University of Tennessee at Chattanooga Budget Information

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University of Tennessee at Chattanooga Budget
Information
2006-07 Budget Process
Richard L. Brown Vice Chancellor
Finance/Operations/IT
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UTC BUDGET APPROVAL PROCESS2006-07
Attachment 3
UTC Vice Chancellor for Finance convenes open
budget hearings
Feb. 6-10
University Budget Planning and Evaluation
Committee Approves and recommends budget to
Chancellor
Feb. 28, 2006
Chancellor makes budget recommendation to UTC
Trustee Advisory Committee
March, 2006 (System Visit April 19, 2006)
UTC Trustee Advisory Committee recommends budget
approval to UT President
May, 2006
UT President makes final recommendation for
approval of UTC budget to the UT Board of Trustees
June, 2006
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BUDGET HEARINGS SCHEDULE2006-07

• Monday, February 6, 130 500 pm,  UC 206
  Auditorium
• 130 200                   Policies/Process
  Service Ctrs
•                                      Overview of
  Budget and Planning 2005-06
•                                     Year-end
  Financial Results Campus Wide
• 200 300 Chancellors Office
• 300 500                  Academic Affairs
• CECA
• Education Doctoral Program
• SimCenter
• Questions and answers to follow.

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BUDGET HEARINGS SCHEDULE2006-07

• Wednesday, February 8, 130 430 pm, UC 206
  Auditorium
• 130 230                   SGA President
• Faculty Senate President
• 230 430                   Finance and
  Operations
• Questions and answers to follow.

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BUDGET HEARINGS SCHEDULE2006-07

• Thursday, February 9, 830 am 1130 am, UC 206
  Auditorium
• 830 930               University
  Advancement
• 930 1030               Athletics
• 1030 1130 Service Centers Bookstore, Food
  Services, DocuCenter, Parking
  Services, Arena/Fine Arts, Housing
• Questions and answers to follow.

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BUDGET HEARINGS SCHEDULE2006-07

• Monday, February 13, 830 am 130 pm, UC 206
  Auditorium
• 830 930 am Student Development
• 930 1130 am Exempt Staff Council Chair
• Employee Relations Committee Chair
• Council of Department Heads
• Council of Deans
• Budget and Economic Status Committee
• Questions and answers to follow.
• 1130 130 pm Lunch/Deliberations-UC Foundation
  Room

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University of Tennessee at Chattanooga

• CURRENT FUND REVENUE SOURCES
• Tuition and Fees - funds collected from students
  for educational purposes
• Appropriations - primarily funding received from
  the State of Tennessee to support
• current operations of the University.
  Appropriations may also be received from the
• federal government and from local (city and
  county) governments.
• Grants, and Contracts - funds received from
  governmental (federal, state, local) or
• non-governmental (private organizations or
  individuals) entities resulting from grants
• or contracts entered into to furnish goods or
  services
• Sales and Services of Educational Activities -
  revenues from the sale of goods or
• services related to educational activities.
  Examples include the sale of literary
• publications, testing services, the sale of
  agricultural products, and band and sports
• camps.
• Investment Income interest earnings derived
  from the investment of funds
• Other Revenues - revenues not included in the
  above classifications. Includes gifts
• from private organizations or individuals, income
  from endowments (funds which
• principal must be maintained inviolate but which
  interest income may be expended)
• not dedicated to a specific expenditure,
  miscellaneous rentals and sales, and
• conference revenues.

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University of Tennessee at Chattanooga

• EDUCATIONAL AND GENERAL EXPENDITURES
• I. Primary Mission
• Instruction - expenditures associated with the
  offering of credit and non-credit
• courses
• Research - costs associated with activities
  specifically organized to produce
• research commissioned by either external
  organizations or by an organizational unit
• within the institution
• Public Service - funds expended for activities
  that are primarily established to
• provide non-instructional services beneficial to
  individuals and groups external to the
• institution

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University of Tennessee at Chattanooga

• II. Supporting Functions
• Academic Support - funds expended to provide
  support for the Universitys primary
• mission of instruction, research and public
  service includes libraries, academic
• computing support, museums, and academic
  administration
• Student Services - reflects expenditures which
  contribute to the welfare of students
• outside the context of the formal instruction
  program includes student activities,
• intramural athletics, student-aid administration,
  admissions, and student health
• services
• Institutional Support - costs associated with
  executive management, fiscal
• operations, personnel services, and
  administrative computing
• Operation and Maintenance of Physical Plant -
  costs associated with the
• operation and maintenance of buildings and
  grounds, utilities, custodial services, and
• campus security
• Scholarships and Fellowships - expenditures for
  aid to students in the form of
• monetary grants

