University of Arizona - Main Campus

Transcription

1 University of Arizona - Main Campus FY 2015 ACTUAL FY 2016 ESTIMATE FY 2017 APPROVED OPERATING BUDGET Full Time Equivalent Positions 5, , , / Personal Services 271,490, ,469, ,469,100 Employee Related Expenditures 85,849,200 97,185,400 96,724,000 Professional and Outside Services 3,242,700 4,405,900 4,405,900 Travel - In State 88,200 82,000 82,000 Travel - Out of State 631,200 74,600 74,600 Other Operating Expenditures 38,532,600 50,606,900 52,662,200 Equipment 2,980,100 1,601,800 1,601,800 OPERATING SUBTOTAL 402,814, ,425, ,019,600 2/ SPECIAL LINE ITEMS Agriculture 37,199,400 39,652,600 39,542,600 Arizona Cooperative Extension 14,020,500 16,136,500 16,079,500 Center for the Philosophy of Freedom 492, ,000 2,500,000 3/ Elimination of Payment Deferral 0 62,153,100 4/ ,300 5/ Museum One-Time Funding 0 0 8,000,000 6/ Research Infrastructure Lease-Purchase Payment 9,593,200 9,593,600 13,978,400 7/ Sierra Vista Campus 6,227,300 7,671,300 7,660,800 AGENCY TOTAL 470,347, ,132, ,209,200 8/9/ FUND SOURCES General Fund 209,341, ,983, ,059,600 10/11/12/ Other Appropriated Funds University Collections Fund 261,006, ,149, ,149,600 13/ SUBTOTAL - Other Appropriated Funds 261,006, ,149, ,149,600 SUBTOTAL - Appropriated Funds 470,347, ,132, ,209,200 Other Non-Appropriated Funds 961,364, ,910, ,744,300 Federal Funds 218,280, ,645, ,509,200 TOTAL - ALL SOURCES 1,649,992,000 1,799,689,500 1,786,462,700 AGENCY DESCRIPTION Established in 1885, The University of Arizona (UA) is one of 3 public universities governed by the Arizona Board of Regents (ABOR). As a primary research institution, UA offers 362 degree-programs and 4 specialist programs to approximately 42,000 full- and part-time students in 39 colleges and schools at its Main Campus in Tucson. Upon its establishment, UA received the federal land grant for Arizona, allowing the creation of agricultural and mining programs that continue today. UA - South is a branch campus of the university in Sierra Vista. 1/ Includes 713 GF and OF FTE Positions funded from Special Line Items in FY / Includes $2,000,000 appropriated by the FY 2015 Appropriation Act (Laws 2014, Chapter 18) for university operating expenditures in FY / The appropriated amount for the Center for the Philosophy of Freedom may not supplant any existing state funding or private or external donations to the Center or the Philosophy Department of the University of Arizona. The appropriated monies and all private and external donations to the Center shall be used only for the direct operation of the Center and may not be used for indirect costs to the university. The Center shall submit a report to the President of the Senate, the Speaker of the House of Representatives, the Chairpersons of the Senate Education Committee and the House of Representatives Government and Higher Education Committee and the Director of the Joint Legislative Budget Committee on or before October 3, The report shall include at least the following for the Center: 1) The total amount of funding received from all sources, 2) A description of faculty positions and courses offered, 3) The total undergraduate and graduate student participation, 4) Significant community events, initiatives or publications. The Chairpersons of the Senate Education Committee and the House of Representatives Government and Higher Education Committee may request the Director of the Center to appear before the Committees to report on the Center s annual achievements. (General Appropriation Act footnote) Fiscal Year 2017 Appropriations Report 391 University of Arizona - Main Campus

2 Operating Budget The budget includes $470,019,600 and 4,627.8 FTE Positions in FY 2017 for the operating budget. These amounts consist of: FY 2017 General Fund $126,361,300 University Collections Fund 343,658,300 Additional Resources The budget includes an increase of $2,055,300 from the General Fund in FY 2017 for UA - Main s share of additional university resources. (Please see the University Additional Resources narrative in the Arizona Board of Regents (ABOR) section for more The budget includes a decrease of $(461,400) from the This amount reflects UA - Main s allocation of state health insurance premium costs in FY 2017 compared to its revised FY 2016 allocation. (Please see the Health Insurance Trust Fund narrative in the ABOR section and the Agency Detail and Allocations section for more The $126,361,300 General Fund amount for the operating budget includes $2,000,000 that was