Texas A&M University San Antonio President: Maria Hernandez Ferrier. Texas A&M University Kingsville President: Steven Tallant Established: 1925

Transcription

1 EXECUTIVE BUDGET SUMMARY Fiscal Year Ending August 31, 2013

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 Established: 1887 Texas AgriLife Extension Service Director: Edward G. Smith Established: 1915 Texas Forest Service Director: Thomas G. Boggus Established: 1915 Texas Veterinary Medical Diagnostic Laboratory Director: Tammy Beckham Established: 1967 Texas Engineering Experiment Station Director: M. Katherine Banks Established: 1914 Texas Engineering Extension Service Director: Gary F. Sera Established: 1948 Texas Transportation Institute Director: Dennis L. Christiansen Established: 1950 Texas A&M University System Texas A&M University System Office of Sponsored Research Services Director: Mark Smock Established: 2012 Texas A&M University System Offices Chancellor: John Sharp 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. The A&M System remains committed to focusing on advancing its core mission of teaching and research. In June of this year, one of three Centers for Innovation in Advanced Development and Manufacturing (CIADM) was awarded to the A&M System. The $285.6 million public private partnership with the U.S. Department of Health and Human Services will enhance the nation s ability to counter biological and pandemic threats, both known and unknown, with vaccines manufactured in the United States. Also in June, the Texas A&M System and Texas A&M awarded a contract to Compass Group USA to manage and operate dining services, building maintenance, landscaping services and custodial services in Brazos County. Over the course of the next 10 years, this will produce $260 million in revenue and cost savings for the A&M System. The appropriations for the 2012/2013 biennium take into account a previous 5% state mandated biennial appropriation reduction of $84.2 million, an FY % state mandated reduction of $19.9 million, and an additional 2012/2013 appropriation reduction of $128.8 million. These reductions have totaled approximately $232.9 million (12.8%) for all of 2012/2013. However, given the A&M System s commitment to cost cutting efficiencies and keeping the cost of attending our universities affordable, with the exception of Texas A&M University Texarkana, tuition and fee increases at the regional universities were limited to 3.95% or $150 (whichever was greater). At Texas A&M University, tuition and fees increases were limited to less than 1%. Please see Supplemental Information Tab #2 for additional tuition and fee information. Revenues FY 2013 Total Revenues are budgeted to decrease by $41.3 million (1%), when compared to FY 2012 projected actual revenues. The FY 2013 budgeted decrease is primarily due to decreases in State Appropriations and Sales and Services income. Overall, the FY 2013 budget shows a $133 million decrease in State Appropriations. However, this is primarily the result of a one time, $121 million supplemental appropriation received in FY 2012 by the Texas Forest Service related to reimbursement of wildfires expenses.

5 TEXAS A&M UNIVERSITY SYSTEM BUDGET NARRATIVE CONTINUED Overall funding from the Higher Education Fund (HEF) will remain level with FY 2012 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 $220 million, or $41.3 million (23%) more than FY 2012 projected actuals. Available University Fund (AUF) increased revenue projections are based on an increase in the market value of the Permanent University Fund (PUF) and a one time increase in the PUF payout based on 5%, plus a one time payout of $25 million. The System Offices AUF excellence allocation will be $12.6 million per year. Also, TAMU and PVAMU will receive $ million and $ million per year, respectively. In addition, $33 million has been allocated for the Chancellor s Research Initiative (CRI). This initiative will provide one time funds to Texas A&M University and/or Prairie View A&M University for the recruitment and hiring of faculty members who will have a transformative impact upon the academic and research missions of their respective University. In addition to projected increases in enrollment, several new and increased fees have resulted in an overall increase to Tuition and Fees of $26.8 million (3%) over FY 2012 projections. Please see Supplemental Information Tab #2 for designated tuition rates and total tuition and fees by member. Investment Income has been budgeted conservatively at $59.5 million for FY This is $475,000 more than FY 2012 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. Contracts and Grants are projected to increase $79.7 million (13%) over FY2012 and is primarily due to the $285.6 million CIADM award noted in the introduction. Of this amount, $72.5 million has been budgeted for FY Gifts were budgeted conservatively and therefore reflect a 2% decrease when compared to FY 2012 projections.

6 TEXAS A&M UNIVERSITY SYSTEM Expenditures BUDGET NARRATIVE CONTINUED FY 2013 Total Expenditures are budgeted at $3.5 billion. This is an increase of $84.6 million (2%) when compared to FY 2012 projected actuals. Total FY 2013 Personnel Costs (faculty and staff salaries, wages, and benefits) of $1.89 billion are being budgeted to increase 1% as compared to FY 2012 projected actuals. Of the total personnel costs, total faculty and staff salaries are budgeted at $1.385 billion. System wide total personnel costs account for 58.6% of total expenditures (excluding debt service expenditures). Please see Supplemental Information Tab #1 for individual salary plans by member. Utilities are budgeted at $121.7 million, which is an increase of $2.2 million (2%) over FY 2012 projected actuals. The A&M System continues to make every effort to improve ongoing conservation efforts and better management of purchased utilities. Scholarships are projected to increase by $22.6 million (5%) over FY 2012 projections due, in part, to increases in the state mandated financial aid set asides associated with designated tuition and an increase in Pell Grant funding. Capitalized equipment expenditures are budgeted to decrease by $6.1 million (8%), while Operations and Maintenance (O&M) costs are budgeted to increase by $50.9 million (6%) when compared to FY 2012 projected actuals. The O&M increase is primarily a result of the shifting of expenses related to the outsourcing initiative. For example, expenses previously recorded as salaries, wages, benefits, and equipment will now be recorded as professional services. Debt Service expenditures are budgeted to increase by $5.6 million (2%). Of the total debt service amount of $257.3 million, approximately $180.6 million (70.0%) and $76.7 million (30.0%) will be financed through the A&M System RFS and PUF debt financing programs, respectively.

7 THE TEXAS A&M UNIVERSITY SYSTEM FY 2013 Budget Graphs (In Thousands) Available University Fund Higher Education Fund Federal Appropriations Tuition and Fees (Gross) State Appropriations FY 2013 BUDGET REVENUES $3,531,088 Total See Executive Budget Summary for amounts and percentages Contracts and Grants Gifts Sales and Services Investment Income Other Income Student Financial Assistance Operations and Maintenance (Net) Equipment (Capitalized) Scholarships FY 2013 BUDGET EXPENDITURES $3,480,920 Total Debt Service Utilities See Executive Budget Summary for amounts and percentages Personnel Costs Public Service $172,138 5% Scholarships & Fellowships $136,650 4% Research $639,505 18% Operation & Maint of Plant $474,680 14% FY 2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Student Service $126,800 4% Instruction $763,242 22% Academic Support $410,363 12% Auxiliary $344,069 10% Institutional Support $401,359 11% Hospitals and Clinics $12,113 0% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

8 THE TEXAS A&M UNIVERSITY SYSTEM FY 2013 EXECUTIVE BUDGET SUMMARY (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 1,905,867 2,118,329 2,062,295 2,272,858 2,420, ,213 6% Restatement: (prior year correction) (2,769) (2,006) REVENUES State Appropriations 989, ,646 1,065,197 1,062, % 929, % (132,749) 12% Federal Appropriations 37,308 41,622 36,945 42, % 38, % (4,604) 11% Higher Education Fund 29,096 27,137 27,137 27, % 27, % 0 0% Available University Fund 176, , , ,689 91% 220, % 41,344 23% Tuition and Fees (Gross) 834, , , , % 1,013, % 26,763 3% Contracts and Grants 907, , , ,770 77% 708, % 79,739 13% Student Financial Assistance 181,709 n/a 187, % 5,801 3% Gifts 110, ,813 79, , % 104, % (2,566) 2% Sales and Services 418, , , , % 446, % (48,434) 10% Investment Income 98, ,287 56,940 59, % 59, % 475 1% Other Income 59,489 64,768 54,474 54, % 52, % (1,752) 3% Discounts (225,076) (263,936) (224,159) (252,485) 113% (257,814) 7.3% (5,329) 2% TOTAL REVENUES 3,435,896 3,649,820 3,492,844 3,572, % 3,531, % (41,311) 1% EXPENDITURES Salaries Faculty 553, , , ,195 99% 566, % 13,258 2% Salaries Non Faculty 806, , , , % 818, % 6,583 1% Wages 141, , , , % 146, % (10,911) 7% Benefits 359, , , ,399 99% 356, % 5,325 2% Personnel Costs 1,861,230 1,864,491 1,862,035 1,873, % 1,888, % 14,255 1% Utilities 115, , , , % 121, % 2,230 2% Scholarships 416, , , , % 467, % 22,608 5% Discounts (224,657) (263,073) (223,154) (251,385) 113% (256,800) 7.4% (5,415) 2% Equipment (Capitalized) 86,028 71,541 74,883 77, % 71, % (6,106) 8% Operations and Maintenance (Net) 774, , , , % 931, % 50,906 6% Debt Service 178, , , , % 257, % 5,572 2% TOTAL EXPENDITURES 3,207,824 3,415,613 3,326,854 3,396, % 3,480, % 84,050 2% TRANSFERS RFS Debt Service (To System Office) n/a 0 0 n/a Other (47,631) (77,671) 5,323 (28,320) 532% 8,445 36, % NET TRANSFERS (47,631) (77,671) 5,323 (28,320) 532% 8,445 36, % NET INCREASE (DECREASE) 180, , , ,209 86% 58,613 (88,596) 60% ENDING CURRENT FUND BALANCE 2,118,329 2,272,858 2,350,898 2,420, % 2,478,684 58,617 2% * Excludes estimated expense associated with Other Post Employment Benefits ("OPEB"). TAMUS amount for FY 2010 is $122.5 million. Executive Budget Summary Printed: 7/18/2012

9 THE TEXAS A&M UNIVERSITY SYSTEM ACADEMICS and HEALTH SCIENCE CENTER FY 2013 Budget Graphs (In Thousands) Tuition and Fees (Gross) FY 2013 BUDGET REVENUES $2,665,599 Total Contracts and Grants Gifts Operations and Maintenance (Net) FY 2013 BUDGET EXPENDITURES $2,480,080 Total Available University Fund Sales and Services Equipment (Capitalized) Higher Education Fund Investment Income Personnel Costs State Appropriations Student Financial Assistance See Executive Budget Summary for amounts and percentages Other Income Federal Appropriations Scholarships Utilities See Executive Budget Summary for amounts and percentages Research $210,668 9% Public Service $48,482 2% FY2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Scholarships & Fellowships $135,879 5% Student Service $126,800 5% Academic Support $410,363 17% Hospitals and Clinics $12,113 1% Auxiliary $344,069 14% Operation & Maint of Plant $204,640 8% Instruction $653,107 26% Institutional Support $333,958 13% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

10 THE TEXAS A&M UNIVERSITY SYSTEM ACADEMICS and HEALTH SCIENCE CENTER FY 2013 EXECUTIVE BUDGET SUMMARY (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 945,058 1,087, ,599 1,348,564 1,435,965 87,401 6% Restatement: (prior year correction) (729) (2,006) REVENUES State Appropriations 783, , , , % 740, % (10,542) 1% Federal Appropriations 7,761 8,502 9,558 9, % 10, % 706 7% Higher Education Fund 29,096 27,137 27,137 27, % 27, % 0 0% Available University Fund 100, , , , % 106, % (3,285) 3% Tuition and Fees (Gross) 815, , , , % 979, % 26,584 3% Contracts and Grants 559, , , ,647 63% 313, % 4,856 2% Student Financial Assistance 181,709 n/a 187,510 n/a 5,801 3% Gifts 104, ,739 75, , % 100, % (1,822) 2% Sales and Services 367, , , , % 391, % (47,156) 11% Investment Income 74, ,160 39,261 42, % 43, % 391 1% Other Income 25,704 26,398 22,798 22,558 99% 21, % (1,050) 5% Discounts (224,714) (263,095) (223,154) (251,385) 113% (256,800) 9.6% (5,415) 2% TOTAL REVENUES 2,643,517 2,808,591 2,593,106 2,696, % 2,665, % (30,931) 1% Budget Percent Change EXPENDITURES Salaries Faculty 496, , , ,797 98% 512, % 13,604 3% Salaries Non Faculty 562, , , , % 573, % ,117 0% Wages 114, , , , % 122, % (7,669) 6% Benefits 272, , , ,137 99% 274, % 2,892 1% Personnel Costs 1,446,169 1,450,019 1,454,285 1,472, % 1,482, % 9,943 1% Utilities 104, , , , % 110, % 2,044 2% Scholarships 402, , , , % 454, % 21,996 5% Discounts (224,657) (263,073) (223,154) (251,385) 113% (256,800) 10.4% (5,415) 2% Equipment (Capitalized) 61,106 46,983 53,855 55, % 49, % (5,890) 11% Operations and Maintenance (Net) 535, , , , % 639, % 41,684 7% Debt Service n/a 0 n/a (228) 100% TOTAL EXPENDITURES 2,325,825 2,308,674 2,390,168 2,415, % 2,480, % 64,134 3% Budget Percent Change TRANSFERS RFS Debt Service (To System Office) (146,497) (170,174) (163,194) (162,873) 100% (170,058) (7,185) 4% Other (28,165) (66,533) 6,763 (30,311) 448% 5,465 35, % NET TRANSFERS (174,662) (236,707) (156,430) (193,184) 123% (164,593) 28,591 15% NET INCREASE (DECREASE) 143, ,211 46,507 87, % 20,926 (66,474) 76% ENDING CURRENT FUND BALANCE 1,087,359 1,348,564 1,227,900 1,435, % 1,456,890 20,927 1% *Exclude estimated expense associated with Other Post Employment Benefits ("OPEB"). Academic members and TAMHSC amount for FY 2010 is $94.1 million. Executive Budget Summary Printed: 7/16/2012

11 The Texas A&M University System Academics and Health Science Center Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 217,297 $ 200,614 $ (16,683) Designated 848, ,154 (6,142) Auxiliary 179, ,337 17,677 Restricted 190, ,786 26,075 Total Net Change in Fund Balance $ 1,435,965 $ 1,456,890 $ 20,926 For detailed explanations, please see member schedules. K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

12 THE TEXAS A&M UNIVERSITY SYSTEM AGENCIES FY 2013 Budget Graphs (In Thousands) Tuition and Fees (Gross) FY 2013 BUDGET REVENUES $665,523 Total Contracts and Grants Operations and Maintenance (Net) FY 2013 BUDGET EXPENDITURES $645,716 Total Federal Appropriations Gifts Sales and Services Equipment (Capitalized) Personnel Costs State Appropriations Investment Income Other Income See Executive Budget Summary for amounts and percentages Scholarships Utilities See Executive Budget Summary for amounts and percentages FY2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Institutional Support $44,050 7% Instruction $110,135 17% Research $355,126 55% Operation & Maint of Plant $12,749 2% Public Service $123,656 19% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

13 THE TEXAS A&M UNIVERSITY SYSTEM AGENCIES FY 2013 EXECUTIVE BUDGET SUMMARY (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of FY12 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 246, , , , ,442 88,741 82% Restatement: (prior year correction) (2,039) 0 REVENUES State Appropriations 201, , , , % 186, % (122,207) 40% Federal Appropriations 29,546 33,120 27,387 32, % 27, % (5,309) 16% Tuition and Fees (Gross) 18,917 32,388 33,184 34, % 34, % 179 1% Contracts and Grants 338, , , ,523 97% 318, % 2,603 1% Gifts 5,949 4,607 3,923 4, % 4, % (643) 14% Sales and Services 51,266 66,287 55,185 56, % 55, % (1,250) 2% Investment Income 12,916 18,821 8,997 9, % 9, % 366 4% Other Income 32,337 31,320 31,676 31,512 99% 31, % (174) 1% Discounts (361) (841) (1,005) (1,100) 109% (1,014) 0.2% 86 8% TOTAL REVENUES 690, , , , % 665, % (126,349) 16% EXPENDITURES Salaries Faculty 56,159 55,697 51,813 52, % 54, % 1,108 2% Salaries Non Faculty 232, , , ,976 96% 233, % 4,093 2% Wages 26,348 30,753 22,404 25, % 23, % (2,872) 11% Benefits 83,360 81,178 79,319 77,062 97% 79, % 2,054 3% Personnel Costs 398, , , ,953 98% 389, % 4,384 1% Utilities 10,352 10,668 10,420 10, % 10, % 104 1% Scholarships 14,033 14,009 12,574 11,755 93% 12, % 612 5% Equipment (Capitalized) 24,182 20,523 20,936 20,381 97% 21, % 1,397 7% Operations and Maintenance (Net) 221, , , , % 211, % (61,297) 22% Debt Service n/a 0 n/a 0 n/a TOTAL EXPENDITURES 668, , , , % 645, % (54,800) 8% TRANSFERS RFS Debt Service (To System Office) (4,552) (3,675) (4,777) (4,539) 95% (4,866) (327) 7% Other (1,988) 3,574 1,800 1, % 2, % NET TRANSFERS (6,540) (100) (2,977) (2,618) 88% (2,716) (98) 4% NET INCREASE (DECREASE) 15,771 (152,814) 135,448 88,738 66% 17,091 (71,647) 81% ENDING CURRENT FUND BALANCE 260, , , ,439 62% 213,533 17,094 9% *Exclude estimated expense associated with Other Post Employment Benefits ("OPEB"). Agency Members amount for FY 2010 is $26.7 million. Executive Budget Summary Printed: 7/17/2012

14 The Texas A&M University System Agencies Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ (24,055) $ (6,837) $ 17,218 Designated 186, ,614 (5,076) Auxiliary Restricted 33,807 38,756 4,949 Total Net Change in Fund Balance $ 196,442 $ 213,533 $ 17,091 For detailed explanations, please see member schedules. K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

15 PRAIRIE VIEW A&M UNIVERSITY Revenues BUDGET NARRATIVE Prairie View A&M University is budgeting FY 2013 revenues to decrease $1.5 million (1%) less than FY 2012 projected actuals. This overall decrease is primarily due to the following two factors. There was $3.2 million in one time additional AUF funding that was provided by TAMUS during FY 2012, and PVAMU is projecting a $1.6 million reduction in Student Financial Aid assistance. The $3.2 million in AUF was an additional one time appropriation that was authorized only in FY 2012 and the decrease in Student Financial Aid relates to reduced funding levels in FY 2013 for the Texas Grant Program. The aforementioned decreases are partially offset by a projected $3.4 million increase in additional Tuition and Fees (Gross). This is due to an increase in the designated tuition rate of $10.54/hour, which is expected to generate an additional $2.2 million. Fees are budgeted to increase $1.1 million, primarily from a new executive MBA program fee. Expenditures FY 2013 Total Expenditures are budgeted to increase $11.9 million (8%) over FY 2012 projected actuals. This increase in the FY 2013 expenditure budget is primarily attributable to the following items: In the grants and contracts area, both the Evans Allen program and Cooperative Extension Program were budgeted at current operating levels and thus include budgeted vacant positions. PVAMU is proposing a FY 2013 salary plan that includes a 2.5% merit pool of $1.8 million. Additional funding has been allocated towards scholarships. Transfers RFS Debt Service transfers are budgeted at $10.7 million. The transfer includes debt service funds for the Student Center, Student Recreation Center, and other buildings such as the Architecture Building, Juvenile Justice, Electrical Engineering, parking garage at the College of Nursing, and various rehabilitation projects.

