FY 2017 Programma<c Budget Review 1
Sec%on I Academic Performance 2
Enrollment Trend 10,000 9,000 8,000 7,000 6,000 7,769 7,839 7,886 7,909 7,412 7,502 7,535 6,140 6,242 6,323 5,639 5,707 5,947 5,577 8,381 8,970 6,706 7,064 9,482 7,305 5,000 4,000 3,000 2,000 1,000 0 Fall 2006 Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 Fall 2012 Fall 2013 Fall 2014 Fall 2015 Headcount FTSE 3
Enrollment Target The West Texas A&M University Strategic Plan: 2015-2019, targets headcount enrollment at 11,000 and FTE enrollment at 9,000 by Fall 2018. 4
Enrollment Plans By Selected Program (Headcounts) Program Fall 2015 2018 Target Agricultural Sciences 777 1,075 Business 2,142 2,250 Computer Science 129 220 Criminal Jus<ce 264 400 Engineering 537 800 Health Sciences 116 165 Nursing 728 930 5
Enrollment Plan For On-line Programs (Headcounts) Program Fall 2015 2023 Target On-line Programs 2,370 15,000 6
DEMOGRAPHICS Total Enrollment African American Hispanic White Other Students (Fall 2015) Undergraduate 7,457 5.5% 26.2% 60.1% 8.2% Graduate 2,025 6.8% 16.7% 59.4% 17.1% Total 9,482 5.8% 24.2% 59.9% 10.1% Students (Fall 2015) Total Enrollment In State % of Total Out of State/ Foreign % of Total Undergraduate 7,457 6,450 86% 1,007 14% Graduate 2,025 1,278 63% 747 37% Total 9,482 7,728 82% 1,754 18% 7
110,000 Semester Credit Hours Fall Semester 105,000 103,177 102,047 106,304 105,077 100,000 97,123 98,307 95,000 90,000 89,307 90,202 90,761 91,610 91,802 92,799 86,686 87,253 85,000 80,000 Fall 2009 Fall 2010 Fall 2011 Fall 2012 Fall 2013 Fall 2014 Fall 2015 State-Funded Total 8
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35% Four-Year Graduation Rate 30% 25% 20% 19.3% 20.9% 22.0% 23.2% 23.5% 25.3% 24.6% 26.0% 22.5% 24.9% 23.8% 21.8% 27.4% 29.9% 24.7% 26.0% 15% 10% 5% 0% FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Same Institution Total 10
60% Six-Year Graduation Rate - Percent Same (Rate) 50% 40% 47.6% 46.4% 40.1% 37.8% 39.7% 45.6% 41.5% 47.4% 42.9% 48.2% 46.3% 40.3% 40.5% 48.0% 39.6% 45.4% 30% 20% 10% 0% FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Same Institution Total 11
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First Year Persistence for Entering Cohort Six Year Gradua%on and Persistence Fall 2014 State Avg FY 2015 State Avg All Students 75.4% 86.9% 56.4% 69.9% White 78.2% 89.6% 59.2% 75.6% African- American 69.9% 80.3% 36.3% 53.8% Hispanic 73.3% 85.5% 56.4% 65.2% 13
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DEMOGRAPHICS Total Employed African American Hispanic White Other Faculty & Staff (Fall 2015) Faculty 407 4 20 358 25 Staff 688 18 52 494 124 Total 1,095 22 72 852 149 16
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Sec%on II Academic Program Development 20
Academic Program Development Process Enhancing Programs: Faculty members evaluate program requirements annually, using several metrics. Qualita<ve and quan<ta<ve informa<on about learning assessment Student, employer, and community input about the program Each semester, faculty members submit proposed curriculum changes to departmental curriculum commibees. These changes are discussed and voted on at the departmental level and, with the concurrence of the department head and dean, routed to one of several university-wide curriculum commibees. Approved proposals move forward to the Provost/VPAA for considera<on and final approval. 21
