President's Finance Council Progress Report

February 2011 - October 2011

Chairs: V. Lane Rawlins, President; Jean Bush, Senior Associate Vice President for Finance

The charge of the President's Finance Council is to review the university's needs, establish budget priorities and make allocations. The council develops strategies for maximizing and utilizing revenues and considers matters that will impact future budgets, including tuition and fee recommendations, major property and other transactions, and policy and other matters.

The council monitored the 82nd legislative session and the potential impact of HB1 and other legislation introduced during the session.  At one point, UNT faced a possible 20 percent decrease in state funding. At the close of the session, UNT’s biennial appropriations were reduced by only 4.9 percent. 
The council’s focus moved to finalizing FY 2012 budget recommendations, which included an anticipated 3 percent increase in SCH (semester credit hours) charged to estimate available funds from tuition and fee increases approved in February 2010 and March 2011.

Recommendations also included rebuilding the budget by reallocating a portion of funds originally identified for cuts during FY 2012 budget hearings. Several notable allocations/reallocations were recommended from these revenue streams and adopted in the FY 2012 budget:

  • $5.0 million allocation from the March 2011 tuition and fee increase for faculty salaries, academic maintenance and operations, and classroom and building needs
  • $6.1 million allocation/reallocation to academic units
  • $2.3 million allocation/reallocation to non-academic units
  • $.25 million to cover net changes in debt service and university budget and staff classification reserves
  • $4.6 million pool for FY2013 faculty and staff raises (to be used for one-time initiatives in FY 2012)
  • $2.0 million additional support for UNT System and Business Services Center

In addition, the UNT FY 2012 budget included approved increases in room and board rates and revenues from growth in various fees. For the first time, UNT budgeted $40 million in benefits appropriations made in our behalf to other state agencies. These appropriations were previously treated as actual pass-through revenues that were recognized as expended.

The $872 million FY 2012 budget was presented to and approved by the UNT System Board of Regents on Aug. 18, 2011.

Since the beginning of the fiscal year, the Finance Council has reviewed the financial impacts of Fall 2011 enrollment: 

  • headcount enrollment declined
  • freshman enrollment reached an historic high
  • transfer and graduate student enrollment declined
  • SCH taken remained relatively flat from Fall 2010
  • tuition waivers and exemptions reached an all-time high

Revenue estimates for Spring and Summer 2012 have been revised based on these impacts. One-time allocations for merit-based transfer scholarships were identified and awards for Spring 2012 have been made. The resulting impact of these scholarships will be assessed following the Spring 2012 enrollment census date.

Discussions of FY 2013 budget assumptions and directions have begun and will be distributed in early December 2011, with budget hearings tentatively planned for March 2012.

 


 

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