ALL FUNDS OPERATING BUDGET FY2017. Institutional Budget Document Page 1

Transcription

1 ALL FUNDS OPERATING BUDGET FY2017 Institutional Budget Document Page 1

2 Table of Contents Introduction... 3 Budget Highlights... 4 General Fund Changes... 4 Tuition & Fees Rate Increase %... 4 Enrollments... 5 Utilities... 5 Leases... 5 ASC Rate... 5 Facilities and Administrative Cost Recovery... 6 Responsibility Centered Management (RCM)... 6 Organizational Changes... 7 Financial Aid... 7 All Funds Operating Budget... 7 Permanent Allocated Funding Base Report... 7 Spending Authority... 7 Gross Tuition & Fees Detail... 7 Auxiliary Report... 8 Capital Development Plan... 8 Financial Status... 8 Appendix 1-1: All Funds Operating Budget FY Appendix 1-2: All Funds Operating Budget FY2016 vs. FY Appendix 2: Permanent Allocated Funding Report Appendix 3: Spending Authority Appendix 4: Gross Tuition and Fees Detail Appendix 5: Auxiliary Report (1 of 3) Appendix 5: Auxiliary Report (2 of 3) Appendix 5: Auxiliary Report (3 of 3) Appendix 6: Capital Development Plan (1 of 3) Appendix 6: Capital Development Plan (2 of 3) Appendix 6: Capital Development Plan (3 of 3) Appendix 7: Financial Status Institutional Budget Document Page 2

3 Introduction The University of Arizona s FY2017 budget is a reflection of its Never Settle Strategic Plan to redefine higher education through engagement, innovation, partnerships and synergy. After last year s $31 million decrease in State General Fund appropriation, the University of Arizona will receive $18 million increase in FY2017 to help fulfill its operational and educational needs. Key features of the proposed FY2017 All Funds Operating Budget include: Sources: $18.1 million increase in General Fund appropriations 3%-6% increase in non-guaranteed tuition and 3%-7% increase in guaranteed tuition Projected 797 enrollment growth in FY2017 Increase in other sources primarily due to Banner Affiliation Agreement Uses: $47.42 million increase in Instruction and $83.31 million increase in Academic Support With these key features in place, the FY2017 budget of $2.506 billion represents a $141.4 million or 5.98% increase over the FY2016 budget. The Educational and General portion of the budget is $1.245 billion and represents a $60.74 million or 4.88% increase over the FY2016 budget. The sources and uses associated with the proposed $141.4 million increase in the budget are highlighted in the table below. Proposed Increase in Sources and Uses: Sources: Change FY'16 vs. FY'17 (In Millions) 1. General Fund $ Tuition & Student Fees Other Total Sources $ Uses: 5. Compensation and Benefits $ Professional & Outside Services (42.28) 7. Travel, Library Acquisitions & Other Operation Expenses Capital Equipment, Land & Building Utilities (1.34) 10. Financial Aid (Scholarship & Fellowship) Plant & Facilities Renovations Debt Service Administrative Service Charge Indirect Cost Recovery (8.00) 15. Total Uses $ Institutional Budget Document Page 3

4 Budget Highlights General Fund Changes The table below explains general fund changes from FY16 to FY17: FY16 General Fund $249,097,900 * One-Time Capital Investment 8,000,000 Statewide Insurance Adjustment 922,400 Freedom Center 2,000,000 Mining & Mineral Museum 428,300 Change in Research Infrastructure 4,384,800 General Fund Increase 2,291,000 FY17 General Fund 267,124,400 * * Includes $1,205,000 included in ABOR Budget for Performance Funding Tuition & Fees Rate Increase % FY17 represents a general 3% Increase for Residents and a 6%-7% Increase for Non-Residents. 1% increase for College of Medicine-Resident students and 3% increase for College of Medicine-Non Resident students. FY16 FY17 Increase % Increase Under Graduate-Resident $9,864 $10,160 $296 3% Under Graduate-Resident(UA South) $8,056 $8,296 $240 3% Under Graduate-Resident Guaranteed Tuition $10,390 $10,752 $362 3% Under Graduate-Non Resident $29,018 $30,759 $1,741 6% Under Graduate-Non Resident Guaranteed Tuition $31,618 $33,950 $2,332 7% Graduate-Resident $11,040 $11,372 $332 3% Graduate-Non Resident $29,362 $31,124 $1,762 6% College of Medicine-Resident $30,284 $30,616 $332 1% College of Medicine-Non Resident $50,528 $52,290 $1,762 3% Institutional Budget Document Page 4

