due to general revenue reductions from the 82 nd Legislative session. Tuition and Fees are budgeted to increase by $7.4 million, or 12%, due to a projected enrollment increase and the $142.50/semester increase in fees for a student enrolled in 15 semester credit hours. Sales and Services are budgeted to increase 6% over FY 2011 projected actuals due to additional revenue from auxiliary enterprises, which includes the opening of a new 266-bed residence hall. Investment Income has been budgeted at $1.6 million for FY Contracts and Grants and Gifts are expected to decrease by a net $1.5 million which is comprised of the elimination of the ARRA Federal Stimulus funds ($2.1 million), a decrease in federal and state supported financial aid programs ($700,000), and an increase in federal and state grants ($1.7 million). Gifts are expected to decrease ($400,000) due to one-time gifts received in FY Expenditures TAMU-C is budgeting expenditure growth of $8.4 million over FY 2011 projected actuals. This increase in expenditures will be funded from revenue growth of $5 million, a decrease in debt service, and capital project transfers of $3.4 million. The requested budget is consistent with the priorities developed to meet the following institutional goals: Continuing support for enrollment growth and new programs o New Nursing Program ($400,000) o Construction Engineering Program ($463,000) o Targeted academic programs ($300,000) o College of Business & Technology ($640,000) o Reorganized existing College of Arts and Sciences into two new, distinct colleges: College of Science, Engineering and Agriculture and College of Humanities, Social Sciences and Art (funded through reallocation of existing resources) Increasing support for technology ($250,000) 1

49 TEXAS A&M UNIVERSITY - COMMERCE BUDGET NARRATIVE CONTINUED Expanding emerging educational partnerships, including non-traditional course delivery ($2 million) Continuing to increase local financial aid for students ($765,000) Continuing to support faculty/staff retention ($700,000) Continuing to support innovation, program expansion and growth ($1.6 million) To achieve the goals outlined above, funds have been reserved in the budget for a salary plan targeted to high performing employees in the amount of $700,000 for faculty and staff. Enrollments for FY 2012 will be carefully reviewed before making a final decision on this plan. Additional personnel increases include new faculty and staff positions for the new Nursing and Construction Engineering Programs, continued support for enrollment growth and enhanced funding for technology, including the addition of a Chief Information Officer. Expenditures also include increased costs associated with providing additional funding for the library, expanding the advising program and increased scholarships. Scholarships are expected to increase primarily as a result of additional funds allocated from the FY 2012 enrollment increase. Utility expenses are expected to increase by $153,000, or 3%, due to the addition of a new residence hall. Operations and Maintenance expenditures are budgeted to increase $4.5 million, or 13%, over FY 2011 projected actuals. The increase is primarily attributed to new educational partnerships ($2 million), expenses related to the enhancement of the academic department s delivery of courses ($600,000), additional technology upgrades from the technology fee increase ($1.3 million), and support for increased enrollment initiatives ($600,000). In addition to the items above, each division was mandated to identify 1.5% of its existing budget for reallocation. The forced reallocation of these funds required units to approach budgeting not simply as a process for distributing new revenue, but also as one which involved careful assessment of existing programs. Some of these reallocated funds were used to offset the reduction in general revenue. Other cost savings initiatives planned for FY 2012 include further review of faculty productivity and a continued review of business services operations for identification of more shared services opportunities and operational efficiencies. 2

50 TEXAS A&M UNIVERSITY - COMMERCE BUDGET NARRATIVE CONTINUED Transfers FY 2012 transfers include $9.5 million to be transferred to the System Offices to cover $2 million in TRB debt service and $7.5 million in other Revenue Financing System (RFS) debt service (TRB debt service is funded with state appropriations, while RFS debt service is funded from revenue streams generated by the university). The remaining $424,000 is related to the transfer of $174,000 in Texas Public Education Grant funds to cover student loans and the transfer of $250,000 of HEF dollars to plant funds to be set aside for anticipated property purchases. 3

51 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University - Commerce FY 2012 Budget Graphs (In Thousands) Gifts Sales and Services FY 2012 BUDGET REVENUES $140,233 Total Other Income Investment Income State Appropriations Operations and Maintenance (Net) FY 2012 BUDGET EXPENDITURES $131,302 Total Contracts and Grants Higher Education Fund Equipment (Capitalized) Personnel Costs Tuition and Fees (Gross) See Executive Budget Summary for amounts and percentages Scholarships Utilities See Executive Budget Summary for amounts and percentages Scholarships & Fellowships $10,524 8% Research $2,164 2% Public Service $1,712 1% Operation & Maint of Plant $11,513 9% FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Student Service $9,997 7% Academic Support $10,255 8% Auxiliary $20,722 16% Institutional Support $21,226 16% Instruction $43,189 33% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 4 Executive Budget Graphs Printed: 7/26/2011

52 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University - Commerce FY 2012 Executive Budget Summary (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 49,824 48,782 45,138 44,538 49,183 51,036 1,853 4% REVENUES State Appropriations 40,627 40,952 41,804 43,483 42,172 97% 41,047 29% (1,125) -3% Federal Appropriations n/a 0 0% (18) -100% Higher Education Fund 5,346 5,684 5,684 5,193 5, % 5,193 4% 0 0% Tuition and Fees (Gross) 42,966 43,548 51,387 54,939 62, % 70,233 50% 7,376 12% Contracts and Grants 11,974 16,293 28,844 19,160 19, % 17,950 13% (1,153) -6% Gifts 1, , , % 700 0% (392) -36% Sales and Services 10,136 10,519 11,187 10,892 13, % 13,933 10% 759 6% Investment Income (1,133) (1,779) 4,180 2,001 2, % 1,581 1% (879) 36% Other Income % 96 0% (119) -55% Discounts (8,067) (9,994) (12,082) (11,095) (11,095) 100% (10,500) -7% 595-5% TOTAL REVENUES 103, , , , , % 140, % 5,044 4% Percent Change 2.8% 2.8% 24.7% -5.5% 1.8% 11.7% EXPENDITURES Salaries - Faculty 21,859 22,781 24,311 24,341 23,883 98% 25,327 19% 1,444 6% Salaries - Non-Faculty 21,617 23,203 24,149 25,599 26, % 27,474 21% 1,087 4% Wages 2,916 3,449 3,934 3,597 4, % 4,093 3% 82 2% Benefits 12,752 13,186 14,397 14,327 14, % 14,909 11% 331 2% Personnel Costs 59,144 62,619 66,791 67,864 68, % 71,803 55% 2,944 4% Utilities 4,686 4,422 4,996 4,285 4, % 4,755 4% 153 3% Scholarships 14,664 18,761 31,459 24,946 24,588 99% 25,092 19% 504 2% Discounts (8,067) (9,994) (12,082) (11,095) (11,095) 100% (10,500) -8% 595-5% Equipment (Capitalized) 894 1,506 1, , % 1,634 1% (303) -16% Operations and Maintenance (Net) 22,450 22,473 26,078 30,305 34, % 38,518 29% 4,472 13% Debt Service % 0 0% 0 n/a TOTAL EXPENDITURES 93,771 99, , , , % 131, % 8,365 7% Percent Change 4.1% 6.4% 19.0% -1.4% 3.6% 12.1% TRANSFERS RFS Debt Service (To System Office) (6,099) (6,893) (7,735) (9,921) (12,351) 124% (9,462) 2,889-23% Other (4,821) (3,470) (2,345) (368) 1,952 >-500% (424) (2,376) -122% NET TRANSFERS (10,920) (10,363) (10,081) (10,289) (10,399) 101% (9,886) 513-5% NET INCREASE (DECREASE) (1,042) (3,643) 4,045 (1,844) 1,853 <500% (955) (2,808) 152% ENDING CURRENT FUND BALANCE 48,782 45,138 49,183 42,694 51, % 50,081 (954) -2% * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). TAMU-C amount for FY 2008 is $5.28 million, FY 2009 $2.8 million, FY 2010 $4.3 million. 5 Executive Budget Summary Printed: 7/27/2011

53 Texas A&M University - Commerce Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 3,000 $ 1,845 $ (1,155) Designated 38,152 38, Auxiliary 9,144 9,094 (50) Restricted Net Change in Fund Balance - Current Funds $ 51,036 $ 50,081 $ (955) Explanation for Net Decrease* Functional and General $ (1,155) Auxiliary $ (50) HEF funds set aside in previous years to partially fund new music building. Funds used for athletic scholarships. * if applicable 6 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 7/27/2011

54 TEXAS A&M UNIVERSITY CORPUS CHRISTI BUDGET NARRATIVE Revenues Total Revenues for FY 2012 are budgeted to increase by approximately $551,000 over FY 2011 projected actuals. State revenues declined $5.5 million, or 10%, with a net increase in total revenues comprised of: 1) a slight rise in state tuition revenue as a result of projected enrollment growth, 2) instituting differential Designated Tuition for nursing students and 3) increases in fees, including Athletics, Library Use, Student Services, Computer Use, Academic Advising and other general service fees. Total Tuition and Fees are budgeted to increase by $7.8 million, or 13%, over FY 2011 projected actuals. Gifts, Sales and Services, and Investment Income are budgeted conservatively. FY 2011 Gift projections include a $1.6 million facility gift that is not anticipated to be repeated in FY Contracts and Grants are budgeted to increase $3.8 million, or 12%, and have been estimated based on information received from the TAMU-CC Grants and Research office, as well as increased contracts associated with the recent BP oil spill in the gulf. Expenditures Total Expenditures for FY 2012 are budgeted to increase by $4.2 million, or 3%. The increase is primarily the result of expected growth in scholarship expenses and an increase in Operations and Maintenance. Total budgeted personnel costs are projected to remain relatively level with FY 2011 projected actuals. Although more than 100 staff positions were eliminated, personnel increases associated with grant funding are expected. The largest numbers of positions eliminated came from outsourcing custodial services in an effort to become more efficient and effective in the use of resources. In addition, at least five senior administrator positions were eliminated or replaced with lower-level administrative staff positions. During FY 2011, careful planning and implementing recommendations from cost savings committees resulted in savings and efficiencies that helped reduce operating expenses and the university will continue to benefit from those reduced operating expenses in FY However, an expected increase in research activity has resulted in higher budgeted operating expenses for FY

55 TEXAS A&M UNIVERSITY CORPUS CHRISTI BUDGET NARRATIVE CONTINUED FY 2012 Scholarships are budgeted to increase 15%, or $4.1 million, over FY 2011 projected actuals because of the effectiveness of the Capital Campaign, which had scholarship funding as a primary focus. In addition, A&M-Corpus Christi expects to have more students on externally funded scholarships from grants and contracts, as well as an increased amount of waivers and exemptions, all of which are accounted for in Scholarships. Transfers RFS Debt Service is budgeted at $13.1 million, which is a decrease of $1 million as compared to FY 2011 projected actuals. Of this amount, $6.8 million is being funded from general revenue (Tuition Revenue Bonds). The remaining $6.3 million is being funded with Higher Education Funds (HEF) and other fees. The debt service is associated primarily with the following projects: University Center Harte Building Nursing, Health Sciences & Kinesiology Building Michael & Karen O Connor Building Science & Technology Building Classroom Lab Building Performing Arts Center Dugan Wellness Center Parking Garage Utility Plant Expansion 2

56 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University - Corpus Christi FY 2012 Budget Graphs (In Thousands) Sales and Services Contracts and Grants Gifts FY 2012 BUDGET REVENUES $161,186 Total Other Income Investment Income State Appropriations FY 2012 BUDGET EXPENDITURES $146,463 Total Operations and Maintenance (Net) Equipment (Capitalized) Higher Education Fund Scholarships Personnel Costs Tuition and Fees (Gross) See Executive Budget Summary for amounts and percentages Utilities See Executive Budget Summary for amounts and percentages Scholarships & Fellowships $18,344 12% Research $14,444 10% Public Service $2,369 2% FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Student Service $9,646 7% Academic Support $20,246 14% Auxiliary $16,979 12% Institutional Support $13,358 9% Operation & Maint of Plant $9,475 6% Instruction $41,602 28% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) T 3 Executive Budget Graphs Printed: 7/26/2011

57 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University - Corpus Christi FY 2012 Executive Budget Summary (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 35,117 40,627 46,816 48,829 57,581 53,568 (4,013) -7% REVENUES State Appropriations 55,257 54,466 55,847 55,448 54,404 98% 48,868 30% (5,536) -10% Higher Education Fund 8,279 8,471 8,471 7,139 7, % 7,139 4% 0 0% Tuition and Fees (Gross) 44,996 49,643 56,591 59,397 62, % 69,948 43% 7,818 13% Contracts and Grants 23,531 30,582 45,377 33,291 31,075 93% 34,635 21% 3,560 11% Gifts 5,263 6,735 6,851 4,156 5, % 3,918 2% (1,567) -29% Sales and Services 7,742 8,092 7,064 4,346 5, % 5,340 3% (539) -9% Investment Income (252) (1,154) 3,020 1,388 2, % 1,484 1% (1,041) -41% Other Income % 315 0% (503) -61% Discounts (7,597) (10,900) (12,211) (8,821) (8,820) 100% (10,461) -6% (1,641) 19% TOTAL REVENUES 137, , , , , % 161, % 551 0% Percent Change 8.0% 6.4% 17.5% -8.9% -6.5% 2.9% EXPENDITURES Salaries - Faculty 25,251 26,792 28,948 31,217 30,925 99% 31,330 21% 405 1% Salaries - Non-Faculty 27,970 31,262 32,896 38,175 35,256 92% 36,559 25% 1,303 4% Wages 5,348 6,308 6,384 3,677 5, % 3,532 2% (2,393) -40% Benefits 13,831 14,507 15,789 17,328 17,025 98% 17,436 12% 411 2% Personnel Costs 72,400 78,869 84,017 90,396 89,131 99% 88,858 61% (273) 0% Utilities 3,953 4,416 4,666 4,840 4, % 5,227 4% 337 7% Scholarships 18,774 21,414 36,282 27,302 27, % 32,035 22% 4,085 15% Discounts (7,597) (10,900) (12,211) (8,821) (8,821) 100% (10,461) -7% (1,640) 19% Equipment (Capitalized) 2,695 2,347 4,174 3,615 4, % 5,453 4% % Operations and Maintenance (Net) 25,071 27,470 27,579 23,394 24, % 25,352 17% 861 4% TOTAL EXPENDITURES 115, , , , , % 146, % 4,211 3% Percent Change 5.8% 7.2% 16.9% -2.6% -1.6% 4.1% TRANSFERS RFS Debt Service (To System Office) (14,168) (14,172) (10,898) (14,445) (14,071) 97% (13,065) 1,006-7% Other (2,560) (2,109) (5,657) (1,250) (8,324) >500% (500) 7,824-94% NET TRANSFERS (16,728) (16,281) (16,555) (15,695) (22,395) 143% (13,565) 8,830-39% NET INCREASE (DECREASE) 5,510 6,387 10, (4,012) >-500% 1,158 5, % ENDING CURRENT FUND BALANCE 40,627 47,015 57,581 48,983 53, % 54,726 1,157 2% * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). TAMU-CC amount for FY 2008 is $6.65 million, FY 2009 $4 million, FY 2010 $6.3 million. 4 Executive Budget Summary Printed: 7/27/2011

58 Texas A&M University - Corpus Christi Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 16,520 $ 16,824 $ 304 Designated 22,450 22, Auxiliary 8,874 9, Restricted 5,725 5, Net Change in Fund Balance - Current Funds $ 53,568 $ 54,726 $ 1,158 Explanation for Net Decrease* * if applicable 5 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 7/27/2011

59 TEXAS A&M UNIVERSITY - KINGSVILLE BUDGET NARRATIVE Revenues Total budgeted revenues are projected to be relatively flat, as compared to FY 2011 projected actuals, with $122 million expected in both years. The plateau is largely due to reductions of State Appropriations of 9% being offset by projected enrollment growth, approved fee increases, and the growth in auxiliary services. Tuition and Fees reflect an increase of 12%, or $4.8 million. The increase in Tuition and Fees is primarily attributable to approved mandatory fee increases, as well as enrollment growth, which is projected to be 7% for FY Waivers and Exemptions are projected to increase due to the effect of the expanded utilization of the Hazelwood exemption. Due to the state-wide appropriations reductions for the FY biennium, State Appropriations are budgeted to decrease in FY 2012 by $5.1 million, or 12.8%, when compared to the FY 2011 budgeted amount. Sales and Services revenues are projected to increase by $671,000 due to the opening of a new residence hall in the fall of Gifts, Investment Income, and Other Income continue to be budgeted conservatively due to current economic uncertainty. Expenditures Total budgeted expenses are projected to decrease by $879,000, or 1%, as compared to FY 2011 projected actuals. Total salaries for faculty and non-faculty reflect a decrease of $302,000. This decrease is the net result of $423,000 of net savings from the Voluntary Separation Program, as well as elimination of vacant positions and reduction in force, offset by the growth in faculty to teach an increased number of students and a new student success initiative. Budgeted wages are increased by $629,000 to reflect a one-time incentive for Voluntary Separation Program participants. The additional $1.4 million in scholarships is primarily due to the increase in student federal financial aid and the required financial aid set-asides related to increased revenue from designated tuition. Utilities are budgeted to increase by $106,000 in FY 2012 in anticipation of the opening of Mesquite Village West residence hall. Operations and Maintenance is budgeted to decrease by $496,000 to reflect the reduction in travel, communication allowances, and other reductions in operating expenses the university has implemented in order to help offset the state budget reductions. 1

60 TEXAS A&M UNIVERSITY - KINGSVILLE BUDGET NARRATIVE CONTINUED TAMU-K is very cognizant of the need to reduce costs, where possible, and still provide superior educational programs. The university has instituted a hiring freeze and has consolidated/eliminated vacant administrative positions on campus where possible. TAMU-K will continue to seek other savings opportunities. Transfers Total FY 2012 budgeted transfers include $9.1 million to the System Offices to cover debt service obligations. Included in this amount is $2.7 million from Tuition Revenue Bond funding. The remaining amount is comprised of $887,000 from Recreational Sports Fee, $1.6 million from the Higher Education Fund (HEF), $500,000 from dining services, and $3.4 million from housing revenues. The overall debt financing amount is attributable to the new sports recreation center, new residence hall (University Village and Mesquite Village West), Citrus Center building, engineering building, pharmacy school, and deferred maintenance/renovation projects. Other Transfers are primarily attributed to $2.8 million of HEF funds reserved to address compliance, deferred maintenance projects and campus redevelopment projects. An additional $175,000 of the Parking Fee revenues was transferred to Plant Funds to create a reserve for future renovations of parking lots and to fund various signage projects. Additional auxiliary funds in the amount of $1.3 million were set aside for minor campus redevelopment and deferred maintenance of residence halls. 2