appropriated for FY 2017 in the FY 2015 General Appropriation Act (Laws 2014, Chapter 18). As a result, these monies do not appear in the FY 2017 General Appropriation Act. Student enrollment growth and tuition and fee increases for students will contribute to an increase in university tuition and fee collections. The University Collections Fund amount will ultimately be adjusted to reflect these additional revenues. (Please see the ABOR section for more Agriculture The budget includes $39,542,600 and FTE Positions in FY 2017 for the Agriculture Programs. These amounts consist of: General Fund 28,657,300 University Collections Fund 10,885,300 The budget includes a decrease of $(110,000) from the This line item supports agricultural academic programs in Animal Systems; Environment and Natural Resources; 4/ The FY 2017 General Appropriation Act includes one-time FY 2016 supplemental General Fund appropriation of $62,153,100 for the elimination of UA - Main s share of the universitywide payment deferral. 5/ Laws 2016, Chapter 128 transfers $428,300 from the General Fund and 1 FTE Position from the Arizona Historical Society to the Mining, Mineral and Natural Resources Educational Museum line item in the UA - Main budget. 6/ The sum of $19,000,000 is appropriated from the state General Fund in FY 2017 to the Arizona Board of Regents for distribution for capital improvements or operating expenditures in the following amounts: 1) Arizona State University $7,000,000, 2) Northern Arizona University $4,000,000, 3) University of Arizona $8,000,000. On or before August 1, 2016, the universities shall report the intended use of the monies to the Joint Legislative Budget Committee. Before any expenditure of the monies appropriated in this section for capital improvements, the universities shall submit the scope, purpose, and estimated cost of the capital improvements for review by the Joint Committee on Capital Review pursuant to A.R.S (General Appropriation Act footnote) 7/ A.R.S appropriates $14,253,000 from the General Fund to finance lease-purchase payments for research infrastructure projects. This amount has been adjusted by $(274,600) by Section 134 of the FY 2015 General Appropriation Act (Laws 2014, Chapter 18) to reflect savings from refinancing the lease-purchase payments. 8/ The appropriated monies may not be used for scholarships or any student newspaper. (General Appropriation Act footnote) 9/ General Appropriation Act funds are appropriated as an Operating Lump Sum with Special Line Items by Agency. 10/ The state General Fund appropriation may not be used for alumni association funding. (General Appropriation Act footnote) 11/ The FY 2017 General Fund budget as adjusted for statewide adjustments is $197,059,600. This amount includes $171,961,100 in UA - Main s individual section of the FY 2017 General Appropriation Act, $691,800 for statewide adjustments, $14,253,000 in A.R.S lease-purchase appropriations less $(274,600) in savings from the refinance of Certificates of Participation for research infrastructure in the FY 2015 General Appropriation Act, the $2,000,000 operating budget appropriation in the FY 2015 General Appropriation Act footnote, the $428,300 transfer of the Mining, Mineral, and Natural Resources Educational Museum from the Arizona Historical Society to the UA - Main, and a one-time $8,000,000 appropriation in Section 149 of the FY 2017 General Appropriation Act for capital improvements or other operating expenditures. 12/ The increased state General Fund appropriation from Laws 2014, Chapter 18 may not be used for medical marijuana research. (General Appropriation Act footnote) 13/ Any unencumbered balances remaining in the collections account on June 30, 2016 and all collections received by the university during the fiscal year, when paid into the State Treasury, are appropriated for operating expenditures, capital outlay and fixed charges. Earnings on state lands and interest on the investment of the Permanent Land Funds are appropriated in compliance with the Enabling Act and the Constitution of Arizona. No part of this appropriation may be expended for supplemental life insurance or supplemental retirement. Monies from summer session, when deposited in the State Treasury, together with any unencumbered balance in the summer session account, are appropriated for the purpose of conducting summer sessions but are excluded from the amounts enumerated above. (General Appropriation Act footnote) Fiscal Year 2017 Appropriations Report 392 University of Arizona - Main Campus