5 Enrollments Below is a history of enrollment for the past four years, FY17 Enrollment Growth projected for FY17 Budget Submission, and FY17 Total Projected Enrollment: Utilities Institutional base budget remains at $35.052M in FY17. Leases No change in FY17 base budget from FY16. ASC Rate The purpose of the Administrative Service Charge (ASC) is to recover overhead costs incurred by the institution on behalf of accounts which are not directly funded by either state appropriations or sponsored grants and contracts. There are currently two components of the Administrative Service Charge (ASC). The first component is the ASC assessed at 9.5%; this rate is charged on external revenues on accounts that fall within the Auxiliary and Designated fund groups. Only revenues from external sources (such as, faculty, staff, and students) are used to calculate the ASC. The following revenues, identified as internal charges (by object code used), are excluded: 1. Revenues from interdepartmental billings and gifts. 2. Institutional fees (such as tuition, art fees, indirect cost, and utility pass-through charges). The second component of the ASC is an assessment of 1.0% on operational expenditures (excluding student aid, cost of goods sold including animal and feed, the ASC revenue component Object Code 7955, and transfers) on all auxiliary and designated funds unless protected, for example, institutionally mandated accounts, service centers, mission support agreements, and allocated designated funds. Splitting the ASC rate into a revenue and expenditure component broadens the base of funds, provides greater flexibility in recovering funds across a fiscal period instead of all at once, balances out recovery mechanisms between auxiliary units that have greater rate variability, and encourages strategic investments and savings. The revenues generated from the Administrative Service Charge (ASC) are used specifically to support overhead costs (activities on campus which benefit the entire institution, but which are not easily assignable to any one unit, for example, utilities, payroll and procurement processing). Institutional Budget Document Page 5

6 History of ASC rates is listed below. ASC RATE - Revenue ASC RATE -Expenditure FY07/ % FY08/ % FY09/ % FY10/ % FY11/ % FY12/ % FY13/ % FY14/ % FY15/ % 1.00% FY16/ % 1.00% Facilities and Administrative Cost Recovery The university receives reimbursement for facilities and administrative costs, or indirect costs, associated with external research. A portion of this reimbursement is returned to the colleges to support research activities that cannot be direct charged to Grants. Rates Charged to Grants & Contracts: The indirect cost rates vary depending upon type and location of the research activity. Current FY17 on-campus rate is 53.5% and off-campus rate is 26%. The rates approved in Colleges and Universities Rate Agreement are generally for use on grants, contracts and other agreements with the Federal Government. Indirect Cost Revenue Distribution to the University and the Colleges: Indirect Cost Allocation was historically 75% to the university and 25% to the colleges through FY2015. Beginning in FY2016, with the implementation of RCM, incremental changes in total Indirect Cost revenues are attributed and allocated to colleges net of assessments using the RCM distribution model. The Facilities & Administrative Perm Base Recovery projections remained at $79.8M for FY17. Responsibility Centered Management (RCM) In FY16, the University adopted an RCM framework for allocating incremental budget. Allocations for the FY17 budget were based upon the level of activity change incurred by responsibility center units for the prior fiscal year (i.e., the change in activity from FY15 to FY16). Revenues allocated through the RCM framework are: base undergraduate & graduate tuition, program fees, differential tuition, and facility & administrative cost recovery from grants. These incremental revenues are allocated net of Regents Setaside and other institutional financial aid and assessments for institutional & support center costs, strategic investment, and facilities space use. A total of $36M was allocated in the FY17 budget, of this amount $25M to colleges and $11M to Institutional & support center units. The FY17 allocations were based upon the following model elements: Undergraduate Tuition Allocation 75% allocated based upon weighted student credit hours (SCH), 25% based upon where student majors reside Graduate Tuition Allocation 75% based upon college of enrollment, 25% based upon student credit hours Institutional Budget Document Page 6