61 T THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University - Kingsville FY 2012 Budget Graphs (In Thousands) Sales and Services FY 2012 BUDGET REVENUES $122,598 Total Investment Income Other Income State Appropriations FY 2012 BUDGET EXPENDITURES $109,110 Total Operations and Maintenance Debt Service (Net) Gifts Equipment (Capitalized) Contracts and Grants Higher Education Fund Scholarships Personnel Costs See Executive Budget Summary for amounts and percentages Tuition and Fees (Gross) Utilities See Executive Budget Summary for amounts and percentages Scholarships & Fellowships $10,922 10% Research $15,052 14% FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Student Service $7,343 7% Academic Support $8,759 8% Auxiliary $17,855 16% Public Service $249 0% Institutional Support $10,610 10% Operation & Maint of Plant $7,759 7% Instruction $30,562 28% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 3 Executive Budget Graphs Printed: 7/26/2011

62 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University - Kingsville FY 2012 Executive Budget Summary (dollars In thousands) FY12 Budget to FY 2008* / ** FY 2009* / ** FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 43,047 42,399 39,617 39,280 38,078 38, % REVENUES State Appropriations 47,934 48,148 38,674 40,037 38,484 96% 34,930 28% (3,554) -9% Higher Education Fund 5,052 5,168 5,168 5,047 5, % 5,047 4% (0) 0% Tuition and Fees (Gross) 30,958 36,880 34,866 39,591 40, % 45,271 37% 4,762 12% Contracts and Grants 20,674 28,376 36,311 25,095 28, % 28,789 23% 247 1% Gifts 4,976 5,029 3,992 3,684 4, % 3,884 3% (128) -3% Sales and Services 7,588 9,463 14,245 13,357 16, % 16,909 14% 671 4% Investment Income (448) (1,356) 3,342 1,834 2, % 2,051 2% (69) -3% Other Income % 308 0% (193) -39% Discounts (7,264) (10,998) (11,601) (9,763) (12,999) 133% (14,590) -12% (1,591) 12% TOTAL REVENUES 109, , , , , % 122, % 144 0% Percent Change 2.6% 10.2% 3.6% -5.0% -2.3% 3.0% EXPENDITURES Salaries - Faculty 21,464 23,393 21,974 22,542 22,278 99% 21,682 20% (596) -3% Salaries - Non-Faculty 24,752 28,520 24,920 26,658 26,423 99% 25,936 24% (487) -2% Wages 4,022 4,567 5,078 4,748 4, % 5,454 5% % Benefits 13,214 14,196 13,215 13,466 13, % 13,971 13% 152 1% Personnel Costs 63,452 70,676 65,188 67,414 67, % 67,043 61% (302) 0% Utilities 3,691 4,292 4,179 3,974 4, % 4,654 4% 106 2% Scholarships 16,460 23,039 23,975 22,900 26, % 27,559 25% 1,402 5% Discounts (7,264) (10,998) (11,601) (9,763) (12,999) 133% (14,590) -13% (1,591) 12% Equipment (Capitalized) 1,316 1,385 1,325 1,278 1, % 1,328 1% 3 0% Operations and Maintenance (Net) 19,562 23,947 30,278 20,643 23, % 23,117 21% (496) -2% Debt Service n/a 0 0% 0 n/a TOTAL EXPENDITURES 97, , , , , % 109, % (879) -1% Percent Change 4.9% 15.5% 0.9% -6.1% -3.0% 2.5% TRANSFERS RFS Debt Service (To System Office) (4,248) (4,648) (6,651) (8,333) (8,243) 99% (9,109) (866) 11% Other (8,917) (6,783) (6,877) (4,173) (4,173) 100% (4,287) (114) 3% NET TRANSFERS (13,164) (11,431) (13,527) (12,507) (12,416) 99% (13,396) (980) 8% NET INCREASE (DECREASE) (648) (2,782) (1,539) % % ENDING CURRENT FUND BALANCE 42,399 39,617 38,078 39,367 38,127 97% 38, % * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). TAMUK amount for FY 2008 is $5.97 million, FY 2009 $3.5 million, FY 2010 $4.9 million. ** FY 2008 and FY 2009 Actuals include TAMU-SA activity 4 Executive Budget Summary Printed: 8/4/2011

63 Texas A&M University - Kingsville Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 8,464 $ 8,464 $ - Designated 14,962 14, Auxiliary 4,026 4, Restricted 10,675 10, Net Change in Fund Balance - Current Funds $ 38,127 $ 38,218 $ 91 Explanation for Net Decrease* * if applicable 5 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 8/3/2011

64 TEXAS A&M UNIVERSITY SAN ANTONIO BUDGET NARRATIVE Revenues Total Revenues for TAMU-SA is budgeted to increase by 26%, or $7.5 million, over FY 2011 projected actuals. This increase is primarily attributed to State Appropriations growth of 38%, or $4.6 million, over FY 2011 projected actuals, and a Tuition and Fees increase of 20%, or $2.6 million, over FY 2011 projected actuals. State Appropriations growth is primarily based on an increase in Formula Funding, offset by a reduction in Special Item funding. An increase is also expected in the State Paid Benefits appropriation of approximately $528,000 due to increased staffing levels for FY Tuition and Fees revenue is expected to increase based on an estimate of 10% growth in semester credit hours and increases in tuition and fee rates. Notable changes in tuition and fees include a $32.00 per SCH increase in Graduate Tuition, a $1.00 per SCH increase to Library Fees, a $1.00 per SCH increase to Technology Fees, a new Safety & Security Fee of $7.00 per SCH, a new Energy Fee of $3.00 per SCH, and a new Distance Learning Fee of $40.00 per semester. Sales and Services revenue is budgeted to increase by 133%, or $233,000, over FY 2011 projected actuals, due in large part to an increase in the charge for parking permits for FY 2012, as well as budgeting for student orientation charges not budgeted for in the past. Expenditures TAMU-SA is budgeting an 11%, or $3.6 million, increase in Total Expenditures over FY 2011 projected actuals. The increase is primarily attributed to an increase in personnel costs and scholarships. TAMU-SA is expecting faculty and staff salaries to increase in FY 2012 by $5 million, as compared to FY 2011 projections. In anticipation of continuing double-digit growth in enrollment, additional faculty and staff hiring is necessary to maintain quality programs. Despite the fact that TAMU-SA will be opening its first new building on the main campus in the Fall of 2011, the university has already outgrown the new building and it will be necessary to have a separately located campus in leased space on Brooks City Base. As a result of the transition to the new campuses, 1

65 TEXAS A&M UNIVERSITY SAN ANTONIO BUDGET NARRATIVE CONTINUED TAMU-SA will experience an increase in expenses necessary to operate these two facilities, as well as its third location, Olivares Elementary, which will be primarily an administrative building. In anticipation of increases in expenditures associated with its three separate locations, TAMU-SA has budgeted an increase in Utilities of $228,000, or 76%. Additionally, a contingency of $200,000 has been set aside in the FY 2012 budget to cover anticipated maintenance and repair of the various buildings. Scholarships are projected to increase over FY 2011 by 20%, or $1.2 million. The continued large enrollment growth the university is experiencing accounts for this projected increase in scholarships. TAMU-SA is in the process of establishing much of its physical and technology based infrastructure. Purchases of technology equipment, software and associated expenditures will increase in FY 2012 as compared to the FY 2011 budget. However, Operations and Maintenance and Equipment are showing a decrease compared to FY 2011 projected actuals as a result of one-time purchases in preparation for opening the new building in the fall. With three locations to maintain and secure, TAMU-SA has budgeted to purchase three new vehicles in FY Two vehicles will be dedicated to Facilities and one will be an additional patrol car for University Police Department. 2

66 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University - San Antonio FY 2012 Budget Graphs (In Thousands) Sales and Services Contracts and Grants FY 2012 BUDGET REVENUES $35,735 Total Investment Income Gifts State Appropriations Equipment (Capitalized) FY 2012 BUDGET EXPENDITURES $34,732 Total Operations and Maintenance (Net) Scholarships Tuition and Fees (Gross) See Executive Budget Summary for amounts and percentages Utilities See Executive Budget Summary for amounts and percentages Personnel Costs Scholarships & Fellowships $4,220 12% FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Student Service $3,655 11% Academic Support $1,853 5% Auxiliary $174 0% Public Service $50 0% Institutional Support $9,625 28% Operation & Maint of Plant $2,335 7% Instruction $12,819 37% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 3 Executive Budget Graphs Printed: 7/29/2011

67 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University - San Antonio FY 2012 Executive Budget Summary (dollars In thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE ,783 1,185 (1,598) -57% REVENUES State Appropriations ,763 12,242 12,072 99% 16,713 47% 4,641 38% Tuition and Fees (Gross) ,858 12,384 12, % 15,467 43% 2,610 20% Contracts and Grants 0 0 5,080 3,845 5, % 5,316 15% 316 6% Gifts n/a 190 1% 15 9% Sales and Services % 408 1% % Investment Income % 40 0% 0 n/a Other Income n/a 0 0% (36) -100% Discounts 0 0 (3,018) (1,167) (2,100) 180% (2,400) -7% (300) 14% TOTAL REVENUES ,006 27,369 28, % 35, % 7,480 26% Percent Change 13.0% 30.6% EXPENDITURES Salaries - Faculty 0 0 5,227 7,330 7,054 96% 8,791 25% 1,737 25% Salaries - Non-Faculty 0 0 6,348 6,979 6,044 87% 9,337 27% 3,293 54% Wages % 298 1% (42) -12% Benefits 0 0 2,954 2,927 3, % 4,098 12% % Personnel Costs ,794 17,399 16,738 96% 22,525 65% 5,787 35% Utilities % 528 2% % Scholarships 0 0 6,116 4,907 5, % 6,959 20% 1,159 20% Discounts 0 0 (3,018) (1,167) (2,100) 180% (2,400) -7% (300) 14% Equipment (Capitalized) ,500 >500% 165 0% (1,335) -89% Operations and Maintenance (Net) 0 0 3,433 5,994 8, % 6,955 20% (1,960) -22% TOTAL EXPENDITURES ,577 27,342 31, % 34, % 3,579 11% Percent Change 44.4% 27.0% TRANSFERS RFS Debt Service (To System Office) n/a (2,636) (2,636) n/a Other 0 0 (645) (46) 1,300 >-500% 448 (852) -66% NET TRANSFERS 0 0 (645) (46) 1,300 >-500% (2,188) (3,488) -268% NET INCREASE (DECREASE) 0 0 2,783 (18) (1,598) >500% (1,185) % ENDING CURRENT FUND BALANCE 0 0 2, , % 0 (1,185) -100% * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). OPEB expenses were included as part of TAMU-K's FY 2008 & FY 2009 calculation, FY 2010 is $860 thousand. 4 Executive Budget Summary Printed: 7/27/2011

68 Texas A&M University - San Antonio Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ - $ - $ - Designated 1,185 0 (1,185) Auxiliary Restricted Net Change in Fund Balance - Current Funds $ 1,185 $ - $ (1,185) Explanation for Net Decrease* Designated $ (1,185) Carryforward and use of fees and reserve balances to fund one time expenditures in FY 2012 budget. The university is establishing much of its physical and technology infrastructure and much of these funds will be used to offset expenditures in this area. * if applicable 5 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 7/27/2011

69 TEXAS A&M UNIVERSITY TEXARKANA BUDGET NARRATIVE Revenues Total budgeted Revenues for FY 2012 will decrease by 10%, or $3.1 million, compared to FY 2011 projected actuals. The revenue decrease is due to two main line items; Contracts and Grants as well as Gifts. The FY 2011 budget contained $3 million for ARRA funding recorded in Contracts and Grants. $2.1 million of the ARRA funding was reinstated by the 82 nd Legislature; however, it was placed in State Appropriations for FY 2012 causing a large decline (-57%) in the Grants and Contracts revenues. While tuition revenue estimates have been budgeted conservatively, Tuition and Fees collectively are budgeted to increase 2% over FY 2011 projections and 16%, or $1 million, over the FY 2011 budget. This increase is associated with the downward expansion and the addition of new and increased fees. The new fees include a Student Health Fee (approved by a student referendum) and an Application Fee; modest increases are planned in Student Service Fees, Library Fee and Technology Fee. TAMU-T will still have the lowest cost of attendance of any university in the A&M System. TAMU-T witnessed steady enrollment growth during FY 2011 with the first freshman class and the beginning of downward expansion. However, the total increase in Tuition and Fees revenue for FY 2012 is being budgeted conservatively in response to the less than expected enrollments for Summer In continuing efforts to become a regional, comprehensive four-year University, TAMU-T will open its first residence hall this fall. The new residence hall will generate $862,000 in new Sales and Services revenue for FY 2012 which will be offset by an equal amount of auxiliary expenses. Gifts, other than major long-term support, are not estimated because of their uncertainty. Most gifts are restrictive in nature and, when received, can only be directed toward a donor-specified purpose. Expenditures The overall FY 2012 expense budget is down 5%, or $1.3 million, compared to FY 2011 projected actuals. Internal departmental budgets were submitted using FY 2011 base budgets with a 5% reduction scenario. The reductions will assist in balancing the budget and will allow for the reallocation of TAMU-T resources to increase personnel and new programs while covering utility and scholarships costs. 1

70 TEXAS A&M UNIVERSITY TEXARKANA BUDGET NARRATIVE CONTINUED Personnel costs are scheduled to increase slightly due to increased costs in benefits and additional auxiliary personnel in the new residence hall. TAMU-T will evaluate student enrollment this fall to determine if a midyear merit salary pool can be established. Utilities are budgeted to increase over FY 2011 actuals based on rate increases and first-time operational costs for the new residence hall. Although Scholarships are budgeted to decrease $347,000 from FY 2011 projected actual due to reductions in state appropriations, the FY 2012 scholarship budget will slightly exceed the amount budgeted for FY Equipment is not budgeted separately since departments include their estimates as part of their Operations and Maintenance budget to give them the flexibility in making Equipment purchasing decisions during the year. Operation and Maintenance budgets have been reduced significantly, $461,000, or 7%, from projected actuals, as the result of the loss of ARRA funding. The university continues to identify additional budget modifications, reallocations and downward expansion implementation strategies to maximize available resources. TAMU-T will also continue the shared services agreement with Texas A&M University-Commerce for computer support services and a shared service agreement with Texas A&M University Corpus Christi for student information system maintenance. Transfers A total of $5.96 million, a decrease of $1.3 million, is budgeted to cover Tuition Revenue Bond debt service obligations for the new main campus buildings. 2

71 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University - Texarkana FY 2012 Budget Graphs (In Thousands) Investment Income Sales and Services Other Income FY 2012 BUDGET REVENUES $29,237 Total State Appropriations Operations and Maintenance (Net) FY 2012 BUDGET EXPENDITURES $23,275 Total Gifts Contracts and Grants Tuition and Fees (Gross) See Executive Budget Summary for amounts and percentages Higher Education Fund Scholarships Utilities See Executive Budget Summary for amounts and percentages Personnel Costs Instruction $9,933 41% FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Operation & Maint of Plant $1,235 5% Public Service $36 0% Student Services $1,125 5% Academic Support $1,461 6% Auxiliary $1,568 6% Institutional Support $8,447 35% * Excludes Scholarships & Fellowships NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 3 Executive Budget Graphs Printed: 8/3/2011

72 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University - Texarkana FY 2012 Executive Budget Summary (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 11,525 12,169 13,216 14,392 17,032 16,823 (209) -1% REVENUES State Appropriations 17,945 17,942 17,208 17,781 17,288 97% 17,460 60% 172 1% Higher Education Fund 1,646 1,685 1,685 1,308 1, % 1,308 4% (0) 0% Tuition and Fees (Gross) 4,545 5,030 6,187 6,282 7, % 7,307 25% 147 2% Contracts and Grants 2,531 2,923 5,756 6,227 5,438 87% 2,341 8% (3,097) -57% Gifts 647 1, ,035 n/a 1,003 3% (1,032) -51% Sales and Services % 1,084 4% % Investment Income (47) (243) % 195 1% (105) -35% Other Income % 2 0% (28) -93% Discounts (1,228) (1,007) (897) (1,407) (1,407) 100% (1,462) -5% (55) 4% TOTAL REVENUES 26,270 27,742 31,975 30,447 32, % 29, % (3,137) -10% Percent Change 29.9% 5.6% 15.3% -4.8% 1.2% -4.0% EXPENDITURES Salaries - Faculty 5,347 5,703 5,641 6,126 6, % 6,023 26% (163) -3% Salaries - Non-Faculty 3,935 4,188 4,375 4,671 4, % 4,816 21% 101 2% Wages % 445 2% (23) -5% Benefits 2,197 2,309 2,389 3,001 2,787 93% 2,983 13% 196 7% Personnel Costs 11,826 12,621 13,081 14,232 14,156 99% 14,268 61% 112 1% Utilities % 799 3% % Scholarships 2,153 2,642 3,243 3,654 4, % 3,722 16% (347) -9% Discounts (1,228) (1,007) (897) (1,407) (1,407) 100% (1,462) -6% (55) 4% Equipment (Capitalized) n/a 0 0% (660) -100% Operations and Maintenance (Net) 4,111 3,688 4,488 6,057 6, % 5,948 26% (461) -7% TOTAL EXPENDITURES 17,447 18,524 20,452 23,191 24, % 23, % (1,292) -5% Percent Change 7.5% 6.2% 10.4% 13.4% 20.1% 0.4% TRANSFERS RFS Debt Service (To System Office) (8,180) (8,182) (7,250) (7,257) (7,257) 100% (5,962) 1,295-18% Other (49) 10 (456) 0 (759) n/a % NET TRANSFERS (8,230) (8,171) (7,707) (7,257) (8,016) 110% (5,962) 2,054-26% NET INCREASE (DECREASE) 593 1,047 3,816 0 (209) n/a % ENDING CURRENT FUND BALANCE 12,118 13,216 17,032 14,392 16, % 16, % * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). TAMU-T amount for FY 2008 is $1 million, FY 2009 $626 thousand, FY 2010 $849 thousands. 4 Executive Budget Summary Printed: 7/27/2011