16 THE TEXAS A&M UNIVERSITY SYSTEM Prairie View A&M University FY 2013 Budget Graphs (In Thousands) Tuition and Fees (Gross) Available University Fund FY 2013 BUDGET REVENUES $181,614 Total Contracts and Grants Gifts Sales and Services Investment Income Operations and Maintenance (Net) Equipment (Capitalized) FY 2013 BUDGET EXPENDITURES $169,606 Total Personnel Costs State Student Appropriations Financial Assistance See Executive Budget Summary for amounts and percentages Other Income Federal Appropriations Scholarships Utilities See Executive Budget Summary for amounts and percentages FY2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Research $12,938 8% Scholarships & Fellowships $17,351 10% Student Service $9,966 6% Academic Support $20,532 12% Auxiliary $27,344 16% Public Service $8,173 5% Operation & Maint of Plant $15,061 9% Instruction $36,859 22% Institutional Support $21,383 12% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

17 THE TEXAS A&M UNIVERSITY SYSTEM Prairie View A&M University FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 107, , , , ,269 7,663 6% Restatement: (prior year correction) (1,001) 0 REVENUES State Appropriations 59,628 60,048 54,842 54, % 54,906 30% 6 0% Federal Appropriations 7,746 8,483 9,558 9, % 10,675 6% 725 7% Available University Fund 12,150 12,150 15,140 18, % 14,971 8% (3,454) 19% Tuition and Fees (Gross) 57,763 60,220 63,088 63, % 67,372 37% 3,397 5% Contracts and Grants 43,234 45,641 40,322 8,800 22% 8,578 5% (222) 3% Student Financial Assistance 30,700 n/a 29,059 16% (1,641) 5% Gifts 1,131 1, % 869 0% (6) 1% Sales and Services 15,652 16,125 15,118 15, % 15,551 9% (249) 2% Investment Income 4,450 7,425 4,172 4, % 4,400 2% 0 0% Other Income 3,265 2,992 2,339 2,300 98% 2,290 1% (10) 0% Discounts (24,006) (27,256) (21,368) (27,000) 126% (27,059) 15% (59) 0% TOTAL REVENUES 181, , , , % 181, % (1,511) 1% Percent Change 9.6% 3.3% 1.7% 2.0% 1.1% EXPENDITURES Salaries Faculty 27,098 27,407 26,939 26, % 28,997 17% 2,097 8% Salaries Non Faculty 36,821 37,586 40,618 39,000 96% 41,831 25% 2,831 7% Wages 4,603 4,156 4,035 4, % 4,170 2% 70 2% Benefits 17,250 15,626 19,041 18,400 97% 20,343 12% 1,943 11% Personnel Costs 85,771 84,775 90,633 88,400 98% 95,341 56% 6,941 8% Utilities 5,380 5,845 5,141 5,100 99% 5,091 3% (9) 0% Scholarships 41,893 43,138 44,384 42,900 97% 46,596 27% 3,696 9% Discounts (24,006) (27,256) (21,368) (27,000) 126% (27,059) 16% (59) 0% Equipment (Capitalized) 3,563 3,033 3,109 3,000 96% 2,974 2% (26) 1% Operations and Maintenance (Net) 42,771 46,014 49,009 45,200 92% 46,663 28% 1,463 3% Debt Service n/a 0 0% (90) 100% TOTAL EXPENDITURES 155, , , ,690 92% 169, % 11,916 8% Percent Change 2.7% 0.1% 9.8% 1.3% 0.8% TRANSFERS RFS Debt Service (To System Office) (11,404) (10,797) (10,772) (10,772) 100% (10,711) 61 1% Other (7,268) (1,212) 0 (7,000) n/a 0 7, % NET TRANSFERS (18,672) (12,010) (10,772) (17,772) 165% (10,711) 7,061 40% NET INCREASE (DECREASE) 6,853 19,241 2,002 7, % 1,297 (6,366) 83% ENDING CURRENT FUND BALANCE 113, , , , % 141,566 1,298 1% * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). PVAMU amount for FY 2010 is $5.8 million. Executive Budget Summary Printed:7/16/2012

18 Prairie View A&M University Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 41,250 $ 41,250 $ Designated 76,519 77,803 1,284 Auxiliary 10,000 10, Restricted 12,500 12,500 0 Net Change in Fund Balance Current Funds $ 140,269 $ 141,566 $ 1,297 * if applicable Explanation for Net Decrease* A\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

19 TARLETON STATE UNIVERSITY Revenues BUDGET NARRATIVE Tarleton is budgeting FY 2013 revenues to increase $5.4 million (4%) over the FY 2012 projected actuals. The growth in revenue is attributed primarily to expected increases in Tuition and Fees and Sales and Services. This is based on an increase in rates and a projected growth in enrollment due to more effective recruiting efforts. Tuition and Fees revenue growth of $4.6 million (8%) is forecast for FY This is the result of a combination of an expected semester credit hour (SCH) growth of 3% and an increase in fee rates. Designated tuition for undergraduate students will increase by $10.00 (4.6%) per SCH. Student Financial Assistance is budgeted to reflect a small increase over the FY 2012 projected amount. Of the amount budgeted, $4.1 million is received on behalf of Texas A&M University Central Texas. Total Sales and Services are budgeted to increase by $692,000 (3%) due to the growth in the number of students. Expenditures The FY 2013 expenditures are budgeted to increase by $6.3 million (5%) over FY 2012 projected actuals. Personnel Costs will increase by $4.1 million (6%) due to an increase in the number of teaching and staff positions and salary increases for existing faculty and staff. Scholarships will increase due to additional tuition set aside funding and Pell Grant contract revenues. The increase in Operations and Maintenance from FY 2012 projected actuals to the FY 2013 budget is the result of costs associated with the operation of student life and athletic programs, library and academic programs, and information technology computing contracts. Transfers A decrease of $518,000 in FY 2013 Debt Service is the result of a student development center debt issue paid off in FY 2012.

20 THE TEXAS A&M UNIVERSITY SYSTEM Tarleton State University FY 2013 Budget Graphs (In Thousands) Tuition and Fees (Gross) FY 2013 BUDGET REVENUES $144,375 Total Contracts and Grants Gifts Operations and Maintenance (Net) FY 2013 BUDGET EXPENDITURES $135,840 Total State Appropriations Student Financial Assistance See Executive Budget Summary for amounts and percentages Sales and Services Investment Income Other Income Equipment (Capitalized) Scholarships Utilities See Executive Budget Summary for amounts and percentages Personnel Costs Research $7,596 6% Public Service $4,034 3% Operation & Maint of Plant $11,371 8% FY 2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Scholarships & Fellowships $16,618 12% Instruction $40,038 29% Student Service $6,120 5% Academic Support $8,645 6% Auxiliary $23,806 18% Institutional Support $17,612 13% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) T Executive Budget Graphs Printed: 7/17/2012

21 THE TEXAS A&M UNIVERSITY SYSTEM Tarleton State University FY 2012 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 41,324 40,901 40,900 49,446 50, % Restatement: (prior year correction) 0 0 REVENUES State Appropriations 38,035 49,285 36,015 36, % 36,498 25% 137 0% Tuition and Fees (Gross) 46,394 52,178 55,414 59, % 64,416 45% 4,616 8% Contracts and Grants 32,311 34,552 33,051 10,400 31% 10,669 7% 269 3% Student Financial Assistance 22,400 n/a 22,518 16% 118 1% Gifts 1, % 635 0% 5 1% Sales and Services 15,542 18,848 20,670 21, % 22,192 15% 692 3% Investment Income 4,534 6,107 2,733 3, % 3,173 2% 73 2% Other Income % 275 0% 5 2% Discounts (12,556) (15,143) (13,200) (15,500) 117% (16,000) 11% (500) 3% TOTAL REVENUES 126, , , , % 144, % 5,414 4% Percent Change 6.2% 17.1% 8.1% 5.8% 6.4% EXPENDITURES Salaries Faculty 23,362 23,980 24,120 25, % 26,920 20% 1,820 7% Salaries Non Faculty 22, ,726 25,390 25, % 26,919 20% 1,219 5% Wages 4,182 4,196 3,059 3, % 3,333 2% 133 4% Benefits 13,041 13,370 13,741 14, % 14,993 11% 893 6% Personnel Costs 62,832 64,273 66,311 68, % 72,165 53% 4,065 6% Utilities 4,057 4,114 4,771 4,500 94% 4,393 3% (107) 2% Scholarships 24,101 28,539 30,047 32, % 33,997 25% 1,197 4% Discounts (12,556) (15,143) (13,200) (15,500) 117% (16,000) 12% (500) 3% Equipment (Capitalized) 1,142 1,093 1,555 1, % 1,555 1% 0 n/a Operations and Maintenance (Net) 29,945 31,598 37,490 38, % 39,730 29% 1,630 4% TOTAL EXPENDITURES 109, , , , % 135, % 6,285 5% Percent Change 0.9% 4.5% 10.9% 13.2% 7.0% TRANSFERS RFS Debt Service (To System Office) (10,735) (11,995) (11,753) (11,752) 100% (11,234) 518 4% Other (6,183) (12,561) 3,146 3, % 3,112 (34) 1% NET TRANSFERS (16,918) (24,556) (8,607) (8,606) 100% (8,122) 484 6% NET INCREASE (DECREASE) (423) 8, % 413 (387) 48% ENDING CURRENT FUND BALANCE 40,901 49,446 40,989 50, % 50, % * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). TARLETON amount for FY 2010 is $4.7 million. Executive Budget Sumary Printed: 7/16/2012

22 Tarleton State University Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 2,500 $ 2,500 $ Designated 34,000 34, Auxiliary 10,247 10, Restricted 3,500 3,410 (90) Net Change in Fund Balance Current Funds $ 50,247 $ 50,660 $ 413 Explanation for Net Decrease* Restricted $ (90) Remaining small balances of numerous scholarships and other restricted balances were budgeted. * if applicable K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/18/2012

23 TEXAS A&M INTERNATIONAL UNIVERSITY Revenues BUDGET NARRATIVE Total revenue for FY 2013 is expected to increase $4.5 million (5%) over FY 2012 projected revenue, primarily due to increases in Tuition and Fees, and Contracts and Grants. Designated tuition is projected to generate an additional $781,000 based on a $5.50 increase in the rate. Increases in the technology, library, student service, student center, energy, student health, safety and infrastructure fees are expected to generate an additional $1.2 million. Expected growth in the contracts and grants area is budgeted to generate $2.4 million more than FY 2012 projected actuals. Expenditures Total budgeted expenditures for FY 2013 are projected to increase by $4.4 million (5%) over FY 2012 projected expenditures. Faculty and Non Faculty salaries are expected to increase as follows: $1.1 million for a 3% merit pool for faculty and non faculty, $106,000 for promotions and market driven adjustments, a $66,000 pay scale adjustment, and $633,000 in new grant salaries, wages, and stipends. Benefits are projected to increase by $817,000 due to the personnel items mentioned above. Utility expenditures are expected to increase by $71,000 largely due to an increase in water rates. Scholarships are projected to increase by $215,000 due to the increase in new grant awards and required financial aid set asides related to the increased designated tuition. Equipment expenses are expected to increase by $289,000 due to safety and technology infrastructure projects, increasing library subscription costs (both physical and virtual), and equipment replacement. An Operations and Maintenance increase of $1.3 million (7%) is projected to cover costs associated with additional technology and computer support, research expenditures, operational expenses, instructional programs, and student support.

24 TEXAS A&M INTERNATIONAL UNIVERSITY Transfers BUDGET NARRATIVE CONTINUED RFS Debt Service transfers are budgeted at $10.5 million. This is comprised of TRB debt service funded with general revenue ($8.4 million), higher education funds ($423,000), fees ($613,000), and auxiliary revenue ($1.04 million). Of the $10.5 million, $8.8 million is for the prior construction of the University Success Center, the Fine Arts Theater, the Science Building, the Fine Arts Building, the Kinesiology Building, and road extensions and parking lots. The remaining $1.7 million will be used for the Student Center Building and Residential Learning Center.

25 T THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M International University FY 2013 Budget Graphs (In Thousands) Investment Income Sales and Services Gifts FY 2013 BUDGET REVENUES $100,158 Total Other Income State Appropriations Equipment (Capitalized) Operations and Maintenance (Net) FY 2013 BUDGET EXPENDITURES $89,643 Total Personnel Costs Student Financial Assistance 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 FY2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Scholarships & Fellowships $3,023 3% Research $1,824 2% Student Service $8,060 9% Academic Support $27,057 30% Auxiliary $5,745 6% Public Service $2,000 2% Operation & Maint of Plant $9,719 11% Instruction $20,996 24% Institutional Support $11,218 13% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

26 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M International University FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 20,052 26,891 29,567 35,027 35,027 (0) 0% Restatement: (prior year correction) REVENUES State Appropriations 39,356 37,276 33,785 33, % 33,813 34% 28 0% Higher Education Fund 3,202 3,796 3,796 3, % 3,796 4% 0 0% Tuition and Fees (Gross) 29,286 33,848 33,258 34, % 36,348 36% 1,999 6% Contracts and Grants 31,145 36,013 27,952 11,188 40% 13,620 14% 2,432 22% Student Financial Assistance 23,784 n/a 23,831 24% 47 0% Gifts 4,067 2,408 3,019 1,091 36% 1,100 1% 9 1% Sales and Services 4,535 4,717 4,031 4, % 4,630 5% 110 2% Investment Income 1,407 2, , % 1,660 2% 82 5% Other Income % 360 0% 2 1% Discounts (14,935) (18,994) (12,500) (18,800) 150% (19,000) 19% (200) 1% TOTAL REVENUES 98, ,669 94,889 95, % 100, % 4,509 5% Percent Change 4.2% 3.0% 6.7% 5.9% 5.6% EXPENDITURES Salaries Faculty 15,921 16,901 16,856 17, % 18,300 20% 707 4% Salaries Non Faculty 17,968 19,190 19,491 19, % 20,762 23% 974 5% Wages 3,125 2,783 2,936 2,777 95% 3,000 3% 223 8% Benefits 9,182 8,985 9,248 9, % 10,340 12% 817 9% Personnel Costs 46,195 47,859 48,531 49, % 52,403 58% 2,722 5% Utilities 1,975 2,359 2,165 2,094 97% 2,165 2% 71 3% Scholarships 26,781 33,109 25,141 29, % 29,611 33% 215 1% Discounts (14,935) (18,994) (12,500) (18,800) 150% (19,000) 21% (200) 1% Equipment (Capitalized) 2,189 1,663 4,933 4,567 93% 4,856 5% 289 6% Operations and Maintenance (Net) 18,076 16,954 16,174 18, % 19,608 22% 1,343 7% TOTAL EXPENDITURES 80,282 82,950 84,444 85, % 89, % 4,440 5% Percent Change 15.1% 3.3% 1.8% 2.7% 6.2% TRANSFERS RFS Debt Service (To System Office) (13,392) (11,971) (10,446) (10,446) 100% (10,515) (69) 1% Other 1,347 1, n/a 0 0 n/a NET TRANSFERS (12,046) (10,582) (10,446) (10,446) 100% (10,515) (69) 1% NET INCREASE (DECREASE) 6,368 8, n/a 0 0 n/a ENDING CURRENT FUND BALANCE 26,891 35,027 29,567 35, % 35,027 (0) 0% * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). TAMIU amount for FY 2010 is $3 million. Executive Budget Summary Printed: 7/16/2012

27 Texas A&M International University Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 200 $ 200 $ Designated 13,600 13,600 Auxiliary 2,800 2,800 Restricted 18,427 18,427 Net Change in Fund Balance Current Funds $ 35,027 $ 35,027 $ Explanation for Net Decrease* * if applicable K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/18/2012

28 TEXAS A&M UNIVERSITY BUDGET NARRATIVE FY 2013 Budget Highlights No increase in Designated Tuition rate Increases in Computer Access Fee, Library Access Fee, Student Recreation Fee and University Writing Fee New University Success Fee Overall increase in budgeted exemptions of 19%; Hazelwood exemption increase of 53% Outsourcing of University Dining, Facilities Services, Landscaping Services and Custodial Services Impact of Outsourcing on the Texas A&M University (TAMU) FY 2013 Budget Revenue A $45 million bonus from Compass to be received August 2012; reflected in the FY 2012 projections. TAMU is to continue receiving meal plan revenues but, overall, TAMU is budgeting a reduction in Sales & Services revenue for FY Expense Budgets for Non Faculty Salaries of $32.5 million, Wages of $5 million, Benefits of $5.6 million and Equipment (Capitalized) of $2.2 million have been removed and re categorized as Professional Services within Operations & Maintenance to cover costs associated with privatized contract services. The total reduction of expenses is reflected in both Personnel Costs and net service department activity.

29 TEXAS A&M UNIVERSITY Revenues BUDGET NARRATIVE CONTINUED The FY 2013 total revenue budget for TAMU is $46.4 million (3%) less than FY 2012 projected actuals. State Appropriations is budgeted to increase $744,000 due to an increase in state paid benefits and Available University Fund (AUF) funding is budgeted to increase by $169,000. The Tuition and Fees (Gross) revenue is budgeted to decrease by 1% compared to FY 2012 projected actuals. The 1% decrease is comprised of the following: An $8 million (4%) decrease in Designated Tuition is budgeted compared to FY 2012 projections. Although there was a slight increase in semester credit hours, the effect of increased exemptions caused net revenues to decrease. Also, colleges chose to budget Differential Tuition conservatively for FY 2013 compared to FY 2012 projections. Designated Tuition actuals include B on Time revenues. However, the budget shows B on Time as a reduction to revenue, decreasing tuition revenue so that these funds can be transferred to the State instead of allocated. Rate increases for the Computer Access Fee, the Library Access Fee, the Student Recreation Fee and the University Writing Fee were approved for FY These increases will generate new revenues of approximately $3.8 million. A new University Success Fee was also approved, but this fee will be revenue neutral within the context of the total fee budget. Continuing increases in budgeted exemptions will offset these increases for an overall fee revenue increase of $2.8 million (2%). The total waivers and exemptions revenue budget will increase by $2.2 million (13%), compared to FY 2012 projected actuals, primarily due to an increase in the number of Hazelwood students. Student Financial Assistance, a new budget category comprised of financial aid revenue, is projected to increase by $1.3 million (5%), compared to FY 2012 projected actuals. This increase is primarily caused by an increase in Top 10% State Scholarship funding. Sales and Services revenue is budgeted to decrease $50 million (17%), compared to projections. The FY 2012 projections include a one time $45 million bonus from Compass related to the outsourcing of Dining Services. Despite the outsourcing of dining operations, TAMU will continue to collect meal plan revenues in FY Gifts, Investment Income, and Discounts are all budgeted to remain relatively flat compared to FY 2012 projected actuals.

30 TEXAS A&M UNIVERSITY Expenditures BUDGET NARRATIVE CONTINUED Total Expenditures for TAMU are budgeted to increase by $6.5 million (1%), as compared to FY 2012 projected actuals. Total Personnel Costs are budgeted to decrease by $29 million (4%). The biggest driver of this decrease is the outsourcing of Dining and Facilities Services. Faculty Salaries: Faculty salaries are budgeted to remain relatively flat, despite increased expenses due to tenured faculty promotions and a 1.5% base merit program. The increase is offset by savings derived from implementing the FY 2012 Voluntary Separation Program. Non Faculty Salaries: Non faculty salaries are budgeted to decrease by $17.1 million (6%). The impact of outsourcing is a $32 million decrease, offset by the base merit program of $4 million and the inclusion of vacant positions in the FY 2013 budget. Wages: The $6.5 million (7%) decrease in wages reflects a $5.1 million reduction due to outsourcing and a $7.9 million one time merit program. This decrease in wages is also compounded by increases in FY 2012 of $7 million for the Faculty Voluntary Separation Program plus potential leave accrual payments of $2.3 million to be paid to employees affected by outsourcing. Benefits: A $4.9 million (4%) decrease reflecting the decreases in Non Faculty Salaries and Wages. Utilities are budgeted to remain relatively flat compared to FY 2012 projections, while Scholarships expense is budgeted to increase $2.9 million (2%) due to increases in waivers and exemptions as noted above. Equipment (Capitalized) is budgeted to decrease by $2.2 million (9%) due to the outsourcing of Dining and Facilities Services. Operations and Maintenance (O&M) is expected to increase $33.7 million (12%). Service Departments: FY 2012 projected actuals include reduced sales & service revenues in Building Services and Utilities and increased expenditures in Construction Services reducing the impact of Net Service Departments ($7.9 million) compared to the FY 2011, $42 million impact on total O&M.

31 TEXAS A&M UNIVERSITY BUDGET NARRATIVE CONTINUED Operations & Maintenance: Resources made available, due to the reduction in Non Faculty Salaries and Wages, are being set aside to cover instructional/educational initiatives and potential costs associated with outsourcing activities. The increase includes budget for Action 2015 of $5.3 million and a variety of Computer Access and Instructional Technology capital projects that will enhance student experiences and ensure continuous operation of critical systems.