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2006-07 UTC OPEN BUDGET Phase I
TRANSPARENCY

• HEARING PROCESS
• UTC Budget Instructions
• Sent to all major divisions and University
  leadership.
• Posted openly on UTC Web-site.
• Set forth budget presentation transparency.
• Standard reporting format.
• Required three-year budget planning cycle.
• Required accountability of 2005-06 allocations.
• Required accomplishments presentation with six
  strategic campus initiatives
• Claiming the assets of technology.
• Recruiting, retaining and celebrating diversity
  (includes compliance efforts with Statement of
  Commitment to Diversity and Equal Opportunity).
• Improving the potential of partnerships.
• Demonstrating accountability.
• Enhancing the learning environment, and
• Assessment that drives continuous institutional
  effectiveness.
• Required a report on Geier/UT Board Resolution
  for Evaluation of Senior Leadership.
• Open presentations by major units--invited entire
  campus for input and feedback.
• All departments and employees were encouraged to
  attend.

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THE UNIVERSITY OF TENNESSEE AT CHATTANOOGA 2006 U
NIVERSITY BUDGET AND STRATEGIC PLANNING COMMITTEE
MEMBERS Roger Brown, Chancellor Richard Brown,
Vice Chancellor for Finance and Operations
Herbert Burhenn, Interim Provost and Vice
Chancellor for Academic Affairs Hugh Prevost,
Acting Vice Chancellor for Student
Development Bob Lyon, Vice Chancellor for
University Advancement Steve Sloan, Athletics
Director Jean Dake, Chair of Exempt Staff Council
Amy Prevost, President of SGA Valerah Hodges,
Chair of Employee Relations Committee Richard
Rice, President of Faculty Senate Nick Honerkamp,
Council of Department Heads Stephanie Smullen,
Chair of Budget and Economic Status Committee of
Faculty Senate Richard Casavant, Representative
from Council of Deans Institutional Support
Members Debbie Parker, Associate Vice Chancellor
Business and Financial Affairs David Pittenger,
Associate Provost Academic Administration
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Special Shared Governance Presentations
Faculty Senate Richard Rice February 8, 2006 UC Auditorium
Faculty Budget/ Economic Status Committee Stephanie Smullen February 13, 2006 UC Auditorium
Council of Academic Department Heads Nick Honerkamp February 13, 2006 UC Auditorium
Exempt Staff Council Jean Dake February 13, 2006 UC Auditorium
Employee Relations Committee Valerah Hodges February 13, 2006 UC Auditorium
Student Government Association Amy Prevost February 8, 2006 UC Auditorium
Auxiliaries Debbie Parker February 9, 2006 UC Auditorium



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Presentations By Major Divisions
Division Presenter Date Location
Instructions-Budget and Planning Summary Richard Brown Roger Brown February 6, 2006 UC Auditorium
Academic Affairs Herbert Burhenn David Pittenger February 6, 2006 UC Auditorium
University Advancement Bob Lyon February 9, 2006 UC Auditorium
Athletics Steve Sloan Matt Pope Laura Mincy February 9, 2006 UC Auditorium
Student Development Hugh Prevost February 8, 2006 UC Auditorium
Finance, Operations, Information Tech. Richard Brown February 8, 2006 UC Auditorium
Chancellors Office Roger Brown February 6, 2006 UC Auditorium
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THREE-YEAR BUDGET REQUEST SUMMARY
DIVISION 2005-06 2006-07 2007-08 TOTAL

Academic Affairs 2,874,000 3,653,000 1,937,000 8,464,000

University Advancement 241,000 214,700 56,700 512,400

Athletics 850,000 75,000 40,000 965,000

Student Development 205,836 365,923 538,034 1,109,793

Finance, Operations, and Information Technology 1,956,900 1,811,850 2,267,100 6,035,850

Chancellors Office 112,570 867 884 114,321

TOTAL 6,240,306 6,121,340 4,839,718 17,201,364
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2006-07 BUDGET RECOMMENDATIONS CHIEF BUSINESS
OFFICER ADVISORY ONLY 1. Academic Affairs,
instruction, and faculty compensation equity be
given priority position and consideration with
our budget, planning and allocation
decisions. Instruction Faculty
compensation Equipment Travel Operating
budgets Research Funding
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2. The quality of the student experience be given
high consideration in our budget, planning and
allocation decisions Enrollment
management Student programming Continuous
animation of the University Center Student
civic engagement opportunities Student
recreation/intramurals Integration of students
into the athletic program
3. Basic support for University Facilities be
given some consideration in our budget, planning
and allocation process. Fund utilities
increase and deficits Fund custodial support
to enhance the learning environment
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4. University Advancement be given consideration
in our budget, planning and allocation
process as we seek alternative sources of
revenues. Strengthen Alumni Support Improve
Fundraising for University Athletics
5. University Athletics be given consideration by
our budget, planning and allocation process for
continued support of Title IX compliance and
other Athletic initiatives. 6.
Complete a comprehensive cost analysis of all
Doctoral Programs.
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• FISCAL CHALLENGES
• Historical Budget Cuts
• 00-01 0
• 01-02 1 377,200
• 02-03 5 2,016,600
• 03-04 9 3,620,000