73 Texas A&M University - Texarkana Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 8,564 $ 8,564 $ - Designated 7,430 7,430 - Auxiliary Restricted Net Change in Fund Balance - Current Funds $ 16,823 $ 16,823 $ - Explanation for Net Decrease* * if applicable 5 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 7/27/2011

74 WEST TEXAS A&M UNIVERSITY BUDGET NARRATIVE Revenues Total overall revenues are estimated to increase by 3%, or $4 million, over FY 2011 projected revenue. The increase is a result of the following factors: State General Revenue Appropriations are reduced by $3.6 million, or 10%, compared to FY 2011 budget, or 4% compared to FY 2011 projected actuals. This is due to the reduction in overall state funding for all state agencies. The reduction includes $2.9 million in formula and special item funding, a $600,000 reduction of state appropriated benefits and a reduction in Tuition Revenue Bonds debt service. Tuition and Fees are budgeted to increase by $5.2 million. This increase is based on enrollment growth from the budgeted FY 2010 to FY 2011 enrollment figures, as well as anticipated enrollment growth of 3% for FY In addition, there were increases in rates in the library fee, group hospital fee, student service fee, technology fee, transportation fee, athletic fee, and an increase in differential tuition for declared nursing majors. This also includes Waivers and Exemptions totaling $1.6 million. Contracts and Grants are budgeted to increase by $6.2 million compared to FY 2011 budget, or $2.9 million compared to FY 2011 projected actuals. The budget comparative increase is due to a timing difference in preparation of the FY 2012 budget as compared to the FY 2011 budget. During FY 2011, federal financial aid information was not available during the budgeting process. For FY 2012, federal financial aid has been confirmed and is reflected in the budget. Sales and Services have increased by $2.8 million. This is due to an anticipated increase in revenue from the University Bookstore, an increase in room and board rates for Residential Living, and a newly constructed residential living hall that will be occupied by September 1, This also includes the anticipated enrollment increase of 3% for FY

75 WEST TEXAS A&M UNIVERSITY BUDGET NARRATIVE CONTINUED Tuition and Fee Discounts has been budgeted to reflect the actual trends as well as the anticipated increase due to rate and enrollment increases. Due to the unknown nature of gifts, WTAMU excludes this item from budgeted revenues. Expenditures Total Expenditures are budgeted to increase 3%, or $3.3 million. The increase is a result of the following factors: Personnel costs budgeted for FY 2012 remain flat compared to projected FY 2011 which is attributable to a flexible hiring freeze that was implemented in FY 2011 in preparation for the reduction of state appropriations. Utilities have decreased 4% due to adjustments in rate contracts with utility providers and an overall reduction in utility consumption. Scholarships are budgeted to increase by $1.2 million in FY 2012, due to the anticipated increase in enrollment and in increases to state mandated financial aid set-asides related to increased revenue from designated tuition. Discounts are budgeted to reflect the actual trends, as well as the anticipated increase due to rate and enrollment increases. 2

76 WEST TEXAS A&M UNIVERSITY BUDGET NARRATIVE CONTINUED Operation and Maintenance expense is estimated to rise by $5.5 million due to increases in operations related to increases in medical services, library services, student services, transportation, athletics, and increased costs associated with the nursing program. WTAMU is bringing on a new, 340-bed residence hall for which operating costs are also included. Additionally, anticipated enrollment growth will increase operational expenses for the University Bookstore and Food Services. Transfers The RFS debt transfers have increased due to the student referendum to increase fees to fund the expansion of the Jack B. Kelley Student Center, Athletic/Intramural Complex and the new Residence Hall. Net Fund Balance Decrease WTAMU is using $1 million of fund balance to provide needed one-time funding for the FY 2012 budget. This is an anticipated use of reserves for FY During FY 2010 and FY 2011, WTAMU strategically planned to increase fund balances to meet an expected shortfall in general revenue for FY

77 THE TEXAS A&M UNIVERSITY SYSTEM West Texas A&M University FY 2012 Budget Graphs (In Thousands) Tuition and Fees (Gross) FY 2012 BUDGET REVENUES $127,396 Total Contracts and Grants Operations and Maintenance (Net) FY 2012 BUDGET EXPENDITURES $115,937 Total Higher Education Fund Sales and Services Equipment (Capitalized) Personnel Costs State Appropriations Other Income See Executive Budget Summary for amounts and percentages Investment Income Scholarships Utilities See Executive Budget Summary for amounts and percentages Academic Support $6,056 Student Service 5% $3,426 3% FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Auxiliary $23,420 20% Scholarships & Fellowships $9,763 8% Institutional Support $20,809 18% Research $5,634 5% Public Service $3,684 3% Operation & Maint of Plant $15,668 14% Instruction $27,477 24% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 4 Executive Budget Graphs Printed: 7/26/2011

78 THE TEXAS A&M UNIVERSITY SYSTEM West Texas A&M University FY 2012 Executive Budget Summary (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 30,394 28,005 26,444 26,444 30,874 31, % REVENUES State Appropriations 37,008 37,168 37,282 37,317 35,261 94% 33,746 26% (1,515) -4% Higher Education Fund 4,777 4,886 4,886 4,653 4, % 4,653 4% (0) 0% Tuition and Fees (Gross) 34,392 37,006 41,188 45,754 45, % 50,996 40% 5,242 11% Contracts and Grants 14,072 18,080 23,175 21,315 24, % 27,564 22% 2,868 12% Gifts 5,394 4,609 4, ,541 n/a 0 0% (2,541) -100% Sales and Services 18,931 20,406 19,157 18,770 18, % 21,618 17% 2,848 15% Investment Income (577) (963) 2, , % 766 1% (634) -45% Other Income n/a 1,000 1% 1,000 n/a Discounts (7,921) (9,950) (13,744) (9,651) (9,651) 100% (12,947) -10% (3,296) 34% TOTAL REVENUES 106, , , , , % 127, % 3,972 3% Percent Change 10.7% 4.7% 6.9% -0.3% 3.5% 7.1% EXPENDITURES Salaries - Faculty 18,390 19,902 21,355 19,799 21, % 21,493 19% (107) 0% Salaries - Non-Faculty 18,934 19, ,803 24, ,700 85% 21,818 19% 1, % Wages 4,394 4,911 5,142 4,136 4, % 4,184 4% (316) -7% Benefits 11,332 11,920 12,772 13,260 13, % 12,628 11% (632) -5% Personnel Costs 53,049 56,642 60,073 61,482 60,060 98% 60,123 52% 63 0% Utilities 3,879 3,095 3,061 4,373 3,200 73% 3,083 3% (117) -4% Scholarships 15,036 17,622 21,709 19,376 25, % 26,982 23% 1,241 5% Discounts (7,921) (9,950) (13,744) (9,651) (9,651) 100% (12,947) -11% (3,296) 34% Equipment (Capitalized) 2,018 2,073 4,612 4,968 4, % 4,890 4% (78) -2% Operations and Maintenance (Net) 30,732 31,530 29,015 28,268 28, % 33,806 29% 5,470 19% TOTAL EXPENDITURES 96, , , , , % 115, % 3,283 3% Percent Change 4.5% 4.4% 3.7% 3.9% 7.6% 6.5% TRANSFERS RFS Debt Service (To System Office) (6,506) (6,643) (6,817) (8,351) (8,351) 100% (10,705) (2,354) 28% Other (5,633) (5,428) (3,247) (1,746) (1,746) 100% (1,754) (8) 0% NET TRANSFERS (12,139) (12,071) (10,064) (10,097) (10,097) 100% (12,459) (2,362) 23% NET INCREASE (DECREASE) (2,389) (1,560) 4,430 (0) 673 n/a (1,000) (1,673) 249% ENDING CURRENT FUND BALANCE 28,005 26,444 30,874 26,444 31, % 30,547 (1,000) -3% * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). WTAMU amount for FY 2008 is $4.4 million, FY 2009 $2.6 million, FY 2010 $4 million. Executive Budget Summary 5 Printed: 7/27/2011

79 West Texas A&M University Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 7,448 $ 7,448 $ 0 Designated 14,890 13,890 (1,000) Auxiliary 7,700 7,700 0 Restricted 1,509 1,509 0 Net Change in Fund Balance - Current Funds $ 31,547 $ 30,547 $ (1,000) Explanation for Net Decrease* Designated $ (1,000) WTAMU planned for and built into the FY2012 budget the use of $1,000,000 of Designated Tuition reserves to offset the General Revenue reduction. * if applicable 6 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 7/27/2011

80 TEXAS A&M HEALTH SCIENCE CENTER BUDGET NARRATIVE Introduction The Texas A&M Health Science Center (HSC) is continuing to expand programs and facilities while adjusting to the 9.1% general revenue reduction in the FY 2012/2013 biennium. During FY 2012, the HSC will maintain the medicine enrollment increase by enrolling 200 first year medical students and continue to expand enrollment in the College of Nursing in an effort to address the health professions shortage in Texas. Revenues Total Revenues are budgeted to decrease by $6.4 million, or 3%, compared to FY 2011 projected actual revenues. This decrease is primarily attributable to the decrease in Contracts and Grants revenue. The State General Revenue reduction was offset by an additional $8 million appropriation from HB4 for institutional operations. Gross Tuition and Fees reflect an increase of $2.4 million, or 10%, compared to FY 2011 projected actuals. This is primarily due to class size growth in the College of Medicine and the College of Nursing and the increase in graduate tuition differential for medical students (MD) and dental students (DDS). Contracts and Grants reflect a significant decrease of $9 million, or 24%, compared to FY 2011 projected actuals. The decrease is primarily caused by the American Recovery and Reinvestment Act (ARRA) General Appropriations Act Article XII funding. In FY 2011, $5.3 million of general revenue was replaced by ARRA funds which were recorded as State Contract and Grant revenue (instead of state appropriations). Expenditures Total Expenditures are budgeted to increase by $4.7 million, or 2%, compared to FY 2011 projected actual expenditures. Personnel costs represent 65% of the HSC total expenditures budget. Although the economic outlook may not be favorable, recruiting and retaining faculty and staff are critical to the mission of the HSC, especially in this time of expansion. The HSC has provided authority to deans and vice- 1

81 TEXAS A&M HEALTH SCIENCE CENTER BUDGET NARRATIVE CONTINUED presidents to provide merit raises or lump-sum merit payments up to three percent of the unit salary base. The HSC Office of the President will provide half of this funding, while the remaining half will come from the unit operating budget and will be offset by reduced costs elsewhere in their budget. Funding for raises must be sustainable while merit payments can be from one-time sources. The merit plan could potentially cost $3.4 million. Scholarships are budgeted conservatively despite enrollment growth and as a result of projected reductions in contract and grant awards, reflect a $760,000, or 19%, reduction compared to FY 2011 projected actuals. Operations and Maintenance are projected to increase by $1.8 million, or 4%, largely due to the opening of the new medical research building in Bryan which is projected to cause an increase in Utilities expense of $1.3 million, or 15%. Transfers The RFS Debt Service transfer is decreasing by $870,000, or 8%, due to the reduction of debt service attributable to the Bryan research and education building. The RFS Debt Service transfer includes: $1.5 million in tuition revenue bonds (TRBs) for the School of Rural Public Health building complex, $2.8 million in TRBs for the Bryan research and education buildings, $253,376 for the Bryan research and education building paid from interest and indirect costs, $3.8 million for the Round Rock building paid from appropriated funds, $559,500 the College of Pharmacy Vivarium in Kingsville paid from designated tuition and indirect costs, $115,486 for the Baylor College of Dentistry parking garage paid from parking revenue and designated tuition, and $294,883 for various other projects paid from indirect costs, gifts and designated tuition. 2

82 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M Health Science Center FY 2012 Budget Graphs (In Thousands) Sales and Services FY 2012 BUDGET REVENUES $201,058 Total Investment Income Other Income Operations and Maintenance (Net) FY 2012 BUDGET EXPENDITURES $194,436 Total Gifts Contracts and Grants State Appropriations Equipment (Capitalized) Scholarships Personnel Costs Tuition and Fees (Gross) Utilities See Executive Budget Summary for amounts and percentages See Executive Budget Summary for amounts and percentages Research $40,156 21% Scholarships & Fellowships $1,574 1% FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Student Service $5,591 3% Academic Support $27,107 14% Auxiliary $575 0% Institutional Support $13,693 7% Public Service $5,823 3% Operation & Maint of Plant $20,293 10% Instruction $79,625 41% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 3 Executive Budget Graphs Printed: 7/26/2011

83 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M Health Science Center FY 2012 Executive Budget Summary (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 49,444 65,955 56,030 63,848 74,815 89,055 14,240 19% REVENUES State Appropriations 110,634 97, , , , % 117,439 58% 1,808 2% Tuition and Fees (Gross) 13,335 19,111 21,779 23,021 23, % 25,596 13% 2,394 10% Contracts and Grants 26,543 28,051 40,976 29,480 37, % 27,995 14% (9,010) -24% Gifts 4,164 4,810 3,533 2,600 3, % 2,365 1% (886) -27% Sales and Services 22,682 21,013 24,456 21,532 24, % 23,459 12% (691) -3% Investment Income 2,898 2,752 8,799 4,858 5, % 5,811 3% 485 9% Other Income >500% 14 0% (232) -94% Discounts (1,116) (1,315) (1,678) (1,398) (1,398) 100% (1,621) -1% (223) 16% TOTAL REVENUES 179, , , , , % 201, % (6,355) -3% Percent Change 23.6% -4.4% 24.6% -11.3% -3.2% 5.8% EXPENDITURES Salaries - Faculty 34,626 36,662 40,246 41,869 41, % 46,293 24% 4,494 11% Salaries - Non-Faculty 47,402 54,785 58,130 57,838 57, % 54,702 28% (3,110) -5% Wages 4,475 3,299 3,809 3,006 2,238 74% 1,708 1% (530) -24% Benefits 17,679 19,419 21,977 21,415 21, % 23,290 12% 1,639 8% Personnel Costs 104, , , , ,500 99% 125,993 65% 2,493 2% Utilities 6,159 6,532 7,115 10,498 8,457 81% 9,757 5% 1,300 15% Scholarships 2,406 2,887 3,784 3,424 3, % 3,140 2% (760) -19% Discounts (1,004) (1,204) (1,621) (1,398) (1,398) 100% (1,621) -1% (223) 16% Equipment (Capitalized) 6,856 4,084 4,681 4,090 5, % 5,840 3% 68 1% Operations and Maintenance (Net) 42,364 53,767 56,571 49,376 49, % 51,327 26% 1,824 4% Debt Service n/a 0 0% 0 n/a TOTAL EXPENDITURES 160, , , , , % 194, % 4,702 2% Percent Change 10.4% 12.0% 8.0% -2.4% -2.5% 2.3% TRANSFERS RFS Debt Service (To System Office) (5,826) (6,010) (7,462) (10,388) (10,388) 100% (9,518) 870-8% Other 3,432 4,397 6,696 6,100 6, % 6,200 (751) -11% NET TRANSFERS (2,394) (1,614) (766) (4,288) (3,437) 80% (3,318) 119-3% NET INCREASE (DECREASE) 16,511 (9,925) 18,785 (4,285) 14, % 3,304 (10,938) 77% ENDING CURRENT FUND BALANCE 65,955 56,030 74,815 59,563 89, % 92,360 3,302 4% * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). TAMHSC amount for FY 2008 is $7.2 million, FY 2009 $4.7 million, FY 2010 $7.2 million. 4 Executive Budget Summary Printed: 7/27/2011

84 Texas A&M Health Science Center Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 33,366 $ 38,981 $ 5,615 Designated 47,130 45,107 (2,023) Auxiliary Restricted 8,002 7,714 (288) Net Change in Fund Balance - Current Funds $ 89,055 $ 92,360 $ 3,304 Explanation for Net Decrease* Designated $ (2,023) Restricted $ (288) Decline due to the reduction in State funding, which is requiring our departments to shift one-time expense to designated balances. Decline due to the reduction in State funding, which is requiring our departments to shift one-time expense to restricted balances. Additionally, there are a couple of grant accounts whose funds will be spent in FY * if applicable 5 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 7/27/2011

85 TEXAS AGRILIFE RESEARCH BUDGET NARRATIVE Revenues Texas AgriLife Research is expecting total revenues in FY 2012 to decline approximately 2% compared to FY 2011 projections. Total State Appropriations were reduced approximately 5% from FY 2011 projections. Federal appropriations are also projected to be less in FY 2012, after a significant increase in FY Contracts and Grants revenue is projected to remain constant, and sales are expected to experience moderate growth in FY Since the beginning of FY 2010, Texas AgriLife Research has experienced a general revenue reduction of $15.6 million across the biennium. The initial 5% state reduction had a $5.8 million impact on the agency, with an additional $9.8 million reduction for the FY biennium. Revenue from Contracts and Grants is budgeted at $86.2 million, or 47% of total revenue. AgriLife Research should continue to be successful in obtaining these types of funds through the Office of Sponsored Research Services. However, revenue growth will be offset by the decline in federal earmarks for FY Sales and Services are projected to be 3% higher in FY 2012, primarily due to an increase in the volume that is subject to regulatory functions and sales and services done by the agency. Investment Income is budgeted to increase slightly based on investment forecasts from the System Offices. Expenditures Total FY 2012 budgeted expenditures are expected to decrease by 1%, or $2.3 million, compared to projected FY 2011 expenditures. One underlying factor is that total personnel costs are down 3% from FY 2011 projected expenses. Aggregate faculty salaries are down due to faculty vacancies and 1