32 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University FY 2013 Budget Graphs (In Thousands) Sales and Services Gifts Investment Income FY 2013 BUDGET REVENUES $1,319,609 Total Other Income Student Financial Assistance State Appropriations Available University Fund Operations and Maintenance (Net) Equipment (Capitalized) FY 2013 BUDGET EXPENDITURES $1,214,184 Total 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 $30,744 3% Research $116,476 10% FY2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Student Service $55,020 5% Academic Support $272,941 22% Public Service $21,251 2% Operation & Maint of Plant $88,408 7% Instruction $285,182 23% Auxiliary $193,242 16% Institutional Support $150,922 12% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

33 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 524, , , , ,326 73,026 9% Restatement: (prior year correction) 0 REVENUES State Appropriations 294, , , , % 286,696 22% 744 0% Available University Fund 88,500 89,000 90,860 90, % 91,029 7% 169 0% Tuition and Fees (Gross) 436, , , , % 471,065 36% (2,665) 1% Contracts and Grants 257, , , ,800 83% 200,160 15% 2,360 1% Student Financial Assistance 25,550 n/a 26,895 2% 1,345 5% Gifts 75, ,978 57,918 82, % 83,107 6% 1,045 1% Sales and Services 246, , , , % 248,896 19% (50,149) 17% Investment Income 40,381 72,299 18,393 21, % 21,872 2% 149 1% Other Income 18,957 19,345 17,296 16,585 96% 16,785 1% 200 1% Discounts (113,734) (129,576) (118,697) (127,324) 107% (126,897) 10% 427 0% TOTAL REVENUES 1,345,178 1,421,392 1,285,178 1,365, % 1,319, % (46,374) 3% Percent Change 8.1% 5.7% 9.6% 3.9% 2.7% EXPENDITURES Salaries Faculty 268, , , ,071 98% 257,534 21% (537) 0% Salaries Non Faculty 300, , , , % 274,421 23% (17,073) 6% Wages 75,966 82,846 75,630 96, % 90,040 7% (6,500) 7% Benefits 142, , , , % 130,817 11% (4,865) 4% Personnel Costs 786, , , , % 752,812 62% (28,975) 4% Utilities 66,838 67,926 64,511 67, % 68,081 6% 835 1% Scholarships 174, , , , % 188,309 16% 2,904 2% Discounts (113,734) (129,576) (118,697) (127,324) 107% (126,897) 10% 427 0% Equipment (Capitalized) 36,449 22,231 24,025 24, % 22,280 2% (2,228) 9% Operations and Maintenance (Net) 250, , , , % 309,599 25% 33,675 12% Debt Service n/a 0 0% (138) 100% TOTAL EXPENDITURES 1,201,778 1,146,181 1,180,873 1,207, % 1,214, % 6,500 1% Percent Change 2.6% 4.6% 3.0% 5.4% 2.8% TRANSFERS RFS Debt Service (To System Office) (58,882) (70,434) (63,221) (63,221) 100% (70,056) (6,835) 11% Other (7,885) (30,419) 3,464 (22,051) 637% (2,177) 19,874 90% NET TRANSFERS (66,767) (100,853) (59,757) (85,272) 143% (72,233) 13,039 15% NET INCREASE (DECREASE) 76, ,358 44,548 73,027 >500% 33,192 (39,835) 55% ENDING CURRENT FUND BALANCE 600, , , , % 881,518 33,191 4% * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). TAMU amount for FY 2010 is $49.9 million. Executive Budget Summary Printed: 7/16/2012

34 Texas A&M University Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 71,973 $ 69,125 $ (2,848) Designated 537, ,278 (6,459) Auxiliary 110, ,329 16,568 Restricted 127, ,786 25,932 Net Change in Fund Balance Current Funds $ 848,326 $ 881,518 $ 33,192 Explanation for Net Decrease* Functional and General (2,848) Designated $ (6,459) Faculty initiatives and startup $2,233,509; College of Education Support Services $399,289; Graduate Program Enhancement $162,587; and College of Veterinary Medicine Nuerology Program $52,952. One time use of Indirect Cost, AUF, Designated Tuition and other designated balances to fund operational expenses in FY 2013 $5,491,357; Faculty startup $967,514. * if applicable K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

35 TEXAS A&M UNIVERSITY at GALVESTON Introduction BUDGET NARRATIVE Texas A&M University at Galveston (TAMUG) continued to experience growth in FY Current student application data indicates another growth year for FY Beginning with the highly successful enrollment recovery from Hurricane Ike (all students lost in the fall semester of Ike returned), TAMUG continues to grow. Enrollment statistics for the fall semester show solid growth of 9% (Fall 2011 to Fall 2012) with 8% growth in the spring semester (Spring 2011 to Spring 2012). This growth, to some extent, mitigated the FY 2011 and FY 2012 budget cuts that affected agencies throughout the state. TAMUG weathered the net cut through reallocation of resources and the use of some reserves. Due to continued enrollment growth, no reductions in force were necessary during FY However, there was also no merit pool funded. As a result of the board approved Designated Tuition increase for FY 2013, TAMUG is planning a combination of a moderate merit pool and market adjustment pool in order to recruit and retain excellent faculty and staff. High demand continues for our graduates and their very specialized degrees. TAMUG s degree programs fill the jobs needed by Marine and Maritime Industries with many students recruited into high paying positions immediately upon graduation, particularly graduates from the Maritime Administration Programs and Marine Engineering Programs. Additionally, the Science Education and Research Programs (undergraduate to Ph.D.) are filling an ever increasing demand for graduates who can tackle tough marine issues such as hurricanes, oil spills, sustainable coastal communities, economic development, and coastal engineering and mitigation. With this increased demand comes necessary increases in infrastructure, resulting in increased operating costs. Many of the increases in costs described below are directly attributable to this growth. Revenues Overall, FY 2013 revenues are budgeted to increase $4.1 million (8%). This increase is primarily attributable to the following three factors. Additional revenues are expected from two new residence halls that will go on line in the fall semester of FY 2013, TAMUG had an increase of 3.95% in our Designated Tuition rate, and general student population growth should result in additional tuition and fees and sales and services. State Appropriations are estimated to remain relatively static, as compared to appropriations received from the state for FY 2012.

36 TEXAS A&M UNIVERSITY at GALVESTON BUDGET NARRATIVE CONTINUED Tuition and Fees (Gross) is estimated to increase by $960,000 (5%) over FY 2012 projected actuals. This is mainly attributable to the approved increase in Designated Tuition, an approved increase in one mandatory fee and the addition of a new advising fee. A portion of the increase is a result of additional revenue that will be generated by the projected increase in enrollment. Total Contracts and Grants are estimated to remain relatively flat as compared to FY 2012 projected actuals. This is primarily due to FY 2013 being the second year for TAMUG s larger grants. Any new grants obtained would be reflected in the FY 2013 actuals. Gifts are expected to more than double over FY 2012 projected amounts. This increase is directly related to the employment of a new development officer for TAMUG during FY 2012 and major initiatives for FY2013. TAMUG, for the first time, will participate in the TAMU capital campaign which should result in additional distributions of investment income as well as specified gifts. Sales and Services are expected to increase by $3.1 million (34%) over FY 2012 projected amounts as a direct result of the new residence halls revenue and expected general enrollment growth. TAMUG has budgeted Investment Income of $1.1 million in anticipation of better market results in FY Expenditures FY 2013 Total Expenditures are projected to increase $2.9 million (6%) when compared to FY 2012 projected actual expenses. The budget reflects a 2% increase in Personnel Costs for FY 2013 when compared to FY 2012 projected amounts. This increase is primarily due to salary plans for FY 2013, which include a nominal pool for merit and/or market driven increases needed to recruit and retain excellent faculty and staff. The increase in salaries is partially offset by a budgeted decrease in Wages compared to FY 2012 projected actuals. A 7% increase in Utilities is anticipated in FY This is mainly due to an increase in usage anticipated from the new residence halls, but it also reflects savings from the much more energy efficient Ocean and Coastal Studies Complex as compared to the previously occupied Fort Crockett Complex.

37 TEXAS A&M UNIVERSITY at GALVESTON BUDGET NARRATIVE CONTINUED Equipment costs are budgeted to decrease 93%. During FY 2013, TAMUG does not anticipate large equipment purchases for new construction projects outside the actual construction contract, as was the case during FY As a result, budgeted equipment is much less for FY Operations and Maintenance expenses for FY 2013 are budgeted to increase $5.1 million (32%) when compared to FY 2012 projected actuals. This is directly attributable to increased fixed costs such as shared service assessments and insurance, and general operating budget increases from the new residence halls. Transfers Overall, debt service has decreased $363,000 over FY 2012 actual amounts. Total FY 2013 budgeted debt service transfers include approximately $5.3 million to the System Offices to cover the following capital projects: Ocean and Coastal Studies Complex ($2.7 million), Powell Engineering Complex ($713,000), Marine Terminal Renewal and Shore Line Erosion ($465,000), Residence halls construction and renovation ($1 million), Parking lot expansions ($35,000), Student Life Center ($40,000), Student Services Building ($30,000), Dining Services Expansion ($39,000) and Sea Aggie Center purchase ($253,000).

38 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University at Galveston FY 2013 Budget Graphs (In Thousands) Investment Income Student Financial Assistance Other Income FY 2013 BUDGET REVENUES $56,063 Total State Appropriations Operations and Maintenance (Net) FY 2013 BUDGET EXPENDITURES $49,321 Total Personnel Costs Sales and Services Gifts 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 $2,679 5% Research $5,156 10% FY2013BUDGET EXPENDITURES BY NACUBO FUNCTION Student Service $2,759 6% Academic Support $2,405 5% Auxiliary $8,277 17% Public Service $1,447 3% Institutional Support $8,706 18% Operation & Maint of Plant $5,394 11% Instruction $12,498 25% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

39 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University at Galveston FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 24,402 24,988 24,988 24,296 24, % Restatement: (prior year correction) 0 0 REVENUES State Appropriations 18,734 17,887 17,913 17, % 17,983 32% 70 0% Tuition and Fees (Gross) 13,740 16,134 16,668 17, % 18,860 34% 960 5% Contracts and Grants 6,703 6,555 5,470 5, % 5,653 10% 53 1% Student Financial Assistance 2,000 n/a 2,250 4% % Gifts % 1,201 2% % Sales and Services 8,001 8,874 9,110 9, % 12,210 22% 3,100 34% Investment Income 1,305 2,082 1, % 1,105 2% 1,005 >500% Other Income % 400 1% 75 23% Discounts (2,716) (3,597) (1,611) (1,650) 102% (3,597) 6% (1,947) 118% TOTAL REVENUES 46,980 49,097 49,805 51, % 56, % 4,115 8% Percent Change 12.1% 4.5% 1.4% 5.8% 12.6% EXPENDITURES Salaries Faculty 8,893 9,337 9,151 8,400 92% 8,790 18% 390 5% Salaries Non Faculty 9,169 9,346 9,169 9, % 10,214 21% 614 6% Wages 1,554 1,651 1,281 1, % 1,060 2% (440) 29% Benefits 4,748 4,830 3,958 4, % 4,059 8% (41) 1% Personnel Costs 24,365 25,165 23,559 23, % 24,124 49% 524 2% Utilities 1,930 2,113 2,354 2, % 2,580 5% 180 7% Scholarships 3,997 5,159 4,626 4, % 4,992 10% 92 2% Discounts (2,716) (3,597) (1,611) (1,650) 102% (3,597) 7% (1,947) 118% Equipment (Capitalized) , % 85 0% (1,115) 93% Operations and Maintenance (Net) 12,795 12,540 16,472 16,000 97% 21,138 43% 5,138 32% Debt Service n/a 0 0% 0 n/a TOTAL EXPENDITURES 41,008 42,106 45,541 46, % 49, % 2,871 6% Percent Change 4.2% 2.7% 8.2% 10.3% 8.3% TRANSFERS RFS Debt Service (To System Office) (5,270) (4,782) (4,898) (4,898) 100% (5,261) (363) 7% Other (117) (2,900) 0 0 n/a 0 0 n/a NET TRANSFERS (5,387) (7,682) (4,898) (4,898) 100% (5,261) (363) 7% NET INCREASE (DECREASE) 586 (691) (634) % 1, % ENDING CURRENT FUND BALANCE 24,988 24,296 24,354 24, % 26,378 1,481 6% * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). TAMUG amount for FY 2010 is $1.9 million. Executive Budget Summary Printed: 7/16/2012

40 Texas A&M University at Galveston Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 9,660 $ 9,660 $ 0 Designated 11,096 11, Auxiliary 2,389 3,756 1,367 Restricted 1,751 1,751 Net Change in Fund Balance Current Funds $ 24,896 $ 26,378 $ 1,482 * if applicable Explanation for Net Decrease* K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

41 TEXAS A&M UNIVERSITY CENTRAL TEXAS Introduction BUDGET NARRATIVE Fiscal Year 2012 was an exciting year for TAMU CT. The university moved into the first new building on its campus and broke ground for a second building. The university also submitted its application for accreditation to the Southern Association of Colleges and Schools (SACS), the accrediting body of the higher education institutions in the southern states, and began the implementation process for a student information system. When developing the budget for FY 2013, TAMU CT hoped to continue the level of excitement and growth that began in FY 2012 while conservatively addressing university spending. Since its beginning, TAMU CT has maintained an internal policy of hiring faculty and staff only after a demonstrated need has been identified. This policy has prevented layoffs during periods of reductions in revenue. TAMU CT outsourced its janitorial services, landscaping, and general building maintenance at all locations through the competitive bid process. Telephone services at the new building are outsourced to TAMU. Several IT services are contracted out to TAMU as well. TAMU CT participates in available System wide contracts if it is in the university s best interest. The university is outsourcing approximately 78% of the Banner student information system implementation to Ellucian (formerly Sungard Higher Education Services). TAMU CT plans to continue seeking outsourcing opportunities in FY 2013 and beyond. Revenues TAMU CT is budgeting FY 2013 revenues of $23.6 million. State Appropriations account for 60%, or $14.2 million, of the total budgeted revenue. Of this, $5.7 million is appropriated as a Special Item to support the transition to a stand alone university, $1.6 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. Tuition and Fees are budgeted to increase by $1.1 million (11%) over FY 2012 projected. The tuition increase is based on a 6% increase in enrollment and a $10 per SCH increase in tuition. Students voted to increase the Student Services Fee by $5.00 per SCH with a cap of $160. Exemptions are expected to increase based on the large number of military returning to Fort Hood from overseas. Student Financial Assistance revenue is received initially by Tarleton on behalf of TAMU CT pending TAMU CT s accreditation and transition to having a Financial Aid Office. The amount collected at Tarleton on behalf of TAMU CT for FY 2013 is estimated to be $4.1 million.

42 TEXAS A&M UNIVERSITY CENTRAL TEXAS BUDGET NARRATIVE CONTINUED An increase in Other Income of $13,000 (12%) is budgeted for FY The increase is based upon bookstore, vending, and food service commissions to be paid to the university. Discounts are expected to increase by $483,000 (26%) over FY 2012 projected actuals. The increase in Discounts is expected due to expected enrollment growth and increased tuition and fee rates. Investment Income is expected to decrease by $216,000 (50%) over FY 2012 projected actuals due to a combination of a reduction in the amount held in reserves by the university and the continuation of low interest rates. Expenditures TAMU CT is budgeting expenditures of $29 million, which is a 7% increase over FY 2012 projected expenditures. The increase is primarily attributed to personnel costs that have increased due to several factors. This includes adding additional faculty and staff positions needed to accommodate growth in academic and student support areas, filling positions that were not filled in FY 2012, market driven salary adjustments for faculty, and a 2% merit pool for faculty and staff. Wages are expected to increase by $93,000 (25%) as the university employs more students and part time employees. Utilities are expected to increase $262,000 (91%) over FY 2012 projected actuals as a result of TAMU CT s first building being fully utilized and having 3.5 times more space than the previously used lease space. Scholarships are expected to increase $531,000 (10%) as incoming and returning students rely more heavily on financial aid to assist with the increasing costs of education. Equipment (Capitalized) purchases are projected to decrease $815,000 (82%) from FY 2012 projected actuals as the result of distance education equipment and other miscellaneous equipment being used for university operations all having been purchased in FY Operations and Maintenance is budgeted to decrease by $635,000 ($10%) from FY 2012 projected actuals as a result of reduced lease costs from moving the library to the north campus and the termination of the lease of the old main building. Transfers An RFS debt service transfer of $1.6 million is for the new Founders Hall building.

43 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University Central Texas FY 2013 Budget Graphs (In Thousands) Sales and Services Contracts and Grants FY 2013 BUDGET REVENUES $23,622 Total Gifts Investment Income Other Income State Appropriations FY 2013 BUDGET EXPENDITURES $28,663 Total Operations and Maintenance (Net) Equipment (Capitalized) Personnel Costs Scholarships Tuition and Fees (Gross) See Executive Budget Summary for amounts and percentages Utilities See Executive Budget Summary for amounts and percentages FY 2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Scholarships & Fellowships $4,324 15% Public Service $132 1% Student Service $3,080 11% Academic Support $3,494 12% Auxiliary $115 0% Institutional Support $3,846 14% Operation & Maint of Plant $3,240 11% Instruction $10,432 36% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

44 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University Central Texas FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 0 9,927 12,480 12,774 11,789 (985) 8% Restatement: (prior year correction) 0 0 REVENUES State Appropriations 13,937 12,357 14,217 14, % 14,157 60% (18) 0% Tuition and Fees (Gross) 9,203 9,555 10,746 9,929 92% 11,045 47% 1,116 11% Contracts and Grants 3,134 3,860 2, % 0 0% (19) 100% Student Financial Assistance 0 n/a 0 0% 0 n/a Gifts % 267 1% 11 4% Sales and Services >500% 182 1% 3 2% Investment Income 39 (224) >500% 212 1% (216) 50% Other Income % 118 0% 13 12% Discounts (1,535) (1,839) (1,798) (1,876) 104% (2,359) 10% (483) 26% TOTAL REVENUES 25,188 24,237 26,438 23,215 88% 23, % 407 2% Percent Change 176% 3.8% 9.1% 4.2% 10.7% EXPENDITURES Salaries Faculty 5,134 5,471 6,012 5,968 99% 6,956 24% % Salaries Non Faculty 4,241 4,785 6,497 6,071 93% 7,280 25% 1,209 20% Wages % 464 2% 93 25% Benefits 2,370 2,313 3,162 2,893 91% 3,654 13% % Personnel Costs 11,993 12,934 16,159 15,303 95% 18,353 64% 3,050 20% Utilities % 550 2% % Scholarships 4,507 4,853 4,669 5, % 5,981 21% % Discounts (1,535) (1,839) (1,798) (1,876) 104% (2,359) 8% (483) 26% Equipment (Capitalized) , % 185 1% (815) 81% Operations and Maintenance (Net) 4,031 4,677 5,808 6, % 5,953 21% (635) 10% TOTAL EXPENDITURES 19,731 21,314 26,172 26, % 28, % 1,910 7% Percent Change 89% 8.0% 22.8% 25.5% 9.5% TRANSFERS RFS Debt Service (To System Office) 0 0 (1,647) (1,647) 100% (1,645) 2 0% Other 4,471 (76) 470 4,200 >500% 4, % NET TRANSFERS 4,471 (76) (1,177) 2, % 2, % NET INCREASE (DECREASE) 9,927 2,847 (911) (985) 108% (2,125) (1,140) 116% ENDING CURRENT FUND BALANCE 9,927 12,774 11,569 11, % 9,664 (2,125) 18% * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). TAMU CT amount for FY 2010 is $551 thousand. Executive Budget Sumary Printed: 7/16/2012

45 Texas A&M University Central Texas Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 3,793 $ 3,088 $ (705) Designated 7,976 6,503 (1,473) Auxiliary Restricted Net Change in Fund Balance Current Funds $ 11,789 $ 9,664 $ (2,125) Explanation for Net Decrease* Functional and General $ (705) Designated $ (1,473) One time use of reserves is needed to fund a portion of the services provided by Tarleton. Reserves are needed to fund expenses related to the implementation of the student information system. * if applicable K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

46 TEXAS A&M UNIVERSITY COMMERCE Revenues BUDGET NARRATIVE TAMU C is budgeting revenue growth of $8.9 million (6%) over FY 2012 projected actuals. Of this growth, State Appropriations are projected to increase $389,000 due to increases in state benefits. Tuition and Fees (Gross) are budgeted to increase by $5.5 million (7%) due to a projected enrollment increase and the $150/hour increase for designated tuition for a student enrolled in 15 hours. Also contributing is the increase in nonresident tuition from $363 per semester credit hour to $401 per semester credit hour. Contracts and Grants are expected to decrease $364,000 due to grant closures, including the Los Alamos National Laboratory grant and a National Science Foundation grant that, together, totaled $300,000. Student Financial Assistance is projected to increase due to additional Pell Grant funding of $5.7 million and additional Texas Grant funds of $500,000. Gifts are expected to decrease $575,000 due to one time gifts received in FY 2012, and Investment Income has been budgeted conservatively at a rate of return of 2.75%, or $1.6 million, for FY Expenditures Due to resources from revenue growth of $8.9 million, capital project transfers of $2 million and use of reserve balances for debt service, TAMU C is budgeting expenditure growth of $12.2 million over FY 2012 projected actuals. The requested budget is consistent with the priorities developed to meet the following institutional goals: Continuing support for enrollment growth o Increasing adjunct funding ($400,000) o Adding new faculty lines ($600,000) o Adding new staff positions ($370,000) o Increasing support for technology ($300,000) o Continuing to increase local financial aid for students ($875,000) Supporting the institutional goal of maintaining our SACS accreditation through facilitation of a successful compliance report (Fall 2013) and site visit (Spring 2014) ($229,000)

47 TEXAS A&M UNIVERSITY COMMERCE BUDGET NARRATIVE CONTINUED Expanding emerging educational partnerships, including non traditional course delivery ($1 million) Continuing to support faculty/staff retention ($1.9 million) Increasing scholarships from federal and state funds ($6.2 million) Increasing support for deferred maintenance ($500,000) Continuing to support innovation, program expansion and growth ($200,000) Total Personnel Costs are budgeted to increase to assist in achieving the goals outlined above. Funds have been reserved in the budget for a salary plan targeted to high performing employees in the amount of $1.7 million for faculty and staff. Additional funds ($200,000) have been set aside for market driven increases. Additional personnel increases include new faculty and staff positions for continued support for enrollment growth and enhanced funding for technology. Funds were reallocated from FY 2012 Operations and Maintenance for additional faculty lines ($1.3 million). Scholarships are expected to increase primarily as a result of additional funds ($5.7 million) anticipated from Pell for FY Other scholarship funds ($1.7 million) were budgeted to support the enrollment increase. Operations and Maintenance expenditures are budgeted to increase $1.3 million (3%) over FY 2012 projected actuals. The increase is primarily attributed to increased deferred maintenance, globalization initiatives, and increased support for technology. 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 provide funding for the initiatives above. Other cost savings initiatives planned for FY 2013 include further review of faculty productivity and a continued review of business services operations for identification of more shared services opportunities and operational efficiencies.

48 TEXAS A&M UNIVERSITY COMMERCE Transfers BUDGET NARRATIVE CONTINUED FY 2013 transfers include $10.4 million to be transferred to the System Offices to cover $2 million in TRB debt service and $8 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 $434,000 is related to the transfer of $184,000 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.