Academic Program Development Process Adding Programs: The decision to add a new program begins with the faculty members, who consider internal and external criteria such as: Student Demand (informal informa<on) State and Regional Employer Demand (Survey Data) Regional and Na<onal Job Market Needs (Survey Data) Appropriateness to University mission and vision An<cipated start-up and opera<onal costs of the new program Faculty exper<se and ability to deliver a high quality program Approval Process: Department Head Dean Provost President TAMUS BOR THECB (if necessary) Any new courses required for the program must be submibed through the regular curriculum process for approval. 22
Academic Program Development Process Program Dele<on: The decision to delete a program comes from several criteria such as: Enrollment declines over <me (internal enrollment data) Low reten<on rates in the major (internal enrollment data) Low numbers of graduates (internal data; THECB data) Decline in market demands (job market survey data) High delivery costs vs. low student enrollments (internal data) Low number of qualified faculty Inconsistency with University mission and vision Program Quality (poor student learning outcomes results) If there are no mi<ga<ng circumstances or compelling reason to believe that low-producing trends will be reversed, the decision is made by the Provost and President to delete the program. The THECB and TAMUS are no<fied of the decision to delete the program 23
Academic Program Development Recently approved programs: Environmental Engineering 03/30/2012 Joint B.S. in Physics (Texas Physics Consor<um) 07/23/2013 24
Academic Program Development In development: M.S. in Engineering proposed start date 09/01/2016 B.S. in Electrical Engineering proposed start date 09/01/2016 Joint Ed.D. with Texas A&M Interna<onal proposed start date 09/01/2017 M.S. in Computer Informa<on Systems proposed start date 09/01/2017 25
Academic Program Development Phased out or being phased out: B.M. in Music Performance effec<ve 08/31/2014 B.M. in Music Composi<on effec<ve 08/31/2014 B.M. in Music Therapy effec<ve 08/31/2014 MBA in General Business Agriculture effec<ve 08/31/2015 M.A. In Art effec<ve 08/31/2016 B.A. and B.S. in Geology effec<ve 08/31/2018 B.A. and B.S. in Pre-Law Studies effec<ve 08/31/2018 B.S. in Physics effec<ve 08/31/2018 B.S. in Biotechnology effec<ve 08/31/2019 26
Sec%on III Financial 27
STATE APPROPRIATIONS - GR (in thousands) $30,000 $26,840 $26,867 $27,825 $27,723 $25,000 $23,096 $22,880 $23,238 $23,153 $20,000 $15,000 $10,000 $5,000 $- FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 *Excludes TRB Debt Service Appropriations 28
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*in Millions 32
*in Millions 33
Reserves and Internal Commitments In addi<on to reserves for opera<ons, West Texas A&M University has set aside reserves for years two, three and four of the guaranteed tui<on program to cover those years of instruc<on. 34
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Tui<on and Fees Plan for FY 2017 (As approved by the Board of Regents November 2015) Increases to Guaranteed Tui<on and Fees will be based on the Higher Educa<on Price Index. The 2.2% increase would generate approximately $600,000. A student referendum to increase the Intercollegiate Athle<c Fee by $10/SCH with a cap at 13 SCH was approved this March. This will generate approximately $550,000 in year one with increasing revenue in subsequent years. A new, one-year op<onal Tui<on and Fee rate will be offered to students as an alterna<ve to Guaranteed Tui<on and Fees. Due to con<nued, historic enrollment growth, a 2.0% increase was included in the budget and accounts for an increase of approximately $1,137,000. 36