86 TEXAS AGRILIFE RESEARCH BUDGET NARRATIVE CONTINUED four unit head vacancies that were not budgeted for in FY Hiring for these positions has been delayed due to the budget reductions for FY Any of these positions that are filled in FY 2012 will be funded from contingencies included in the Operations and Maintenance budget category. There is also an expected decline in aggregate staff salaries, as positions were eliminated due to the budget reductions. Total wage expenses have declined from FY 2011 projected actuals, which included Accrued Compensable Leave for personnel terminated in FY The 2% increase in budgeted Operations and Maintenance expenses is partially attributable to increased research expenses from contracts and grants as these continue to grow through the year. These expenses are partially offset by reductions in travel and departmental operating budgets as part of the reduction plans through continued shared services and deferred maintenance. Equipment costs are down from FY 2011 projected actuals as departments look at the reduction plans and defer major purchases. Scholarships were below prior year estimates due to tighter operating budgets in the units and are partially offset by a $2 million a year, five-year award from Monsanto for the Beachell Borlaug International Scholars program. Texas AgriLife Research, Texas AgriLife Extension, and Texas Veterinary Medical Diagnostic Lab share fiscal, human resource, communications, and information technology services within Texas A&M AgriLife. Joint offices are located both on-campus and off-campus. The agencies seek to maximize vendor purchasing contracts and HUB efficiencies. In an effort to maximize cost efficiencies, the agency is working with several system entities to adopt a web-enhanced technology for travel processing. In addition, the agency is collaborating with other system members to gain efficiencies in contract and grant administration through the Office of Sponsored Research Service system initiative. Transfers The RFS Debt Service transfer of $2 million is for the Centeq Building loan, the Nuclear Magnetic Resonance Facility loan, and the Ag Headquarters, Fiscal Services Building and Visitor s Center loan. 2

87 THE TEXAS A&M UNIVERSITY SYSTEM Texas AgriLife Research FY 2012 Budget Graphs (In Thousands) Contracts and Grants FY 2012 BUDGET REVENUES $182,068 Total Gifts Sales and Services Investment Income Operations and Maintenance (Net) FY 2012 BUDGET EXPENDITURES $184,945 Total Personnel Costs Federal Appropriations See Executive Budget Summary for amounts and percentages State Appropriations Equipment (Capitalized) Scholarships Utilities See Executive Budget Summary for amounts and percentages FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Institutional Support $4,456 2% Operation & Maint of Plant $5,528 3% Research $169,967 92% Public Service $4,994 3% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 3 Executive Budget Graphs Printed: 7/26/2011

88 THE TEXAS A&M UNIVERSITY SYSTEM Texas AgriLife Research FY 2012 Executive Budget Summary (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 66,010 69,810 59,256 53,721 54,852 52,730 (2,123) -4% REVENUES State Appropriations 72,407 69,029 68,857 70,119 67,482 96% 64,012 35% (3,470) -5% Federal Appropriations 7,197 7,674 7,967 7,967 8, % 7,568 4% (1,204) -14% Contracts and Grants 78,148 87,072 85,632 84,689 86, % 86,206 47% 199 0% Gifts 1,774 1,126 2,634 1,202 1, % 1,862 1% % Sales and Services 16,984 17,101 18,992 16,895 17, % 18,237 10% 484 3% Investment Income (736) (1,639) 3,585 3,179 3, % 4,184 2% % Other Income (38) 0 38 n/a 0 0% (38) 100% TOTAL REVENUES 175, , , , , % 182, % (3,230) -2% Percent Change 1.6% 2.6% 4.0% -1.9% -1.2% -1.1% EXPENDITURES Salaries - Faculty 22,766 24,109 24,697 23,014 23, % 21,913 12% (1,093) -5% Salaries - Non-Faculty 52,470 57,714 57,175 56,000 54,636 98% 52,884 29% (1,752) -3% Wages 7,931 9,115 8,452 7,165 7, % 7,569 4% (41) -1% Benefits 21,509 22,780 23, , ,716 93% 21, % (485) -2% Personnel Costs 104, , , , ,968 98% 103,598 56% (3,370) -3% Utilities 1,878 1,699 6,190 5,982 6, % 6,243 3% 58 1% Scholarships 1,051 1,612 3,683 2,217 3, % 2,921 2% (287) -9% Equipment (Capitalized) 6,451 6,560 5,774 5,443 5, % 5,423 3% (192) -3% Operations and Maintenance (Net) 57,369 67,411 59,929 63,983 65, % 66,760 36% 1,506 2% Debt Service n/a 0 0% 0 n/a TOTAL EXPENDITURES 171, , , , , % 184, % (2,284) -1% Percent Change 5.8% 11.4% -1.0% -1.1% -1.0% -1.2% TRANSFERS RFS Debt Service (To System Office) (217) (366) (432) (1,083) (1,070) 99% (2,022) (952) 89% Other (450) 402 (2,420) n/a 0 (878) -100% NET TRANSFERS (667) 36 (2,853) (1,083) (192) 18% (2,022) (1,830) >500% NET INCREASE (DECREASE) 3,799 (10,553) (4,404) (4,130) (2,123) 51% (4,899) (2,776) -131% ENDING CURRENT FUND BALANCE 69,810 59,256 54,852 49,591 52, % 47,830 (4,899) -9% * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). AgriLife Research amount for FY 2008 is $13.13 million, FY 2009 $4.8 million, FY 2010 $7.2 million. 4 Executive Budget Summary Printed: 7/27/2011

89 Texas AgriLife Research Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 944 $ 763 $ (181) Designated 45,566 42,267 (3,298) Auxiliary Restricted 6,220 4,800 (1,420) Net Change in Fund Balance - Current Funds $ 52,730 $ 47,830 $ (4,899) Explanation for Net Decrease* Functional and General $ (181) Designated $ (3,298) Restricted $ (1,420) Decrease is due to the use of Advanced Research Program funds expiring in FY 2012, offset by increase in sales revenue at the centers. Use of balances for operating, equipment, and personnel due to reduced appropriations and an increase in debt service on NMR, Centeq, Ag Headquarters and Ag Admin Buildings. Use of carryforward balances from fixed price contracts, offset by new fixed price awards. * if applicable 5 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 7/27/2011

90 TEXAS AGRILIFE EXTENSION SERVICE BUDGET NARRATIVE Revenues Texas AgriLife Extension Service is budgeting an overall revenue decrease of 1% from FY 2011 projected actual and 6%, or $7 million, when compared to the FY 2011 budget. Anticipated growth in fee based programming, and contracts and grants is offset by reductions in state and federal appropriations. Since the beginning of FY 2010, the agency has seen a state general revenue reduction of 15%, equivalent to $15.2 million across the biennium. The initial 5% state reduction had a $5 million impact on the agency. During the 82 nd Legislative Session, state appropriations were reduced an additional $10.2 million. The 8% decrease in federal appropriations from FY 2011 projected actuals is attributable to a 15% decrease in federal Smith Lever funds which account for 58% of federal appropriations. Contracts and Grants are projected to increase 5%, reflecting recent trends. However, due to potential impacts to federal earmarks, the agency anticipates reductions to contracts and grants beginning in FY The agency is strategically pursuing other funding opportunities through collaborations with state, federal and private entities. Recently, the agency secured a five year multi-million dollar award on family nutrition and gardening. Gift contributions are cyclical and tend to fluctuate with the general economic climate. The agency projects a 2% increase in FY Units continue to seek opportunities to increase gift revenue. In March 2011, AgriLife Extension implemented an agency-wide partial cost recovery initiative in order to maintain the program delivery network across the state. As a result of this initiative, Sales and Services revenue is expected to increase 66%. All programs are currently in the process of being reviewed for fee based program opportunity. Units are also pursuing web-based technologies to expand programming opportunities. Due to the continuing uncertain economic climate, Investment Income revenue is estimated to remain unchanged from FY 2011 projected actuals. 1

91 TEXAS AGRILIFE EXTENSION SERVICE BUDGET NARRATIVE CONTINUED Expenditures AgriLife Extension is estimating a decrease in expenditures of 1% when compared to FY 2011 projected actuals. Overall, Personnel Costs are budgeted to decrease by $1.5 million, or 2%, when compared to FY 2011 projected and by $6.8 million, or 7%, when compared to the FY 2011 budget. Faculty salaries are projected to decrease 7%, primarily due to the budget reductions. The slight increase in non-faculty salaries is a combination of increases due to contract and grant activity and promotion and career ladder adjustments for FY Wages are estimated to decrease 4%, reflecting fewer accrued compensable leave payments and less use of wage employees in FY Benefits are currently projected to decrease 4% from FY 2011 projected actuals. State group insurance and retirement estimates are being budgeted based on the State projections for FY Utility costs are anticipated to increase slightly for FY 2012 due to increased gas prices. Operations and Maintenance costs are expected to increase 1%, primarily related to increased contract and grant activity during FY Funds for capital purchases are allocated on a priority basis and are dependent upon available resources. Equipment costs for FY 2012 are estimated to be 33% over FY 2011 projected actuals due to equipment upgrades and vehicle replacement. The agency deferred vehicle replacements in FY 2010 and FY 2011 due to budget constraints; however, vehicles will need to be replaced in FY AgriLife Extension, AgriLife Research and Texas Veterinary Medical Diagnostic Lab share fiscal, human resource, communication, and information technology services within Texas A&M AgriLife. Joint offices are located both on-campus and off-campus. The agencies seek to maximize vendor purchasing contracts and HUB efficiencies. In an effort to maximize cost efficiencies, the agency is working with several system entities to adopt a web-enhanced technology for travel processing. As a service agency, AgriLife Extension will be collaborating with other system members to gain efficiencies in contracts and grants through the Office of Sponsored Research Service system initiative. 2

92 THE TEXAS A&M UNIVERSITY SYSTEM Texas AgriLife Extension Service FY 2012 Budget Graphs (In Thousands) Federal Appropriations FY 2012 BUDGET REVENUES $111,601 Total Contracts and Grants Gifts Sales and Services Investment Income Other Income FY 2012 BUDGET EXPENDITURES $111,349 Total Utilities Scholarships Equipment (Capitalized) Operations and Maintenance (Net) State Appropriations Personnel Costs See Executive Budget Summary for amounts and percentages See Executive Budget Summary for amounts and percentages FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Public Service $61,282 55% Institutional Support $5,188 5% Instruction $44,562 40% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 3 Executive Budget Graphs Printed: 8/3/2011

93 THE TEXAS A&M UNIVERSITY SYSTEM Texas AgriLife Extension Service FY 2012 Executive Budget Summary (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 13,651 14,670 16,574 17,446 16,362 17, % REVENUES State Appropriations 65,156 66,894 66,366 64,803 62,383 96% 58,814 53% (3,569) -6% Federal Appropriations 22,091 29,013 21,579 25,582 21,633 85% 19,819 18% (1,814) -8% Contracts and Grants 22,285 16,246 21,950 22,230 22, % 23,970 21% 1,032 5% Gifts 1,653 1,832 1,472 1, % 982 1% 20 2% Sales and Services 3,754 4,419 4,434 4,209 4, % 7,553 7% 3,008 66% Investment Income (46) (281) % 352 0% 0 n/a Other Income % 111 0% (25) -18% TOTAL REVENUES 115, , , , ,948 95% 111, % (1,347) -1% Percent Change 5.9% 2.8% -1.5% 1.7% -3.2% -5.9% EXPENDITURES Salaries - Faculty 11,983 12,443 12,372 11,820 11, % 11,013 10% (873) -7% Salaries - Non-Faculty 52,130 55,731 55,132 55,520 51,903 93% 52,245 47% 342 1% Wages 2,655 2,266 2,036 2,598 2,300 89% 2,200 2% (100) -4% Benefits 24,390 24,869 25,709 25,598 24,195 95% 23,306 21% (889) -4% Personnel Costs 91, ,309 95,250 95, ,284 95% 88,764 80% (1,520) -2% Utilities , % 990 1% 8 1% Scholarships % 95 0% (20) -17% Equipment (Capitalized) 1, % 500 0% % Operations and Maintenance (Net) 21,623 20,726 20,097 21,621 20,815 96% 21,000 19% 185 1% TOTAL EXPENDITURES 114, , , , ,571 95% 111, % (1,222) -1% Percent Change 7.2% 2.2% 0.2% 1.1% -4.0% -6.1% TRANSFERS RFS Debt Service (To System Office) n/a 0 0 n/a Other % 200 (100) -33% NET TRANSFERS % 200 (100) -33% NET INCREASE (DECREASE) 1,019 1,904 (212) % 452 (225) -33% ENDING CURRENT FUND BALANCE 14,669 16,574 16,362 17,735 17,039 96% 17, % * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). AgriLife Extension amount for FY 2008 is $9.91 million, FY 2009 $5.3 million, FY 2010 $7.9 million. 4 Executive Budget Summary Printed: 7/27/2011

94 Texas AgriLife Extension Service Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 1,433 $ 1,433 $ - Designated 16,034 16, Auxiliary Restricted (428) (178) 251 Net Change in Fund Balance - Current Funds $ 17,039 $ 17,491 $ 452 Explanation for Net Decrease* * if applicable 5 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 7/27/2011

95 TEXAS FOREST SERVICE BUDGET NARRATIVE Revenues The Texas Forest Service is budgeting an increase in Total Revenues of $117 million. This is a 168% increase from FY 2011 projected actuals. The $117 million increase in revenue is the net result of: (1) a supplemental appropriation of $81 million for wildfire suppression costs in HB4 of the regular session of the 82 nd Legislature, (2) a supplemental appropriation of $40 million for wildfire suppression costs in SB2 of the special session of the 82 nd Legislature, and (3) a reduction in Contracts and Grants ($3.5 million in FEMA reimbursements, which are not budgeted, were received in FY 2011). Expenditures The Texas Forest Service is budgeting a decrease in Total Expenditures of $105 million. This is a 68% decrease from FY 2011 projected actuals. The $105 million decrease in expenditures is primarily the result of: (1) projected wildfire suppression costs of $121 million above TFS base appropriation in FY 2011, and (2) decreased expenditures in the Rural VFD Assistance Program because of a $16.5 million reduction in appropriations for FY Variances in Personnel Costs and Operations and Maintenance expenditure categories are primarily the result of emergency response activity in FY Operations and Maintenance are also budgeted to decrease by $16 million compared to FY 2011 budget as a result of the Rural VFD Assistance Program reduced funding. The variance in the Equipment expenditure category is due to planned reductions in Texas Wildfire Protection Plan equipment purchases, FY 2012 appropriation reductions, and one-time grants received for equipment in FY

96 THE TEXAS A&M UNIVERSITY SYSTEM Texas Forest Service FY 2012 Budget Graphs (In Thousands) FY 2012 BUDGET REVENUES $186,849 Total FY 2012 BUDGET EXPENDITURES $49,211 Total Other Income Investment Income Equipment (Capitalized) Operations and Maintenance (Net) Sales and Services State Appropriations Utilities Contracts and Grants See Executive Budget Summary for amounts and percentages Personnel Costs See Executive Budget Summary for amounts and percentages FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Research $2,363 5% Public Service $42,980 87% Institutional Support $2,754 6% Operation & Maint of Plant $1,114 2% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 2 Executive Budget Graphs Printed: 7/26/2011

97 THE TEXAS A&M UNIVERSITY SYSTEM Texas Forest Service FY 2012 Executive Budget Summary (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 48,151 42,047 45,008 45,426 51,346 (33,013) (84,359) -164% REVENUES State Appropriations 19,027 51,656 24,454 23,914 24, % 143,850 77% 119, % Contracts and Grants 14,088 11,412 14,094 8,159 12, % 9,460 5% (2,569) -21% Gifts n/a 0 0% (15) -100% Sales and Services 4,398 4,346 2,767 2,189 2, % 2,202 1% 13 1% Investment Income (356) (452) % 310 0% (163) -34% Other Income 30,725 31,594 31,425 31,004 31, % 31,026 17% 22 0% TOTAL REVENUES 67,992 98,870 74,350 65,516 69, % 186, % 117, % Percent Change -41.5% 45.4% -24.8% -11.9% -6.1% 185.2% EXPENDITURES Salaries - Faculty n/a 0 0% 0 n/a Salaries - Non-Faculty 14,860 15,253 15,802 18,619 16,893 91% 19,704 40% 2,811 17% Wages 3,607 3,604 1, ,760 >500% 948 2% (5,812) -86% Benefits 5,772 5,746 5,870 6,871 6,306 92% 6,449 13% 143 2% Personnel Costs 24,239 24,604 23,195 26,445 29, % 27,101 55% (2,858) -10% Utilities % 312 1% 89 40% Scholarships n/a 0 0% (10) -100% Equipment (Capitalized) ,653 3,653 6, % 3,022 6% (3,541) -54% Operations and Maintenance (Net) 48,922 70,158 38,944 34, , % 18,776 38% (98,648) -84% Debt Service n/a 0 0% 0 n/a TOTAL EXPENDITURES 74,122 95,943 68,050 65, , % 49, % (104,968) -68% Percent Change -1.0% 29.4% -29.1% -4.0% 126.6% -24.6% TRANSFERS RFS Debt Service (To System Office) n/a 0 0 n/a Other n/a 0 (42) -100% NET TRANSFERS n/a 0 (42) -100% NET INCREASE (DECREASE) (6,104) 2,961 6, (84,358) > -500% 137, , % ENDING CURRENT FUND BALANCE 42,047 45,008 51,346 45,634 (33,012) -72% 104, , % * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). TFS amount for FY 2008 is $2.64 million, FY 2009 $1.4 million, FY 2010 $2 million. 3 Executive Budget Summary Printed: 7/28/2011

98 Texas Forest Service Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ (43,157) $ 94,393 $ 137,550 Designated 9,752 9, Auxiliary Restricted (20) Net Change in Fund Balance - Current Funds $ (33,013) $ 104,624 $ 137,637 Explanation for Net Decrease* Restricted $ (20) The planned use of fund balance is for the Western Gulf Hardwood Improvement Cooperative. * if applicable 4 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 7/27/2011