49 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University Commerce FY 2013 Budget Graphs (In Thousands) Gifts Student Financial Assistance Other Income Investment Income Sales and Services FY 2013 BUDGET REVENUES $155,092 Total State Appropriations Higher Education Fund Operations and Maintenance (Net) Equipment (Capitalized) FY 2013 BUDGET EXPENDITURES $146,236 Total Personnel Costs Contracts and Grants Tuition and Fees (Gross) See Executive Budget Summary for amounts and percentages Scholarships Utilities See Executive Budget Summary for amounts and percentages Scholarships & Fellowships $16,673 Research 12% $1,771 1% FY2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Student Service $10,316 7% Academic Support $10,312 7% Auxiliary $21,993 15% Public Service $1,794 1% Operation & Maint of Plant $11,655 8% Instruction $46,655 32% Institutional Support $25,067 17% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

50 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University Commerce FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 45,138 49,183 51,036 57,712 58, % Restatement: (prior year correction) 0 0 REVENUES State Appropriations 41,804 40,854 41,047 41, % 41,437 27% 389 1% Federal Appropriations n/a 0 0% (19) 100% Higher Education Fund 5,684 5,193 5,193 5, % 5,193 3% 0 0% Tuition and Fees (Gross) 51,387 63,402 70,233 73, % 78,732 51% 5,467 7% Contracts and Grants 28,844 28,871 17,950 6,697 37% 6,333 4% (364) 5% Student Financial Assistance 14,203 n/a 20,493 13% 6,290 44% Gifts 1,586 1, , % 750 0% (575) 43% Sales and Services 11,187 13,597 13,933 15, % 15,461 10% 261 2% Investment Income 4,180 5,693 1,581 2, % 1,597 1% (403) 20% Other Income % 96 0% (114) 54% Discounts (12,082) (14,484) (10,500) (13,000) 124% (15,000) 10% (2,000) 15% TOTAL REVENUES 132, , , , % 155, % 8,932 6% Percent Change 24.7% 9.0% 3.1% 1.0% 10.6% EXPENDITURES Salaries Faculty 24,311 25, ,327 26, % 29,002 20% 3,002 12% Salaries Non Faculty 24,149 25,426 27,474 26,893 98% 28,723 20% 1,830 7% Wages 3,934 4,719 4,093 4,025 98% 3,971 3% (54) 1% Benefits 14,397 14,406 14,909 15, % 16,229 11% 829 5% Personnel Costs 66,791 69,771 71,803 72, % 77,924 53% 5,606 8% Utilities 4,996 4,653 4,755 4, % 4,703 3% (52) 1% Scholarships 31,459 33,222 25,092 28, % 36,079 25% 7,381 26% Discounts (12,082) (14,484) (10,500) (13,000) 124% (15,000) 10% (2,000) 15% Equipment (Capitalized) 1,466 1,876 1,634 1, % 1,699 1% (0) 0% Operations and Maintenance (Net) 26,078 25,458 38,518 39, % 40,831 28% 1,313 3% Debt Service n/a 0 0% 0 n/a TOTAL EXPENDITURES 118, , , , % 146, % 12,248 9% Percent Change 19.0% 1.5% 9.0% 11.2% 11.4% TRANSFERS RFS Debt Service (To System Office) (7,735) (13,578) (9,462) (9,462) 100% (10,403) (941) 10% Other (2,345) (2,139) (424) (2,346) >500% (434) 1,912 82% NET TRANSFERS (10,081) (15,716) (9,886) (11,808) 119% (10,837) 971 8% NET INCREASE (DECREASE) 4,045 8,530 (955) 364 <500% (1,980) (2,344) > 500% ENDING CURRENT FUND BALANCE 49,183 57,712 50,081 58, % 56,096 (1,981) 3% * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). TAMU C amount for FY 2010 is $4.3 million. Executive Budget Summary Printed: 7/16/2012

51 Texas A&M University Commerce Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 4,155 $ 3,000 $ (1,155) Designated 40,246 40,246 Auxiliary 13,200 12,374 (826) Restricted Net Change in Fund Balance Current Funds $ 58,076 $ 56,096 $ (1,980) Explanation for Net Decrease* Functional and General $ (1,155) Auxiliary $ (826) HEF funds set aside in previous years to partially fund new music building. $50,000 used for one time athletic scholarships; $775,639 from auxiliary reserves used to fund Phase II Resident Life debt during construction period. * if applicable K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

52 TEXAS A&M UNIVERSITY CORPUS CHRISTI Revenues BUDGET NARRATIVE Total Revenues for FY 2013 are budgeted to decrease by approximately $2.8 million (2%) less than FY 2012 projected actuals. State revenues increased approximately $985,000, most of which was a result of growth in state benefits. Contracts and Grants is budgeted $2.4 million (16%) less than FY 2012 projected actuals, and Student Financial Assistance is budgeted $1.9 million (9%) less than projected actuals. Gifts, Sales and Services, and Other Income have all also been budgeted conservatively as compared to projected actuals for FY Total Tuition and Fees are budgeted to increase by $1.4 million (2%) over FY 2012 projected actuals. The increase is attributed to the designated tuition rate increase which is expected to generate an additional $2.1 million and a slight increase in fee revenue. These are offset by a conservative budgeted amount for Waivers and Exemptions reflecting a decrease of $769,000. Expenditures Total Expenditures for FY 2013 are budgeted to increase by $3.7 million (3%). The increase in budgeted expenditures is partially the result of FY 2012 projected actuals being lower due to reallocation of funds to Plant funds for the completion of capital projects and renovations. Total Personnel Costs are budgeted to increase $5.4 million (5%) over FY 2012 projected. The increase is primarily the result of adding additional positions, vacancies, and a 3% merit program of $1.3 million. Careful planning and budgeting will allow the tuition increases to be targeted for key positions that are needed in instruction. Faculty positions were added in nursing and liberal arts. Funding was allocated to provide additional targeting towards retention, recruitment and development functions. Scholarships are budgeted to increase $2.3 million (8%) over FY 2012 projected actuals. TAMU CC expects to have more students on scholarships from Gifts, Contracts and Grants and an increase in mandatory set asides from the designated tuition rate increase. Operations and Maintenance are budgeted to decrease $5.5 million (20%) which is primarily attributed to conservative budgeting for Contracts and Grant activity.

53 TEXAS A&M UNIVERSITY CORPUS CHRISTI Transfers BUDGET NARRATIVE CONTINUED RFS Debt Service is budgeted at $12.3 million, which is a decrease of $791,000 as compared to FY 2012 projected actuals. Of this amount, $9.1 million is being funded from general revenue (Tuition Revenue Bonds). The remaining $3.2 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 Engineering Building Classroom Lab Building Performing Arts Center Dugan Wellness Center BaysideParking Garage Utility Plant Expansion Momentum Sports Complex

54 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University Corpus Christi FY 2013 Budget Graphs (In Thousands) Sales and Services Student Financial Assistance Other Income Investment Income FY 2013 BUDGET REVENUES $162,620 Total State Appropriations Operations and Maintenance (Net) Equipment (Capitalized) FY 2013 BUDGET EXPENDITURES $148,451 Total Gifts Contracts and Grants Tuition and Fees (Gross) See Executive Budget Summary for amounts and percentages Higher Education Fund Scholarships Personnel Costs Utilities See Executive Budget Summary for amounts and percentages Scholarships & Fellowships $20,015 13% Research $14,303 10% Public Service $1,342 1% FY2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Student Service $9,516 6% Academic Support $20,068 14% Auxiliary $17,186 12% Institutional Support $14,654 10% Operation & Maint of Plant $11,085 7% Instruction $40,282 27% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) T Executive Budget Graphs Printed: 7/17/2012

55 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University Corpus Christi FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 47,015 57,581 53,568 58,585 59, % Restatement: (prior year correction) (199) (2,006) REVENUES State Appropriations 55,847 53,371 48,868 48,128 98% 49,113 30% 985 2% Higher Education Fund 8,471 7,139 7,139 7, % 7,139 4% 0 0% Tuition and Fees (Gross) 56,591 65,383 69,948 71, % 73,292 45% 1,422 2% Contracts and Grants 45,377 41,899 34,635 14,956 43% 12,544 8% (2,412) 16% Student Financial Assistance 21,500 n/a 19,609 12% (1,891) 9% Gifts 6,851 6,420 3,918 4, % 3,902 2% (113) 3% Sales and Services 7,064 7,765 5,340 5, % 4,696 3% (729) 13% Investment Income 3,020 5,392 1,484 1,200 81% 1,629 1% % Other Income , % 342 0% (683) 67% Discounts (12,211) (15,064) (10,461) (9,875) 94% (9,646) 6% 229 2% TOTAL REVENUES 171, , , , % 162, % (2,763) 2% Percent Change 17.5% 0.7% 6.9% 4.4% 0.9% EXPENDITURES Salaries Faculty 28,948 30,756 31, ,562 98% 31,806 21% 1,244 4% Salaries Non Faculty 32,896 34,663 36,559 34,985 96% 38,189 26% 3,204 9% Wages 6,384 6,406 3,532 4, % 3,818 3% (432) 10% Benefits 15,789 16,749 17,436 16,898 97% 18,238 12% 1,340 8% Personnel Costs 84,017 88,574 88,858 86,695 98% 92,051 62% 5,356 6% Utilities 4,666 4,997 5,227 5, % 5,394 4% 179 3% Scholarships 36,282 35,555 32,035 30,265 94% 32,546 22% 2,281 8% Discounts (12,211) (15,064) (10,461) (9,875) 94% (9,646) 6% 229 2% Equipment (Capitalized) 4,174 6,211 5,453 5,125 94% 6,251 4% 1,126 22% Operations and Maintenance (Net) 27,579 29,011 25,352 27, % 21,855 15% (5,507) 20% TOTAL EXPENDITURES 144, , , ,787 99% 148, % 3,664 3% Percent Change 16.9% 3.3% 1.9% 3.0% 1.4% TRANSFERS RFS Debt Service (To System Office) (10,898) (13,139) (13,065) (13,065) 100% (12,274) 791 6% Other (5,657) (7,635) (500) (6,535) >500% (1,132) 5,403 83% NET TRANSFERS (16,555) (20,774) (13,565) (19,600) 144% (13,406) 6,194 32% NET INCREASE (DECREASE) 10,765 3,010 1, % 762 (234) 23% ENDING CURRENT FUND BALANCE 57,581 58,585 54,726 59, % 60, % * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). TAMU CC amount for FY 2010 is $6.3 million. Executive Budget Summary Printed: 7/16/2012

56 Texas A&M University Corpus Christi Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 11,906 $ 12,266 $ 360 Designated 28,353 28, Auxiliary 13,291 13,294 3 Restricted 6,031 6, Net Change in Fund Balance Current Funds $ 59,581 $ 60,343 $ 762 * if applicable Explanation for Net Decrease* K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

57 TEXAS A&M UNIVERSITY KINGSVILLE Revenues BUDGET NARRATIVE Total Revenues are being budgeted at $132 million for FY This is an increase of $3.4 million (3%), as compared to FY 2012 projected actuals. The primary reasons for this increase in revenue are an increase in the designated tuition rate ($10.71), parking fees, waivers and exemptions, and a projected increase in enrollment for FY Tuition and Fees (Gross) reflects an increase of $2.8 million (7%), a portion of which is Waivers and Exemptions that are projected to increase by $500,000 (29%) due to expanded utilization of the Hazelwood exemption. Sales and Services revenues are projected to increase by $251,000 due to an increase in residence hall and meal plan rates. Gifts, Investment Income, and Other Income continue to be budgeted conservatively due to current economic uncertainty. Expenditures Total Expenditures are budgeted to increase by $2 million (2%), as compared to FY 2012 projected actuals. Total salaries for faculty reflect an increase of 2%, which illustrates the support for growth in faculty to teach an increased number of students and the newly funded Veterinary Technician Program. Total benefits are increased by $140,000 to accommodate the increase in salaries. TAMU K plans to award mid year merit raises for the faculty and staff, contingent on an enrollment increase above the projected level. For every 1% in salary and benefits that are awarded, it is estimated that it will cost $340,000. Utilities are budgeted to be relatively flat for the fiscal year. The additional $1.5 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. Operations and Maintenance are projected to increase by 1% to fund the Veterinary Technician Program. TAMU K is very cognizant of the need to reduce costs, where possible, and still provide superior educational programs. The university has consolidated/eliminated vacant administrative positions on campus where possible. TAMU K will continue to seek other savings opportunities.

58 TEXAS A&M UNIVERSITY KINGSVILLE Transfers BUDGET NARRATIVE CONTINUED Total FY 2013 budgeted transfers include $9.2 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), $217,000 from dining services, and $3.5 million from housing revenues. Additional debt service obligations for the renovation of the Student Union Building ($76,000), Married Student Housing ($47,000), Campus Parking Lot Improvements ($36,000), Stadium Track and Field Renovation ($40,000), and Poteet Hall Renovation ($30,000) are anticipated for FY Other Transfers are primarily attributed to $2.9 million of HEF funds reserved to address compliance, deferred maintenance projects and campus redevelopment projects. A transfer of $6.1 million is also included to reflect the transfer of Federal Pell Grant and Supplemental Educational Opportunity Grant scholarships to Texas A&M University San Antonio. An additional $400,000 reflects the transfer to the State of Texas for the B On Time Program.

59 T THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University Kingsville FY 2013 Budget Graphs (In Thousands) Other Income Investment Income Sales and Services Gifts Student Financial Assistance Contracts and Grants FY 2013 BUDGET REVENUES $131,706 Total State Appropriations Higher Education Fund Tuition and Fees (Gross) See Executive Budget Summary for amounts and percentages Equipment (Capitalized) Operations and Maintenance (Net) Scholarships FY 2013 BUDGET EXPENDITURES $112,808 Total Debt Service Utilities See Executive Budget Summary for amounts and percentages Personnel Costs Scholarships & Fellowships $10,950 10% Research $18,212 16% FY2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Student Service $6,900 6% Academic Support $9,507 8% Auxiliary $19,127 17% Public Service $258 0% Institutional Support $10,098 9% Operation & Maint of Plant $7,774 7% Instruction $29,982 27% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

60 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University Kingsville FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 39,617 38,078 38,127 37,492 37, % Restatement: (prior year correction) 0 0 REVENUES State Appropriations 38,674 49,508 34,930 35, % 34,929 27% (76) 0% Higher Education Fund 5,168 5,047 5,047 5, % 5,047 4% (0) 0% Tuition and Fees (Gross) 34,866 39,638 45,271 43,194 95% 46,027 35% 2,833 7% Contracts and Grants 36,311 40,849 28,789 11,900 41% 12,076 9% 176 1% Student Financial Assistance 24,900 n/a 25,547 19% 647 3% Gifts 3,992 5,817 3,884 4, % 4,593 3% 5 0% Sales and Services 14,245 17,645 16,909 16,700 99% 16,951 13% 251 2% Investment Income 3,342 4,769 2,051 1,430 70% 1,440 1% 10 1% Other Income % 635 0% (5) 1% Discounts (11,601) (14,334) (14,590) (15,100) 103% (15,538) 12% (438) 3% TOTAL REVENUES 125, , , , % 131, % 3,402 3% Percent Change 3.6% 19.3% 18.0% 14.2% 7.4% EXPENDITURES Salaries Faculty 21,974 23,337 21,682 22, % 22,590 20% 463 2% Salaries Non Faculty 24,920 28,711 25,936 25, % 25,827 23% (7) 0% Wages 5,078 5,608 5,454 5, % 5,973 5% 23 0% Benefits 13,215 14,350 13,971 13,647 98% 13,787 12% 140 1% Personnel Costs 65,188 72,007 67,043 67, % 68,177 60% 619 1% Utilities 4,179 4,951 4,654 4, % 4,667 4% 17 0% Scholarships 23,975 29,693 27,559 28, % 29,965 27% 1,465 5% Discounts (11,601) (14,334) (14,590) (15,100) 103% (15,538) 14% (438) 3% Equipment (Capitalized) 1,325 1,394 1,328 1,290 97% 1,298 1% 8 1% Operations and Maintenance (Net) 30,278 33,064 23,117 23, % 24,240 21% 340 1% Debt Service n/a 0 0% 0 n/a TOTAL EXPENDITURES 113, , , , % 112, % 2,010 2% Percent Change 0.9% 11.8% 13.9% 12.6% 3.4% TRANSFERS RFS Debt Service (To System Office) (6,651) (7,661) (9,109) (8,789) 96% (9,153) (364) 4% Other (6,877) (15,685) (4,287) (8,630) 201% (9,525) (895) 10% NET TRANSFERS (13,527) (23,346) (13,396) (17,419) 130% (18,678) (1,259) 7% NET INCREASE (DECREASE) (1,539) (587) % % ENDING CURRENT FUND BALANCE 38,078 37,492 38,218 37,579 98% 37, % * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). TAMUK amount for FY 2010 is $4.9 million. Executive Budget Summary Printed: 7/16/2012

61 Texas A&M University Kingsville Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 6,343 $ 6,343 $ Designated 14,721 14, Auxiliary 4,511 4, Restricted 12,004 12, Net Change in Fund Balance Current Funds $ 37,579 $ 37,799 $ 220 * if applicable Explanation for Net Decrease* K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

62 TEXAS A&M UNIVERSITY SAN ANTONIO Revenues BUDGET NARRATIVE Total Revenues are budgeted to increase by $1.7 million (5%) over FY 2012 projected actuals. This increase is attributed to a small increase in State Appropriations from state paid benefits as a result of increased staffing levels and Tuition and Fees. TAMU SA is projecting Statutory Tuition growth of $533,000 (12%), Designated Tuition growth of $732,000 ($12%), and Fees increases of $1.1 million ($18%), all over FY 2012 projected actuals. Statutory and Designated Tuition growth is primarily based on increases in enrollment. The increase in Fees is attributed to a $10/SCH increase (at 15 hours), in addition to amounts attributed to enrollment growth. The increases mentioned above result in an expected total increase in Tuition and Fees (Gross) of $2.4 million (14%). For FY 2013, TAMU SA received approval from the Board of Regents to combine 10 of 12 existing mandatory fees into one consolidated University Services Fee. The new fee will be used to cover expenses currently justified under the following fees: Academic Advising Fee, Library Fee, Transcript Fee, Student ID Fee, Distance Learning Fee, Energy Fee, Safety & Security Fee, Transportation Fee, Technology Fee, Program Fee, and to cover other university services as required. Due to the rapid growth of the University, flexibility in the use of these funds is essential in order to be able to utilize all available revenues and adapt to the frequently changing needs of the university. The new fee structure eliminates the accumulation of funds into restricted use accounts. Budgeting and accounting for the 10 separate fees was cumbersome and made it difficult for the university to direct resources to areas of greatest need. Consolidation of the 10 fees into one fee, titled University Services Fee, allows more flexibility in the use of the funds and minimizes the manpower required to budget and account for the separate fees. It also eliminates the silo mentality of funding and allows for the best use of the funding within the approved uses of the new fee. Expenditures Total expenditures are budgeted to increase $2.5 million (7%) over FY 2012 projected actuals. The increase is primarily attributed to an increase in personnel costs. Faculty and staff salaries are budgeted to increase in FY 2013 by $2.3 million, as compared to FY 2012 projected actuals. In anticipation of continuing double digit growth in enrollment, additional faculty and staff hiring is necessary to maintain quality programs. A 3% merit plan (approximately $400,000) is also being budgeted for faculty and staff salaries.

63 TEXAS A&M UNIVERSITY SAN ANTONIO BUDGET NARRATIVE CONTINUED In preparation for accreditation and operations independent from Texas A&M University Kingsville in the financial aid area, TAMU SA has taken steps to acquire its own instance of the Banner student information system and will be working towards implementation of this system. The university has entered into a contract with Ellucian (formerly SunGuard/Datatel) to provide guidance and support in the implementation process, as well as in other areas of information services. The agreement amounts to approximately $1.6 million per year. Scholarships are projected to increase in FY 2013 due to the continued enrollment growth the university is experiencing. While TAMU SA is working towards accreditation, student financial aid activities for TAMU SA continue to be handled through TAMU Kingsville. During this time, TAMU Kingsville continues to collect student financial assistance for TAMU SA, which is then transferred to TAMU SA. The transfer of $6.1 million related to student financial assistance is reflected on the transfers line.