7 Program Fees & Differential Tuition 100% allocated to the college that owns the fee or differential tuition Facilities & Administration (F&A) Cost Recovery from Grants 100% to the college associated with the grant award Institutional & Support Center Expense Recovery 30.96% of undergraduate tuition and 12.38% of graduate tuition revenue, program fees, differential tuition and F&A cost recovery revenues Strategic Investment Assessment 2.0% Facilities Rate $25.19 per net assignable square foot (NASF) Organizational Changes A new organization was added in the College of Science for the Arizona Geological Survey with subsidiary Appropriation for the Mining and Mineral Museum. A new organization was created with the merger of Hydrology & Atmospheric Science in the College of Science. Biosphere 2 was moved from College of Science to Office for Research, Discovery & Innovation. Human Resources was moved from the Provost to Business Affairs. Arizona Public Media was moved from External Relations to the VP for Human Resources and Business Affairs. Systems Control was renamed Workforce Systems and moved to the VP for Human Resources and Business Affairs along with Risk Management. The Asthma/Airway Disease Research Center was moved from College of Medicine Tucson to the AZ Health Sciences Division. Financial Aid ABOR Policy states that the Regents Set Aside for financial aid for each university shall be 14% of the resident tuition for the academic year multiplied by the estimated sum of resident full pay equivalents and non-resident full pay equivalents. The Board may consider additional Regents set aside amounts at its discretion. In years FY09 and prior, the university set aside 15%. From FY10 to FY13 the regents required the universities to set aside 17%. Beginning in FY14, per ABOR, the set aside amount is to be calculated on 14% of the margin. Beginning in FY16, Regent s Set-aside is no longer being collected on Mandatory Fees. All Funds Operating Budget Appendix 1-1: All Funds Operating Budget FY2017 includes 2017 Operating Budget for All Funds, presented in total sources, total uses by program, and total uses by natural expense category. Appendix 1-2: All Funds Operating Budget FY2016 vs. FY2017 includes All Funds Operating Budget for FY2016, FY2017, and change from FY2016 to FY2017. Permanent Allocated Funding Base Report FY16-17 Permanent Allocated Funding Base report including State, Locally Allocated, and Exemptions information is listed in Appendix 2: Permanent Allocated Funding Base. Spending Authority FY17 Spending Authority includes State Expenditure Authority for FY2017 Original Budget, FY2016 Revised Budget, and the changes. See Appendix 3: Spending Authority for details. Gross Tuition & Fees Detail The table in Appendix 4: Gross Tuition and Fees Detail lists five year history (FY2012-FY2016) and one year estimate (FY2017) of Gross Tuition and Fee Revenues. Institutional Budget Document Page 7

8 Auxiliary Report The tables in Appendix 5: Auxiliary Report (1 of 3), Appendix 5: Auxiliary Report (2 of 3), Appendix 5: Auxiliary Report (3 of 3) list five year history (FY2012-FY2016) and one year estimate (FY2017) of Revenues, Expenditures & Net Transfers, and Ending Fund Balance for Auxiliary Enterprise. Capital Development Plan The table in Appendix 6: Capital Development Plan (1 of 3) includes board approval status and other detailed information about new and previously approved capital projects. The table in Appendix 6: Capital Development Plan (2 of 3) includes annual debt service funding sources for new and previously approved capital projects. The table in Appendix 6: Capital Development Plan (3 of 3) includes operation and maintenance funding sources for new and previously approved capital projects. Financial Status The table in Appendix 7: Financial Status includes FY2015-FY2016 actual financial status with FY17, FY21, and FY25 projections. Institutional Budget Document Page 8