99 TEXAS VETERINARY MEDICAL DIAGNOSTIC LABORATORY BUDGET NARRATIVE Revenues Total Revenues are expected to decrease 5%, or $783,000, compared to FY 2011 projected actuals. State Appropriations for TVMDL were reduced 8% for the 2012/2013 biennium. The loss of state revenue for TVMDL amounts to $972,159 when compared to 2010/2011 levels. Contracts and Grants revenue for TVMDL will also be reduced in the upcoming fiscal year. This is a result of a loss of funding from the National Institute of Food and Agriculture, a part of the United States Department of Agriculture. The agency continues to seek opportunities to increase contract and grant activities. Sales and Services revenue from TVMDL fee income is budgeted 5% less than FY 2011 projected actuals. Sales and Services total $9.1 million and represents 57% of the total FY 2012 revenue budget. Sales and Service projections are budgeted conservatively for FY However, TVMDL fee income continues to increase over previous fiscal year actuals. Expenditures Total FY 2012 budgeted expenditures are expected to increase by 7% over FY 2011 budgeted amounts. This increase is represented primarily by an investment in capital laboratory equipment and infrastructure needs of the agency. Salaries, Wages, and Benefits are expected to increase slightly over FY 2011 projected amounts. This category makes up 63% of the agency s expenditures. For FY 2012, utility costs are budgeted to increase by 18% to account for new facilities in our regional laboratories. Operations and Maintenance costs are anticipated to increase slightly as a result of an increase in consumable supply costs. Since the spring of 2009, TVMDL has shared several administrative functions (e.g., human resources, payroll, contract and grant services, disbursements, procurement, and HUB) with Texas AgriLife Research and Texas AgriLife Extension. This transition has helped to maximize cost efficiencies. 1

100 THE TEXAS A&M UNIVERSITY SYSTEM Texas Veterinary Medical Diagnostic Laboratory FY 2012 Budget Graphs (In Thousands) Investment Income FY 2012 BUDGET REVENUES $15,972 Total State Appropriations Equipment (Capitalized) Utilities FY 2012 BUDGET EXPENDITURES $16,647 Total Operations and Maintenance (Net) Sales and Services Contracts and Grants Personnel Costs See Executive Budget Summary for amounts and percentages See Executive Budget Summary for amounts and percentages FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Public Service $14,983 90% Institutional Support $1,663 10% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) T 2 Executive Budget Graphs Printed: 7/26/2011

101 THE TEXAS A&M UNIVERSITY SYSTEM Texas Veterinary Medical Diagnostic Lab FY 2012 Executive Budget Summary (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 5,573 6,572 5,070 2,482 3,107 4,111 1,004 32% REVENUES State Appropriations 6,968 7,155 7,278 7,134 6,768 95% 6,670 42% (98) -1% Contracts and Grants % 182 1% (201) -52% Gifts n/a 0 0% 0 n/a Sales and Services 8,694 8,165 8,698 8,916 9, % 9,110 57% (486) -5% Investment Income % 10 0% 2 22% Other Income 0 (3) n/a 0 0% 0 n/a TOTAL REVENUES 16,241 15,707 16,381 16,384 16, % 15, % (783) -5% Percent Change 16.4% -3.3% 4.3% 0.0% 2.3% -2.5% EXPENDITURES Salaries - Faculty n/a 0 0% 0 n/a Salaries - Non-Faculty 7,200 8,428 8,420 8,243 7,849 95% 8,078 49% 229 3% Wages % 349 2% 6 2% Benefits 1,885 2,238 2,152 2,155 2,007 93% 2,075 12% 68 3% Personnel Costs 9,399 10,912 10,905 10,699 10,199 95% 10,502 63% 303 3% Utilities % 696 4% % Equipment (Capitalized) % 664 4% 560 >500% Operations and Maintenance (Net) 4,405 4,590 4,312 4,619 4, % 4,785 29% 129 3% TOTAL EXPENDITURES 15,244 17,088 15,893 16,160 15,549 96% 16, % 1,098 7% Percent Change 12.1% -7.0% 1.7% -2.2% 3.0% TRANSFERS RFS Debt Service (To System Office) n/a 0 0 n/a Other 2 (121) (2,452) 0 (201) n/a % NET TRANSFERS 2 (121) (2,452) 0 (201) n/a % NET INCREASE (DECREASE) 999 (1,502) (1,963) 224 1, % (675) (1,680) 167% ENDING CURRENT FUND BALANCE 6,572 5,070 3,107 2,706 4, % 3,436 (676) -16% * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). TVMDL amount for FY 2008 is $1 million, FY 2009 $516 thousand, FY 2010 $744 thousand. 3 Executive Budget Summary Printed: 7/28/2011

102 Texas Veterinary Medical Diagnostic Laboratory Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 4,111 $ 3,447 $ (664) Designated - (11) (11) Auxiliary Restricted Net Change in Fund Balance - Current Funds $ 4,111 $ 3,436 $ (675) Explanation for Net Decrease* Functional and General $ (664) Designated $ (11) TVMDL will be making a one time capital expenditure for a new laboratory information management system (LIMS) in the coming fiscal year. These funds are being pulled from the agencies fee revenue reserve. The agency will also have other other one time infrastructure improvements that cannot be delayed. TVMDL will be making a one time capital expenditure for a new laboratory information management system (LIMS) in the coming fiscal year. * if applicable 4 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 7/27/2011

103 TEXAS ENGINEERING EXPERIMENT STATION BUDGET NARRATIVE Revenues TEES is projecting a 3% decrease in total revenues for FY 2012 when compared to FY 2011 projected actual revenue. There is an 11% decrease in State Appropriations for FY 2012 when compared to FY 2011 projections. This decrease, as a result of cuts in state funding, will reduce the ability to leverage state funds into private sector and federal research funding as well as reduce the ability to meet matching funds requirements. Included in the State Appropriations is a 42% reduction in the Nuclear Power Institute program from FY 2011 which had been appropriated $500,000 each year in General Revenue and $2 million in ARRA funds. For FY 2012, the Nuclear Power Institute program s total in State funding should be approximately $1.45 million compared to $2.5 million for FY The $1 million in General Revenue for FY 2012 was funded via HB 4 and was intended to partially replace the one-time ARRA funding for the Nuclear Power Institute program. State funding will continue to help efforts to pair higher education partners and school district partners in the Central Texas area. Also, included in the State Appropriations is a 50% reduction in the State Appropriations General Revenue-Dedicated for Emissions Reduction Plan which materially impacts the Energy Systems Laboratory program for FY Contracts and Grants growth is projected to remain level compared to FY Sales and Services is primarily short course revenue which is difficult to estimate. The best estimate for FY 2012 is a 5% decrease compared to FY 2011 projected actuals. Investment Income for FY 2012 is expected to decrease by 27% compared to the FY 2011 projected actual. The FY 2011 amount reflects unrealized gains which TEES does not budget. 1

104 TEXAS ENGINEERING EXPERIMENT STATION BUDGET NARRATIVE CONTINUED Expenditures TEES FY 2012 expenditures are projected to decrease by 1% compared to projected actual expenditures for FY Research expenditures are projected to decrease approximately 3% compared to FY At this time, due to budgetary constraints, a merit program will not be available. However, recognizing the impact of increases in out-of-pocket benefit costs, a salary increase for budgeted employees earning $34,500 or less has been approved by TEES. Overall, Personnel costs are projected to decrease by 3%. A significant portion of this decrease is associated with decreased administrative costs. Utilities are expected to remain stable in FY Equipment (Capitalized) expenditures are expected to increase by 2% for FY 2012 while Operations and Maintenance have an estimated decrease of 1%. During FY 2012, TEES will continue to lead the A&M System effort in implementing an integrated research and administrative system. Additionally, TEES will continue to expand the use of imaging and document management which will lead to savings from the reduction in paper cost, including storage, and improve the productivity of staff. The implementation of both of these systems will significantly improve effectiveness and efficiency. In the event funding levels are adequate, and in conjunction with Texas A&M University, TEES may proceed with market driven adjustments and/or a merit pool not to exceed 2% later in FY Transfers The RFS Debt Service transfer is for the Good Laboratory Practices Facility and the TEES State Headquarters Building. Other transfers include PUF funds (funds provided by the System Offices for equipment purchases). 2

105 THE TEXAS A&M UNIVERSITY SYSTEM Texas Engineering Experiment Station FY 2012 Budget Graphs (In Thousands) FY 2012 BUDGET REVENUES $147,936 Total Sales and Services Investment Income Other Income Scholarships FY 2012 BUDGET EXPENDITURES $148,520 Total Equipment (Capitalized) Operations and Maintenance (Net) Gifts Utilities State Appropriations Contracts and Grants Personnel Costs See Executive Budget Summary for amounts and percentages See Executive Budget Summary for amounts and percentages FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Research $136,070 92% Institutional Support $8,810 6% Operation & Maint of Plant $3,640 2% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 3 Executive Budget Graphs Printed: 8/3/2011

106 THE TEXAS A&M UNIVERSITY SYSTEM Texas Engineering Experiment Station FY 2012 Executive Budget Summary (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 73,692 72,996 72,673 90,462 82,526 85,027 2,501 3% REVENUES State Appropriations 18,306 18,575 18,235 22,121 20,100 91% 17,959 12% (2,141) -11% Contracts and Grants 81,103 95, , , ,467 99% 119,391 81% (76) 0% Gifts , % 653 0% % Sales and Services 6,999 8,532 9,733 6,116 7, % 6,800 5% (371) -5% Investment Income (2,067) (2,957) 5,107 2,661 3, % 2,633 2% (982) -27% Other Income 1, , % 500 0% (730) -59% TOTAL REVENUES 105, , , , , % 147, % (4,097) -3% Percent Change -0.9% 13.6% 25.7% 0.8% -3.1% EXPENDITURES Salaries - Faculty (Equivalent) 14,871 17,527 18,822 18,051 18, % 18,566 13% (190) -1% Salaries - Non-Faculty 31,469 35,336 38,288 43,447 44, % 43,285 29% (738) -2% Wages 3,271 3,805 4,581 3,910 3, % 3,829 3% (67) -2% Benefits 9,578 10,507 11,430 11,827 12, % 11,594 8% (1,129) -9% Personnel Costs 59,189 67,175 73,121 77,235 79, % 77,274 52% (2,124) -3% Utilities % 179 0% (0) 0% Scholarships 7,543 8,594 10,021 8,837 9, % 9,288 6% 98 1% Equipment (Capitalized) 6,086 6,410 9,064 8,549 8,352 98% 8,559 6% 207 2% Operations and Maintenance (Net) 34,539 38,994 50,431 56,135 53,533 95% 53,221 36% (312) -1% Debt Service n/a 0 0% 0 n/a TOTAL EXPENDITURES 107, , , , , % 148, % (2,132) -1% Percent Change 3.4% 12.7% 17.7% 5.7% -1.6% TRANSFERS RFS Debt Service (To System Office) 0 (81) (350) (356) (356) 100% (361) (5) 2% Other 1, ,668 1,292 1, % 1,000 (476) -32% NET TRANSFERS 1, , , % 639 (481) -43% NET INCREASE (DECREASE) (697) (323) 9,853 2,661 2,501 94% 54 (2,447) -98% ENDING CURRENT FUND BALANCE 72,996 72,673 82,526 93,123 85,027 91% 85, % * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). TEES amount for FY 2008 is $9.83 million, FY 2009 $2.2 million, FY 2010 $3.9 million. 4 Executive Budget Summary Printed: 7/28/2011

107 Texas Engineering Experiment Station Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 5,408 $ 5,408 $ - Designated 53,881 53, Auxiliary Restricted 25,737 25,737 0 Net Change in Fund Balance - Current Funds $ 85,027 $ 85,081 $ 54 Explanation for Net Decrease* * if applicable 5 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 7/27/2011

108 TEXAS ENGINEERING EXTENSION SERVICE BUDGET NARRATIVE Revenues For FY 2012, TEEX is projecting a 4%, or $2.9 million, increase in Total Revenues over FY 2011 projected actuals. The FY 2011 projected Fee revenue and FY 2012 budgeted Fee revenue are significantly more than what was budgeted for FY 2011 due to TEEX changing the way revenue is classified. Revenue is now classified by type rather than source. This change also reduced Contracts and Grants revenue and Sales and Services revenue budgeted for FY 2012 in comparison to the FY 2011 budgeted amount. The FY 2012 Contracts and Grants revenue is more than projected for FY 2011 due to TEEX receiving a one-year, $10.8 million international contract with Power Training in the United Arab Emirates. Expenditures In FY 2012, Total Expenditures are estimated to increase 5%, or $3.6 million, over FY 2011 projections. The FY 2011 projected Personnel Costs are less than was previously budgeted for FY 2011 due to savings achieved from the consolidation of two divisions. The increase in Operations and Maintenance (Net) is primarily attributable to funds budgeted for upgrades to curriculum, purchase of vehicles and infrastructure improvements. Transfers The RFS Debt Service transfer of $699,900 is for the Wastewater System Upgrade at the Brayton Firefield, the Physical Skills Training Center at the Riverside campus, and a 3-Story Burn Building at the Brayton Firefield. 1

109 THE TEXAS A&M UNIVERSITY SYSTEM Texas Engineering Extension Service FY 2012 Budget Graphs (In Thousands) Gifts Sales and Services FY 2012 BUDGET REVENUES $84,695 Total Investment Income State Appropriations Operations and Maintenance (Net) FY 2012 BUDGET EXPENDITURES $82,476 Total Personnel Costs Tuition and Fees (Gross) Contracts and Grants See Executive Budget Summary for amounts and percentages Equipment (Capitalized) Utilities See Executive Budget Summary for amounts and percentages FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Institutional Support $12,570 15% Instruction $69,906 85% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 2 Executive Budget Graphs Printed: 8/3/2011

110 THE TEXAS A&M UNIVERSITY SYSTEM Texas Engineering Extension Service FY 2012 Executive Budget Summary (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 26,542 24,438 29,714 31,574 34,274 36,981 2,707 8% REVENUES State Appropriations 7,496 8,950 7,492 7,431 7, % 6,927 8% (474) -6% Tuition and Fees (Gross) 20,988 19,583 18,917 19,624 33, % 33,184 39% (809) -2% Contracts and Grants 51,557 50,049 56,389 56,549 34,088 60% 38,348 45% 4,260 12% Gifts % 377 0% 27 8% Sales and Services 1,736 1,607 1,388 1,364 5, % 5,824 7% 24 0% Investment Income (849) (1,208) 2,008 1,201 1,100 92% 1,001 1% (99) -9% Other Income % 39 0% 2 5% Discounts (432) (429) (361) (390) (977) 251% (1,005) -1% (28) 3% TOTAL REVENUES 80,936 79,020 86,570 86,194 81,792 95% 84, % 2,903 4% Percent Change 0.8% -2.4% 9.6% -0.4% -5.5% -1.7% EXPENDITURES Salaries - Faculty n/a 0 0% 0 n/a Salaries - Non-Faculty 27,691 28,740 28,398 29,418 27,768 94% 27,981 34% 213 1% Wages 10,002 9,074 8,161 8,392 6,802 81% 6,394 8% (408) -6% Benefits 7,986 8,119 8,193 8,503 7,625 90% 7, % 80 1% Personnel Costs 45,683 45,937 44,751 46,313 42,195 91% 42,080 51% (115) 0% Utilities ,318 1,415 1,189 84% 1,100 1% (89) -7% Equipment (Capitalized) 3,099 3,880 1,606 2,138 1,320 62% 1,423 2% 103 8% Operations and Maintenance (Net) 34,235 32,681 31,174 34,915 34,131 98% 37,873 46% 3,742 11% Debt Service n/a 0 0% 0 n/a TOTAL EXPENDITURES 83,260 82,757 78,849 84,782 78,835 93% 82, % 3,641 5% Percent Change 5.5% -0.6% -4.7% 7.5% 0.0% -2.7% TRANSFERS RFS Debt Service (To System Office) 0 0 (3,588) (699) (699) 100% (700) (1) 0% Other 220 9, % % NET TRANSFERS 220 9,013 (3,161) (249) (249) 100% (100) % NET INCREASE (DECREASE) (2,105) 5,275 4,560 1,164 2, % 2,120 (588) -22% ENDING CURRENT FUND BALANCE 24,438 29,714 34,274 32,738 36, % 39,100 2,118 6% * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). TEEX amount for FY 2008 is $3.21 million, FY 2009 $1.78 million, FY 2010 $2.7 million. 3 Executive Budget Summary Printed: 7/28/2011

111 Texas Engineering Extension Service Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 15,537 $ 18,959 $ 3,421 Designated 21,394 20,092 (1,302) Auxiliary Restricted Net Change in Fund Balance - Current Funds $ 36,981 $ 39,100 $ 2,120 Explanation for Net Decrease* Designated $ (1,302) In FY 2011 and the prior three fiscal years, divisons have been tranferring funds to designated service accounts in anticipation of future capital expenditures. Funds are now being budgeted in FY 2012 for upgrades to curriculum, purchase of vehicles and infrastructure improvements. * if applicable 4 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 7/27/2011

112 TEXAS TRANSPORTATION INSTITUTE BUDGET NARRATIVE Revenues For FY 2012, the Texas Transportation Institute (TTI) estimates total revenues to increase 8%, or $4.9 million, over FY 2011 projections. The increase in revenues is the result of growth in federal, private and internationally sponsored research activities and new research funding from the 82 nd Legislature. The new funding includes $3 million from the Texas Department of Transportation (TxDOT) to serve as project coordinator and to make recommendations regarding the four most congested regions in Texas. TTI also will receive up to $250,000 from TxDOT to study methods to maximize tollway revenue. For FY 2012, TTI also will receive $641,250 in general revenue, $213,750 of which will fund the Center for Strategic Transportation Solutions. TTI will continue to receive its primary state appropriations through Fund 6 (State Highway Fund), which has not been subject to recent appropriations reductions. For FY 2012, Investment Income has been budgeted conservatively at $506,900. Expenditures For FY 2012, TTI estimates total expenditures to increase 8%, or $4.8 million, over FY 2011 projections. The increase in expenditures is the result of higher Personnel Costs and Operations and Maintenance expenditures resulting from continued growth in sponsored research activities and the new research initiatives from the state. Budget expenditures for Personnel Costs do not include a merit pool because of federal transportation funding uncertainty. In the event funding levels are adequate, TTI may proceed with a merit pool not to exceed 3% during FY TTI is providing a salary adjustment for all employees earning $34,500, or less annually, and $25,000 in total one-time merit payments for distribution to the top performing researchers who are most successful in achieving research diversification during FY Transfers The $1.69 million budget for RFS Debt Service includes $1.64 million for the TTI State Headquarters and Research Building and $48,409 for the TTI Research Building (Gibb Gilchrist Building). 1

113 THE TEXAS A&M UNIVERSITY SYSTEM Texas Transportation Institute FY 2012 Budget Graphs (In Thousands) Sales and Services Investment Income FY 2012 BUDGET REVENUES $63,979 Total State Appropriations Utilities FY 2012 BUDGET EXPENDITURES $61,526 Total Scholarships Equipment (Capitalized) Gifts Operations and Maintenance (Net) See Executive Budget Summary for amounts and percentages Contracts and Grants Personnel Costs See Executive Budget Summary for amounts and percentages FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Research $55,065 90% Institutional Support $4,575 7% Operation & Maint of Plant $1,886 3% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 2 Executive Budget Graphs Printed: 7/26/2011