64 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University San Antonio FY 2013 Budget Graphs (In Thousands) Sales and Student Financial Assistance Services Contracts and Grants FY 2013 BUDGET REVENUES $33,117 Total Investment Income Gifts State Appropriations Operations and Maintenance (Net) Equipment (Capitalized) FY 2013 BUDGET EXPENDITURES $37,018 Total Tuition and Fees (Gross) Scholarships Personnel Costs See Executive Budget Summary for amounts and percentages Utilities See Executive Budget Summary for amounts and percentages Scholarships & Fellowships $4,118 11% FY 2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Student Service $4,125 11% Academic Support $2,095 6% Auxiliary $195 0% Public Service $250 1% Operation & Maint of Plant $2,052 6% Institutional Support $11,053 30% Instruction $13,130 35% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

65 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University San Antonio FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 0 2,783 1,185 6,373 7, % Restatement: (prior year correction) 0 0 REVENUES State Appropriations 11,763 11,828 16,713 16, % 16,915 51% 202 1% Tuition and Fees (Gross) 10,858 14,610 15,467 17, % 19,423 59% 2,398 14% Contracts and Grants 5,080 7,840 5, % 0 0% (157) 100% Student Financial Assistance 0 n/a 0 0% 0 n/a Gifts % 190 1% (312) 62% Sales and Services % 250 1% (158) 39% Investment Income % 40 0% (20) 33% Other Income n/a 0 0% (75) 100% Discounts (3,018) (3,401) (2,400) (3,500) 146% (3,700) 11% (200) 6% TOTAL REVENUES 25,006 31,757 35,735 31,440 88% 33, % 1,677 5% Percent Change 27.0% 12.5% 1.0% 7.3% EXPENDITURES Salaries Faculty 5,227 6,623 8,791 8,538 97% 9,253 25% 715 8% Salaries Non Faculty 6,348 6,589 9,337 7, % 9,413 25% 1,631 21% Wages % 303 1% 5 2% Benefits 2,954 2,821 4,098 3,689 90% 3,888 11% 199 5% Personnel Costs 14,794 16,433 22,525 20,307 90% 22,856 62% 2,549 13% Utilities % 528 1% 28 6% Scholarships 6,116 8,849 6,959 7, % 7,988 22% 109 1% Discounts (3,018) (3,401) (2,400) (3,500) 146% (3,700) 10% (200) 6% Equipment (Capitalized) % 91 0% (9) 9% Operations and Maintenance (Net) 3,433 5,307 6,955 9, % 9,255 25% 7 0% TOTAL EXPENDITURES 21,577 27,663 34,732 34,534 99% 37, % 2,484 7% Percent Change 28.2% 25.6% 24.8% 6.6% TRANSFERS RFS Debt Service (To System Office) 0 0 (2,636) (2,636) 100% (2,636) 0 0% Other (645) (504) 448 6,500 >500% 6, % NET TRANSFERS (645) (504) (2,188) 3, % 3, % NET INCREASE (DECREASE) 2,783 3,589 (1,185) % 0 (770) 100% ENDING CURRENT FUND BALANCE 2,783 6, ,143 n/a 7, % * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). TAMU SA amount for FY 2010 is $860 thousand. Executive Budget Summary Printed: 7/25/2012

66 Texas A&M University San Antonio Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 3,167 $ 3,167 $ Designated 3,976 3,976 Auxiliary Restricted Net Change in Fund Balance Current Funds $ 7,143 $ 7,143 $ * if applicable Explanation for Net Decrease* K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

67 TEXAS A&M UNIVERSITY TEXARKANA BUDGET NARRATIVE Revenues Total budgeted Revenues for FY 2013 will increase by $2.2 million (7%), compared to FY 2012 projected actuals. The revenue increase is a result of two main line items coupled with an increase in semester credit hours. The two main line items are a designated tuition rate increase and an increase in gifts from the Arnold Scholarship program. While tuition revenue estimates have been budgeted conservatively, Tuition and Fees (Gross) are expected to increase 19% over FY 2012 projected actuals. This increase is mainly associated with increased enrollment due to downward expansion, the increased rates of designated tuition, and a modest increase in the Student Service fee. Even with the increase of $22.70 per semester credit hour in designated tuition, TAMU T will still have the lowest cost of attendance of any university in the A&M System and the State of Texas. TAMU T continued to witness steady enrollment growth during FY 2012 with another strong freshmen class (an increase of over 183% from the inaugural year of downward expansion). However, the total increase in Tuition and Fees revenue for FY 2013 continues to be 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 opened its first residence hall this past fall. Occupancy rates out performed estimates for the first year as nearly 80% of the new residence hall was filled. However, revenues for FY 2013 will be budgeted very conservatively based upon the short operational history. TAMU T will implement Phase II of the residence master plan and will begin construction on a 250 bed facility and a 275 seat dining facility this August. 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 towards a donor specified purpose.

68 TEXAS A&M UNIVERSITY TEXARKANA Expenditures BUDGET NARRATIVE CONTINUED The overall FY 2013 expense budget is up $3.3 million (13%), compared to FY 2012 projected actuals. With additional funds available due to the increase in designated tuition and in response to dramatic enrollment increases, TAMU T is budgeting a 10% increase in Personnel Costs as additional faculty and staff are hired. Nine new faculty positions have been approved and seven new staff positions in critical needed areas are planned for FY TAMU T will evaluate student enrollment this fall to determine if a merit salary pool can be established. Although Scholarships are budgeted to increase $625,000 from FY 2012 projected actuals, the FY 2013 scholarship budget will exceed the amount budgeted for FY 2012 by nearly $2 million. This is due to increases in gifts and donations which can be used for scholarships and federal grant in aid and set aside programs. 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. Operations and Maintenance is budgeted to increase $1.6 million over projected actuals for FY The higher operating expenditure budget is a result of increased enrollment and housing expenditures. 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 is budgeted to cover Tuition Revenue Bond debt service obligations for campus buildings.

69 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University Texarkana FY 2013 Budget Graphs (In Thousands) Student Financial Assistance Other Income FY 2013 BUDGET REVENUES $34,157 Total State Appropriations Operations and Maintenance (Net) FY 2013 BUDGET EXPENDITURES $28,195 Total Investment Income Personnel Costs Sales and Services Gifts Contracts and Tuition and Fees Grants (Gross) See Executive Budget Summary for amounts and percentages Higher Education Fund Scholarships Utilities See Executive Budget Summary for amounts and percentages FY2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Instruction $10,748 36% Operation & Maint of Plant $1,606 5% Public Service $43 0% Student Service $1,790 6% Academic Support $1,925 7% Institutional Support $11,242 38% Auxiliary $2,336 8% * Excludes Scholarships & Fellowships NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

70 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M University Texarkana FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 13,215 17,031 16,823 22,252 23,337 1,085 5% Restatement: (prior year correction) 0 0 REVENUES State Appropriations 17,208 17,080 17,460 17, % 17,457 51% (3) 0% Higher Education Fund 1,685 1,308 1,308 1, % 1,308 4% (0) 0% Tuition and Fees (Gross) 6,187 7,780 7,307 8, % 9,897 29% 1,586 19% Contracts and Grants 5,756 9,199 2, % 789 2% 66 9% Student Financial Assistance 3,437 n/a 3,633 11% 196 6% Gifts 980 2,548 1, % 1,442 4% % Sales and Services ,084 1, % 1,470 4% 56 4% Investment Income % 245 1% 95 63% Other Income % 0 0% 0 n/a Discounts (897) (2,028) (1,462) (1,840) 126% (2,084) 6% (244) 13% TOTAL REVENUES 31,975 37,214 29,237 31, % 34, % 2,219 7% Percent Change 15.3% 16.4% 21.4% 14.2% 16.8% EXPENDITURES Salaries Faculty 5,641 5,634 6,023 6, % 6,959 25% % Salaries Non Faculty 4,375 4,505 4,816 5, % 5,575 20% 386 7% Wages % 436 2% (110) 20% Benefits 2,389 2,755 2,983 2,871 96% 3,229 11% % Personnel Costs 13,081 13,532 14,268 14, % 16,200 57% 1,539 10% Utilities % 925 3% 26 3% Scholarships 3,243 4,758 3,722 5, % 5,720 20% % Discounts (897) (2,028) (1,462) (1,840) 126% (2,084) 7% (244) 13% Equipment (Capitalized) n/a 0 0% (157) 100% Operations and Maintenance (Net) 4,488 6,662 5,948 5,884 99% 7,435 26% 1,551 26% TOTAL EXPENDITURES 20,452 24,020 23,275 24, % 28, % 3,339 13% Percent Change 10.4% 17.4% 3.1% 3.5% 21.1% TRANSFERS RFS Debt Service (To System Office) (7,250) (7,257) (5,962) (5,962) 100% (5,962) 0 0% Other (456) (717) 0 (35) n/a % NET TRANSFERS (7,707) (7,973) (5,962) (5,997) 101% (5,962) 35 1% NET INCREASE (DECREASE) 3,816 5, ,085 n/a 0 (1,085) 100% ENDING CURRENT FUND BALANCE 17,031 22,252 16,823 23, % 23, % * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). TAMU T amount for FY 2010 is $849 thousands. Executive Budget Summary Printed: 7/16/2012

71 Texas A&M University Texarkana Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 13,107 $ 13,107 $ Designated 8,385 8,385 Auxiliary 1,434 1,434 Restricted Net Change in Fund Balance Current Funds $ 23,337 $ 23,337 $ * if applicable Explanation for Net Decrease* K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

72 WEST TEXAS A&M UNIVERSITY Revenues BUDGET NARRATIVE Total Revenues are estimated to increase by $1.6 million (1%) over FY 2012 projected revenues. The increase is comprised of several factors. State Appropriations were slightly reduced compared to both the FY 2012 budget and to FY 2012 projected actuals. This is due to the flat, or slightly reduced, state funding for all state agencies. Tuition and Fees are budgeted to increase by $2.4 million (5%). This increase is due to a 10% increase in the designated tuition rate. An increase in enrollment from the budgeted FY 2011 to FY 2012 enrollment figures, as well as anticipated enrollment growth of 1% for FY 2013, also contributed to the increase. This also includes Waivers and Exemptions totaling $2.1 million, which is an increase of $453,000. Contracts and Grants are budgeted to increase by $103,000 (1%) compared to the FY 2012 budget, as well as when compared to FY 2012 projected actuals. Student Financial Assistance is budgeted to increase modestly by $440,000 (3%) over projected actuals. Sales and Services have increased by $2.2 million. This is due to an addition of revenue producing departments; an increase in room rates; and an increase in housing occupants due to Centennial Hall being completed and fully opened in FY This also includes the anticipated enrollment increase of 1% for FY 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. This results in a budgeted decrease of $2.6 million compared to FY 2012 projected actuals.

73 WEST TEXAS A&M UNIVERSITY Expenditures BUDGET NARRATIVE CONTINUED Total Expenditures are budgeted to increase $970,000 (1%). Personnel Costs budgeted for FY 2013 have increased by $3.2 million (6%) compared to projected FY 2012 actuals which is attributable to merit/market equity increases and salary savings that were realized in FY Additionally, four new positions have been added. Utilities have decreased $300,000 (8%) due to adjustments in rate contracts with utility providers and an overall reduction in utility consumption. Scholarships are budgeted to increase by $1.4 million (5%) in FY 2013 compared to FY 2012 projected actuals. This is the result of 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. Capitalized Equipment is budgeted to decrease by $3.1 million when compared to FY 2012 projected actuals. This is because gifts for specific building and renovation projects of $2.7 million resulted in an increase in Capitalized Equipment in FY Operations and Maintenance expense is estimated to decrease by $260,000 (1%) compared to FY 2012 projected actuals. Overall decreases are due to institution mandated budget reductions and reallocations. Transfers The RFS Debt Service and other transfers have remained flat for continued payments for housing, the fine arts complex, and other various projects.

74 THE TEXAS A&M UNIVERSITY SYSTEM West Texas A&M University FY 2013 Budget Graphs (In Thousands) Tuition and Fees (Gross) FY 2013 BUDGET REVENUES $128,814 Total Contracts and Grants Sales and Services Operations and Maintenance (Net) FY 2013 BUDGET EXPENDITURES $116,454 Total Higher Education Fund Investment Income Other Income Equipment (Capitalized) Personnel Costs State Appropriations Gifts Student Financial Assistance See Executive Budget Summary for amounts and percentages Scholarships Utilities See Executive Budget Summary for amounts and percentages Student Service $3,600 3% Scholarships & Fellowships $9,891 9% FY2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Academic Support $5,791 5% Auxiliary $24,125 21% Institutional Support $21,404 18% Research $4,644 4% Public Service $4,059 3% Operation & Maint of Plant $13,599 12% Instruction $29,341 25% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

75 THE TEXAS A&M UNIVERSITY SYSTEM West Texas A&M University FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 26,444 30,874 31,547 42,565 41,800 (765) 2% Restatement: (prior year correction) 0 0 REVENUES State Appropriations 37,282 35,045 33,746 33, % 33,441 26% (305) 1% Higher Education Fund 4,886 4,653 4,653 4, % 4,653 4% (0) 0% Tuition and Fees (Gross) 41,188 45,542 50,996 50,009 98% 52,443 41% 2,434 5% Contracts and Grants 23,175 23,873 27,564 14,449 52% 14,552 11% 103 1% Student Financial Assistance 13,115 n/a 13,555 11% 440 3% Gifts 4,417 4, ,660 n/a 0 0% (2,660) 100% Sales and Services 19,157 21,881 21,618 21, % 23,865 19% 2,247 10% Investment Income 2,645 3, % 667 1% (221) 25% Other Income , % 0 0% (401) 100% Discounts (13,744) (15,625) (12,947) (14,361) 111% (14,361) 11% 0 0% TOTAL REVENUES 119, , , , % 128, % 1,636 1% Percent Change 6.9% 4.0% 2.7% 2.5% 1.1% EXPENDITURES Salaries Faculty 21,355 21,521 21,493 20,700 96% 21,228 18% 528 3% Sl Salaries Non Faculty 20,803 20,305 21, ,376 93% 23,091 20% 2,715 13% Wages 5,142 4,534 4,184 4, % 4,423 4% (95) 2% Benefits 12,772 12,617 12,628 12, % 12,722 11% 94 1% Personnel Costs 60,073 58,977 60,123 58,222 97% 61,465 53% 3,243 6% Utilities 3,061 3,118 3,083 3, % 3,329 3% (306) 8% Scholarships 21,709 26,598 26,982 26, % 28,358 24% 1,376 5% Discounts (13,744) (15,625) (12,947) (14,361) 111% (14,361) 12% 0 0% Equipment (Capitalized) 4,612 1,566 4,890 7, % 4,467 4% (3,083) 41% Operations and Maintenance (Net) 29,015 28,720 33,806 33,456 99% 33,196 29% (260) 1% TOTAL EXPENDITURES 104, , , , % 116, % 970 1% Percent Change 3.7% 1.3% 12.2% 11.7% 0.4% TRANSFERS RFS Debt Service (To System Office) (6,817) (8,237) (10,705) (10,705) 100% (10,683) 22 0% Other (3,247) (752) (1,754) (1,754) 100% (1,677) 77 4% NET TRANSFERS (10,064) (8,989) (12,459) (12,459) 100% (12,360) 99 1% NET INCREASE (DECREASE) 4,430 11,691 (1,000) (765) n/a (0) % ENDING CURRENT FUND BALANCE 30,874 42,565 30,547 41, % 41,800 (0) 0% * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). WTAMU amount for FY 2010 is $4 million. Executive Budget Summary Printed: 7/16/2012

76 West Texas A&M University Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 4,900 $ 4,900 $ Designated 24,900 24,900 Auxiliary 10,000 10,000 Restricted 2,000 2,000 Net Change in Fund Balance Current Funds $ 41,800 $ 41,800 $ * if applicable Explanation for Net Decrease* K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

77 TEXAS A&M HEALTH SCIENCE CENTER Introduction BUDGET NARRATIVE The Texas A&M Health Science Center (HSC) is continuing to stabilize academic programs while adjusting to the 9.9% general revenue reduction in the FY 2012/2013 biennium. During FY 2013, the HSC will maintain the targeted medicine enrollment increase by enrolling 200 first year medical students and will thereby achieve our second year at this targeted level. Additionally, the HSC will 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 $12.6 million (6%) compared to FY 2012 projected actual revenues. This decrease is primarily attributable to the $13 million in revenue received under HB4 44 in FY 2012, and appropriated through FY Gross Tuition and Fees reflect an increase of $1 million (3%) compared to FY 2012 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 an increase of $2.6 million (10%) compared to FY 2012 projected actuals. The increase is due to contracts and grants previously reported under the Research Foundation moving to the HSC under the management of the Office of Sponsored Research Services. Sales and Services reflect a $2.6 million (9%) decrease compared to FY 2012 projected. This decrease is the result of budgeting conservatively based on the uncertainty of health care sales. Expenditures Total Expenditures are budgeted to increase by $5.5 million (3%) compared to FY 2012 projected actual expenditures. Personnel costs represent 63% of the HSC expenditure budget. Although the economic outlook may not be favorable, recruiting and retaining faculty and staff are critical to the mission of the HSC. The HSC has provided authority to deans and vice presidents to provide merit raises

78 TEXAS A&M HEALTH SCIENCE CENTER BUDGET NARRATIVE CONTINUED or 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 $3.7 million. Wages are budgeted to decrease by 25% compared to projected actuals because of uncertainty of the demand for these positions. Departments will utilize their operating budget to cover the gap between the realized demand and the amount budgeted. Operations and Maintenance are projected to increase by $1.6 million (3%), largely due to contract and grants previously reported under the Research Foundation moving to the HSC under the management of the Office of Sponsored Research Services. Transfers During FY 2012 the HSC participated in the Upper Payment Limit Program (UPL) resulting in net transfers of $2.8 million. Depending on guidelines from the Department of Health and Human Services (DHHS) concerning the Medicaid Reimbursement Program, due September 1, 2012, the HSC is seeking Texas A&M University System Board of Regent permission to make reimbursement payments up to $10 million. The RFS Debt Service transfer is consistent with FY 2012 projected actuals. The RFS Debt Service transfer includes: $1.5 million in tuition revenue bonds (TRBs) for the School of Rural Public Health building complex, $2.9 million in TRBs for the Bryan research and education buildings, $256,000 for the Bryan research and education building paid from interest and indirect costs, $3.9 million for the Round Rock building paid from appropriated funds, $562,000 the College of Pharmacy Vivarium in Kingsville paid from designated tuition and indirect costs, $121,000 for the Baylor College of Dentistry parking garage paid from parking revenue and designated tuition, and $295,000 for various other projects paid from indirect costs, gifts and designated tuition.

79 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M Health Science Center FY 2013 Budget Graphs (In Thousands) Sales and Services FY 2013 BUDGET REVENUES $194,652 Total Investment Income Other Income Student Financial Assistance Operations and Maintenance (Net) FY 2013 BUDGET EXPENDITURES $203,661 Total Gifts Contracts and Grants State Appropriations Equipment (Capitalized) Scholarships Personnel Costs Tuition and Fees (Gross) See Executive Budget Summary for amounts and percentages Utilities See Executive Budget Summary for amounts and percentages Public Service $3,700 2% Research $27,721 14% FY 2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Scholarships & Fellowships $1,016 0% Student Service $5,547 3% Academic Support $25,590 12% Hospitals and Clinics $12,113 6% Auxiliary $580 0% Operation & Maint of Plant $23,678 12% Institutional Support $26,753 13% Instruction $76,964 38% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

80 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M Health Science Center FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 56,030 74,815 89,055 94,135 97,893 3,759 4% Restatement: (prior year correction) 0 0 REVENUES State Appropriations 116, , , ,233 99% 103,533 53% (12,700) 11% Tuition and Fees (Gross) 21,779 25,414 25,596 29, % 30,615 16% 1,022 3% Contracts and Grants 40,976 37,646 27,995 25,958 93% 28,531 15% 2,573 10% Student Financial Assistance 120 n/a % Gifts 3,533 3,028 2,365 2, % 2,537 1% (250) 9% Sales and Services 24,456 26,586 23,459 27, % 25,349 13% (2,592) 9% Investment Income 8,799 10,736 5,811 5, % 5,318 3% (591) 10% Other Income >500% 207 0% (57) 22% Discounts (1,678) (1,754) (1,621) (1,559) 96% (1,559) 1% (0) 0% TOTAL REVENUES 214, , , , % 194, % (12,594) 6% Percent Change 24.6% 1.5% 7.5% 4.7% 3.2% EXPENDITURES Salaries Faculty 40,246 41,728 46,293 42,783 92% 44,066 22% 1,283 3% Salaries Non Faculty 58,130 58,308 54,702 59, % 60,949 30% 1,583 3% Wages 3,809 2,478 1,708 2, % 1,793 1% (584) 25% Benefits 21,977 21,995 23,290 21,306 91% 21,730 11% 424 2% Personnel Costs 124, , , , % 128,538 63% 2,706 2% Utilities 7,115 7,965 9,757 7,103 73% 8,024 4% % Scholarships 3,784 4,117 3,140 4, % 4,246 2% 124 3% Discounts (1,621) (1,732) (1,621) (1,559) 96% (1,559) 1% (0) 0% Equipment (Capitalized) 4,681 5,876 5,840 4,005 69% 4,125 2% 120 3% Operations and Maintenance (Net) 56,571 53,676 51,327 58, % 60,288 30% 1,627 3% TOTAL EXPENDITURES 194, , , , % 203, % 5,497 3% Percent Change 8.0% 0.1% 0.0% 1.9% 4.7% TRANSFERS RFS Debt Service (To System Office) (7,462) (10,323) (9,518) (9,518) 100% (9,526) (8) 0% Other 6,696 6,677 6,200 4,194 68% 6,200 2,006 48% NET TRANSFERS (766) (3,646) (3,318) (5,324) 160% (3,326) 1,998 38% NET INCREASE (DECREASE) 18,785 19,319 3,304 3, % (12,335) (16,093) 428% ENDING CURRENT FUND BALANCE 74,815 94,135 92,360 97, % 85,558 (12,334) 13% * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). TAMHSC amount for FY 2010 is $7.2 million. Executive Budget Summary Printed: 7/16/2012

81 Texas A&M Health Science Center Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 44,343 $ 32,007 $ (12,335) Designated 46,787 46,787 Auxiliary 1,007 1,007 Restricted 5,757 5,757 Net Change in Fund Balance Current Funds $ 97,893 $ 85,558 $ (12,335) Explanation for Net Decrease* Functional and General $ (12,335) FY 2013 portion of HB4 expenditures. Total HB4 revenue received in FY 2011 and FY 2012 * if applicable K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

82 TEXAS AGRILIFE RESEARCH Revenues BUDGET NARRATIVE Texas AgriLife Research is expecting total revenues in FY 2013 to increase approximately $2.7 million (1%) compared to FY 2012 projected actuals. Total State Appropriations are projected to increase approximately 1% from FY 2012 projections. Federal appropriations will remain level with FY Contracts and Grants revenue is projected to increase by 3%, while sales are expected to experience a moderate decline in FY General Revenue has remained flat from FY 2012 projections to FY The increase in total State Appropriations comes from the increase in Group Insurance provided by the state for FY Revenue from contracts and grants is budgeted at $87.9 million, or 47% of total revenue. AgriLife Research continues to be successful in obtaining these types of funds after the decline in federal earmarks for FY Sales and Services are projected to be 2% lower in FY 2013, primarily due to higher sales in FY 2011 and FY 2012 during the drought period. This is partially offset by the regulatory functions and sales and services performed by the agency. Investment Income is budgeted to increase slightly based on investment forecasts from the System Offices. Expenditures Total FY 2013 budgeted expenditures are expected to increase by $4.4 million (2%), compared to FY 2012 projected expenditures. Personnel Costs are up 3% from FY 2012 projected expenses due to a FY 2013 salary merit program of 1.5%, combined with a 1.5% one time merit program. Total wages are budgeted slightly higher and benefits are projected to increase due to the additional Group Insurance provided by the state. The 2% increase in budgeted Operations and Maintenance expenses is attributable to increased research expenses from contracts and grants as these are projected to grow throughout the year. In addition, repair and maintenance costs are expected to increase as deferred maintenance from prior years is addressed.