$2,500,000 Hazlewood Exemption $2,000,000 $1,500,000 $1,000,000 $1,349,644 $1,301,708 4% incr $624,155 $753,423 $1,553,435 15% incr $1,005,967 $1,742,569 12% incr $1,142,627 $1,909,011 10% incr $1,256,890 $2,092,559 10% incr $1,382,579 $500,000 $- FY 2012 FY 2013 FY 2014 FY 2015 Proj. FY 2016 Proj. FY 2017 Veteran Spouse/Dependent Legacy 37
FY 2017 REVENUE BUDGET BUDGET (in thousands) Variance REVENUES FY 2016 FY 2017 Amount % State Appropriations $ 38,759 $ 42,426 $ 3,667 9% Higher Education Fund $ 4,776 $ 7,164 $ 2,388 50% Tuition and Fees (Gross) $ 62,783 $ 67,415 $ 4,632 7% Contracts and Grants $ 7,162 $ 7,964 $ 802 11% Student Financial Assistance $ 14,575 $ 16,071 $ 1,496 10% Gifts $ 3,995 $ 4,734 $ 739 18% Sales and Services $ 25,966 $ 27,301 $ 1,335 5% Investment Income $ 703 $ 724 $ 21 3% Discounts $ (16,279) $ (17,912) $ (1,633) 10% TOTAL REVENUES $ 142,440 $ 155,887 $ 13,447 9% 38
In thousands 39
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Budget Expense Variance BUDGET VARIANCE EXPENSES FY 2016 FY 2017 Amount % Salaries - Faculty $ 23,626 $ 25,169 $ 1,543 7% Salaries - Non-Faculty $ 25,269 $ 26,381 $ 1,112 4% Wages $ 4,518 $ 3,884 $ (634) -14% Benefits $ 14,919 $ 16,060 $ 1,141 8% Personnel Costs $ 68,332 $ 71,494 $ 3,162 5% Utilities $ 3,951 $ 4,143 $ 192 5% Scholarships $ 27,927 $ 29,831 $ 1,904 7% Discounts $ (16,280) $ (17,912) $ (1,632) 10% Equipment (capitalized) $ 5,135 $ 8,088 $ 2,953 58% Operations and Maintenance $ 39,320 $ 42,825 $ 3,505 9% TOTAL EXPENSES $ 128,385 $ 138,469 $ 10,084 8% (in thousands) 44
In thousands 45
Budget Expense Variance FUND GROUP / NACUBO FUNCTION BUDGET VARIANCE E&G and Designated: FY 2016 FY 2017 Amount % Instruction $ 31,325 $ 39,566 $ 8,241 26% Academic Support $ 6,806 $ 13,624 $ 6,818 100% Student Services $ 5,034 $ 9,173 $ 4,139 82% Scholarships and Fellowships $ 4,946 $ 7,134 $ 2,188 44% Institutional Support $ 24,982 $ 17,541 $ (7,441) -30% O&M of Plant $ 13,445 $ 12,894 $ (551) -4% Public Service $ 1,955 $ 2,452 $ 497 25% Research $ 2,201 $ 2,028 $ (173) -8% E&G and Designated Subtotal: $ 90,694 $ 104,412 $ 13,718 15% Auxiliary: $ - Auxiliary $ 23,414 $ 17,580 $ (5,834) -25% Auxiliary Subtotal: $ 23,414 $ 17,580 $ (5,834) -25% Restricted: Instruction $ 425 $ 479 $ 54 13% Academic Support $ 1,380 $ 1,318 $ (62) -4% Student Services $ - $ 283 $ 283 Scholarships and Fellowships $ 7,646 $ 9,727 $ 2,081 27% Institutional Support $ 68 $ 25 $ (43) -63% Public Service $ 2,629 $ 2,066 $ (563) -21% Research $ 2,128 $ 2,579 $ 451 21% Restricted Subtotal: $ 14,276 $ 16,477 $ 2,201 15% TOTAL $ 128,384 $ 138,469 $ 10,085 8% (in thousands) 46
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New Goals and Objec%ves (including method of finance) Goal 1: Start up of Electrical Engineering program Budget Impact Method of Finance FTE's Capital and Opera%ons 100,000 New Special Item Appropria<on 100,000 Goal 2: Provide resources for high growth academic areas Budget Impact Method of Finance FTE's Faculty 469,000 7 - Agricultural Communica<ons/Media; Computer Science; Accoun<ng; Finance; Sax, Jazz, Music Theory; Nursing; Criminal Jus<ce; School Psychology* *- Pay upgrade Staff 114,000 2 - Librarian; Early Alert Coordinator; Dean Secretary; QEP Secretary; Campus Visit Coordinator; Admissions Record Assistant; ITS Online Media Produc<on Coordinator New GR Funding 583,000 Goal 3: Legisla%ve mandates and increase opera%onal effec%veness Budget Impact Method of Finance FTE's Staff 221,000 7 - Police Officers (4)*; Post Award Grant Accountant; Accountant II; Bookstore Buyer * - Posi<ons for Amarillo Center Designated Tui<on and Sales Revenue 221,000 Goal 4: Increase Student Academic supplemental programming Budget Impact Method of Finance FTE's Programming 235,900 - Civitas Learning Network; Recrui<ng and Marke<ng; Quality Enhancement Plan HEAF; Designated Tui<on 235,900 48