114 THE TEXAS A&M UNIVERSITY SYSTEM Texas Transportation Institute FY 2012 Executive Budget Summary (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 13,908 18,681 16,452 20,991 18,050 18, % REVENUES State Appropriations 7,379 7,407 8,941 8,403 8, % 11,529 18% 3,145 38% Contracts and Grants 43,476 41,111 42,562 44,900 44, % 46,434 73% 1,524 3% Gifts % 50 0% 0 n/a Sales and Services 4,842 4,960 5,253 5,405 5,348 99% 5,459 9% 111 2% Investment Income (296) (487) % 507 1% % Other Income n/a 0 0% (8) -100% TOTAL REVENUES 55,456 53,101 57,668 59,300 59, % 63, % 4,939 8% Percent Change 18.4% -4.2% 8.6% 2.8% 2.4% 7.9% EXPENDITURES Salaries - Faculty % 320 1% 30 10% Salaries - Non-Faculty 27,384 28,545 29,094 30,795 30, % 33,683 55% 2,983 10% Wages 1, , , % 1,116 2% 15 1% Benefits 6,195 6,301 6,754 6,426 6,390 99% 6,959 11% 569 9% Personnel Costs 34,714 36,097 37,376 38,498 38, % 42,078 68% 3,597 9% Utilities % 900 1% 42 5% Shl Scholarships hi % 270 0% 30 13% Equipment (Capitalized) ,241 1,320 1,178 89% 1,345 2% % Operations and Maintenance (Net) 14,894 15,350 16,642 15,568 15, % 16,933 28% 983 6% Debt Service n/a 0 0% 0 n/a TOTAL EXPENDITURES 50,650 52,571 56,236 56,586 56, % 61, % 4,819 8% Percent Change 9.8% 3.8% 7.0% 0.6% 0.8% 8.7% TRANSFERS RFS Debt Service (To System Office) (47) (43) (182) (1,271) (1,680) 132% (1,693) (13) 1% Other 14 (677) n/a 0 (22) -100% NET TRANSFERS (33) (720) 166 (1,271) (1,658) 130% (1,693) (35) 2% NET INCREASE (DECREASE) 4,773 (190) 1,598 1, % % ENDING CURRENT FUND BALANCE 18,681 18,491 18,050 22,434 18,725 83% 19, % * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). TTI amount for FY 2008 is $2.71 million, FY 2009 $1.48 million, FY 2010 $2.3 million. 3 Executive Budget Summary Printed: 7/28/2011

115 Texas Transportation Institute Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 1,982 $ 1,997 $ 16 Designated 14,436 15, Auxiliary Restricted 2,308 2, Net Change in Fund Balance - Current Funds $ 18,725 $ 19,485 $ 760 Explanation for Net Decrease* * if applicable 4 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 7/27/2011

116 SYSTEM OFFICES Introduction BUDGET NARRATIVE The A&M System Offices continue to make positive organizational and operational changes to improve the overall services provided to the Board, System members, and departments within the System Offices. Over the past year and a half, organizational changes have included the consolidation of several functional areas (payroll operations, employee training, & business office) with Texas A&M University as part of the overall shared services initiative. Currently, the final implementation steps are being taken to consolidate the research administration activities for all College Station-based members within the System Offices. This initiative will create the new Office of Sponsored Research Services (OSRS) which will be responsible for all pre- and post-award services for all contracts and grants sought by, and awarded to, System members. The proposed FY 2012 service department budget reflects these changes. Revenues Overall System Offices revenues are expected to increase by $5 million (5%) when compared to FY 2011 projected actuals. State Appropriations are projected to decrease by a net $4.8 million as a result of the following: Tuition Revenue Bond debt service - FY 2011 included $5.7 million appropriated for tuition revenue bond debt service for TAMU-SA and TAMU-CT. Beginning in FY 2012, these funds have been appropriated directly to these institutions. Need Based Scholarships - An additional $770,711 has been appropriated for need based scholarships. This appropriation will be allocated in each year of the biennium. System Office Operations - State Appropriations for operations was reduced by over $500,000 as a result of a 27% cut in state funding. Available University Fund (AUF) increased revenue projections are based on a one-time increase in the PUF payout from 4.75% to 5.5%. The System Offices AUF excellence allocation will be $12.6 million per year. In addition, TAMU and PVAMU will receive $90.9 million and $15.1 million per year, respectively. 1

117 SYSTEM OFFICES BUDGET NARRATIVE CONTINUED Contracts and Grants for FY 2012 have been budgeted at $4.4 million, which is $7.4 million less than FY 2011 projected actuals. The FY 2011 projected amount includes over $6.6 million from the Emerging Technology Fund (ETF), $2.49 million from a contract with M. D. Anderson related to the National Center for Therapeutic Manufacturing (NCTM), and almost $3 million related to the Federal Medicare Part D supplement. For FY 2012, Contracts and Grants include $3.6 million budgeted for the Federal Medicare Part D supplement and $785,000 from various other contracts. Investment Income has been budgeted relatively level with the FY 2011 projected amount at $8.7 million. Expenditures There were no increases in departmental operating budgets for FY In addition, any departmental merit salary plans will be required to be funded from within existing operating budget resources. Overall, however, System Offices expenditures are budgeted to increase by a net $7.5 million (3%), above FY 2011 projected actuals. This net change is primarily related to the following items: 1. Increased debt service to be paid on behalf of all A&M System members - $7 million. 2. Non-faculty salaries, when compared to the FY 2011 budget, are projected to decrease by almost $600,000 (4.7%) and total personnel costs are projected to decrease by almost $300,000 (1.8%). 3. Scholarship expenditures are increasing by $678,000 as a result of the need-based scholarships appropriated by the legislature. 4. Taken together, Equipment and Operations and Maintenance costs are projected to decrease by $1.4 million when compared to FY 2011 projected actuals. Projected FY 2011 Equipment purchases of $4.7 million include several one-time purchases (e.g., PODs for Mobile Biotherapeutic Manufacturing Facility) related to contract and grant activities. 2

118 T THE TEXAS A&M UNIVERSITY SYSTEM System Offices FY 2012 Budget Graphs (In Thousands) FY 2012 BUDGET REVENUES $106,640 Total FY 2012 BUDGET EXPENDITURES $282,012 Total Gifts Investment Income State Appropriations Personnel Costs Utilities Scholarships Contracts and Grants Operations and Maintenance (Net) Available University Fund Debt Service Equipment (Capitalized) See Executive Budget Summary for amounts and percentages See Executive Budget Summary for amounts and percentages Research $2,765 9% FY 2012 BUDGET EXPENDITURES BY NACUBO FUNCTION Scholarships & Fellowships $778 3% Institutional Support $26,978 88% NACUBO - National Association of College and University Business Officers. (See Glossary for function definitions) 3 Executive Budget Graphs Printed: 8/3/2011

119 THE TEXAS A&M UNIVERSITY SYSTEM System Offices FY 2012 Executive Budget Summary (dollars in thousands) FY12 Budget to FY 2008* FY 2009* FY 2010* FY 2011* FY 2012* FY11 Projected Actuals Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 581, , , , , ,242 (213) 0% REVENUES State Appropriations 8,266 6,461 4,523 7,881 7,347 93% 2,510 2% (4,837) -66% Available University Fund 58,965 79,808 75,702 70,649 72, % 90,870 85% 18,188 25% Contracts and Grants 6,370 23,369 9,013 6,615 11, % 4,385 4% (7,415) -63% Gifts % 193 0% (77) -29% Sales and Services 478 (200) n/a 0 0% (600) -100% Investment Income 13,258 2,599 10,600 8,431 8, % 8,682 8% (249) -3% Other Income 16,865 (7,972) 1, n/a 0 0% 0 n/a TOTAL REVENUES 104, , ,768 93, , % 106, % 5,010 5% Percent Change -0.5% -0.1% -2.4% -7.9% -0.1% 13.7% EXPENDITURES Salaries - Faculty (1) ,400 1, % 1,465 1% (117) -7% Salaries - Non-Faculty 12,392 13,748 12,083 11,954 10,220 85% 11,392 4% 1,172 11% Wages % 171 0% (329) -66% Benefits 2,670 2,978 3,250 3,125 2,795 89% 3,326 1% % Personnel Costs 15,301 17,802 16,885 16,650 15,097 91% 16,354 6% 1,257 8% Utilities % 483 0% (0) 0% Scholarships % 778 0% 678 >500% Equipment (Capitalized) 18, ,700 >500% 92 0% (4,608) -98% Operations and Maintenance (Net) 16,297 24,821 17,468 13,520 9,585 71% 12,815 5% 3,230 34% Debt Service 203, , , , , % 251,490 89% 6,983 3% TOTAL EXPENDITURES 253, , , , , % 282, % 7,540 3% Percent Change 28.7% 12.6% -25.2% 28.8% 28.4% 2.5% TRANSFERS RFS Debt Service (from System Members) 144, , , , , % 167,970 (4,659) -3% Other (24,885) (15,739) (17,478) (20) 0 0% (3,241) (3,241) n/a NET TRANSFERS 119, , , , , % 164,730 (7,899) -5% NET INCREASE (DECREASE) (29,695) (31,920) 21,639 (15,079) (213) 1% (10,642) (10,430) >500% ENDING CURRENT FUND BALANCE 551, , , , , % 759,600 (10,642) -1% * Excludes estimated expense associated with Other Post-Employment Benefits (OPEB). System Offices amount for FY 2008 is $2 million, FY 2009 $1.2 million, FY 2010 $1.8 million. 4 Executive Budget Summary Printed: 8/3/2011

120 System Offices Net Change in Fund Balance Current Funds Fiscal Year 2012 Budget (dollars in thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ - $ - $ - Designated 74,493 65,739 (8,754) Auxiliary Restricted 4,424 2,536 (1,889) Net Change in Fund Balance - Current Funds $ 78,917 $ 68,274 $ (10,642) Explanation for Net Decrease* Designated $ (8,754) Restricted $ (1,889) Planned use of AUF, SMF, and other System Offices reserves. Use of FY 2011 carry-forward balances from multiyear contracts and grants. * if applicable 5 K:\BA\BUDGETS\2012 Budget\2012 Use of FB Explanations Printed on: 8/3/2011

121 1. Salary Plans (by Member) 2. Net General Revenue Appropriations 3. Tuition & Fees Information 4. Student Metrics Headcount and Semester Credit Hours Graduation and Persistence Rates Student to Faculty Ratio Supplemental Information Table of Contents 5. Texas A&M Health Science Center Student and Program Data 6. Faculty Information Average Faculty Salaries Full-Time Faculty Equivalents

122 THE TEXAS A&M UNIVERSITY SYSTEM FY 2012 Salary Plans MEMBER DESCRIPTION OF SALARY PLAN AMOUNT Prairie View A&M University Tarleton State University Faculty: 2.5% Merit Pool with an anticipated effective date of 12/01/2011, contingent upon fall enrollment $ 581,308 meeting targets. Meritorious employees with 9-month salaries < $22,500 will receive at least $750/yr (75% of the full-time staff amount). Benefits 87,196 Faculty Subtotal: $ 668,504 Staff: 2.5% Merit Pool with an anticipated effective date of 12/01/2011, contingent upon fall enrollment $ 433,361 meeting targets. Meritorious employees with 9-month salaries < $30,000 will receive at least $1,000/yr. Benefits 65,004 Staff Subtotal: $ 498,365 Total: $ 1,166,869 Faculty: 1% Merit Pool $ 259,089 Benefits 41,454 Market Driven Salary Adjustments 243,255 Benefits 38,921 Promotions 18,000 Benefits 2,880 Faculty Subtotal: $ 603,599 Staff: 1% Merit Pool $ 206,239 Benefits 32,998 Market Driven Salary Adjustments 557,269 Benefits 89,163 Staff Subtotal: $ 885,669 Total: $ 1,489, Salary Plans Combined Page 1 of 6 Printed: 8/2/2011

123 THE TEXAS A&M UNIVERSITY SYSTEM FY 2012 Salary Plans MEMBER DESCRIPTION OF SALARY PLAN AMOUNT Texas A&M International University Texas A&M University Texas A&M University at Galveston Texas A&M University - Central Texas Faculty: Promotions $ 39,000 Benefits 11,000 Faculty Subtotal: $ 50,000 Staff: No formal salary plan budgeted. Staff Subtotal: $ - Total: $ 50,000 Faculty: Faculty Promotions $ 582,751 Benefits 145,688 Faculty Subtotal: $ 728,439 Staff: Supplemental pay increase of $50/month for employees earning $34,500 or less. $ 1,531,906 Benefits 382,977 Staff Subtotal: $ 1,914,883 Total: $ 2,643,322 Faculty: Faculty promotions $ 40,000 Benefits 13,200 Faculty Subtotal: $ 53,200 Staff: Supplemental pay increase of $50/month for employees earning $34,500 or less. $ 70,000 Benefits 23,100 Staff Subtotal: $ 93,100 Total: $ 146,300 Faculty: One time payment of $516 (gross) to assist with the rising cost of employee medical insurance. $ 13,932 Criteria has been developed to determine eligible employees. Benefits 2,019 Faculty Subtotal: $ 15,951 Staff: One time payment of $516 (gross) to assist with the rising cost of employee medical insurance. $ 26,316 Criteria has been developed to determine eligible employees. Benefits 3,645 Staff Subtotal: $ 29,961 Total: $ 45, Salary Plans Combined Page 2 of 6 Printed: 8/2/2011

124 THE TEXAS A&M UNIVERSITY SYSTEM FY 2012 Salary Plans MEMBER DESCRIPTION OF SALARY PLAN AMOUNT Texas A&M University - Commerce Texas A&M University - Corpus Christi Texas A&M University - Kingsville Texas A&M University - San Antonio Faculty: Merit Pool reserved for high performing employees and market driven salary increases $ 273,012 Benefits 57,404 Faculty Subtotal: $ 330,416 Staff: Merit Pool reserved for high performing employees and market driven salary increases $ 305,375 Benefits 64,209 Staff Subtotal: $ 369,584 Total: $ 700,000 Faculty: Promotions $ 72,000 Benefits 10,800 Faculty Subtotal: $ 82,800 Staff: No formal salary plan budgeted. Staff Subtotal: $ - Total: $ 82,800 Faculty: Promotions $ 60,000 Benefits 17,000 Faculty Subtotal: $ 77,000 Staff: Market Driven Salary Adjustments - University Police Department $ 58,900 Benefits 16,500 Staff Subtotal: $ 75,400 Total: $ 152,400 Faculty and Staff: No formal salary plan budgeted. Faculty and Staff Subtotal: $ - Total: $ Salary Plans Combined Page 3 of 6 Printed: 8/2/2011

125 THE TEXAS A&M UNIVERSITY SYSTEM FY 2012 Salary Plans MEMBER DESCRIPTION OF SALARY PLAN AMOUNT Texas A&M University - Texarkana Faculty and Staff: No formal salary plan budgeted. Will revisit after Fall enrollment. West Texas A&M University Texas A&M Health Science Center Texas AgriLife Research Faculty and Staff Subtotal: $ - Total: $ - Faculty & Staff: 2.5% Merit Pool $ 1,000,506 Benefits 147,074 Market Driven Salary Adjustments $ 145,493 Benefits 21,388 Total: $ 1,314,461 Faculty: 3% Merit Pool $ 1,270,990 Benefits 275,805 Faculty Subtotal: $ 1,546,795 Staff: 3% Merit Pool $ 1,537,314 Benefits 333,597 Staff Subtotal: $ 1,870,911 Total: $ 3,417,706 Faculty: Promotions $ 31,270 Benefits 7,818 Faculty Subtotal: $ 39,088 Staff: No formal salary plan budgeted. Staff Subtotal: $ - Total: $ 39, Salary Plans Combined Page 4 of 6 Printed: 8/2/2011

126 THE TEXAS A&M UNIVERSITY SYSTEM FY 2012 Salary Plans MEMBER DESCRIPTION OF SALARY PLAN AMOUNT Texas AgriLife Extension Service Texas Forest Service Texas Veterinary Medical Diagnostic Lab Faculty: Promotions $ 48,864 Benefits 8,370 Faculty Subtotal: $ 57,234 Staff: Promotions $ 58,828 Benefits 10,077 Staff Subtotal: $ 68,905 Total: $ 126,140 Staff: Career Ladder Promotions/Market Driven Salary Adjustments $ 100,000 Benefits 16,000 One time Merit Payments (2.5%) subject to available funds 500,000 Benefits 80,000 Staff Subtotal: $ 696,000 Total: $ 696,000 Staff: No formal salary plan budgeted Texas Engineering Experiment Station Texas Engineering Extension Service Staff Subtotal: $ - Total: $ - Staff: Supplemental pay increase of $50/month for employees earning $34,500 or less. $ 45,000 Benefits 8,415 Staff Subtotal: $ 53,415 Total: $ 53,415 Staff: 3% Merit Pool $ 839,441 Benefits 209,860 Staff Subtotal: $ 1,049,301 Total: $ 1,049, Salary Plans Combined Page 5 of 6 Printed: 8/2/2011

127 THE TEXAS A&M UNIVERSITY SYSTEM FY 2012 Salary Plans MEMBER DESCRIPTION OF SALARY PLAN AMOUNT Texas Transportation Institute Staff: Supplemental pay increase of $50/month for employees earning $34,500 or less. $ 18,602 Benefits 2,604 TTI is not providing a merit pool effective September 1, 2011 because of federal transportation funding uncertainty. In the event funding levels are adequate, TTI may proceed with a merit pool not to exceed 3% during FY Other 25,000 TTI will award a merit bonus of $2,500 each to the top 10 researchers who have been the most successful in diversifying TTI's research program over the past year. Research diversification is a priority in TTI's Strategic Plan. System Offices Staff Subtotal: $ 46,206 Total: $ 46,206 Staff: 2% Merit Pool (This meril pool is funded from within existing budgeted resources, thereby having a net effect of zero.) Staff Subtotal: $ - Total: $ Salary Plans Combined Page 6 of 6 Printed: 8/2/2011