83 TEXAS AGRILIFE RESEARCH BUDGET NARRATIVE CONTINUED Equipment costs are down slightly from FY 2012 projected actuals as units defer larger purchases until possible budget increases. Scholarships remain consistent with FY 2012 due to the $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 resources, 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 has implemented Concur, a webbased travel processing software. In addition, the agency is collaborating with other system members to gain efficiencies in contract and grant administration through the Office of Sponsored Research Services. 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.

84 THE TEXAS A&M UNIVERSITY SYSTEM Texas AgriLife Research FY 2013 Budget Graphs (In Thousands) Contracts and Grants FY 2013 BUDGET REVENUES $188,013 Total Gifts Sales and Services Investment Income Operations and Maintenance (Net) FY 2013 BUDGET EXPENDITURES $190,240 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 2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Research $175,453 92% Institutional Support $4,270 2% Operation & Maint of Plant $5,529 3% Public Service $4,989 3% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

85 THE TEXAS A&M UNIVERSITY SYSTEM Texas AgriLife Research FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 59,256 54,852 52,730 62,151 59,703 (2,449) 4% Restatement: (prior year correction) 0 0 REVENUES State Appropriations 68,857 66,766 64,012 64, % 65,086 35% 504 1% Federal Appropriations 7,967 8,923 7,568 8, % 8,909 5% (0) 0% Contracts and Grants 85,632 86,762 86,206 85,505 99% 87,887 47% 2,382 3% Gifts 2,634 1,706 1,862 1,750 94% 1,873 1% 123 7% Sales and Services 18,992 21,606 18,237 19, % 19,189 10% (434) 2% Investment Income 3,585 5,282 4,184 5, % 5,071 3% 71 1% Other Income (38) (5) n/a 0 0% 5 100% TOTAL REVENUES 187, , , , % 188, % 2,650 1% Percent Change 4.0% 1.9% 4.8% 3.1% 3.3% EXPENDITURES Salaries Faculty 24,697 24,675 21,913 22, % 23,615 12% 619 3% Salaries Non Faculty 57,175 56,964 52,884 52,253 99% 53,954 28% 1,701 3% Wages 8,452 8,219 7,569 7, % 7,938 4% 143 2% Benefits 23, ,517 21, , % 21,956 12% 821 4% Personnel Costs 113, , , , % 107,462 56% 3,283 3% Utilities 6,190 6,399 6,243 6, % 6,390 3% 15 0% Scholarships 3,683 3,664 2,921 3, % 3,543 2% 11 0% Equipment (Capitalized) 5,774 3,741 5,423 5,222 96% 5,119 3% (103) 2% Operations and Maintenance (Net) 59,929 57,855 66,760 66, % 67,727 36% 1,192 2% Debt Service n/a 0 0% 0 n/a TOTAL EXPENDITURES 189, , , , % 190, % 4,397 2% Percent Change 1.0% 2.7% 0.5% 1.0% 2.9% TRANSFERS RFS Debt Service (To System Office) (432) (1,070) (2,022) (1,785) 88% (2,002) (217) 12% Other (2,420) 1,146 0 (185) n/a % NET TRANSFERS (2,853) 76 (2,022) (1,970) 97% (2,002) (32) 2% NET INCREASE (DECREASE) (4,404) 7,299 (4,899) (2,450) 50% (4,229) (1,779) 73% ENDING CURRENT FUND BALANCE 54,852 62,151 47,830 59, % 55,473 (4,228) 7% * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). AgriLife Research amount for FY 2010 is $7.2 million. Executive Budget Summary Printed: 7/16/2012

86 Texas AgriLife Research Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 1,300 $ 1,129 $ (171) Designated 51,978 48,593 (3,386) Auxiliary Restricted 6,424 5,752 (672) Net Change in Fund Balance Current Funds $ 59,703 $ 55,473 $ (4,229) Explanation for Net Decrease* Functional and General $ (171) Designated $ (3,386) Restricted $ (672) Use of 2009 Norman Hackerman Advanced Research Program funds with no cost extension, expiring 5/31/13, along with use of sales funds for operating at research centers. Use of balances for one time operating and equipment expenses. This resulted from the shift of Contract & Grants administration costs from functional & general to local funds and debt service on NMR, Centeq, Ag Headquarters Building, Administrative services building and Visitor's Center. Use of carryforward balances and timing of expenditures and reimbursement. * if applicable K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

87 TEXAS AGRILIFE EXTENSION SERVICE BUDGET NARRATIVE Revenues Texas AgriLife Extension Service is budgeting an overall revenue decrease of $1.6 million (1%) from FY 2012 projected actuals. This is primarily due to uncertainty of federal appropriations in FY The 22% decrease in federal appropriations from FY 2012 projected actuals is partially attributable to a projected 13% decrease in federal Smith Lever funds which account for 60% of federal appropriations. The remaining 9% is a result of the reclassification of federally appropriated funds to competitive contracts and grants. The 13% increase in Contracts and Grants is mainly due to the positive impact of the reclassification noted above, mitigated by a reduction in Contract and Grant revenue due to the loss of federal earmarks. The agency is strategically pursuing other funding opportunities through collaborations with state, federal, and private entities. Gift contributions are cyclical and tend to fluctuate with the general economic climate. The agency projects a 3% 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. While sales and service revenue (since implementation) did not meet original projections, there still has been significant growth due to the initiative and a benchmark has been established. Overall, Sales and Services revenue is estimated to increase approximately 2% in FY 2013 compared to FY 2012 projected actuals. Programs continue to be reviewed for fee based opportunities and units continue to pursue webbased technologies to expand programming opportunities. Due to the continuing uncertain economic climate, Investment Income is budgeted to remain unchanged from FY 2012 projected actuals.

88 TEXAS AGRILIFE EXTENSION SERVICE Expenditures BUDGET NARRATIVE CONTINUED AgriLife Extension is estimating a $1.2 million (1%) increase in expenditures when compared to FY 2012 projected actuals. Overall, Personnel Costs are budgeted to increase 1% and include a 1.5% salary merit pool and a 1.5% one time merit program in order to remain competitive with other members of the Texas A&M University System. Benefits reflect the proportional increase in salaries. State group insurance and retirement estimates are being budgeted based on the State projections for FY Utility costs are anticipated to increase approximately 2% for FY 2013 which is mainly attributable to the Expanded Food and Nutrition Education program paying utilities as part of new lease agreements. Funds for capital purchases are allocated on a priority basis in conjunction with the agency capital plan and are dependent upon available resources. Equipment costs for FY 2013 are estimated to be 27% less than FY 2012 projected actuals. Additional capital expenditures may be made based upon availability of funds. Operations and Maintenance costs are expected to increase 1% from FY 2012 projected actuals, which is due in part to the shift between salaries and operating for System assessments. AgriLife Extension, AgriLife Research and Texas Veterinary Medical Diagnostic Lab share fiscal, human resources, communication, and information technology services within 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, along with several system entities, implemented web based technology for travel processing. As a service agency, AgriLife Extension continues to collaborate with other system members to gain efficiencies in contract and grant administration.

89 THE TEXAS A&M UNIVERSITY SYSTEM Texas AgriLife Extension Service FY 2013 Budget Graphs (In Thousands) Federal Appropriations FY 2013 BUDGET REVENUES $112,622 Total Contracts and Grants Gifts Sales and Services Other Income Investment Income FY 2013 BUDGET EXPENDITURES $107,637 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 FY2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Public Service $57,322 53% Operation & Maint of Plant $98 0% Institutional Support $5,152 5% Instruction $45,065 42% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/18/2012

90 THE TEXAS A&M UNIVERSITY SYSTEM Texas AgriLife Extension Service FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 16,573 16,361 17,039 22,919 30,987 8,068 35% Restatement: (prior year correction) 0 0 REVENUES State Appropriations 66,366 61,629 58,814 58, % 59,333 53% 518 1% Federal Appropriations 21,579 24,198 19,819 23, % 18,485 16% (5,309) 22% Contracts and Grants 21,950 27,764 23,970 23, % 27,009 24% 3,039 13% Gifts 1,472 1, , % 1,174 1% 34 3% Sales and Services 4,434 5,051 7,553 6,050 80% 6,150 5% 100 2% Investment Income % 250 0% 0 n/a Other Income % 221 0% 0 0% TOTAL REVENUES 116, , , , % 112, % (1,618) 1% Percent Change 1.5% 3.4% 7.5% 5.3% 0.9% EXPENDITURES Salaries Faculty 12,372 11,837 11,013 11, % 11,097 10% 84 1% Salaries Non Faculty 55,132 52,118 52,245 49,521 95% 50,207 47% 686 1% Wages 2,036 2,774 2, , % 2, % (0) 0% Benefits 25,709 24,090 23,306 22,271 96% 22,544 21% 273 1% Personnel Costs 95,250 90,819 88,764 85,005 96% 86,048 80% 1,043 1% Utilities 1,048 1, % 1,009 1% 19 2% Scholarships % 97 0% (14) 13% Equipment (Capitalized) % 370 0% (137) 27% Operations and Maintenance (Net) 20,097 21,777 21,000 19,850 95% 20,114 19% 264 1% TOTAL EXPENDITURES 117, , , ,463 96% 107, % 1,174 1% Percent Change 0.2% 2.5% 2.6% 6.9% 3.3% TRANSFERS RFS Debt Service (To System Office) n/a 0 0 n/a Other % % NET TRANSFERS % % NET INCREASE (DECREASE) (212) 6, ,068 >500% 5,284 (2,784) 35% ENDING CURRENT FUND BALANCE 16,361 22,919 17,491 30, % 36,272 5,285 17% * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). AgriLife Extension amount FY 2010 is $7.9 million. Executive Budget Summary Printed: 7/19/2012

91 Texas AgriLife Extension Service Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 8,169 $ 8,169 $ Designated 22,524 23, Auxiliary Restricted 295 4,591 4,296 Net Change in Fund Balance Current Funds $ 30,987 $ 36,272 $ 5,284 * if applicable Explanation for Net Decrease* K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

92 TEXAS FOREST SERVICE Revenues BUDGET NARRATIVE The Texas Forest Service is budgeting a decrease in total revenue of $124.7 million (66%) compared to FY 2012 projected actuals. The $124.7 million decrease in revenue is due primarily to: $121 million in supplemental appropriations was received in FY 2012 related to the extremely heavy fire season $2.4 million in FEMA grant reimbursements (which are not budgeted) was received in FY 2012 $768,000 in gift revenues (which are not budgeted) was received for the Volunteer Fire Department Emergency Assistance Fund in FY Expenditures The Texas Forest Service is budgeting a decrease in total expenditures of $67 million (58%) from FY 2012 projected actuals. The $67 million decrease in expenditures is primarily due to the $1.5 million in overtime wages and the $65.5 million in Operations and Maintenance costs that were related to FY 2012 wildfire suppression expenses in excess of base funding levels. Included in Personnel Costs is the agency s plan for $116,000 in career ladder promotions and $370,000 in one time merit payments. The agency s plan for a 1% merit raise pool of $185,000 is contingent upon identification of the necessary funding.

93 THE TEXAS A&M UNIVERSITY SYSTEM Texas Forest Service FY 2013 Budget Graphs (In Thousands) FY 2013 BUDGET REVENUES $65,629 Total State Appropriations Equipment (Capitalized) FY 2013 BUDGET EXPENDITURES $49,021 Total Operations and Maintenance (Net) Other Income Contracts and Grants Utilities Sales and Services Investment Income See Executive Budget Summary for amounts and percentages Personnel Costs See Executive Budget Summary for amounts and percentages FY2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Research $2,150 4% Public Service $42,906 88% Institutional Support $2,843 6% Operation & Maint of Plant $1,123 2% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

94 THE TEXAS A&M UNIVERSITY SYSTEM Texas Forest Service FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 45,008 51,346 (33,013) (132,216) (57,855) 74,362 56% Restatement: (prior year correction) 0 0 REVENUES State Appropriations 24,454 23, , , % 23,057 35% (121,108) 84% Contracts and Grants 14,094 13,531 9,460 11, % 8,988 14% (2,810) 24% Gifts n/a 0 0% (768) 100% Sales and Services 2,767 2,610 2,202 2, % 2,258 3% 56 3% Investment Income 770 1, % 310 0% (58) 16% Other Income 31,425 30,784 31,026 31, % 31,016 47% (10) 0% TOTAL REVENUES 74,350 72, , , % 65, % (124,698) 66% Percent Change 24.8% 2.6% 158.0% 162.8% 64.9% EXPENDITURES Salaries Faculty n/a 0 0% 0 n/a Salaries Non Faculty 15,802 16,364 19,704 17,486 89% 18,365 37% 879 5% Wages 1,524 5, , % 857 2% (2,730) 76% Benefits 5,870 6,637 6,449 6,079 94% 6,445 13% 366 6% Personnel Costs 23,195 28,489 27,101 27, % 25,667 52% (1,485) 5% Utilities % 295 1% 9 3% Scholarships n/a 0 0% 0 n/a Equipment (Capitalized) 5,653 5,672 3,022 2,800 93% 2,828 6% 28 1% Operations and Maintenance (Net) 38, ,554 18,776 85, % 20,232 41% (65,540) 76% Debt Service n/a 0 0% 0 n/a TOTAL EXPENDITURES 68, ,989 49, , % 49, % (66,989) 58% Percent Change 29.1% 276.2% 80.8% 54.7% 0.4% TRANSFERS RFS Debt Service (To System Office) n/a 0 0 n/a Other n/a 0 (44) 100% NET TRANSFERS n/a 0 (44) 100% NET INCREASE (DECREASE) 6,338 (183,563) 137,637 74,361 > 500% 16,608 (57,753) 78% ENDING CURRENT FUND BALANCE 51,346 (132,216) 104,624 (57,855) 55% (41,247) 16,609 29% * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). TFS amount for FY 2010 is $2 million. Executive Budget Summary Printed: 7/16/2012

95 Texas Forest Service Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ (67,901) $ (51,351) $ 16,550 Designated 9,712 9, Auxiliary Restricted (20) Net Change in Fund Balance Current Funds $ (57,855) $ (41,247) $ 16,608 Explanation for Net Decrease* Restricted $ (20) The planned use of fund balance is for the Western Gulf Hardwood Improvement Cooperative. * if applicable K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

96 TEXAS VETERINARY MEDICAL DIAGNOSTIC LABORATORY Revenues BUDGET NARRATIVE Total Revenues are expected to increase $556,000 (3%), compared to FY 2012 projected actuals. Overall, State Appropriations will remain relatively flat with a 4% reduction in general revenue (as compared to FY 2012) that is offset by an increase in appropriations for state paid benefits. The reduction in general revenue is causing TVMDL to use more of its fee revenue to support the operating budget. Contracts and Grants revenue for TVMDL will increase in the upcoming fiscal year. The agency is expected to bring in approximately $1 million in revenue. This is an increase of 152% over FY The agency continues to seek opportunities to increase contract and grant activities. Sales and Services revenue from TVMDL fee income is expected to remain level with the FY 2012 projected amount. Sales and Services total $9.7 million and represents 56% of the total FY 2013 revenue budget. Expenditures Total FY 2013 budgeted expenditures are expected to increase by $1.1 million (7%) over FY 2012 projected actuals. The two main sources for this increase are personnel costs and capital equipment. Total personnel costs, which are 63% of the agency s expenditures, are expected to increase over FY 2012 projected amounts by $556,000 (5%). This increase can be primarily attributed to a merit plan for FY 2013 and the addition of new mission critical positions within TVMDL. For FY 2013, utility costs are expected to remain nearly constant for FY Over the past 5 years, TVMDL has seen a 16.5% decrease in this area. Operations and Maintenance costs are anticipated to increase slightly as a result of an increase in purchases of consumable supplies used in diagnostic testing and a related increase in contract and grant activity. Capital equipment expenditures will increase for the Agency in FY 2013 as TVMDL proceeds with the procurement of a laboratory information management system (LIMS) that will be implemented later in the fiscal year. Since the spring of 2009, TVMDL has shared several administrative functions (e.g., human resources, payroll, disbursements, procurement, and HUB) with Texas AgriLife Research and Texas AgriLife Extension. This transition has helped to maximize cost efficiencies.

97 THE TEXAS A&M UNIVERSITY SYSTEM Texas Veterinary Medical Diagnostic Laboratory FY 2013 Budget Graphs (In Thousands) Investment Income FY 2013 BUDGET REVENUES $17,160 Total State Appropriations Equipment (Capitalized) Utilities FY 2013 BUDGET EXPENDITURES $17,118 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 FY2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Research $751 4% Public Service $14,663 86% Institutional Support $1,704 10% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) T Executive Budget Graphs Printed: 7/17/2012

98 THE TEXAS A&M UNIVERSITY SYSTEM Texas Veterinary Medical Diagnostic Lab FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 5,070 3,107 4,111 4,591 5, % Restatement: (prior year correction) 0 0 REVENUES State Appropriations 7,278 6,713 6,670 6,509 98% 6,486 38% (23) 0% Contracts and Grants % 1,011 6% % Gifts n/a 0 0% 0 n/a Sales and Services 8,698 9,906 9,110 9, % 9,650 56% (11) 0% Investment Income % 12 0% (2) 14% Other Income n/a 0 0% (18) 100% TOTAL REVENUES 16,381 17,155 15,972 16, % 17, % 556 3% Percent Change 4.3% 4.7% 6.9% 3.2% 7.4% EXPENDITURES Salaries Faculty n/a 0 0% (29) 100% Salaries Non Faculty 8,420 7,846 8,078 7,915 98% 8,414 49% 499 6% Wages % 319 2% (16) 5% Benefits 2,152 2,049 2,075 2,001 96% 2,103 12% 102 5% Personnel Costs 10,905 10,298 10,502 10,280 98% 10,836 63% 556 5% Utilities % 622 4% 7 1% Equipment (Capitalized) % 783 5% % Operations and Maintenance (Net) 4,312 4,346 4,785 4, % 4,877 28% 81 2% TOTAL EXPENDITURES 15,893 15,442 16,647 16,000 96% 17, % 1,118 7% Percent Change 7.0% 2.8% 7.8% 3.6% 2.8% TRANSFERS RFS Debt Service (To System Office) n/a 0 0 n/a Other (2,452) (229) 0 0 n/a 0 0 n/a NET TRANSFERS (2,452) (229) 0 0 n/a 0 0 n/a NET INCREASE (DECREASE) (1,963) 1,484 (675) % 41 (563) 93% ENDING CURRENT FUND BALANCE 3,107 4,591 3,436 5, % 5, % * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). TVMDL amount for FY 2010 is $744 thousand. Executive Budget Summary Printed: 7/25/2012

99 Texas Veterinary Medical Diagnostic Laboratory Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 5,195 $ 4,986 $ (209) Designated Auxiliary Restricted Net Change in Fund Balance Current Funds $ 5,195 $ 5,236 $ 41 Explanation for Net Decrease* Functional and General $ (209) 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 reserves. * if applicable K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

100 TEXAS ENGINEERING EXPERIMENT STATION Revenues BUDGET NARRATIVE TEES is projecting a decrease of $2.2 million (2%) in Total Revenues for FY 2013 when compared to FY 2012 projected actual revenue. This decrease is primarily attributable to a 50% reduction in the State Appropriations General Revenue Dedicated for Emissions Reduction Plan. This reduction materially impacts the Energy Systems Laboratory program for FY Over the FY 2009 FY 2012 time period, there has been a $22.2 million decrease in ARRA funding for contracts and grants. However, at this time, contracts and grants revenue is projected to remain level compared to FY 2012 projected revenue. The Texas A&M University System was recently awarded a BARDA grant which is expected to leverage the unique capabilities in TEES to create a broad positive impact on global health and advancing applied academic research. Gifts, Sales and Services, and Other Income are budgeted conservatively and expected to remain relatively flat compared to FY 2012 projected. Investment Income is expected to remain level compared to FY 2012 projected actuals. Expenditures TEES FY 2013 Total Expenditures are budgeted to increase by $4.6 million (3%) compared to the projected actual expenditures for FY The increase is primarily attributable to Equipment and Personnel Costs. The personnel costs increase is based on the approved merit program which includes a 1.5% salary merit pool, as well as a 1.5% one time merit payment pool. The increase in Capital Equipment is the result of expected purchases related to contract and grant activity. Transfers The RFS Debt Service transfer is for the Good Laboratory Practices Facility and the TEES State Headquarters Building. Other transfers include PUF funds in the amount of $1.5 million (funds provided by the System Offices for equipment purchases).