3 Family, Youth, and Community; Human Nutrition, Food Safety and Health; Marketing, Trade, and Economics; and Plant Systems. Arizona Cooperative Extension The budget includes $16,079,500 and FTE Positions in FY 2017 for the Arizona Cooperative Extension. These amounts consist of: General Fund 14,379,500 University Collections Fund 1,700,000 The budget includes a decrease of $(57,000) from the This line item supports Agriculture Experiment Stations and Cooperative Extension services that provide noncredit community outreach seminars and youth programs throughout the state. Center for the Philosophy of Freedom The budget includes $2,500,000 from the General Fund in FY 2017 for the Center for the Philosophy of Freedom (CPF). This amount funds the following adjustments: Center for the Philosophy of Freedom The budget includes an increase of $2,000,000 from the General Fund in FY 2017 for the direct operation of the CPF. This line item supports the CPF, which is within the UA College of Social and Behavioral Sciences. The CPF s functions include: published research, undergraduate education, graduate education, and community outreach. Elimination of Payment Deferral The budget includes no funding in FY 2017 for the Elimination of Payment Deferral line item. This amount funds the following adjustments: Remove One-Time Funding The budget includes a decrease of $(62,153,100) from the General Fund in FY 2017 to remove a one-time payment to eliminate UA - Main s share of the universitywide payment deferral in FY (Please see the Payment Deferral narrative in the ABOR section for more Museum The FY 2017 Agency Consolidation Budget Reconciliation Bill (BRB) (Laws 2016, Chapter 128) transfers $428,300 and 1 FTE Position from the General Fund in FY 2017 for the Museum. The Agency Consolidation BRB transfers the Arizona Experience Museum from the Arizona Historical Society (AHS) to the Arizona Geological Survey, which the same legislation placed within the University of Arizona. (Please see the Geological Survey Transfer in Other Issues.) The Museum is renamed the Mining, Mineral and Natural Resources Educational Museum (Museum). The Mining and Mineral Museum closed May 1, 2011 for renovations and the Department of Mines and Mineral Resources was eliminated as a state agency in FY Since that time, the Museum has not reopened but the AHS has overseen the collections and building. This line item funds a curator and rent for the closed museum. Of the total appropriation for the Museum, $360,800 is used to pay rent and the remaining $67,500 funds a curator position. The Agency Consolidation BRB directs the State Geologist with the Mining, Mineral and Natural Resources Educational Museum Advisory Council to produce a report by December 31, 2018 detailing the funding needs of restoring the building as a museum and outline other possible uses. If sufficient monies are not raised by July 1, 2018 to reopen the building, the museum and monies in the account revert back to AHS. (Please see Museum Transfer in Other Issues for more One-Time Funding The budget includes $8,000,000 from the General Fund in FY 2017 for the One-Time Funding line item. This amount will be used for one-time capital improvements or operating expenditures. Research Infrastructure Lease-Purchase Payment The budget includes $13,978,400 from the General Fund in FY 2017 for the Research Infrastructure Lease-Purchase Payment line item. This amount funds the following adjustments: Refinance Adjustment The budget includes an increase of $4,384,800 from the General Fund in FY 2017 for the savings from the refinance of Certificates of Participation (COPs) for research infrastructure projects from the previous year. Fiscal Year 2017 Appropriations Report 393 University of Arizona - Main Campus

4 Laws 2003, Chapter 267, which established A.R.S , appropriated a total of $34,625,000 from the General Fund to the state university system from FY 2008 through FY 2031 to finance lease-purchase payments for research infrastructure project agreements entered into before July 1, The FY 2015 General Appropriation Act (Laws 2014, Chapter 18) reduced the UA research infrastructure appropriation of $14,253,000 by $(4,659,800) in FY 2015, $(4,659,400) in FY 2016, and $(274,600) in FY The FY 2017 Higher Education BRB also amends A.R.S to revise the FY 2018 to FY 2031 research infrastructure appropriations that correspond to UA s current debt service schedule. (Please see the Long-Term Budget Impacts narrative below and the 