9 Appendix 1-1: All Funds Operating Budget FY2017 University of Arizona FY All Funds Operating Budget (in millions) STATE/ COLLECTIONS UNRESTRICTED AUX. RESTRICTED 10) TOTAL Percent % 28.7% 36.8% 10.6% 23.9% 100.0% Admin. State Exp. Ret. Indirect Invest. Servc. Other TRIF Rstr. Scholarship Grant/Contract SOURCES Authority Tuition Cost Income Charge Dsgn. Auxiliary 301 Gifts Govt. Private Federal Other General Fund % Tuition & Student Fees % Other , % TOTAL SOURCES , % USES BY PROGRAM Instruction % Research % Public Service % Academic Support % Student Services % Institutional Support % Auxiliary % Financial Aid (Stud. Sppt) % Plant & Facilities Renovations % Debt Service % TOTAL USES BY PROGRAM , % USES BY EXPENSE Personal Services , % Employee Related Exp % Prof. & Outside Srvc % Travel In-State % Travel Out-of-State % Other Oprn. Exp % Library Acquisitions % Capital Equip, Land & Bldg % Utilities % Financial Aid (Schlshp & Fllwshp) % Plant & Facilities Renovations % Debt Service % Administrative Svc Chg % Indirect Cost Recovery % TOTAL USES BY EXPENSE , % Institutional Budget Document Page 9

10 Appendix 1-2: All Funds Operating Budget FY2016 vs. FY2017 UNIVERSITY OF ARIZONA Proposed All Funds Operating Budget FY2017 (In Millions) FY2016 FY2017 Change Budget Proposed from FY2016 Budget Budget Sources: General Fund $ $ $ Tuition & Student Fees Other 1, , Total Sources 2, , Uses by Program: Instruction $ $ $ Research (26.95) Public Service Academic Support Student Services Institutional Support (1.94) Auxiliary Financial Aid (Stud. Sppt) Plant & Facilities Renovations Debt Service Total Uses by Program 2, , Uses by Expense: Personal Services $ $ 1, $ Employee Related Exp Prof. & Outside Srvc (42.28) Travel In-State Travel Out-of-State Other Oprn. Exp Library Acquisitions Capital Equip, Land & Bldg Utilities (1.34) Financial Aid (Schlshp & Fllwshp) Plant & Facilities Renovations Debt Service Administrative Svc Chg Indirect Cost Recovery (8.00) Total Uses by Expense 2, , Institutional Budget Document Page 10