101 THE TEXAS A&M UNIVERSITY SYSTEM Texas Engineering Experiment Station FY 2013 Budget Graphs (In Thousands) FY 2013 BUDGET REVENUES $141,296 Total Sales and Services Investment Income Other Income Gifts Scholarships Utilities FY 2013 BUDGET EXPENDITURES $142,848 Total Equipment (Capitalized) Operations and Maintenance (Net) State Appropriations Contracts and Grants Personnel Costs See Executive Budget Summary for amounts and percentages See Executive Budget Summary for amounts and percentages FY 2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Research $124,726 87% Institutional Support $14,008 10% Operation & Maint of Plant $4,113 3% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

102 THE TEXAS A&M UNIVERSITY SYSTEM Texas Engineering Experiment Station FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 72,672 82,524 85,027 89,418 95,433 6,015 7% Restatement: (prior year correction) 0 0 REVENUES State Appropriations 18,235 17,871 17,959 18, % 17,005 12% (1,953) 10% Contracts and Grants 117, , , ,903 94% 111,984 79% 81 0% Gifts % 643 0% (57) 8% Sales and Services 9,733 13,061 6,800 9, % 8,900 6% (150) 2% Investment Income 5,107 7,965 2,633 2, % 2,700 2% (1) 0% Other Income % 65 0% (135) 68% TOTAL REVENUES 151, , , ,511 97% 141, % (2,215) 2% Percent Change 25.7% 1.3% 3.5% 6.4% 4.5% EXPENDITURES Salaries Faculty (Equivalent) 18,822 18,876 18,566 18, % 19,050 13% 414 2% Salaries Non Faculty 38,288 40,936 43,285 42,736 99% 43,982 31% 1,246 3% Wages 4,581 4,606 3,829 3,767 98% 3,411 2% (356) 9% Benefits 11,430 11, ,594 11,096 96% 11,434 8% 338 3% Personnel Costs 73,121 75,579 77,274 76,235 99% 77,877 55% 1,642 2% Utilities % 219 0% (7) 3% Scholarships 10,021 9,954 9,288 7,862 85% 8,438 6% 576 7% Equipment (Capitalized) 9,064 8,814 8,559 7,473 87% 10,263 7% 2,790 37% Operations and Maintenance (Net) 50,431 53,049 53,221 46,482 87% 46,051 32% (431) 1% Debt Service n/a 0 0% 0 n/a TOTAL EXPENDITURES 142, , , ,278 93% 142, % 4,570 3% Percent Change 17.7% 3.4% 0.6% 6.3% 3.8% TRANSFERS RFS Debt Service (To System Office) (350) (356) (361) (361) 100% (359) 2 0% Other 1,668 1,546 1,000 1, % 1, % NET TRANSFERS 1,318 1, % 1, % NET INCREASE (DECREASE) 9,853 6, ,015 >500% (411) (6,426) 107% ENDING CURRENT FUND BALANCE 82,524 89,418 85,081 95, % 95,022 (411) 0% * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). TEES amount for FY 2010 is $3.9 million. Executive Budget Summary Printed: 7/16/2012

103 Texas Engineering Experiment Station Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 6,174 $ 5,074 $ (1,100) Designated 64,495 63,889 (606) Auxiliary Restricted 24,764 26,059 1,295 Net Change in Fund Balance Current Funds $ 95,433 $ 95,022 $ (411) Explanation for Net Decrease* Functional and General $ (1,100) Designated $ (606) Unexpended Balance of $1,100,000 will be spent by Nuclear Power Institute Due to the anticipated decrease in Federal contract and grant funding and the accompanying reduction in FY 2013 IDC revenue, we believe expenditures such as the planned Zachry renovations as well as increasing utility and infrastructure costs and assessments from System offices will have to be paid from beginning Designated fund balance. * if applicable K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

104 TEXAS ENGINEERING EXTENSION SERVICE Revenues BUDGET NARRATIVE For FY 2013, TEEX is budgeting a $2.5 million (3%) decrease in Total Revenues from FY 2012 projected actuals. The budgeted decrease is primarily the result of estimated reductions to Contracts and Grants and Sales and Services income. Contracts and Grants revenue is budgeted to decrease due to the non renewal of an international contract with Power Training, LLC in the United Arab Emirates. Sales and Services revenue is less than was budgeted and projected for FY 2012 due to OSHA eliminating their on line courses for which a referral fee was received if students registered through TEEX. TEEX subsequently developed, and now offers, these courses which will be recorded as fees. Expenditures In FY 2013, Total Expenditures are estimated to decrease $567,000 (1%) from FY 2012 projections. Personnel Costs for FY 2013 are budgeted 3% lower than the current fiscal year due to the aforementioned non renewal of the contract with Power Training, LLC. TEEX is, however, including a 3% merit plan in the budget. Equipment (Capitalized) in FY 2013 is budgeted to decrease due to a reduction in capital improvements and the need for capital equipment, as compared to the previous few years. The increase in Operations and Maintenance (Net) is primarily attributable to funds budgeted for upgrades to curriculum and infrastructure improvements. Transfers The RFS Debt Service transfer of $1.4 million is for the Wastewater System Upgrade at the Brayton Firefield, the Physical Skills Training Center at the Riverside campus, and the purchase of an office building/storage facility for Texas Task Force 1.

105 THE TEXAS A&M UNIVERSITY SYSTEM Texas Engineering Extension Service FY 2013 Budget Graphs (In Thousands) Gifts Sales and Services FY 2013 BUDGET REVENUES $76,519 Total Investment Income State Appropriations Operations and Maintenance (Net) FY 2013 BUDGET EXPENDITURES $76,457 Total Personnel Costs Contracts and Grants Tuition and Fees (Gross) See Executive Budget Summary for amounts and percentages Equipment (Capitalized) Utilities See Executive Budget Summary for amounts and percentages FY 2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Institutional Support $11,387 15% Instruction $65,070 85% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

106 THE TEXAS A&M UNIVERSITY SYSTEM Texas Engineering Extension Service FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 29,713 34,273 36,981 41,047 42,934 1,887 5% Restatement: (prior year correction) 0 0 REVENUES State Appropriations 7,492 7,075 6,927 6, % 6,794 9% (139) 2% Tuition and Fees (Gross) 18,917 32,388 33,184 34, % 34,385 45% 179 1% Contracts and Grants 56,389 31,407 38,348 33,311 87% 31,420 41% (1,891) 6% Student Financial Assistance 0 0% 0 n/a Gifts % 300 0% 25 9% Sales and Services 1,388 8,820 5,824 4,300 74% 3,496 5% (804) 19% Investment Income 2,008 2,690 1,001 1, % 1,101 1% 51 5% Other Income % 36 0% 0 n/a Discounts (361) (841) (1,005) (1,100) 109% (1,014) 1% 86 8% TOTAL REVENUES 86,570 81,813 84,695 79,011 93% 76, % (2,492) 3% Percent Change 9.6% 5.5% 3.5% 3.4% 9.7% EXPENDITURES Salaries Faculty n/a 0 0% 0 n/a Salaries Non Faculty 28,398 27,712 27,981 26,540 95% 25,182 33% (1,358) 5% Wages 8,161 7,993 6,394 7, % 7,176 9% 69 1% Benefits 8,193 7,873 7,705 7,500 97% 7,384 10% (116) 2% Personnel Costs 44,751 43,579 42,080 41,147 98% 39,742 52% (1,405) 3% Utilities 1,318 1,332 1,100 1, % 1,357 2% 52 4% Equipment (Capitalized) 1,606 1,060 1,423 2, % 954 1% (1,846) 66% Operations and Maintenance (Net) 31,174 29,104 37,873 31,772 84% 34,403 45% 2,631 8% Debt Service n/a 0 0% 0 n/a TOTAL EXPENDITURES 78,849 75,075 82,476 77,024 93% 76, % (567) 1% Percent Change 4.7% 4.8% 9.9% 2.6% 7.3% TRANSFERS RFS Debt Service (To System Office) (3,588) (628) (700) (700) 100% (1,448) (748) 107% Other % 350 (250) 42% NET TRANSFERS (3,161) 35 (100) (100) 100% (1,098) (998) >500% NET INCREASE (DECREASE) 4,560 6,773 2,120 1,887 89% (1,035) (2,922) 155% ENDING CURRENT FUND BALANCE 34,273 41,047 39,100 42, % 41,899 (1,035) 2% * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). TEEX amount for FY 2010 is $2.7 million. Executive Budget Summary Printed: 7/16/2012

107 Texas Engineering Extension Service Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 20,579 $ 22,721 $ 2,141 Designated 22,302 19,125 (3,177) Auxiliary Restricted Net Change in Fund Balance Current Funds $ 42,934 $ 41,899 $ (1,035) Explanation for Net Decrease* Designated $ (3,177) In the prior four fiscal years, divisions have been transferring funds to designated service accounts in anticipation of future capital expenditures. As was the case last fiscal year, funds are now being budgeted in FY 2013 for one time upgrades to curriculum and infrastructure improvements. * if applicable K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

108 TEXAS TRANSPORTATION INSTITUTE Revenues BUDGET NARRATIVE For FY 2013, the Texas Transportation Institute (TTI) estimates total revenues to increase $1.5 million (2%) over FY 2012 projected actuals. The increase in revenues is primarily the result of growth in private and internationally sponsored research activities. For FY 2013, TTI will receive $1.5 million in funding from the Texas Department of Transportation (TxDOT) to serve as a project coordinator and to make recommendations regarding the four most congested regions in Texas. TTI will receive $641,250 in general revenue, $213,750 of which will fund the Center for Strategic Transportation Solutions. TTI will receive its primary state appropriations through Fund 6 (State Highway Fund). For FY 2013, Investment Income is budgeted conservatively at $424,000. Expenditures For FY 2013, TTI estimates total expenditures to increase $1.5 million (2%) over FY 2012 projections. The increase in expenditures is the result of higher Personnel Costs, Operations and Maintenance and Equipment expenditures resulting from continued growth in sponsored research activities and the new research initiatives from the state. Budgeted expenditures for Personnel Costs include an average 3% merit pool ($1.3 million), plus an additional $25,000 in total merit bonuses for distribution to the top performing researchers who are most successful in achieving research diversification. Other budgeted increases include a 16% increase in Scholarship expenses to support TTI graduate student employees and a 15% increase in capital equipment, which is necessary to support sponsored research growth. Transfers The $1.06 million budget for RFS Debt Service includes $982,000 for the TTI State Headquarters and Research Building, $45,000 for the TTI Research Building (Gibb Gilchrist Building), and $30,000 for research equipment purchases.

109 THE TEXAS A&M UNIVERSITY SYSTEM Texas Transportation Institute FY 2013 Budget Graphs (In Thousands) Investment Income FY 2013 BUDGET REVENUES $64,284 Total State Appropriations Utilities FY 2013 BUDGET EXPENDITURES $62,395 Total Scholarships Equipment (Capitalized) Sales and Services 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 2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Research $52,047 83% Institutional Support $4,686 8% Operation & Maint of Plant $1,886 3% Public Service $3,776 6% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

110 THE TEXAS A&M UNIVERSITY SYSTEM Texas Transportation Institute FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 18,491 18,050 18,725 19,792 20, % Restatement: (prior year correction) (2,039) 0 REVENUES State Appropriations 8,941 8,474 11,529 8,571 74% 8,566 13% (5) 0% Contracts and Grants 42,562 43,312 46,434 48, % 49,827 78% 1,193 2% Gifts % 50 0% 0 n/a Sales and Services 5,253 5,234 5,459 5,425 99% 5,418 8% (8) 0% Investment Income % 424 1% % Other Income n/a 0 0% (16) 100% TOTAL REVENUES 57,668 57,958 63,979 62,816 98% 64, % 1,468 2% Percent Change 8.6% 0.5% 10.4% 8.4% 0.5% EXPENDITURES Salaries Faculty % 290 0% 20 7% Salaries Non Faculty 29,094 29,745 33,683 32,525 97% 32,966 53% 441 1% Wages 1,260 1,276 1,116 1, % 1,199 2% 19 2% Benefits 6,754 6,850 6,959 6, % 7,251 12% 271 4% Personnel Costs 37,376 38,174 42,078 40,955 97% 41,705 67% 750 2% Utilities % 900 1% 10 1% Scholarships % 290 0% 40 16% Equipment (Capitalized) 1, ,345 1,270 94% 1,460 2% % Operations and Maintenance (Net) 16,642 15,038 16,933 17, % 18,040 29% 507 3% Debt Service n/a 0 0% 0 n/a TOTAL EXPENDITURES 56,236 54,732 61,526 60,898 99% 62, % 1,497 2% Percent Change 7.0% 2.7% 12.4% 11.3% 1.4% TRANSFERS RFS Debt Service (To System Office) (182) (1,620) (1,693) (1,693) 100% (1,057) % Other n/a 0 (28) 100% NET TRANSFERS 166 (1,484) (1,693) (1,665) 98% (1,057) % NET INCREASE (DECREASE) 1,598 1, % % ENDING CURRENT FUND BALANCE 18,050 19,792 19,485 20, % 20, % * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). TTI amount for FY 2010 is $2.3 million. Executive Budget Summary Printed: 7/16/2012

111 Texas Transportation Institute Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ 2,428 $ 2,435 $ 7 Designated 15,679 16, Auxiliary Restricted 1,938 1, Net Change in Fund Balance Current Funds $ 20,045 $ 20,877 $ 832 * if applicable Explanation for Net Decrease* K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

112 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. In October 2011, the System Offices selected MGT of America, Inc. to conduct a comprehensive review of the System Offices organizational structure, management and business practices. The review identified a number of areas in which the System Offices could eliminate redundant positions, improve customer services, reduce costs and increase efficiencies. Many of these recommendations are reflected in the System Offices FY 2013 proposed budget. Revenues Overall System Offices revenues are expected to increase by $116 million (138%) when compared to FY 2012 projected actuals. The System Offices is appropriated approximately $1.7 million in State Appropriations for operations and another $771,000 for need based scholarships. State Appropriations are projected to remain level when compared to FY Available University Fund (AUF) increased revenue projections are based on an increase in the market value of the Permanent University Fund (PUF) and a one time increase in the PUF payout based on 5%, plus a one time payout of $25 million. The System Offices AUF excellence allocation will be $12.6 million per year. Also, TAMU and PVAMU will receive $ million and $ million per year, respectively. In addition, $33 million has been allocated for the Chancellor s Research Initiative (CRI). This initiative will provide one time funds to Texas A&M University and/or Prairie View A&M University for the recruitment and hiring of faculty members who will have a transformative impact upon the academic and research missions of the University. Contracts and Grants for FY 2013 have been budgeted at $76.9 million, an increase of $72.3 million. This increase is associated with the A&M System being awarded one of three Centers for Innovation in Advanced Development and Manufacturing (CIADM). This $285.6 million public private partnership with the U.S. Department of Health and Human Services will enhance the nation s ability to counter biological and pandemic threats, both known and unknown, with vaccines manufactured in the United States. Of this amount, $72.5 million has been budgeted for FY 2013.

113 SYSTEM OFFICES BUDGET NARRATIVE CONTINUED Expenditures As mentioned in the introduction, The FY 2013 proposed budget includes many of the recommendations made by the MGT management review. These recommendations included a reduction in force, elimination of vacant positions, and the implementation of other shared services opportunities. Overall, System Offices expenditures are budgeted to increase by a net $75.3 million (27%), above FY 2012 projected actuals. This net change is primarily related to the following items: 1. The CIADM (BARDA project) award includes approximately $72.5 million for personnel, equipment, and other subcontracting requirements. 2. Increased debt service to be paid on behalf of all A&M System members $5.8 million. 3. Faculty salaries are eliminated as a result of the expiration of the Teaching Excellence Awards initiative. 4. Non faculty salaries, when compared to the FY 2012 projected actuals, are budgeted to increase by $1.4 million as a direct result of the CIADM award. 5. Taken together, Utilities, Equipment and Operations and Maintenance costs are projected to increase by $70 million when compared to FY 2012 projected actuals as a result of the CIADM award.

114 T THE TEXAS A&M UNIVERSITY SYSTEM System Offices FY 2013 Budget Graphs (In Thousands) Contracts and Grants FY 2013 BUDGET REVENUES $199,966 Total Investment Income Gifts State Appropriations Available University Fund Debt Service FY 2013 BUDGET EXPENDITURES $355,124 Total Personnel Costs Utilities Scholarships Equipment (Capitalized) Operations and Maintenance (Net) See Executive Budget Summary for amounts and percentages See Executive Budget Summary for amounts and percentages FY 2013 BUDGET EXPENDITURES BY NACUBO FUNCTION Scholarships & Fellowships $771 1% Institutional Support $23,352 24% Research $73,711 75% NACUBO National Association of College and University Business Officers. (See Glossary for function definitions) Executive Budget Graphs Printed: 7/17/2012

115 THE TEXAS A&M UNIVERSITY SYSTEM System Offices FY 2013 Executive Budget Summary (In Thousands) FY13 Budget to FY 2010* FY 2011 FY 2012 FY 2013 FY12 Projected Actuals Actuals Budget Projected Actuals % of Budget Budget % of Total FY13 Budget Dollar Variance Percentage Variance BEGINNING CURRENT FUND BALANCE 714, , , , ,665 (28,929) 4% Restatement: (prior year correction) 0 REVENUES State Appropriations 4,523 6,944 2,510 2, % 2,514 1% (0) 0% Available University Fund 75, ,265 90,870 69,404 76% 114,033 57% 44,629 64% Contracts and Grants 9,013 7,512 4,385 4, % 76,880 38% 72,280 >500% Gifts % 193 0% (100) 34% Sales and Services 137 3, n/a 43 0% (29) 40% Investment Income 10,600 16,306 8,682 6,585 76% 6,303 3% (282) 4% Other Income 1,448 7, n/a 0 0% (529) 100% TOTAL REVENUES 101, , ,640 83,997 79% 199, % 115, % Percent Change 2.4% 44.2% 27.3% 42.7% 87.5% EXPENDITURES Salaries Faculty 928 1,386 1,465 1,454 99% 0 0% (1,454) 100% Salaries Non Faculty 12,083 10,211 11,392 11,285 99% 12,658 4% 1,373 12% Wages % 135 0% (370) 73% Benefits 3,250 3,082 3,326 3,200 96% 3,578 1% % Personnel Costs 16,885 15,160 16,354 16, % 16,371 5% (73) 0% Utilities % 482 0% 82 20% Scholarships % 771 0% (0) 0% Equipment (Capitalized) 741 4, ,701 >500% 89 0% (1,612) 95% Operations and Maintenance (Net) 17,468 2,140 12,815 9,602 75% 80,122 23% 70,519 >500% Debt Service 177, , , , % 257,290 72% 5,800 2% TOTAL EXPENDITURES 213, , , ,408 99% 355, % 74,716 27% Percent Change 25.2% 21.5% 8.6% 8.0% 25.9% TRANSFERS RFS Debt Service (from System Members) 151, , , , % 174,925 7,513 4% Other (17,478) (14,712) (3,241) 70 2% n/a NET TRANSFERS 133, , , , % 175,754 8,272 5% NET INCREASE (DECREASE) 21,639 46,139 (10,642) (28,929) 272% 20,597 49, % ENDING CURRENT FUND BALANCE 770, , , ,665 98% 808,261 20,597 3% * Excludes estimated expense associated with Other Post Employment Benefits (OPEB). System Offices amount for FY 2010 is $1.8 million. Executive Budget Summary Printed: 7/16/2012

116 System Offices Net Change in Fund Balance Current Funds Fiscal Year 2013 Budget (In Thousands) Estimated Beginning Balances Estimated Ending Balances Change In Current Fund Balance Fund Group (Current Funds Only) Functional and General $ $ $ Designated 98, ,602 21,336 Auxiliary Restricted 2,320 1,581 (739) Net Change in Fund Balance Current Funds $ 100,586 $ 121,183 $ 20,597 Explanation for Net Decrease* Restricted $ (739) Use of FY 2012 carry forward balances from multi year contracts and grants. * if applicable K:\BA\BUDGETS\2013 Budget\2013 Use of FB Explanations.xlsx Printed on: 7/17/2012

117 1. Salary Plans (by Member) 2. Tuition & Fees Information 3. Academic Enrollment and Semester Credit Hours 4. Texas A&M Health Science Center Student and Program Data 5. Faculty Information Average Faculty Salaries Full-Time Faculty Equivalents Supplemental Information Table of Contents

118 THE TEXAS A&M UNIVERSITY SYSTEM FY 2013 Salary Plans MEMBER DESCRIPTION OF SALARY PLAN AMOUNT Prairie View A&M University Faculty: 2.5% Merit Pool with an anticipated effective date of 12/01/2012 contingent upon fall enrollment meeting targets. Meritorious employees with 9 month salaries < $22,500 will receive at least $750/yr (75% of the full time staff amount). $ 638,627 Benefits 102,180 Promotions and Market Driven Adjustments 77,960 Benefits 12,474 Faculty Subtotal: $ 831,241 Staff: 2.5% Merit Pool with an anticipated effective date of 12/01/2012, contingent $ 810,456 upon fall enrollment meeting targets. Meritorious employees with 12 month salaries < $30,000 will receive at least $750/yr. Benefits 129,673 Tarleton State University Staff Subtotal: $ 940,129 Total: $ 1,771,370 Faculty: 2.73% pool for merit and market driven salary adjustments $ 580,131 Benefits 92,820 Promotions 58,500 Benefits 9,360 Faculty Subtotal: $ 740,811 Staff: 2.73% pool for merit and market driven salary adjustments $ 568,266 Benefits 90,923 Staff Subtotal: $ 659,189 Total: $ 1,400, Salary Plans Combined.xlsx Page 1 of 9 Printed: 7/20/2012