• LACK OF STATE APPROPRIATIONS FORMULA FUNDING

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BUDGET RECOMMENDATIONS REVENUE INCREASES 3
YEAR PLAN STUDENT FEES o 2005-06 9.5 2,472,2
19 o 2006-07 9.5 2,753,595 o 2007-08 9.5 3,061
,702 Total Potential Increase in Revenues from
Student Fees 8,287,516
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UNIVERSITY OF TENNESSEE AT CHATTANOOGA UNIVERSITY OF TENNESSEE AT CHATTANOOGA UNIVERSITY OF TENNESSEE AT CHATTANOOGA UNIVERSITY OF TENNESSEE AT CHATTANOOGA UNIVERSITY OF TENNESSEE AT CHATTANOOGA
THEC RECOMMENDATIONS VS ACTUAL APPROPRIATIONS THEC RECOMMENDATIONS VS ACTUAL APPROPRIATIONS THEC RECOMMENDATIONS VS ACTUAL APPROPRIATIONS THEC RECOMMENDATIONS VS ACTUAL APPROPRIATIONS THEC RECOMMENDATIONS VS ACTUAL APPROPRIATIONS

Recommendation Actual Appropriation Funded Total Unfunded Recommendations

2005 50,620,003 38,956,300 76.96 11,663,703
2004 47,875,416 38,009,900 79.39 9,865,516
2003 43,993,869 38,152,200 86.72 5,841,669
2002 43,823,000 37,866,500 86.41 5,956,500
2001 41,582,281 36,685,400 88.22 4,896,881

Five Year Accumulated Total Five Year Accumulated Total Five Year Accumulated Total 38,224,269
New Formula May Be Problematic
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The University of Tennessee at Chattanooga FY
2006 Budget Planning Summary 1 255,588
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The University of Tennessee at
ChattanoogaBudget Issues2006-08

• Fiscal stewardship by all Divisions.
• No room for new positions or unbudgeted
  expenditures.
• Challenged by continuing instructional needs
• Travel
• Operating budget deficits
• Research support
• Equipment for Labs Instructional equipment
• As we move to year-end close, we will look to
  any one-time non-recurring allocations back to
  Academic Affairs similar to last FY2005-06.
• Look to enrollment numbers 14th day count for
  revenue.
• Look to lottery scholarship funds.
• 2006-07
• Major rollover of soft money faculty positions
  (must develop a phased plan), continuation
• Instructional Enhancement Fee
• Athletics Fee Review
• Compensation Plan (faculty and staff)
• Operating deficits
• SIS Banner Project
• Support staff for Capital Campaign
• O M Support

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• Three Year Education and General Phased Budget
• Planning Considerations
• Institutional-wide moratorium on new programs
  it is recommended over the
• next three budget cycles that the University
  refrain from adding any new programs
• or services that may require an
  infusion/investment of new state appropriated
  fiscal
• resources (given Roger Brown is now leading
  the campus, this recommendation would be
  subject to any organizational or
• visionary planning of the new CEO). The goal
  would be to strengthen existing E
• G budget programs and services within the
  current limitations of our financial
• resources.
• A general hiring freeze will be implemented
  across the University except for key
• identified and supported by the Vice
  Chancellors, and identified/required faculty/
• instructional positions.
• An evaluation of expenditures within the
  current base budget to establish
• institutional priorities, mission driven
  sustainability, and possible internal
• reallocation of existing resources.
• Program and services review by major divisions
  of the University.
• A review of enrollment trends as compared to
  fiscal position and campus
• infrastructure support.
• Look to alternative sources of external
  funding support.

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• Costs Going Forward Considerations
• 2005-062006-072007-08
• State budget support of soft money funded
  faculty positions.
• Compensation plans faculty, exempt and
  non-exempt staff.
• Utilities increases.
• Implementation of an Instructional Enhancement
  Fee.
• Restoration of academic travel funding.
• Salary compression to focus on faculty
  positions (Full and Associate Professor).
• Support of capital campaign requirements.
• Strengthen student support services

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University of Tennessee Headcount FTE