Salary Plan FY 2017 SALARY PLAN Faculty: AMOUNT 1.5% Merit Pool $ 400,000 Market Adjustments and Promo<ons $ 35,000 Benefits $ 67,642 Faculty Subtotal: Staff: $ 502,642 1.5% Merit Pool $ 400,000 Market Adjustments $ 25,000 PwC Pay Plan Adjustments $ 300,000 Benefits $ 112,737 Staff Subtotal: $ 837,737 Total: $ 1,340,379 49
Salary Plan Salary increases for FY 2017 are included in the baseline budget request. It is not con<ngent on either mee<ng enrollment targets or on tui<on and fee requests. The PwC Class Compensa<on project is planned to be implemented over a three-year period. 50
Sec%on IV Request to Exceed FTE Limit 51
FTE Request (Appropriated $ only) No addi<onal FTE s are requested for FY 2017 52
Sec%on V Auxiliary Opera%ons 53
Food Service Actuals Budget Budget Variance FY 2015 FY 2016 FY 2017 Amount % Revenue $ 5,322 $ 5,070 $ 5,164 $ 94 1.9% Expenses $ (3,569) $ (4,070) $ (4,164) $ (94) 2.3% Transfers $ (1,026) $ (1,000) $ (1,000) $ - 0.0% Net Income/(Loss) $ 727 $ - $ - $ - (in thousands) 54
Athletics Actuals Budget Budget Variance FY 2015 FY 2016 FY 2017 Amount % Revenue $ 1,965 $ 2,462 $ 2,546 $ 84 3.4% Expenses $ (7,234) $ (7,668) $ (8,080) $ (412) 5.4% Transfers $ 5,269 $ 5,206 $ 5,534 $ 328 6.3% Net Income/(Loss) $ - $ - $ - $ - (in thousands) 55
Residential Living Actuals Budget Budget Variance FY 2015 FY 2016 FY 2017 Amount % Revenue $ 9,699 $ 9,805 $ 10,070 $ 265 2.7% Expenses $ (3,929) $ (9,635) $ (9,900) $ (265) 2.8% Transfers $ (5,297) $ (170) $ (170) $ - 0.0% Net Income/(Loss) $ 473 $ - $ - $ - (in thousands) 56
Sec%on VI Capital Plan Update 57
Projects Under Construction Project Budget ($M) Primary Funding Source % Construction Completed Projected Completion Date Agriculture Science Complex $ 48.2 Tuition Revenue Bonds/Gifts 1% July 2018 Cornette Library Roof $ 1.0 Designated Tuition 95% Spring 16 Education Building Exterior Preservation $ 0.4 HEF 50% Summer 16 ANS Parking Lot $ 0.5 RFS 10% Summer 16 Jarrett Hall Life Safety $ 3.9 Auxiliary Revenue 5% June 2017 Total $ 53.9 58
FY 2017 Priority Projects E&G Planning Amount ($M) Primary Funding Source Current Status Gross Square Footage Engineering Phase II $ 6.0 HEF/Gift Design 20,000 Amarillo Center Phase II $ 9.1 TRB/HEF Planning 75,000 26th Street Renovation $ 3.5 HEF Planning n/a Jarrett Hall Renovation $ 9.9 Auxiliary Planning Utility Loop Extension $ 3.5 HEF Planning n/a Roofs - Hail Damage $ 6.0 Insurance Proceeds Planning n/a Total $ 38.0 Auxiliary, Infrastructure and Other Football Stadium $ 29.8 Auxiliary Fees Planning Physical Plant Projects and Other $ 17.5 HEF/Gifts/RFS Planning Total $ 47.3 59
Unfunded Capital Projects Planning Amount ($M) Projected Fiscal Year of Construction Current Status Enterprise Network Admin Building $ 3.0 2017 Design Undergraduate Residence Hall Renovations $ 3.0 2017 Planning Undergraduate Residence Hall Phase III $ 25.0 2018 Planning WTAMU Visitor Center $ 20.0 2018 Planning Nursing and Health Building $ 20.0 2018 Planning WTAMU Enrichment Center $ 25.0 2019 Planning Undergraduate Residence Hall Phase IV $ 35.0 2020 Planning Total $ 131.0 60
Member Total Number of Recommendations Per Follow-Up Audit Number of Date of Follow-up Audit Cleared Remaining WTAMU 6 2 4 Upcoming Audit schedule: Auxiliary Audit in FY 2016 61