2003 Research Infrastructure narrative in the ABOR section for more Since this funding appears in A.R.S and Laws 2014, Chapter 18, Section 134, this funding would not appear in the FY 2017 General Appropriation Act. In total, the universities have issued $482,500,000 in COPs for research infrastructure projects. Of this amount, UA has issued $201,300,000 in COPs. Sierra Vista Campus The budget includes $7,660,800 and 75.3 FTE Positions in FY 2017 for the Sierra Vista Campus. These amounts consist of: General Fund 2,754,800 University Collections Fund 4,906,000 The budget includes a decrease of $(10,500) from the UA - South offers upper-division undergraduate programs in 16 disciplines for community college transfer students. While ABOR authorized this UA branch campus for Sierra Vista in 1995, the Legislature has not formally established the campus in statute. Long-Term Budget Impacts Other Issues As part of the budget s 3-year spending plan, UA - Main s General Fund costs are projected to increase by $270,900 in FY 2018 above FY 2017, increase by $1,700 in FY 2019 above FY These estimates are based on increases in the level of state appropriations required to cover refinanced Research Infrastructure debt service costs in FY 2018 and FY 2019 relative to FY (Please see the 2003 Research Infrastructure Refinancing narrative in the ABOR section for more FY 2016 Supplemental The budget includes $1,330,700 from the General Fund in FY 2016 for a one-time supplemental for the revised allocation of health insurance premium adjustments. (Please see the Health Insurance Trust Fund narrative in the ABOR section for more Summary UA - Main s FY 2017 General Fund budget is $197,059,600. Of this amount: $171,961,100 is included in UA - Main s individual section of the FY 2017 General Appropriation Act. $691,800 is part of statewide adjustments. $14,253,000 is appropriated in A.R.S for a research infrastructure lease-purchase payment. $(274,600) was reduced by Section 134 of the FY 2015 General Appropriation Act for Research Infrastructure savings. $2,000,000 was appropriated by a footnote in the FY 2015 General Appropriation Act. $428,300 is for the transfer of the Arizona Experience Museum from AHS to UA - Main by the FY 2017 Agency Consolidation BRB. $8,000,000 is a one-time appropriation in Section 149 of the FY 2017 General Appropriation Act for capital improvements or operating expenditures. Geological Survey Transfer The Geological Survey investigates Arizona s geology and provides technical advice and assistance to state and local government agencies, industry and other members of the public concerning the geologic environment and the development and use of mineral resources in Arizona. The Agency Consolidation BRB transfers the statutory responsibilities of the Arizona Geological Survey to the University of Arizona effective July 1, It is the intent of the Legislature that the Geological Survey maintains the current level of employees for the Arizona Geological Survey. The legislation also requires the UA to report to the JLBC by August 1, 2017 detailing the services it provides. The Agency Consolidation BRB also allows ABOR to appoint the State Geologist and does not require that Fiscal Year 2017 Appropriations Report 394 University of Arizona - Main Campus

5 person to be registered by the Board of Technical Registration. No General Fund funding was appropriated to the UA - Main for the Geological Survey in FY In FY 2016, the Geological Survey was appropriated $941,000 and 10.3 FTE Positions from the General Fund for the operating budget. The Geological Survey also had several non-appropriated and Federal Funds (formerly represented as the Geological Survey Fund, Indirect Cost Recovery Fund - GSA9000, and Federal Grants - GSA2000), which were combined into a single other non-appropriated fund, the Geological Survey Fund, within the UA - Main budget. For FY 2017, this new fund amount is projected to have expenditures of $362,600. In addition to these monies, a Museum Account was added to the Geological Survey Fund for monies to be used for the museum. (For additional detail, please see the Mining, Mineral and Natural Resources Educational Museum Account in Other Issues.) Museum Transfer The Agency Consolidation BRB transfers the operational control of the Arizona Experience Museum to the Geological Survey, which resides within the UA. The facility is renamed the Mining, Mineral and Natural Resources Educational Museum. The Agency Consolidation BRB effectively moves the $428,300 from the Arizona Experience line item in the AHS budget to the UA - Main budget. The legislation also reassigns the Centennial license monies to the UA. (See Museum Account for more The Mining and Mineral Museum closed May 1, 2011 for renovations and the Department of Mines and Mineral Resources was eliminated as a state agency in FY The building was eventually renamed the Centennial Museum and then the Arizona Experience Museum but was never re-opened. AHS managed the property and collections under their Arizona Experience Museum line item. In October 2014, AHS opened an exhibition at the Papago Park Museum utilizing a portion of the collection. The remainder of the collection remains at the former Mining and Mineral Museum s facility. The Agency Consolidation BRB also requires the following provisions related to the transfer. The State Geologist, in coordination with the Mining, Mineral and Natural Resources Educational Museum Advisory Council, is required to submit a report to the Governor, the President of the Senate, and the Speaker of the House of Representatives, and to the Secretary of State by December 31, The report shall include whether General Fund monies are required for the continued maintenance and operations of the Museum, information relating to excess specimens, and recommendations on other beneficial uses of the building. The Museum will revert to AHS by July 1, 2018 if the Geological Survey has not raised sufficient funds to open and refurbish the Museum. (For more detail on the structural concerns related to the building, please see the AHS section in the FY 2015 Appropriations Report.) The UA must provide written notice to the Director of Legislative Council by July 15, 2018 whether there are adequate monies to refurbish and open the Museum facility. The AHS is required to fulfill existing obligations, provide a list of inventory, and assist in the transfer of the inventory. As the operational authority, the Geological Survey is to: Operate and maintain the Museum as the state depository for the collection and display of mining, mineral, natural resource artifacts and specimens. The Geological Survey is also to provide maintenance for all stored or displayed artifacts and specimens. Adopt a collections management policy that meets national standards. Receive all unspent and unencumbered funds from the AHS for Museum operations. Use the Mining, Mineral and Natural Resources Educational Museum Account within the Arizona Geological Survey Fund for the maintenance and operations of the Museum. Museum Account The Agency Consolidation BRB also transfers all unexpended and unencumbered monies remaining in the Arizona Centennial Special Plate Fund established by A.R.S to the Mining, Mineral and Natural Resources Educational Museum Account in the Geological Survey Fund established by A.R.S Ongoing Fiscal Year 2017 Appropriations Report 395 University of Arizona - Main Campus

6 revenues will now accrue to the UA - Main, and that amount is expected to be $142,400 annually. Monies in the account are to be used exclusively for restoration, maintenance, and operations of the Museum. A.R.S established the centennial specialty license plate, which requires a $25 fee. Of the $25 fee, $8 is for special plate administration costs, and $17 is a donation for the Centennial Special Plate Fund. Beginning in FY 2013, permanent law required the Arizona Department of Transportation to make annual distributions of the monies in the Centennial Special Plate Fund to AHS to pay costs related to the maintenance and operations of the Centennial Museum that housed the Mining and Mineral Museum. As of May 2016, the Centennial Special Plate Fund has collected total revenues of $547,400 and has a balance of $305,400. Beginning May 1, 2016, the Agency Consolidation BRB prohibits AHS from encumbering any monies deposited in the Arizona Centennial Special Plate Fund. The BRB further transfers the unencumbered monies (currently estimated at $305,400) to the Mining, Mineral and Natural Resources Educational Museum Account in the Geological Survey Fund. the FY 2016 amount in the budget has been adjusted upward by $60,366,600 to $361,149,600. The budget also adjusts the number of FTE Positions in FY 2016 to align with General Fund and Collections Fund tuition revenue adjustments. Laws 2015, Chapter 8 originally appropriated 5,393 FTE Positions in FY 2016 for the UA - Main. The General Fund accounted for 2,306.1 FTE Positions and the University Collections Fund accounted for the