11 Appendix 2: Permanent Allocated Funding Report FY2017 Perm Base Report State ASC Retained Fees ICR Total Base Total Exempt Base Less Exempt MAIN CAMPUS 606,253,173 29,725, ,476,452 47,760, ,215, ,847, ,368,121 PRESIDENT'S OFFICE 11,817,095 6,577,893-3,031,328 21,426,316-21,426,316 President's Units 6,928,399 6,040,293 2,864,548 15,833,240-15,833,240 SVP University Relations 4,888, , ,780 5,593,076-5,593,076 SVP ACADEMIC AFFAIRS & PROVOST 435,004,666 3,150,383 50,931,531 18,709, ,796,381 21,200, ,596,068 Academic Affairs & Provost 12,991, , ,024 13,582,521 5,145,905 8,436,616 Ag-Extension 16,158,142 16,158,142-16,158,142 Agriculture & Life Sciences 47,580,591 2,373, ,945 50,413,536 8,500,000 41,913,536 Architecture & Landscape Architecture 6,911, ,200 7,758,629-7,758,629 College of Letters Arts & Sciences 151, , ,439 Education 11,661,443 11,661,443-11,661,443 Eller College of Management 35,216,623 12,656,200 47,872,823-47,872,823 Engineering 23,448,569 3,450, ,400 27,501,969-27,501,969 Fine Arts 16,671, ,410 17,208,791-17,208,791 Human Resources 3,478,594 90,190 83, ,817 4,170,726 43,300 4,127,426 Humanities 25,542,917 13,482 25,556,399-25,556,399 Institutional Unassigned 4,922,496 4,922,496 4,922,496 - Law 12,784,282 5,459,368 18,243, ,801 17,603,849 Library 20,962, , ,593 22,037, ,260 21,194,465 Optical Sciences 3,837,440-2,061,723 5,899,163-5,899,163 Science 84,059, , ,380 85,158,154-85,158,154 Social & Behav Sciences 56,366,399 2,291,847 37,200 58,695,446-58,695,446 SVP Research & Graduate Studies 19,390,747 1,251,266 11,955,362 32,597, ,035 31,820,340 SVP Student Affairs & Enrollment Management 3,053, ,787 18,098, ,503 21,932,060-21,932,060 The Honors College 1,232,413 21,360 2,100,000 3,353,773-3,353,773 UA South 7,694,495 7,694, ,516 7,365,979 Vice Provost for Academic Affairs 2,503, ,516 2,657,528-2,657,528 VP Outreach/Global Initiatives 2,540, ,928 50,329 94,926 2,908,006-2,908,006 VP University Information Technology, CIO 15,844,991 2,203,689 1,611,412 19,660,092-19,660,092 SVP BUSINESS AFFAIRS 159,431,412 19,996, ,544,921 26,019, ,992, ,646,841 56,345,737 Business Affairs 73,180,336 8,578,326 3,430,944 14,413,681 99,603,287 43,257,550 56,345,737 Institutional Unassigned 86,251,076 11,418, ,113,977 11,605, ,389, ,389,291 - AHS 113,494, ,000 8,510,400 30, ,810,327 3,152, ,657,589 Clinical Teaching 8,641,960 8,641,960-8,641,960 College of Medicine - Phoenix Campus 30,205,745 30,205,745 3,152,738 27,053,007 Liver Research Institute 416, , ,403 Medicine 45,645,853 37,400 30,000 45,713,253-45,713,253 Nursing 6,818,080 2,300,000 9,118,080-9,118,080 Pharmacy 7,596,018 5,610,000 13,206,018-13,206,018 Public Health 8,495, ,000 9,058,957-9,058,957 Rural Rotations--College of Medicine 262, , ,513 Rural Rotations--College of Nursing Rural Rotations--College of Pharmacy SVP Health Affairs 3,743, ,000 4,518,396-4,518,396 Telemedicine 1,668,960 1,668,960-1,668,960 Grand Total 719,748,100 30,500, ,986,852 47,790,650 1,106,025, ,999, ,025,710 Note: This report is built off Original Budget Institutional Budget Document Page 11