128 The Texas A&M University System Net General Revenue Appropriations (Excludes Tuition Revenue Bond Debt Service) Updated 07/29/ / /2013 VARIANCES BASELINE NET GR 1 Conf Comm BASELINE NET GR 1 BASELINE NET GR 1 After 5% & 2.5% BASELINE NET GR 3 Compared to After After Name Before Reductions After 5% Reduction Reductions Recommendation Original Baseline 5% Reduction 5% & 2.5% Reductions System Offices 6,630,913 6,299,368 6,249,368 4,624,785 (2,006,128) 30.3% (1,674,583) 26.6% (1,624,583) 26.0% PVAMU 107,411, ,190, ,979,593 87,341,520 (20,069,714) 18.7% (14,848,847) 14.5% (13,638,073) 13.5% Tarleton 65,018,267 61,912,562 61,203,514 55,841,051 (9,177,216) 14.1% (6,071,511) 9.8% (5,362,463) 8.8% TAMIU 55,647,106 52,948,710 52,319,762 45,384,671 (10,262,435) 18.4% (7,564,039) 14.3% (6,935,091) 13.3% TAMU 575,785, ,754, ,294, ,216,430 (70,569,038) 12.26% (42,538,503) 7.8% (36,078,385) 6.7% TAMUG 27,633,980 26,275,097 25,963,343 25,875,493 (1,758,487) 6.4% (399,604) 1.5% (87,850) 0.3% TAMUCT 26,655,785 25,510,255 25,226,216 23,175,242 (3,480,543) 13.1% (2,335,013) 9.2% (2,050,974) 8.1% TAMUC 78,465,741 77,628,722 76,790,434 71,187,691 (7,278,050) 9.3% (6,441,031) 8.3% (5,602,743) 7.3% TAMUCC 93,394,615 88,890,626 87,849,854 76,064,558 (17,330,057) 18.6% (12,826,068) 14.4% (11,785,296) 13.4% TAMUK 69,384,743 66,002,163 65,249,014 56,599,483 (12,785,260) 18.4% (9,402,680) 14.2% (8,649,531) 13.3% TAMUSA 22,998,866 21,700,664 21,418,774 25,295,944 2,297, % 3,595, % 3,877, % TAMUT 26,228,254 25,251,070 25,027,246 20,806,867 (5,421,387) 20.7% (4,444,203) 17.6% (4,220,379) 16.9% WTAMU 63,688,207 60,634,401 59,962,729 53,911,586 (9,776,621) 15.4% (6,722,815) 11.1% (6,051,143) 10.1% Sub total 1,212,312, ,156,699, ,143,285, ,046,700,536 (165,611,730) % (109,999,034) ) 9.5% 95% (96,584,758) 8.4% 84% TAMHSC 224,057, ,605, ,108, ,649,022 (20,408,814) 9.1% (9,956,653) 4.7% (7,459,745) 3.5% Agrilife Research 131,660, ,902, ,453, ,837,464 (15,822,579) 12.0% (9,064,577) 7.3% (7,616,508) 6.2% Agrilife Extension 123,127, ,968, ,722, ,831,994 (17,295,379) 14.0% (11,136,461) 9.5% (9,890,844) 8.5% TFS (includes Ins. Funds) 2 44,007,431 42,364,560 41,857,678 42,450,857 (1,556,574) 3.5% 86, % 593, % TVMDL 14,217,823 13,506,932 13,342,573 12,347,661 (1,870,162) 13.2% (1,159,271) 8.6% (994,912) 7.5% TEES 37,063,784 35,362,995 34,997,386 31,239,063 (5,824,721) 15.7% (4,123,932) 11.7% (3,758,323) 10.7% TEEX 14,975,354 14,226,587 14,047,607 12,962,312 (2,013,042) 13.4% (1,264,275) 8.9% (1,085,295) 7.7% TTI (includes Fund 006) 16,446,817 16,351,817 16,333,067 15,994,486 (452,331) 2.8% (357,331) 2.2% (338,581) 2.1% Sub total 381,498, ,683, ,755, ,663,837 (44,834,788) 11.8% (27,019,550) 7.4% (23,091,285) 6.4% GRAND TOTAL 1,824,499,640 1,740,288,000 1,720,398,551 1,591,638,180 (232,861,460) 12.8% (148,649,820) 8.5% (128,760,371) 7.5% $ Chg. (84,211,640) (104,101,089) % Chg. 5% 5.7% 1 Includes applicable ARRA funding (formula and special item), Employee Group Insurance funding, and Performance Incentive funding. 2 Excludes the Volunteer Fire Department Assistance Funds and Emergency Wildfires Reimbursement. 3 Includes Article III funding, Employee Group Insurance funding, and HB4 appropriations. K:\BA\BUDGETS\2012 Budget\Supplemental Items\FY 2012_2013 General Revenue_ v2

129 THE TEXAS A&M UNIVERSITY SYSTEM ACADEMIC INSTITUTIONS Increase in Mandatory Tuition & Fees for Resident Undergraduate Students Enrolled in 15 Semester Credit Hours FY 2012 (Excluding Fee Increases Approved via Student Referendum) Fall 2010 Fall 2011 Statutory Designated Mandatory 1 Avg. College/ Statutory Designated Mandatory 1 Avg. College/ % $ $/SCH Member Tuition Tuition Fees Course Fees 5 TOTAL $/SCH Tuition Tuition Fees Course Fees 6 TOTAL $/SCH Incr. Incr. Incr. PVAMU $ $ 1, $ $ $ 3, $ $ $ 1, $ $ $ 3, $ % $ $ 5.83 Tarleton , , , , , % TAMIU , , , , , % TAMU , , , , , , % TAMUG , , , , , % TAMU-CT , , , , % TAMU-C , , , , % TAMU-CC , , , , , , % TAMU-K , , , , , , % TAMU-SA , , , , , % TAMU-T , , , , % WTAMU , , , , , % Mandatory fees include those fees charged to all students. 2 In addition to the designated tuition charged per SCH to each student, students enrolled in the following colleges will pay these additional differential designated tuition amounts: College of Architecture College of Engineering College of Veterinary Medicine Department of Biological & Agricultural Engineering Mays Business School $17.00/SCH; students taking 12 or more SCH's pay $204.00/SEM $33.33/SCH; students taking 12 or more SCH's pay $400.00/SEM $3,000/SEM (Effective with the Fall 2012 semester) $33.33/SCH; students taking 12 or more SCH's pay $400.00/SEM $34.38/SCH; students taking 12 or more SCH's pay $412.50/SEM 3 In addition to the designated tuition charged per SCH to each student, students enrolled in the College of Nursing & Health Sciences will pay an additional differential designated tuition of $170/SEM. 4 In addition to the designated tuition charged per SCH to each student, students enrolled in the Nursing Program will pay an additional differential designated tuition of $30.00/SCH. 5 Per the Coordinating Board's March 2, 2011, Tuition and Fees Data report. 6 For the purposes of this comparison, the average course fees for Fall 2011 were kept level with Fall Due to the methodology of calculating the average course fees, the actual amount will not be determined until after the 20th class day of the Fall 2011 semester. K:\BA\BUDGETS\2012 Budget\Supplemental Items\ACAD-TF Fall 2010 v Fall 11_excluding referendum increases.xlsx Page 1 of 4 Updated

130 THE TEXAS A&M UNIVERSITY SYSTEM ACADEMIC INSTITUTIONS Increase in Mandatory Tuition & Fees for Resident Undergraduate Students Enrolled in 15 Semester Credit Hours FY 2012 (Includes ALL Fee Increases, Including those Approved via Student Referendum) Fall 2010 Fall 2011 Statutory Designated Mandatory 1 Avg. College/ Statutory Designated Mandatory 1 Avg. College/ % $ $/SCH Member Tuition Tuition Fees Course Fees 5 TOTAL $/SCH Tuition Tuition Fees Course Fees 6 TOTAL $/SCH Incr. Incr. Incr. PVAMU $ $ 1, $ $ $ 3, $ $ $ 1, $ 1, $ $ 3, $ % $ $ Tarleton , , , , , % TAMIU , , , , , % TAMU , , , , , , % TAMUG , , , , , % TAMU-CT , , , , % TAMU-C , , , , % TAMU-CC , , , , , , % TAMU-K , , , , , , % TAMU-SA , , , , , % TAMU-T , , , , % WTAMU , , , , , % Mandatory fees include those fees charged to all students. 2 In addition to the designated tuition charged per SCH to each student, students enrolled in the following colleges will pay these additional differential designated tuition amounts: College of Architecture College of Engineering College of Veterinary Medicine Department of Biological & Agricultural Engineering Mays Business School $17.00/SCH; students taking 12 or more SCH's pay $204.00/SEM $33.33/SCH; students taking 12 or more SCH's pay $400.00/SEM $3,000/SEM (Effective with the Fall 2012 semester) $33.33/SCH; students taking 12 or more SCH's pay $400.00/SEM $34.38/SCH; students taking 12 or more SCH's pay $412.50/SEM 3 In addition to the designated tuition charged per SCH to each student, students enrolled in the College of Nursing & Health Sciences will pay an additional differential designated tuition of $170/SEM. 4 In addition to the designated tuition charged per SCH to each student, students enrolled in the Nursing Program will pay an additional differential designated tuition of $30.00/SCH. 5 Per the Coordinating Board's March 2, 2011, Tuition and Fees Data report. 6 For the purposes of this comparison, the average course fees for Fall 2011 were kept level with Fall Due to the methodology of calculating the average course fees, the actual amount will not be determined until after the 20th class day of the Fall 2011 semester. K:\BA\BUDGETS\2012 Budget\Supplemental Items\ACAD-TF Fall 2010 v Fall 11_all fee increases.xlsx Page 2 of 4 Updated

131 THE TEXAS A&M UNIVERSITY SYSTEM TEXAS A&M HEALTH SCIENCE CENTER Increase in Mandatory Tuition & Fees for FY 2012 (Includes ALL Fee Increases, Including those Approved via Student Referendum) Fall 2010 Fall 2011 Statutory Designated Mandatory 1 Statutory Designated Mandatory 1 % $ $/SCH Member Tuition Tuition Fees TOTAL $/SCH Tuition Tuition Fees TOTAL $/SCH Incr. Incr. Incr. BCD - DDS Program $ 6, $ 5, $ 6, $ 18, $ $ 7, $ 5, $ 7, $ 20, $ % $ 2, $ (per YEAR) BCD - Dental Hygiene , , , , , % (@18 SCH's) BCD - Clinical Graduate 1, , , , % (@12 SCH's) College of Medicine 7, , , , , , , , % 2, (per YEAR) College of Nursing , , , , , , % (@15 SCH's) College of Pharmacy 2, , , , , , , , % (@18 SCH's) School of Rural 1, , , , , , % (23.13) (1.93) Public Health (@12 SCH's) School of Graduate 1, , , , , , % Studies (@12 SCH's) 1 Mandatory fees include those fees charged to all students. K:\BA\BUDGETS\2012 Budget\Supplemental Items\HSC-TF Fall 2010 v Fall 11_all fee increases.xlsx Page 3 of

132 THE TEXAS A&M UNIVERSITY SYSTEM Academic Members & Health Science Center FY 2012 Designated Tuition Rates Current Final Increase % Member FY 11 Rate/SCH FY 12 Rate/SCH per SCH Incr. Prairie View A&M University $ $ $ % Tarleton State University $93.97 $93.97 $ % Texas A&M International University $90.50 $90.50 $ % Texas A&M University (1)* $ $ $ % Texas A&M University at Galveston $ $ $ % Texas A&M University-Central Texas $98.40 $98.40 $ % Texas A&M University-Commerce $99.68 $99.68 $ % Texas A&M University-Corpus Christi (2)* $ $ $ % Texas A&M University-Kingsville (2) $91.65 $91.65 $ % Texas A&M University-San Antonio (3) $93.07 $93.07 $ % Texas A&M University-Texarkana (4) $86.00 $86.00 $ % West Texas A&M University (4)* $ $ $ % Health Science Center:* Baylor College of Dentistry - DDS Program $ $ $ % Baylor College of Dentistry - Dental Hygiene $64.00 $64.00 $ % Baylor College of Dentistry - Graduate Program $64.00 $75.00 $ % College of Medicine - MD Program $ $ $ % College of Medicine - Graduate Program $75.00 $75.00 $ % College of Medicine - IBT $75.00 $75.00 $ % School of Rural Public Health - Graduate Program $64.00 $64.00 $ % Pharmacy School $62.00 $62.00 $ % College of Nursing (first class enrolled in Fall 2008 semester) $ $ $ % Notes: 1. Undergraduates: 3. Undergraduates: 1 to 11 SCHs pay $Rate/SCH 1 to 14 SCHs pay $Rate/SCH 12 or more SCHs pay a flat rate based on 15 SCHs 15 or more SCHs pay a flat rate based on 14 SCHs Graduates pay $Rate/SCH Graduates pay $Rate/SCH *Students enrolled the following programs will pay differential designated tuition: College of Architecture - $17.00/SCH 12 or more SCH's pay $204/SEM 4. All Students: College of Engineering - $33.33/SCH 12 or more SCH's pay $400/SEM 1 to 11 SCHs pay $Rate/SCH College of Veterinary Medicine - $3,000/SEM (beginning Fall 2012) 12 to 18 SCHs pay a flat rate based on 14 SCHs Dept of Biological & Agricultural Eng. - $33.33/SCH 12 or more SCH's pay $400/SEM 19 or more SCHs pay $Rate/SCH Mays Business School - $34.38/SCH 12 or more SCH's pay $412.50/SEM *West Texas A&M University students enrolled in the Nursing Program Distance Education courses will be assessed between $40 - $550/SCH will pay differential designated tuition amount of $30/SCH. 2. Undergraduates: 1 to 11 SCHs pay $Rate/SCH 12 or more SCHs pay a flat rate based on 14 SCHs Graduates pay $Rate/SCH *Texas A&M University - Corpus Christi students enrolled in the College of Nursing & Health Sciences will pay differential designated tuition amount of $170/SEM. K:\BA\BUDGETS\2012 Budget\Supplemental Items\FY12 Designated Tuition Rates.xls Page 4 of 4 8/3/2011

133 THE TEXAS A&M UNIVERSITY SYSTEM Student Metrics by Member Student Headcount by Member PVAMU % Inc. Tarleton % Inc. TAMIU % Inc. TAMU % Inc. TAMUG % Inc. TAMU-CT % Inc. TAMU-C % Inc. TAMU-CC % Inc. TAMU-K % Inc. TAMU-SA % Inc. TAMU-T % Inc. WTAMU % Inc. SYSTEM TOTAL % Inc. Fall ,255 8% 6,822 4% 3,724 10% 45,083 1% 1,556 14% 1,498 2% 8,483 7% 7,607 3% 6,074 3% % 1,367 12% 6,780 2% 96,729 5% Fall ,808 8% 7,195 5% 4,078 10% 44,813-1% 1,620 4% 1,650 10% 8,353-2% 7,861 3% 6,156 1% % 1,429 5% 7,023 4% 98,671 2% Fall ,350 7% 7,348 2% 4,269 5% 44,435-1% 1,615 0% 1,685 2% 8,547 2% 8,227 5% 6,166 0% % 1,540 8% 7,299 4% 100,441 2% Fall ,912-5% 7,585 3% 4,298 1% 44,578 0% 1,661 3% 1,555-8% 8,677 2% 8,355 2% 5,779-6% 883-8% 1,549 1% 7,293 0% 100,125 0% Fall ,006 1% 7,776 3% 4,917 14% 45,380 2% 1,553-7% 1,688 9% 8,496-2% 8,585 3% 5,791 0% 909 3% 1,625 5% 7,412 2% 102,138 2% Fall ,382 5% 7,739 0% 5,179 5% 46,542 3% 1,614 4% 1,721 2% 8,879 5% 8,563 0% 5,578-4% 969 7% 1,605-1% 7,502 1% 104,273 2% Fall ,203-2% 7,756 0% 5,856 13% 48,039 3% 1,612 0% 1,878 9% 8,787-1% 9,007 5% 5,698 2% 1,436 48% 1,625 1% 7,535 0% 107,432 3% Fall ,608 5% 8,598 11% 6,419 10% 48,702 1% 1,774 10% 2,188 17% 9,075 3% 9,468 5% 5,892 3% 2,343 63% 1,597-2% 7,769 3% 112,433 5% Fall ,781 2% 9,340 9% 6,853 7% 49,129 1% 1,867 5% 2,317 6% 10,280 13% 10,033 6% 6,586 12% 3,120 33% 1,803 13% 7,839 1% 117,948 5% Semester Credit Hours by Member PVAMU % Inc. Tarleton % Inc. TAMIU % Inc. TAMU % Inc. TAMUG % Inc. TAMU-CT % Inc. TAMU-C FY ,661 6% 181,679-7% 81,516 15% 1,179,449 2% 39,608 1% 27,780 6% 184,409 7% 191,303 12% 163,702 4% 6,348 90% 24,817 6% 165,777-1% 2,439,049 3% FY ,991 3% 186,554 3% 89,908 10% 1,171,978-1% 43,610 10% 30,845 11% 194,826 6% 197,800 3% 158,022-3% 10,785 70% 26,999 9% 170,727 3% 2,480,045 2% FY ,657 7% 196,886 6% 95,481 6% 1,160,517-1% 46,319 6% 32,306 5% 199,755 3% 202,537 2% 160,961 2% 13,809 28% 29,756 10% 174,771 2% 2,525,755 2% FY ,736 5% 201,363 2% 99,095 4% 1,133,621-2% 46,411 0% 30,197-7% 204,603 2% 209,698 4% 153,319-5% 19,335 40% 30,225 2% 177,802 2% 2,529,405 0% FY , % 204,599 2% 105,306 6% 1,183, % 47,601 3% 30,731 2% 202, % 214,076 2% 144,036-6% 17,838-8% 30, % 178, % 2,564,309 1% FY ,265 1% 207,270 1% 113,090 7% 1,192,656 1% 45,063-5% 31,480 2% 200,814-1% 220,936 3% 147,461 2% 18,482 4% 31,052 2% 178,884 0% 2,595,453 1% FY ,204 4% 203,039-2% 120,722 7% 1,230,588 3% 46,321 3% 34,585 10% 198,870-1% 215,136-3% 135,688-8% 22,429 21% 32,317 4% 177,514-1% 2,633,413 1% FY ,047-3% 205,278 1% 130,642 8% 1,249,689 2% 48,021 4% 37,484 8% 197,174-1% 228,913 6% 134,886-1% 34,454 54% 32,810 2% 180,343 2% 2,689,741 2% FY ,741 5% 216,373 5% 144,110 10% 1,259,364 1% 50,372 5% 43,690 17% 207,525 5% 239,630 5% 151,041 12% 52,981 54% 34,126 4% 186,789 4% 2,806,742 4% FY 2011 ** 225,000 2% 233,000 8% 149,000 3% 1,300,000 3% 48,000-5% 46,000 5% 206,000-1% 244,000 2% 150,000-1% 68,000 28% 34,000 0% 190,000 2% 2,893,000 3% **Budgeted % Inc. TAMU-CC % Inc. TAMU-K % Inc. TAMU-SA % Inc. TAMU-T % Inc. WTAMU % Inc. SYSTEM TOTAL % Inc. Note: The percentage increase listed next to each number is the percentage increase from the previous fiscal year. Page 1 of 5