remaining 3,086.9 FTE Positions. UA - Main s individual section of the budget increases the total amount of FY 2016 FTE Positions by to 5, In addition, 1 FTE Position was transferred from AHS to UA - Main with the Agency Consolidation BRB for total appropriated positions of 5, The General Fund accounts for 1,938.7 FTE Positions and the University Collections Fund accounts for the remaining 3,667.8 FTE Positions. The total number and fund sourcing of FTE Positions significantly increased because adjustments to FTE Positions have not been made in several years. In addition to the monies collected from the Centennial Special Plate Fund, the account will also include monies collected from museum entrance fees, memberships, gift shop revenues. University Collections and FTE Positions Adjustments The FY 2016 General Appropriation Act (Laws 2015, Chapter 8) appropriated $300,783,000 from the University Collections Fund to UA - Main in FY The Collections Fund for UA - Main represents a portion of tuition, fees and a portion of land earnings. (Please see ABOR Other Issues for more If collections exceed the appropriated amount, the annual General Appropriation Act includes a footnote permitting the universities to expend those amounts as well and a separate footnote requiring the submission of a report detailing any adjustments to the appropriated amounts. ABOR sets tuition in the spring (independent of the legislative process). Any revised tuition rates as well as changes in enrollment can result in collections exceeding the appropriated amount. The Universities reported the adjustments to the University Collections Fund for FY 2016 to the Joint Legislative Budget Committee in July 2015, and UA incorporated the adjusted FY 2016 amounts as part of their FY 2017 budget submission. Accordingly, Fiscal Year 2017 Appropriations Report 396 University of Arizona - Main Campus

7 University of Arizona - Health Sciences Center FY 2015 ACTUAL FY 2016 ESTIMATE FY 2017 APPROVED OPERATING BUDGET Full Time Equivalent Positions 1, , , / Personal Services 45,246,700 50,044,300 50,044,300 Employee Related Expenditures 13,778,600 15,465,700 15,367,300 Professional and Outside Services 8,594,000 1,166,700 1,166,700 Travel - In State 46,200 41,200 41,200 Travel - Out of State 144,000 7,700 7,700 Other Operating Expenditures 3,852,300 2,274,200 2,509,900 Equipment 215,700 94,600 94,600 OPERATING SUBTOTAL 71,877,500 69,094,400 69,231,700 SPECIAL LINE ITEMS Clinical Rural Rotation 311, , ,500 Clinical Teaching Support 8,587,000 8,546,600 8,518,400 Elimination of Payment Deferral 0 16,776,700 2/ 0 Liver Research Institute 460, , ,800 Phoenix Medical Campus 31,457,500 32,575,100 32,516,500 Telemedicine Network 1,854,300 1,848,100 1,843,700 AGENCY TOTAL 114,548, ,645, ,913,600 3/4/ FUND SOURCES General Fund 69,585,300 85,592,100 68,859,800 5/6/7/ Other Appropriated Funds University Collections Fund 44,963,100 44,053,800 44,053,800 8/ SUBTOTAL - Other Appropriated Funds 44,963,100 44,053,800 44,053,800 SUBTOTAL - Appropriated Funds 114,548, ,645, ,913,600 Other Non-Appropriated Funds 284,919, ,939, ,239,200 Federal Funds 92,838,500 94,695,300 97,536,300 TOTAL - ALL SOURCES 492,306, ,280, ,689,100 AGENCY DESCRIPTION The University of Arizona s Health Sciences Center (UA - HSC) includes its Colleges of Medicine, Nursing, Pharmacy, and Public Health. The UA - HSC enrolls over 2,989 full-time students as well as 460 medical students at its 48-acre campus in Tucson. UA - HSC currently operates a medical campus in Phoenix that opened in FY The Colleges of Pharmacy and Public Health also have a presence on the Phoenix Biomedical campus, which has increased its enrollment to 321 medical and 80 Master of Public Health and Pharmacy students. 1/ Includes GF FTE Positions and 55.1 OF FTE Positions funded from Special Line Items in FY 2017, including GF FTE Positions filled by students and associated with the Clinical Teaching Support Special Line Item. 2/ The FY 2017 General Appropriation Act includes a one-time FY 2016 supplemental General Fund appropriation of $16,776,700 for the elimination of UA - HSC s share of the universitywide payment deferral. 3/ The appropriated monies may not be used for scholarships or any student newspaper. (General Appropriation Act footnote) 4/ General Appropriation Act funds are appropriated as an Operating Lump Sum with Special Line Items by Agency. 