12 Appendix 3: Spending Authority UNIVERSITY OF ARIZONA FY 2017 STATE EXPENDITURE AUTHORITY UNIVERSITY TOTAL ($ IN THOUSANDS) ORIGINAL BUDGET INCREASE/ DECREASE BUDGET INCREASE/ DECREASE BUDGET FY 2016 $ FY 2016 $ % FY 2017 STATE GENERAL FUND APPROPRIATION 251,684.5 (834.00) 250, , % 267,124.4 UNIVERSITY GENERATED REVENUES Tuition Revenue Resident Undergraduate Tuition 208, , , , % 228,387.7 Resident Graduate Tuition 58, , ,532.0 (13,300.9) -20.9% 50,231.1 Non Resident Undergraduate Tuition 324,006.0 (16,777.0) 307, , % 344,632.8 Non Resident Graduate Tuition 56, , ,417.0 (1,091.2) -1.8% 59,325.8 Online 0.0 7, , , % 8,900.0 Subtotal Tuition 647, , , , % 691,477.4 Differential Tuition/Special Program Fees Revenue College of Architecture & Landscape Architecture % College of Agriculture and Life Sciences , % 2,373.0 College of Engineering 3, , % 3,450.0 College of Fine Arts (16.8) -3.2% College of Medicine-Tucson % 37.4 College of Medicine-Tucson-MD Program , % 8,581.5 College of Medicine-Phoenix-MD Program , % 6,218.8 College of Nursing 2, ,596.1 (296.1) -11.4% 2,300.0 College of Pharmacy 5, , % 5,610.0 College of Public Health % College of Science % College of Social and Behavorial Science 1, , % 2,291.8 Eller College of Management 11, , % 12,656.2 Honor's College 2, , % 2,100.0 James E Rogers College of Law 6, ,656.8 (1,197.4) -18.0% 5,459.4 Subtotal Differential Tuition/Special Program Fees Revenue 36, , , % 53,994.9 Other Revenues Summer Session Reimbursement 2, , % 2,900.0 State Land Grant Endowments % Federal Transfer Payment - Agriculture 3, , % 3,719.0 Distribution to AG % 0.0 Distribution to UA South % 0.0 Distribution to AHS % 0.0 Miscellaneous % Subtotal Other Revenues 7, , % 7,348.4 TOTAL UNIVERSITY REVENUES 691, , , , % 752,820.7 LESS: University Revenues Retained for Local Uses Operating Budgets 35, , , % 42,914.7 Program Fees/Differential Tuition 29, , , % 32,452.8 Regents Financial Aid Setaside 46, , , % 47,997.2 Other Financial Aid 142, , , % 143,894.6 Plant Funds 4, , % 4,776.5 Debt Service / COPs / Lease Purchase 28, , % 28,152.4 Total Retained for Local Uses 285, , , , % 300,188.2 UNIVERSITY REVENUES REMITTED TO STATE (STATE COLLECTIONS) 405, , , , % 452,632.5 PLUS: STATE GENERAL FUND APPROPRIATION 251,684.5 (834.0) 250, , % 267,124.4 TOTAL STATE EXPENDITURE AUTHORITY 656, , , , % 719,756.9 Institutional Budget Document Page 12

13 Appendix 4: Gross Tuition and Fees Detail University of Arizona Gross Tuition and Fee Revenues Detail ($000) Institutional Budget Document Page 13

14 Appendix 5: Auxiliary Report (1 of 3) UNIVERSITY - AUXILIARY ENTERPRISE AUXILIARY ENTERPRISES REVENUES FY12 FY13 FY14 FY15 FY16 FY17 EST Bookstore 34,876,900 36,078,500 35,346,900 33,420,300 31,589,000 32,876,400 Campus Recreation 1,842,800 1,793,800 1,958,900 2,107,000 2,161,900 2,134,700 Facilities Management 23,369,000 25,023,900 22,288,900 23,971,600 25,444,500 19,721,800 Intercollegiate Athletics 68,707,000 58,893,500 64,185,100 76,347,200 71,541,600 73,102,800 Parking 19,660,800 20,200,100 20,629,200 21,621,500 18,150,500 17,960,300 Residence Life 42,535,300 47,105,100 47,308,800 49,712,800 50,905,800 51,018,400 Student Health 5,190,800 5,817,400 5,897,300 6,353,100 6,586,500 6,870,300 Student Union 29,298,000 32,429,100 33,822,700 34,603,200 36,350,100 36,609,300 Other Auxiliaries 21,170,000 22,007,400 20,482,600 21,068,300 22,748,800 26,188,500 TOTAL AUXILIARY 246,650, ,348, ,920, ,205, ,478, ,482,500 *Includes transfers which are eliminated at fiscal year end. Appendix 5: Auxiliary Report (2 of 3) Institutional Budget Document Page 14