134 THE TEXAS A&M UNIVERSITY SYSTEM Graduation Rates Four-Year Graduation Rate Five-Year Graduation Rate Six-Year Graduation Rate Master's Doctoral Institution FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2005 Prairie View A&M University Total 13.4% 15.6% 11.4% 10.1% 11.5% 30.4% 32.8% 32.4% 26.9% 26.3% 33.6% 38.1% 41.1% 39.6% 35.0% 55.1% 62.6% 63.3% 65.7% 66.7% N/A N/A N/A N/A N/A Same institution 13.2% 15.2% 11.1% 9.8% 10.8% 28.6% 30.9% 30.7% 25.1% 24.6% 31.3% 34.7% 37.5% 36.5% 31.6% Tarleton State University Total 18.6% 17.8% 17.4% 19.9% 20.6% 43.3% 37.9% 38.9% 38.9% 38.9% 51.2% 53.2% 47.4% 49.5% 46.0% 45.8% 57.1% 45.1% 50.0% 48.3% N/A N/A N/A N/A N/A Same institution 15.7% 15.3% 15.6% 16.7% 17.6% 37.7% 30.1% 32.5% 33.3% 31.4% 44.2% 45.5% 36.2% 39.3% 38.8% Texas A&M International University Total 20.9% 13.9% 19.8% 17.5% 21.3% 43.0% 40.0% 36.1% 35.2% 35.0% 43.6% 48.7% 47.5% 45.1% 43.4% 29.2% 26.3% 33.7% 46.1% 32.4% N/A N/A N/A N/A N/A Same institution 18.4% 12.7% 17.5% 16.4% 20.3% 38.0% 32.2% 30.3% 30.5% 29.1% 31.4% 42.2% 37.2% 36.9% 35.2% Texas A&M University Total 39.5% 42.6% 46.7% 47.2% 50.7% 73.9% 74.8% 76.2% 78.3% 78.1% 82.2% 81.6% 82.3% 83.6% 84.1% 63.1% 55.3% 61.9% 65.4% 71.7% 66.1% 61.4% 55.8% 70.8% 68.5% Same institution 38.2% 41.3% 45.1% 45.9% 49.7% 70.4% 71.4% 71.4% 74.8% 75.2% 77.3% 76.5% 77.4% 78.4% 79.3% Texas A&M University at Galveston Total 25.9% 23.7% 21.4% 24.7% 26.9% 52.5% 54.5% 48.9% 50.5% 50.4% 54.9% 61.9% 61.7% 59.9% 58.9% N/A 46.7% 61.5% 100% 57.1% N/A N/A N/A N/A N/A Same institution 19.0% 15.6% 13.5% 18.0% 15.8% 26.5% 33.7% 29.3% 28.8% 27.6% 24.8% 29.3% 36.0% 32.8% 31.3% Texas A&M University-Central Texas Total Texas A&M University-Central Texas became a stand-alone institution in the Fall 2009 term. N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Same institution Texas A&M University-Commerce Total 19.4% 19.7% 26.5% 22.6% 20.6% 33.4% 39.9% 36.1% 43.5% 36.5% 42.8% 42.5% 47.0% 43.5% 50.5% 56.4% 52.5% 60.6% 58.0% 59.3% 46.2% 54.8% 64.9% 60.0% 40.0% Same institution 17.6% 18.7% 25.1% 21.0% 17.9% 28.6% 33.5% 31.3% 37.5% 31.2% 34.3% 34.6% 37.8% 36.5% 41.6% Texas A&M University-Corpus Christi Total 19.2% 21.3% 22.1% 21.6% 23.5% 43.4% 39.5% 43.2% 43.2% 43.5% 51.3% 53.8% 49.8% 52.9% 53.4% 48.9% 50.1% 49.1% 54.3% 56.6% 75.0% 88.2% 75.0% 78.9% 100% Same institution 16.3% 18.4% 19.0% 17.7% 20.3% 33.8% 29.2% 34.4% 34.1% 34.2% 37.0% 39.6% 35.1% 40.0% 39.8% Texas A&M University-Kingsville Total 9.7% 9.3% 9.4% 12.6% 15.5% 27.9% 26.0% 25.4% 22.9% 31.5% 33.6% 36.4% 34.4% 35.0% 31.1% 43.2% 56.6% 56.6% 44.2% 44.9% 57.1% 66.7% 66.7% 71.4% 50.0% Same institution 8.9% 8.1% 7.7% 10.6% 13.6% 23.0% 23.2% 21.2% 18.7% 25.0% 27.9% 29.6% 29.1% 28.1% 25.1% Texas A&M University-San Antonio Total Texas A&M University-San Antonio became a stand-alone institution in the Fall 2009 term. N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Same institution Texas A&M University-Texarkana Total Texas A&M University-Texarkana was an upper level school only through FY % 54.9% 51.1% 59.6% 46.3% N/A N/A N/A N/A N/A Same institution West Texas A&M University Total 15.9% 19.6% 18.6% 20.9% 23.2% 37.1% 37.4% 36.6% 38.2% 38.1% 42.0% 44.2% 45.0% 47.6% 46.4% 31.6% 39.2% 35.6% 55.8% 55.9% N/A N/A N/A N/A N/A Same institution 14.4% 17.1% 16.2% 19.3% 22.0% 32.3% 31.6% 31.6% 31.9% 33.9% 33.2% 37.8% 37.9% 40.1% 37.8% Source: Texas Higher Education Coordinating Board - Accountability System Note: FY year, 5-year & 6-year Graduation Rates are not available from THECB at time of printing; Graduation Rates for Texas A&M University - Central Texas and Texas A&M University - San Antonio are not available from the THECB. FY 2006 FY 2007 FY 2008 FY 2009 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 Page 2 of 5

135 THE TEXAS A UNIVERSITY SYSTEM Persistence Rate (1 year) Institution Fall 2003 Fall 2004 Fall 2005 Fall 2006 Fall 2007 Fall 2008 Fall 2009 Prairie View A&M University Total 79.6% 76.1% 82.0% 84.2% 83.8% 82.7% 80.6% Same institution 67.1% 63.2% 70.8% 74.6% 74.8% 71.8% 69.3% Tarleton State University Total 80.8% 82.9% 79.5% 82.0% 83.6% 84.5% 82.9% Same institution 62.3% 66.2% 61.9% 62.5% 65.7% 66.3% 67.8% Texas A&M International University Total 82.7% 84.8% 86.8% 75.9% 86.5% 83.9% 85.7% Same institution 62.5% 65.7% 72.1% 55.6% 69.7% 63.4% 72.8% Texas A&M University Total 96.7% 97.1% 97.0% 97.1% 97.5% 97.5% 96.8% Same institution 90.3% 91.9% 92.2% 91.4% 91.4% 92.4% 91.1% Texas A&M University at Galveston Total 85.0% 87.0% 91.3% 88.6% 82.6% 91.0% 90.5% Same institution 51.2% 50.7% 48.8% 56.8% 53.4% 54.0% 49.5% Texas A&M University-Central Texas Total Same institution Texas A&M University-Commerce Total 82.8% 82.5% 78.7% 78.2% 80.9% 81.4% 78.2% Same institution 65.2% 64.3% 61.2% 59.2% 65.9% 68.2% 64.2% Texas A&M University-Corpus Christi Total 84.2% 81.1% 80.1% 80.8% 81.9% 81.4% 81.4% Same institution 63.0% 60.9% 57.2% 60.7% 62.4% 61.3% 64.6% Texas A&M University-Kingsville Total 70.1% 77.7% 76.1% 75.7% 76.0% 76.9% 75.8% Same institution 51.1% 60.8% 62.6% 60.3% 59.6% 58.6% 58.1% Texas A&M University-San Antonio Total Same institution Texas A&M University-Texarkana Total Same institution West Texas A&M University Texas A&M University-Central Texas became a stand-alone institution in the Fall 2009 term. Texas A&M University-San Antonio became a stand-alone institution in the Fall 2009 term. Texas A&M University-Texarkana was an upper level school only through FY Total 80.8% 79.3% 78.6% 78.3% 81.4% 80.3% 80.4% Same institution 65.6% 65.7% 62.8% 66.0% 64.0% 63.7% 61.4% Source: Texas Higher Education Coordinating Board - Accountability System Note: Fall 2009 Persistence Rates are not available from THECB at time of printing Persistence Rates for Texas A&M University - Central Texas and Texas A&M University - San Antonio are not available from the THECB. Page 3 of 5

136 THE TEXAS A UNIVERSITY SYSTEM Persistence Rate (2 year) Institution Fall 2002 Fall 2003 Fall 2004 Fall 2005 Fall 2006 Fall 2007 Fall 2008 Prairie View A&M University Total 70.10% 67.70% 66.10% 69.90% 72.6% 72.7% 68.9% Same institution 53.50% 50.60% 51.70% 56.30% 59.4% 57.4% 51.1% Tarleton State University Total 72.00% 71.70% 75.40% 70.60% 71.2% 76.0% 76.5% Same institution 50.80% 51.10% 52.90% 50.50% 48.3% 54.8% 55.0% Texas A&M International University Total 76.60% 74.80% 80.30% 72.30% 70.1% 80.1% 76.4% Same institution 49.70% 45.70% 54.90% 50.80% 48.3% 58.5% 52.4% Texas A&M University Total 94.20% 94.40% 94.70% 94.50% 94.8% 94.7% 94.5% Same institution 84.50% 85.50% 86.20% 86.50% 86.6% 87.1% 86.0% Texas A&M University at Galveston Total 80.70% 81.50% 77.70% 86.30% 77.4% 78.8% 87.0% Same institution 37.20% 37.70% 33.70% 32.80% 33.0% 42.0% 37.5% Texas A&M University-Central Texas Total Same institution Texas A&M University-Commerce Total 73.70% 75.80% 73.00% 69.60% 65.1% 72.8% 75.0% Same institution 52.60% 53.60% 48.80% 49.00% 43.7% 53.0% 55.4% Texas A&M University-Corpus Christi Total 77.80% 79.10% 75.90% 76.00% 74.8% 72.8% 74.5% Same institution 50.10% 52.20% 49.50% 46.80% 49.8% 48.1% 50.3% Texas A&M University-Kingsville Total 65.60% 63.40% 69.20% 68.00% 66.3% 70.7% 67.3% Same institution 44.10% 40.80% 48.00% 49.00% 46.0% 49.3% 47.0% Texas A&M University-San Antonio Total Same institution Texas A&M University-Texarkana Total Same institution West Texas A&M University Texas A&M University-Central Texas became a stand-alone institution in the Fall 2009 term. Texas A&M University-San Antonio became a stand-alone institution in the Fall 2009 term. Texas A&M University-Texarkana was an upper level school only through FY Total 71.10% 70.30% 68.10% 70.40% 70.9% 73.3% 73.0% Same institution 52.20% 51.60% 52.40% 51.40% 54.5% 51.9% 51.4% Source: Texas Higher Education Coordinating Board - Accountability System Note: Fall 2008 Persistence Rates are not available from THECB at time of printing Persistence Rates for Texas A&M University - Central Texas and Texas A&M University - San Antonio are not available from the THECB. Page 4 of 5

137 THE TEXAS A&M UNIVERSITY SYSTEM Student to Faculty Ratio Full-Time Student Equivalent / Full-Time Faculty Equivalent FTSE/FTFE Ratio Fall 2006 Fall 2007 Fall 2008 Fall 2009 Fall 2010 Prairie View A&M University 18:1 19:1 18:1 19:1 19:1 Tarleton State University 19:1 18:1 17:1 19:1 20:1 Texas A&M International University 17:1 20:1 20:1 21:1 21:1 Texas A&M University 20:1 21:1 20:1 20:1 20:1 Texas A&M University at Galveston 15:1 16:1 15:1 16:1 16:1 Texas A&M University - Central Texas 16:1 17:1 13:1 14:1 13:1 Texas A&M University - Commerce 18:1 18:1 18:1 17:1 20:1 Texas A&M University - Corpus Christi 21:1 20:1 21:1 22:1 21:1 Texas A&M University - Kingsville 16:1 16:1 16:1 17:1 17:1 Texas A&M University - San Antonio 13:1 13:1 14:1 16:1 17:1 Texas A&M University - Texarkana 14:1 14:1 13:1 14:1 18:1 West Texas A&M University 21:1 21:1 20:1 20:1 20:1 Source: Texas Higher Education Coordinating Board - Accountability System NOTE: For the Fall 2003 to Fall 2008, Texas A&M University - Central Texas and Texas A&M University - San Antonio numbers were obtained by using data provided by Tarleton State University and Texas A&M University- Kingsville respectively Page 5 of 5

138 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M Health Science Center Fall Student Enrollment by Head Count and FTE School Fall 2003 Fall 2004 Fall 2005 Fall 2006 Fall 2007 Fall 2008 Fall 2009 Fall 2010 Baylor College of Dentistry (BCD) Head Count FTEs College of Medicine (COM) Head Count FTEs College of Nursing (CON) Head Count First Class enrolled in the Fall 2008 FTEs College of Pharmacy (COP) Head Count First Class enrolled in the Fall 2006 FTEs Graduate School of Biomedical Studies (GSBS) Head Count FTEs School of Rural Public Health (SRPH) Head Count FTEs Health Science Center (Total) Head Count 1,125 1,147 1,169 1,312 1,432 1,695 1,844 1,958 FTEs 1, , , , , , , ,846.8 Full-time equivalent (FTE) enrollment calculated using the Texas Higher Education Coordinating Board contact-hour conversion parameters. Professional students are considered full-time and included as head count (each student=1 FTE). Undergraduate and graduate students are converted to FTEs as follows: semester credit hours for the fall semester of each academic year and divided by 15 hours for undergraduates, 12 hours for master's students, and 9 hours for doctoral students. Table only includes State funded contact hours HSC Fact Book AY xlsx Page 1 of 5 Revised: 7/19/2011

139 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M Health Science Center Total Faculty Employment by Head Count and FTE School Fall 2003 Fall 2004 Fall 2005 Fall 2006 Fall 2007 Fall 2008 Fall 2009 Fall 2010 Baylor College of Dentistry (BCD) Head Count FTEs College of Medicine (COM) Head Count FTEs College of Nursing (CON) Head Count First Class enrolled in the Fall 2008 FTEs College of Pharmacy (COP) Head Count First Class enrolled in the Fall 2006 FTEs Institute of Bioscience & Technology (IBT) Head Count FTEs School of Rural Public Health (SRPH) Head Count FTEs Health Science Center (Total) Head Count FTEs Head count and full-time equivalent (FTE) faculty members calculated using only budgeted employes. The College of Medicine has an additional 595 faculty through a Scott & White clinic. Graduate School of Biomedical Studies (GSBS) faculty have shared appointments with other TAMHSC colleges. As a result, the shared GSBS portions are not listed separately. The only exception is the GSBS faculty who teach at the Institute of Bioscience & Technology (IBT). These faculty have full-time appointments at IBT and as a result, they are listed separately. HSC Fact Book AY xlsx Page 2 of 5 Revised: 7/19/2011

140 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M Health Science Center Student-to-Faculty Ratio School Fall 2003 Fall 2004 Fall 2005 Fall 2006 Fall 2007 Fall 2008 Fall 2009 Fall 2010 Baylor College of Dentistry (BCD) Student-to-Faculty Ratio College of Medicine (COM) Student-to-Faculty Ratio College of Nursing (CON) Student-to-Faculty Ratio First Class enrolled in the Fall College of Pharmacy (COP) Student-to-Faculty Ratio First Class enrolled in the Fall School of Rural Public Health (SRPH) Student-to-Faculty Ratio Health Science Center (Total) Student-to-Faculty Ratio Student Full-time equivalent (FTE) enrollment calculated using the Texas Higher Education Coordinating Board contact-hour conversion parameters. Professional students are considered full time and included as head count (each student=1 FTE). Undergraduate and graduate students are converted to FTEs as follows: semester credit hours for the fall semester of each academic year and divided by 15 hours for undergraduates, 12 hours for master's students, and 9 hours for doctoral students. Faculty full-time equivalent (FTE) calculated using only budgeted employes. The College of Medicine has an additional 595 faculty through a Scott & White clinic. TAMHSC does not have faculty headcounts for GSBS, consequently, there is no student-to-faculty ratio for GSBS. HSC Fact Book AY xlsx Page 3 of 5 Revised: 7/19/2011

141 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M Health Science Center Degrees Awarded by Academic Discipline School Baylor College of Dentistry (BCD) BS Clinical Specialty DDS MS College of Medicine (COM) BS MD College of Nursing (CON) 39 BS First Class enrolled in the Fall College of Pharmacy (COP) MS First Class enrolled in the Fall 2006 PhD Graduate School of Biomedical Studies (GSBS) MS PhD MSPH School of Rural Public Health (SRPH) MHA MPH MS Health Science Center (Total) BS BSN Clinical Specialty DDS (Professional) MD (Professional) MHA MPH MSPH MS PharmD PhD Some Clinical Specialty Students concurrently receive a graduate degree Degrees listed with (GSBS) are considered GSBS degrees, but the degrees are awarded by each of the colleges Page 4 of 5 HSC Fact Book AY xlsx Revised: 7/19/2011