5/ The state General Fund appropriation may not be used for alumni association funding. (General Appropriation Act footnote) 6/ The increased state General Fund appropriation from Laws 2014, Chapter 18 may not be used for medical marijuana research. (General Appropriation Act footnote) 7/ The FY 2017 General Fund budget as adjusted for statewide adjustments is $68,859,800. This amount includes $68,629,200 in UA - HSC s individual section of the FY 2017 General Appropriation Act and $230,600 for statewide adjustments. 8/ Any unencumbered balances remaining in the collections account on June 30, 2016 and all collections received by the university during the fiscal year, when paid into the State Treasury, are appropriated for operating expenditures, capital outlay and fixed charges. Earnings on state lands and interest on the investment of the Permanent Land Funds are appropriated in compliance with the Enabling Act and the Constitution of Arizona. No part of this appropriation may be expended for supplemental life insurance or supplemental retirement. Monies from summer session, when deposited in the account, are appropriated for the purpose of conducting summer sessions but are excluded from the amounts enumerated above. (General Appropriation Act footnote) Fiscal Year 2017 Appropriations Report 397 University of Arizona - Health Sciences Center

8 Operating Budget The budget includes $69,231,700 and FTE Positions in FY 2017 for the operating budget. These amounts consist of: FY 2017 General Fund $34,367,500 University Collections Fund 34,864,200 Additional Resources The budget includes an increase of $235,700 from the General Fund in FY 2017 for UA - Health Sciences Center (UA - HSC) s share of additional university resources. (Please see the University Additional Resources narrative in the Arizona Board of Regents (ABOR) section for more The budget includes a decrease of $(98,400) from the (Please see the Agency Detail and Allocations section.) This amount reflects UA - HSC s allocation of state health insurance premium costs in FY 2017 compared to its revised FY 2016 allocation. (Please see the Health Insurance Trust Fund narrative in the ABOR section and the Agency Detail and Allocations section for more Student enrollment growth and tuition and fee increases for students will contribute to an increase in university tuition and fee collections. The University Collections Fund amount will ultimately be adjusted to reflect these additional revenues. (Please see the ABOR section for more Clinical Rural Rotation The budget includes $351,500 and 6.2 FTE Positions from the General Fund in FY 2017 for the Clinical Rural Rotation program. The budget includes a decrease of $(800) from the Clinical Teaching Support The budget includes $8,518,400 and FTE Positions from the General Fund in FY 2017 for Clinical Teaching Support. The budget includes a decrease of $(28,200) from the Clinical Teaching Support provides hospital training, through internships and residencies, for medical, nursing, clinical, and other health students in a wide variety of specialty areas. Students fill all the above-mentioned FTE Positions. Since participation in the program has been stable for several years, the funding summary above includes these FTE Positions. Elimination of Payment Deferral The budget includes no funding in FY 2017 for the Elimination of Payment Deferral line item. This amount funds the following adjustments: Remove One-Time Funding The budget includes a decrease of $(16,776,700) from the General Fund in FY 2017 to remove a one-time payment to eliminate UA - HSC s share of the universitywide payment deferral in FY (Please see the Payment Deferral narrative in the ABOR section for more Liver Research Institute The budget includes $451,800 and 6.6 FTE Positions from the General Fund in FY 2017 for the Liver Research Institute. The budget includes a decrease of $(900) from the The Liver Research Institute conducts clinical studies on all liver diseases, focusing on chemical and natural agents that may offer a cure for such ailments. The line item also supports a research development program that actively pursues outside grants and donations. This line item funds the Rural Health Professions Program, which enables nurse practitioner, medical, and pharmacy students to plan and complete clinical practice rotations in rural and medically under-served sites throughout the state. Fiscal Year 2017 Appropriations Report 398 University of Arizona - Health Sciences Center