15 UNIVERSITY - AUXILIARY ENTERPRISE AUXILIARY ENTERPRISES EXPENDITURES AND NET TRANSFERS OUT(IN) FY12 FY13 FY14 FY15 FY16 FY17 EST Bookstore 33,767,900 35,336,500 34,782,400 33,221,900 31,109,800 33,538,900 Campus Recreation 1,896,300 2,165,700 1,665,400 1,764,100 1,789,200 2,649,100 Facilities Management 22,760,200 23,494,300 20,395,900 27,511,000 21,679,700 18,347,500 Intercollegiate Athletics 68,170,000 58,635,800 60,329,400 72,593,200 74,066,200 72,769,900 Parking 19,595,900 19,995,800 20,614,300 21,477,000 18,347,100 17,946,700 Residence Life 42,605,900 46,848,600 47,848,000 49,452,300 50,915,000 50,708,200 Student Health 5,668,000 6,094,900 6,011,300 5,814,000 6,546,500 7,404,900 Student Union 29,762,100 32,727,600 33,430,700 34,660,100 35,832,500 36,551,400 Other Auxiliaries 20,344,600 21,855,200 22,267,700 21,376,600 22,639,100 25,555,800 TOTAL AUXILIARY 244,570, ,154, ,345, ,870, ,925, ,472,400 *Includes transfers which are eliminated at fiscal year end. Appendix 5: Auxiliary Report (3 of 3) Institutional Budget Document Page 15

16 UNIVERSITY - AUXILIARY ENTERPRISE AUXILIARY ENTERPRISES ENDING FUND BALANCE FY12 FY13 FY14 FY15 FY16 FY17 EST Bookstore 9,507,700 10,249,700 10,814,200 11,012,500 11,491,700 10,829,200 Campus Recreation 659, , , ,200 1,296, ,500 Facilities Management 3,777,000 5,306,700 7,199,700 3,660,300 7,425,000 8,799,300 Intercollegiate Athletics 1,083,500 1,341,300 5,197,100 8,951,100 6,426,500 6,759,400 Parking 116, , , , , ,400 Residence Life 791,000 1,047, , , ,600 1,069,800 Student Health 1,413,100 1,135,700 1,021,800 1,560,900 1,601,000 1,066,400 Student Union 565, , , ,300 1,119,900 1,177,800 Other Auxiliaries 4,078,600 4,230,600 2,445,500 2,137,500 2,247,300 2,880,000 TOTAL AUXILIARY 21,992,800 24,187,500 28,763,300 30,098,100 32,651,700 33,661,800 *Includes transfers which are eliminated at fiscal year end. Fund balances in auxiliary enterprises enable the university to develop sufficient resources required for emergency maintenance, replacement equipment, library acquisitions, IT upgrades and debt service payments. Institutional Budget Document Page 16

17 Appendix 6: Capital Development Plan (1 of 3) THE UNIVERSITY OF ARIZONA FY 2017 CAPITAL DEVELOPMENT PLAN New Capital Project No New Capital Projects Board Approval Status Gross Square Footage Project Cost Amount Financed Funding Method Annual Debt Service Debt Ratio Previously Approved Projects Health Sciences Innovation Building (formerly SIPHER) CDP 11/15 212,000 $165,000,000 $165,000,000 SRB $9,634, % North Campus Infrastructure Phase 2 (On Hold) Engineering Innovation Building (On Hold) CDP 6/12 N/A $16,000,000 SRB CDP 6/12 107,000 $63,000,000 Public Private Partnership South Stadium Parking Structure CDP 12/12 282,000 $18,500,000 $8,500,000 AUX/SRB $521, % Interdisciplinary Chemical Sciences Renovation & Expansion (On Hold) CDP 12/12 116,000 $79,200,000 SRB Previously Approved Projects Total $341,700,000 $173,500,000 $10,155,000 Total $341,700,000 $173,500,000 $10,155,000 Institutional Budget Document Page 17