119 THE TEXAS A&M UNIVERSITY SYSTEM FY 2013 Salary Plans MEMBER DESCRIPTION OF SALARY PLAN AMOUNT Texas A&M International University Faculty: 3% Merit Pool (contingent on fall enrollment) $ 495,678 Promotions & Market Driven Salary Increase Adjustments 87,000 Benefits 375,360 Faculty Subtotal: $ 958,038 Staff: 3% Merit Pool (contingent on fall enrollment) $ 570,612 Pay Scale Adjustment 3% 66,000 Market Driven Salary Increase Adjustments 19,000 Benefits 440,640 Texas A&M University Staff Subtotal: $ 1,096,252 Total: $ 2,054,290 Faculty: 1.5% Base Merit (Faculty Salary Expense) $ 3,713, % One Time Merit (Wage Expense) 3,713,137 Faculty Promotions 506,350 Benefits 1,189,966 Faculty Subtotal: $ 9,123,072 Staff: 1.5% Base Merit (Non Faculty Expense) $ 3,935, % One Time Merit (Wage Expense) 3,810,834 Benefits 1,161,960 Staff Subtotal: $ 8,908,362 Total: $ 18,031, Salary Plans Combined.xlsx Page 2 of 9 Printed: 7/20/2012

120 THE TEXAS A&M UNIVERSITY SYSTEM FY 2013 Salary Plans MEMBER DESCRIPTION OF SALARY PLAN AMOUNT Texas A&M University at Galveston Faculty: Merit pool, possible one time merit payments, and equity adjustments. $ 275,000 Benefits 55,000 Faculty Subtotal: $ 330,000 Staff: Merit pool, possible one time merit payments, and equity adjustments. $ 175,000 Benefits 35,000 Texas A&M University Central Texas Staff Subtotal: $ 210,000 Total: $ 540,000 Faculty: 2% Merit Pool with an effective date of 01/01/2013 $ 106,190 Faculty promotions and tenure 25,000 Market Driven Salary Adjustments 261,000 Benefits 54,358 Faculty Subtotal: $ 340,358 Staff: 2% Merit Pool with an effective date of 01/01/2013 $ 87,615 Benefits 12,144 Staff Subtotal: $ 99,759 Total: $ 440, Salary Plans Combined.xlsx Page 3 of 9 Printed: 7/20/2012

121 THE TEXAS A&M UNIVERSITY SYSTEM FY 2013 Salary Plans MEMBER DESCRIPTION OF SALARY PLAN AMOUNT Texas A&M University Commerce Faculty: Merit Pool reserved for high performing employees and market driven salary increases $ 803,719 Benefits 159,100 Faculty Subtotal: $ 962,819 Staff: Merit Pool reserved for high performing employees and market driven salary increases $ 788,500 Benefits 157,000 Texas A&M University Corpus Christi Staff Subtotal: $ 945,500 Total: $ 1,908,319 Faculty: 3% Merit Pool & Equity $ 610,433 Promotions 42,000 Benefits 91,565 Faculty Subtotal: $ 743,998 Staff: 3% Merit Pool & Equity $ 529,419 Benefits 68,583 Staff Subtotal: $ 598,002 Total: $ 1,342, Salary Plans Combined.xlsx Page 4 of 9 Printed: 7/20/2012

122 THE TEXAS A&M UNIVERSITY SYSTEM FY 2013 Salary Plans MEMBER DESCRIPTION OF SALARY PLAN AMOUNT Texas A&M University Kingsville Faculty: Merit Pool for high performing employees (effective 1/1/13 pending enrollment increases) $ Benefits Promotions 47,000 Benefits 8,300 Faculty Subtotal: $ 55,300 Staff: Merit Pool for high performing employees (effective 1/1/13 pending enrollment increases) $ Benefits Texas A&M University San Antonio Staff Subtotal: $ Total: $ 55,300 Faculty: 3% Merit Pool for faculty salary increases, depending upon meeting enrollment goal $ 198,280 Benefits 49,570 Faculty Subtotal: $ 247,850 Staff: 3% Merit Pool for non faculty salary increases, depending upon meeting enrollment goal $ 201,720 Benefits 50,430 Staff Subtotal: $ 252,150 Additional for select merit based bonus payments: 1% Merit Pool, dependent upon meeting enrollment goals $ 150,000 Benefits 37,500 Total: $ 687, Salary Plans Combined.xlsx Page 5 of 9 Printed: 7/20/2012

123 THE TEXAS A&M UNIVERSITY SYSTEM FY 2013 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 Faculty and Staff Subtotal: $ Total: $ Faculty & Staff: 2.0% Merit Pool $ 783,000 Benefits 118,195 Market Driven Salary Adjustments and Faculty Promotions $ 173,760 Benefits 26,240 Texas A&M Health Science Center Total: $ 1,101,195 Faculty: 3% Merit Pool $ 1,302,488 Benefits 272,220 Faculty Subtotal: $ 1,574,708 Staff: 3% Merit Pool $ 1,758,199 Benefits 367,464 Texas AgriLife Research Staff Subtotal: $ 2,125,663 Total: $ 3,700,371 Faculty: 1.5% Merit Pool $ 314, % One Time Merit 314,726 Promotions 72,694 Benefits 99,489 Faculty Subtotal: $ 486,909 Staff: 1.5% Merit Pool $ 674, % One Time Merit 674,568 Benefits 173,229 Staff Subtotal: $ 847,797 Total: $ 1,334, Salary Plans Combined.xlsx Page 6 of 9 Printed: 7/20/2012

124 THE TEXAS A&M UNIVERSITY SYSTEM FY 2013 Salary Plans MEMBER DESCRIPTION OF SALARY PLAN AMOUNT Texas AgriLife Extension Service Faculty: 1.5% Merit Pool $ 160, % One time Merit 160,806 Benefits 90,051 Promotions 32,668 Benefits 9,147 Faculty Subtotal: $ 453,478 Staff: 1.5% Merit Pool $ 687, % One time Merit 687,655 Benefits 385,087 Promotions/Career Ladder Promotions 52,569 Benefits 14,719 Texas Forest Service Texas Veterinary Medical Diagnostic Lab Staff Subtotal: $ 1,827,685 Total: $ 2,281,164 Staff: 1% Merit Pool (subject to available funds) $ 160,000 Benefits 25,000 Career Ladder Promotions/Market Driven Salary Adjustments 100,000 Benefits 16,000 One time 2% Merit (subject to available funds) 320, Benefits 50,000 Staff Subtotal: $ 671,000 Total: $ 671,000 Staff: 1.5% Merit Pool $ 112,696 Benefits 28, % One time Merit 112,696 Benefits 9,185 Staff Subtotal: $ 262,752 Total: $ 262, Salary Plans Combined.xlsx Page 7 of 9 Printed: 7/20/2012

125 THE TEXAS A&M UNIVERSITY SYSTEM FY 2013 Salary Plans MEMBER DESCRIPTION OF SALARY PLAN AMOUNT Texas Engineering Experiment Station Texas Engineering Extension Service Texas Transportation Institute Staff: 1.5% Merit Pool 644,945 Benefits 103, % One time Merit 644,945 Benefits 103,191 Promotions and Market Driven Adjustments 418,000 Benefits 66,880 Staff Subtotal: $ 1,981,152 Total: $ 1,981,152 Staff: 3% Merit Pool $ 755,448 Benefits 188,862 Staff Subtotal: $ 944,310 Total: $ 944,310 Faculty: 3% Merit Pool $ 20,968 Benefits 2,975 Faculty Subtotal: $ 23,943 Staff: 3% Merit Pool $ 948,981 Promotion 110,521 Benefits 150,450 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. Staff Subtotal: $ 1,234,952 Total: $ 1,258, Salary Plans Combined.xlsx Page 8 of 9 Printed: 7/20/2012

126 THE TEXAS A&M UNIVERSITY SYSTEM FY 2013 Salary Plans MEMBER DESCRIPTION OF SALARY PLAN AMOUNT TAMUS Office of Sponsored Research Services and MAESTRO TAMUS OSRS Staff: 1.5% Merit Pool $ 143, % One time Merit 143,549 Benefits 43,065 MAESTRO Staff: Promotions, Market Driven Adjustments, and Merit 75,000 Benefits 11,250 System Offices Staff Subtotal: $ 416,413 Total: $ 416,413 Staff: 1.5% One time Merit $ 335,000 Benefits 50,000 Staff Subtotal: $ 385,000 Total: $ 385, Salary Plans Combined.xlsx Page 9 of 9 Printed: 7/25/2012

127 THE TEXAS A&M UNIVERSITY SYSTEM ACADEMIC INSTITUTIONS Increase in Mandatory Tuition & Fees for Resident Undergraduate Students Enrolled in 15 Semester Credit Hours FY 2013 (Excludes Fee Increases Approved via Student Referendum) Fall 2011 Fall 2012 REQUESTED by INSTITUTIONS 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, $ 1, $ $ 4, $ $ $ 1, $ 1, $ $ 4, $ % $ $ 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 Distance Education College of Education & Human Development $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 $40.00 to $550.00/SCH $25.00/SCH; students taking 12 or more SCH's pay $300/SEM charged to upper division undergraduate students enrolled in Teacher Education Programs (proposed to be effective Fall 2012) 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 20, 2012, Tuition and Fees data report. 6 For the purposes of this comparison, the average course fees for Fall 2012 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 2012 semester. K:\BA\BUDGETS\2013 Budget\Supplemental Items\ACAD-T&F Fall 11 v Fall 12_excluding referendum incr_final.xlsx Updated

128 THE TEXAS A&M UNIVERSITY SYSTEM ACADEMIC INSTITUTIONS Increase in Mandatory Tuition & Fees for Resident Undergraduate Students Enrolled in 15 Semester Credit Hours FY 2013 (Includes ALL Fee Increases, Including those Approved via Student Referendum) Fall 2011 Fall 2012 REQUESTED by INSTITUTION 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, $ 1, $ $ 4, $ $ $ 1, $ 1, $ $ 4, $ % $ $ 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 Distance Education College of Education & Human Development $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 $40.00 to $550.00/SCH $25.00/SCH; students taking 12 or more SCH's pay $300/SEM charged to upper division undergraduate students enrolled in Teacher Education Programs (proposed to be effective Fall 2012) 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 20, 2012, Tuition and Fees Data report. 6 For the purposes of this comparison, the average course fees for Fall 2012 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 2012 semester. 7 Excludes exemptions and waivers and the required state mandated financial aid set aside. K:\BA\BUDGETS\2013 Budget\Supplemental Items\ACAD-T&F Fall 11 v Fall 12_all fee increases_final.xlsx Updated

129 THE TEXAS A&M UNIVERSITY SYSTEM TEXAS A&M HEALTH SCIENCE CENTER Increase in Mandatory Tuition & Fees for FY 2013 (Includes ALL Fee Increases, Including those Approved via Student Referendum) Fall 2011 Fall 2012 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 $ 7, $ 5, $ 7, $ 20, $ $ 7, $ 5, $ 8, $ 21, $ % $ $ (per YEAR) BCD Dental Hygiene , , , , , , % (@18 SCH's) BCD Clinical Graduate 1, , , , , % (@12 SCH's) College of Medicine 9, , , , , , , , % (per YEAR) College of Nursing , , , , , , % (@15 SCH's) College of Pharmacy 2, , , , , , , , % (@18 SCH's) School of Rural 1, , , , , , % 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\2013 Budget\Supplemental Items\HSC-T&F Fall 2011 v Fall 12_all fee increases.xlsx 04/23/2012

130 THE TEXAS A&M UNIVERSITY SYSTEM Academic Members & Health Science Center FY 2013 Designated Tuition Rates Current Final Increase % Member FY 12 Rate/SCH FY 13 Rate/SCH per SCH Incr. Prairie View A&M University $ $ $ % Tarleton State University $93.97 $ $ % Texas A&M International University $90.50 $96.00 $ % Texas A&M University (1)* $ $ $ % Texas A&M University at Galveston $ $ $ % Texas A&M University Central Texas $98.40 $ $ % Texas A&M University Commerce $99.68 $ $ % Texas A&M University Corpus Christi (2)* $ $ $ % Texas A&M University Kingsville (2) $91.65 $ $ % Texas A&M University San Antonio (3) $93.07 $93.07 $ % Texas A&M University Texarkana (4) $86.00 $ $ % West Texas A&M University (4)* $ $ $ % Health Science Center:* Baylor College of Dentistry DDS Program $ $ $ % Notes: Baylor College of Dentistry Dental Hygiene $64.00 $64.00 $ % Baylor College of Dentistry Graduate Program $75.00 $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) $ $ $ % 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\2013 Budget\Supplemental Items\FY13 Designated Tuition Rates.xls 7/16/2012

131 THE TEXAS A&M UNIVERSITY SYSTEM Student Headcount by Member PVAMU Tarleton TAMIU TAMU TAMUG TAMU CT TAMU C TAMU CC TAMU K TAMU SA TAMU T WTAMU TOTAL Fall ,747 6,556 3,372 44,618 1,366 1,468 7,934 7,369 5, ,219 6,675 93,472 Fall ,255 6,822 3,724 45,083 1,556 1,498 8,483 7,607 6, ,367 6,780 96,729 Fall ,808 7,195 4,078 44,813 1,620 1,650 8,353 7,861 6, ,429 7,023 98,671 Fall ,350 7,348 4,269 44,435 1,615 1,685 8,547 8,227 6, ,540 7, ,441 Fall ,912 7,585 4,298 44,578 1,661 1,555 8,677 8,355 5, ,549 7, ,125 Fall ,006 7,776 4,917 45,380 1,553 1,688 8,496 8,585 5, ,625 7, ,138 Fall ,382 7,739 5,179 46,542 1,614 1,721 8,879 8,563 5, ,605 7, ,273 Fall ,203 7,756 5,856 48,039 1,612 1,878 8,787 9,007 5,698 1,436 1,625 7, ,432 Fall ,608 8,598 6,419 48,702 1,774 2,188 9,075 9,468 5,892 2,343 1,597 7, ,433 Fall ,781 9,340 6,853 49,129 1,867 2,317 10,280 10,033 6,586 3,120 1,803 7, ,948 Fall ,425 9,893 7,037 49,861 2,035 2,096 10,726 10,162 6,731 3,554 1,907 7, , ,000 Total Student Headcount 120, ,000 80,000 60,000 40,000 20,000 Fall 2001 Fall 2002 Fall 2003 Fall 2004 Fall 2005 Fall 2006 Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011

132 THE TEXAS A&M UNIVERSITY SYSTEM Semester Credit Hours by Member PVAMU Tarleton TAMIU TAMU TAMUG TAMU CT TAMU C TAMU CC TAMU K TAMU SA TAMU T WTAMU TOTAL FY , ,075 70,638 1,154,323 39,221 26, , , ,812 3,345 23, ,857 2,337,023 FY , ,679 81,516 1,179,449 39,608 27, , , ,702 6,348 24, ,777 2,439,049 FY , ,554 89,908 1,171,978 43,610 30, , , ,022 10,785 26, ,727 2,480,045 FY , ,886 95,481 1,160,517 46,319 32, , , ,961 13,809 29, ,771 2,525,755 FY , ,363 99,095 1,133,621 46,411 30, , , ,319 19,335 30, ,802 2,529,405 FY , , ,306 1,183,378 47,601 30, , , ,036 17,838 30, ,138 2,564,309 FY , , ,090 1,192,656 45,063 31, , , ,461 18,482 31, ,884 2,595,453 FY , , ,722 1,230,588 46,321 34, , , ,688 22,429 32, ,514 2,633,413 FY , , ,642 1,249,689 48,021 37, , , ,886 34,454 32, ,343 2,689,741 FY , , ,110 1,259,364 50,372 43, , , ,041 52,981 34, ,789 2,806,742 FY , , ,142 1,264,844 54,774 43, , , ,133 66,371 38, ,304 2,923,390 FY 2012 ** 230, , ,155 1,271,126 53,781 46, , , ,395 67,617 39, ,784 2,954,865 **Budgeted 3,500,000 Total Semester Credit Hours 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

133 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M Health Science Center Fall Student Enrollment by Head Count and FTE School Fall 2004 Fall 2005 Fall 2006 Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 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 FTEs Fall School of Graduate Studies (SGS) * Head Count FTEs School of Rural Public Health (SRPH) Head Count FTEs Health Science Center (Total) Head Count 1,147 1,169 1,312 1,432 1,695 1,844 1,958 2,122 FTEs 1, , , , , , , ,002.0 * The numbers for the School of Graduate Studies shown here are only the students in the biomedical sciences program and Public Health Sciences students who are enrolled in the MSPH and Ph.D. programs. 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 Revised: 7/16/2012

134 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M Health Science Center Total Faculty Employment by Head Count and FTE School Fall 2004 Fall 2005 Fall 2006 Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 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 FTEs Fall 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 Revised: 7/16/2012

135 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M Health Science Center Student to Faculty Ratio School Fall 2004 Fall 2005 Fall 2006 Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 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 st 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 employees. 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 Revised: 7/16/2012

136 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 2 MD College of Nursing (CON) 39 BS First Class enrolled in the Fall College of Pharmacy (COP) 74 MS First Class enrolled in the Fall 2006 PhD 74 School of Graduate Studies (SGS) MS PhD MSPH School of Rural Public Health (SRPH) MHA MPH MS Health Science Center (Total) BS BSN 39 Clinical Specialty DDS (Professional) MD (Professional) MHA MPH MSPH MS PharmD 74 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 HSC Fact Book AY xlsx Revised: 7/16/2012

137 THE TEXAS A&M UNIVERSITY SYSTEM Texas A&M Health Science Center Degrees Offered Baylor College of Dentistry Doctor of Dental Surgery (DDS) Master of Science (MS) (Dental Graduate Specialty Programs) Bachelor of Science (BS) (Dental Hygiene) Advanced Dental Education Programs (Certificate of Completion) College of Medicine Doctor of Medicine (MD) College of Nursing Bachelor of Science, Nursing (BSN) Irma Lerma Rangal College of Pharmacy Doctor of Pharmacy (PharmD) School of Graduate Studies Master of Science (MS) Doctor of Philosophy (PhD) School of Rural Public Health Master of Public Health (MPH) Master of Health Administration (MHA) Master of Science in Public Health (MSPH) Doctor of Public Health (DrPH) Note : The Institute for Biosciences and Technology does not grant degrees. Instead, the students trained at that facility are included in the programs offered by the School of Graduate Studies. HSC Fact Book AY xlsx Revised: 7/16/2012

138 FY 2011 Average Budgeted Faculty Salaries for State Universities (Based on Fall 2010) Professor Associate Professor Assistant Professor Teaching Assistants Rank FTE Average FTE Average FTE Average FTE Average (highest to Institution Number Fac FTE Salary lowest) Number Fac FTE Salary Rank Number Fac FTE Salary Rank Number Fac FTE Salary Rank The University of Texas at Austin , , , ,489 3 The University of Texas at Dallas , , , , University of Houston , , , , , Texas A&M University , , , , ,419 9 The University of Texas at San Antonio , , , , University of North Texas , , , ,008 5 Texas Tech University , , , , University of North Texas at Dallas , , , The University of Texas at Arlington $102, $78, $72, $27,665 8 Texas Southern University , , , ,175 1 The University of Texas at El Paso , , , ,224 4 Texas A&M University at Galveston , , , , University of Houston Clear Lake , , , , University of Houston Victoria , , ,946 6 Texas A&M International University , , , ,664 6 Lamar University , , , , The University of Texas Pan American , , , , Sam Houston State University , , , , Texas State University , , , , Texas A&M University Corpus Christi , , , , The University of Texas at the Permian Basin , , , , University of Houston Downtown , , , Texas A&M University Commerce , , , , Texas Women's University , , , , Texas A&M University Texarkana , , , The University of Texas at Tyler , , , , Midwestern State University , , , , West Texas A&M University , , , , Texas A&M University Kingsville , , , ,000 7 Texas A&M University San Antonio , , , Prairie View A&M University , , , ,960 2 Stephen F. Austin State University , , , , Tarleton State University , , , Angelo State University , , , , The University of Texas at Brownsville , , , Texas A&M University Central Texas , , , Sul Ross State University , , , , Sul Ross State University Rio Grande College , , , STATEWIDE: 5,437 4,952 $110,656 4,685 4,349 $76,864 4,666 4,318 $66,772 7,339 3,421 $25,918 *Includes all faculty records with teaching time and salary greater than 0. Non tenure track faculty reported in the first four ranks are counted as "Other." Source: THECB December 2010

139 THE TEXAS A&M UNIVERSITY SYSTEM Full Time Faculty Equivalents Institution Fall 2003 Fall 2004 Fall 2005 Fall 2006 Fall 2007 Fall 2008 Fall 2009 Fall 2010 Prairie View A&M University Tarleton State University Texas A&M International University Texas A&M University 1,724 1,753 1,829 1,938 1,979 2,079 2,078 2,074 Texas A&M University at Galveston Texas A&M University Central Texas N/A N/A N/A N/A N/A N/A Texas A&M University Commerce Texas A&M University Corpus Christi Texas A&M University Kingsville Texas A&M University San Antonio N/A N/A N/A N/A N/A N/A Texas A&M University Texarkana West Texas A&M University Full Time Faculty Equivalents (FTFE) for Texas A&M University Central Texas and Texas A&M University San Antonio before Fall 2009 are not available. Source: Texas Higher Education Coordinating Board Accountability System