9 Phoenix Medical Campus The budget includes $32,516,500 and FTE Positions in FY 2017 for the Phoenix Medical Campus (PMC). These amounts consist of: General Fund 23,326,900 University Collections Fund 9,189,600 The budget includes a decrease of $(58,600) from the The Phoenix Medical Campus currently has 321 medical students and 80 Master of Public Health students. By FY 2025, UA envisions developing a campus of approximately 1,200,000 square feet incorporating research, instruction, and clinical facilities to serve a planned population of 480 medical students, 250 graduate students, and 1,660 science students. Laws 2008, Chapter 287 as amended by Laws 2009, 1 st Special Session, Chapter 6 and Laws 2009, 3 rd Special Session, Chapter 9 authorized ABOR to enter into leaseto-own and bond transactions up to a maximum of $800,000,000 to pay for building renewal projects and new facilities of which ABOR is required to allocate $376,000,000 for the Phoenix Medical Campus. In September 2014, the Joint Committee on Capital Review (JCCR) favorably reviewed UA s planned SPEED bond issuance of $136,100,000 to fund construction of the Biosciences Partnership Building on the Phoenix Medical Campus. The bond was issued in February 2015, and debt service is paid with 80% from Lottery revenues and 20% from university system revenues. Of the $376,000,000 allocated for the Phoenix Medical Campus, the JCCR has reviewed $275,545,000. (For additional information on university lottery bonding, please see the Capital Outlay - ABOR Building System section of this report. For historical information, please see the FY 2015 Appropriations Report.) Telemedicine Network The budget includes $1,843,700 and 15.4 FTE Positions from the General Fund in FY 2017 for the Telemedicine Network. The budget includes a decrease of $(4,400) from the Telemedicine is the use of computers, video imaging, broadband Internet, and other telecommunication technologies to diagnose and treat patients in rural communities. Long-Term Budget Impacts Other Issues As part of the budget s 3-year spending plan, there is no projected change to UA - HSC s General Fund costs for FY 2018 to FY FY 2016 Supplemental The budget includes $421,900 from the General Fund in FY 2016 for a one-time supplemental for the revised allocation of health insurance premium adjustments. (Please see the Health Insurance Trust Fund narrative in the ABOR section for more Summary UA - HSC s FY 2017 General Fund budget is $68,859,800. Of this amount: $68,629,200 is included in UA - HSC s individual section of the FY 2017 General Appropriation Act. $230,600 is appropriated for statewide adjustments. University Collections and FTE Positions Adjustments The FY 2016 General Appropriation Act (Laws 2015, Chapter 8) appropriated $43,315,600 from the University Collections Fund to UA - HSC in FY The Collections Fund for UA - HSC represents a portion of tuition, fees and a portion of land earnings. (Please see ABOR Other Issues for more If collections exceed the appropriated amount, the annual General Appropriation Act includes a footnote permitting the universities to expend those amounts as well and a separate footnote requiring the submission of a report detailing any adjustments to the appropriated amounts. ABOR sets tuition in the spring (independent of the legislative process). Any revised tuition rates as well as changes in enrollment can result in collections exceeding the appropriated amount. The Universities reported the adjustments to the University Collections Fund for FY 2016 to the Joint Legislative Budget Committee in July 2015, and UA incorporated the adjusted FY 2016 amounts as part of their FY 2017 budget submission. Accordingly, Fiscal Year 2017 Appropriations Report 399 University of Arizona - Health Sciences Center

10 the FY 2016 amount in the budget has been adjusted upward by $738,200 to $44,053,800. The budget also adjusts the number of FTE Positions in FY 2016 to align with General Fund and Collections Fund tuition revenue adjustments. Laws 2015, Chapter 8 originally appropriated 1,054.1 FTE Positions in FY 2016 for the UA - HSC. The General Fund accounted for FTE Positions and the University Collections Fund accounted for the remaining FTE Positions. The budget increases the total amount of FY 2016 FTE Positions by to 1, The General Fund accounts for FTE Positions and the University Collections Fund accounts for the remaining FTE Positions. The total number and fund sourcing of FTE Positions significantly increased because adjustments to FTE Positions have not been made in several years. Fiscal Year 2017 Appropriations Report 400 University of Arizona - Health Sciences Center