Presented to the Governor's Education Excellence Commission on 11/27/12

1. Governor’s Education Excellence Commission
2013-14 Budget Priorities Preview
David L. Buhler, Commissioner of Higher Education
November 27, 2012

2. Financing of Higher Education
Funding per Student FTE 2008 Funding per Student FTE 2012
Tuition Tax Funds Tuition Tax Funds
37% 63% 51% 49%
Total funding per student has decreased $600

3. Benefits of Higher Education – for Utahns
Utahns’ Wage Earnings and Unemployment (by educational attainment)
8.2% $59,843
7.6%
$41,273
5.5%
$30,632
$26,355
4.1%
$19,316
1.4%
Less than High School High School Diploma Some Bachelor's Degree Graduate Degree
Diploma College, Certificates &
Associate's Degrees
Median Wage Unemployment Rate

4. Benefits of Higher Education – for the State
State Tax Contributions & Population (by educational attainment)
Taxes Paid Population
48%
40% 38%
34%
28%
12%
No Postsecondary Education Certificates & Associate's Degrees & Higher
Some College, Bachelor's

5. Top Budget Priorities

6. 1) Compensation
• Same state funded increase offered to all other state
and public education employees
– State portion (75%) of 1% increase: ~$7M
– State portion of 1% benefits increase: ~$900K
• USHE competes regionally and nationally for talent
• Full-time and adjunct faculty averages are currently
below national peer group institutions

7. 2) Mission Based Performance Funding - $16 million
Two of four priorities requested:
1. Distinctive Mission $8 million
(Participation, Completion, Economic Development)
2. Equity $8 million
– Target 55-70% of state funds based on mission
– Addresses inequities in funding mix
3. New Enrollment Growth Not requested
4. Historic Unfunded Growth Not requested

8. 2) Mission Based Performance Funding
Distinctive Mission Implementation (2012-13)
Institution Participation Completion Economic
Development
UU $300,000 $602,200
USU $595,000 $173,000 $75,000
WSU $412,400
SUU $40,000 $91,300 $57,000
Snow $20,797 $88,503
Dixie $156,000
UVU $70,939 $297,404 $102,557
SLCC $472,700
TOTAL: $1,139,136 $1,490,404 $925,260

9. 3) 66%: Expand Teaching Capacity & Completions by 2020
• USHE must increase degrees & certificates awarded by 4% each year to reach 66%
by 2020
• This is the first step to create a highly-educated workforce
Innovation Investment
Leverage use of technology In Capacity and Completion
Broaden reach to K-12 students $30M increases capacity in critical programs
• College readiness + $10M scholarships to assist in completion
• 1st generation college- _________________________________
goers Total: $40 million investment
Focus on industry needs
• STEM & Health Professions $20M/$20M Investment Plan
$20M state contribution
+ $20M institutional innovation & investment
_________________________________ 9
Total: $40 million investment

10. 3) 66% : Expand Teaching Capacity & Completions by 2020
Annual Growth in Certificates (>1 yr) and Degrees to USHE students
46000
44000
45,000+
42000
40000
38000
36000
34000
31,339
32000
30000
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

11. 3) 66% : Expand Teaching Capacity & Completions by 2020
• Total FY13 request: $20 million state funds
– Increase capacity for completion: $15 million
– Scholarships/incentives - $5 million
– Institutions to also invest $20 million
– Focus on high-growth, high wage degree areas
(STEM and health professions)
$20M State + $20M Institution Match = $40M Total Investment

12. Other Higher Education Priorities

13. 4) Operational Imperatives - $10,446,000
• O&M for Non-State funded projects $4,396,000
– University of Utah
– Utah State University
– Weber State University
• U of U Utility Rates $3,900,000
• Higher Ed Tech Initiative (HETI) $2,150,000
– Leverages combined volume purchasing
power of all institutions for IT purchases

14. 5) USHE Programs - $2,950,000
• Student Access
– Success Stipends: (need based financial aid): $2 million
• work-study & grants (average award: $850/student)
– Regents and New Century Scholarships: $500,000
• Projected ~25% growth
– Tech Intensive Concurrent Enrollment: $150,000
• Ongoing course maintenance, consultation,
articulation, transfer
• Collaboration
– Utah Academic Library Consortium $300,000
• Database acquisition for use by all institutions

15. State Initiatives

16. 1) University of Utah School of Medicine - $ 10 million
• To increase class by 40 students per year (160 more)
• $62,500/student/year (avg. natl. cost: $100-110k)
• 1,500 applicants for 82 slots last year
• To help address Utah’s primary care physician
shortage
• $3.5 million one-time reduction in first year

17. 2) DSC - University Implementation - $4 Million
• Assuming Regents approve mission change
• Expected to meet agreed upon benchmarks by end of
2012
• Will help implement new mission
• To enhance capacity, including technology

18. One-time Increases
$1,750,000

19. One-time Increases
1. Higher Education Technology Initiative (HETI) $750,000
– Security software & ongoing license/maintenance ($150,000)
2. Utah Academic Library Consortium (UALC) $300,000
– Training for digital preservation of historical materials
3. Tech. Intensive Concurrent Enrollment (TICE) $600,000
– To complete last 7 General Education courses
– Full delivery planned for Fall 2014
4. Utah Women and Education Initiative (UWEI) $100,000
– Continued implementation of the Utah Women’s
College Task Force recommendations

20. Supplemental Increases

21. Supplemental Increases - $2,873,600
• O&M Requests for non-state funded projects
– One-time funds on projects approved by Legislature
that did not receive funding in FY2012-13
– 9 projects at U of U, USU, WSU

22. Capital Development Projects

23. Capital Development Prioritization for
2013-14
Priority Institution & Project State Funds
1 WSU New Science Lab Building (STEM) $60,900,000
1 UVU Classroom Building (Enrollment) $53,200,000
3 Snow Science Building Reconstruction (STEM) $11,800,000
4 USU Biological Sciences Building (STEM) $60,000,000
5 USU-CEU Central Instruction Building $20,000,000
6 SLCC CTE Classroom & Learning Service Building $15,000,000
(STEM)
7 DSC East Elementary School Purchase $1,500,000
(also included in Land Bank Request)

24. Land Bank Requests (Not Prioritized)
Institution Property Amount
Dixie State • East Elementary School $1,500,000
College • University Plaza $4,200,000
• Larkin Property $1,500,000
• Commercial Property (adjacent to campus) $1,500,000
Southern Utah • 7 Residential Lots (proximate to campus) $1,150,000
University • 6 Residential Lots (proximate to campus) $1,200,000
• 2 Residential Lots (contiguous to campus) $370,000
Utah Valley • Old Geneva Steel Site $12,500,000
University

25. Questions/Discussion