18 Appendix 6: Capital Development Plan (2 of 3) THE UNIVERSITY OF ARIZONA FY 2017 CAPITAL DEVELOPMENT PLAN Project New Capital Project No New Capital Projects CAPITAL DEVELOPMENT PLAN - ANNUAL DEBT SERVICE BY FUNDING SOURCE Amount Financed TUI AUX ICR OLF SLP FGT DFG TOTAL ANNUAL DEBT SERVICE Previously Approved Projects Health Sciences Innovation Building (formerly SIPHER) North Campus Infrastructure Phase 2 (On Hold) Engineering Innovation Building (On Hold) $165,000,000 $9,634,000 $9,634,000 South Stadium Parking Structure $8,500,000 $521,000 $521,000 Interdisciplinary Chemical Sciences Renovation & Expansion (On Hold) Previously Approved Projects Total $173,500,000 $521,000 $9,634,000 $10,155,000 Total $173,500,000 $521,000 $9,634,000 $10,155,000 Debt Service Funding Source Codes: (TUI) Tuition (ICR) Indirect Cost Recovery (FGT) Federal Grant (AUX) Auxiliary (OLF) Other Local Funds (DFG) Debt Financed by Gifts (SLP) State Lottery Allocation Proceeds Institutional Budget Document Page 18

19 Appendix 6: Capital Development Plan (3 of 3) THE UNIVERSITY OF ARIZONA FY 2017 CAPITAL DEVELOPMENT PLAN Project New Capital Project No New Capital Projects CAPITAL DEVELOPMENT PLAN - OPERATION AND MAINTENANCE BY FUNDING SOURCE TOTAL ANNUAL O&M TUI AUX ICR OLF GFA FGT DFG OTH Previously Approved Projects Health Sciences Innovation Building (formerly SIPHER) North Campus Infrastructure Phase 2 (On Hold) $1,778,500 $1,778,500 N/A Engineering Innovation Building (On Hold) $1,124,000 South Stadium Parking Structure $738,900 $738,900 Interdisciplinary Chemical Sciences Renovation & Expansion (On Hold) $879,200 Previously Approved Projects Total $4,520,600 $738,900 $1,778,500 Total $4,520,600 $738,900 $1,778,500 Operation and Maintenance Funding Source Codes: (TUI) Tuition (ICR) Indirect Cost Recovery (GFA) General Fund Appropriation (AUX) Auxiliary (OLF) Other Local Funds (FGT) Federal Grant (OTH) Other (DFG) Debt Financed by Gifts Institutional Budget Document Page 19

20 Appendix 7: Financial Status UNIVERSITY OF ARIZONA UNIVERSITY OPERATING BUDGET FY ACTUAL WITH PROJECTIONS ($ millions) ACTUAL PROJECTED FY 2015 ACTUAL FY 2016 ACTUAL (UNAUDITED) FY 2017 OPERATING BUDGET FY 2021 OPERATING BUDGET FY 2025 OPERATING BUDGET Revenues State General Fund Appropriation $ $ $ $ $ State Appropriation - Research Infrastructure Tuition and Fees , ,312.7 less Scholarship Allowance (194.6) (196.5) (210.4) (288.9) (358.3) Net Tuition and Fees Grants & Contracts $ $ $ $ $ Financial Aid Grants (Primarily Pell Grants) Private Gifts Technology & Research Initiative Fund (TRIF) Auxiliary Revenues, Net Other Revenues Total Revenues $ 2,042.1 $ 2,040.9 $ 2,072.1 $ 2,434.4 $ 2,838.0 Expenses Salaries and Wages $ $ $ $ 1,097.7 $ 1,311.8 Benefits All Other Operating Scholarships & Fellowships, Net of Scholarship Depreciation Interest on Indebtedness Total Expenses $ 1,847.9 $ 1,906.0 $ 2,004.9 $ 2,348.5 $ 2,750.9 Net Increase (Decrease) $ $ $ 67.2 $ 85.9 $ 87.1 Institutional Budget Document Page 20