January 26, 2012. The 2% increase in funding requires explanation

Below is a succinct, informative summary of yesterday’s House Higher Ed Appropriations Committee meeting, where Chairman O’Toole offered her 2012-13 budget proposal and proposed conforming language.  At the top of the list of noteworthy changes included in O’Toole’s proposal are:

Below is an executive summary for the SUS and the Board Office prepared by the BOG. Whereas the executive summary for the SUS rolls various budget issues into one line, the following narrative breaks out some of the issues between the special units and E&G.

Universities:

The bottom line shows that the SUS is receiving a 2.2% increase. However, this needs some explanation.

First, special units (UF IFAS and Medical Schools) are held harmless from any budget reductions and they receive the following adjustments:

·         8% Graduate/Professional & Out-of-State Fee Increase – $7 M

·         FIU/UCF Medical Schools – $1.9 M (matches Board request)

·         UF-IFAS Ruskin Aquaculture Lab – $123,207

·         UF-IFAS Animal Ag Industry Science & Technology – $2.2 M

·         UF-IFAS Horticulture Research, Science & Education – $1.45 M

·         UF-IFAS Caladium Industry Research – $417,000

·         Moffitt Cancer Center – $2.9 M (matches Board request)

·         Institute of Human & Machine Cognition – $3 M (matches Board request)

Second, E&G (main campuses) receive a total reduction in state funds of $153 M. This includes a base budget reduction of $138 M, a reduction of $30 M due to changes in retirement, and some other specific line item adjustments listed below. The base budget reduction would be partially offset by an 8% undergraduate tuition increase. In addition, an assumption is made that all universities would receive approval for a 7% tuition differential increase and that all universities would implement an 8% increase for graduate/professional and out-of-state student tuition.  These increases, if fully implemented, would offset the budget reduction.

In addition there are the following E&G adjustments:

·         8% UG base tuition increase – $54.1 M

·         7% Tuition Differential increase – $68 M

·         8% Graduate/Professional & Out-of-State Fee Increase – $32 M

·         Florida Retirement Changes – ($30 M)

·         Decrease in state funds due to student excess hours – ($10 M)

·         FSU High Magnetic Field Lab – $3 M (Board requested $3.3 M)

·         Florida Institute of Oceanography – $1.2 M (matches Board request)

·         PO&M – $8.4 M (matches Board request)

·         UCF Lou Frey Institute – $400,000

·         FIU Simulation Teaching & Research Center – $500,000

·         FCLA funding is transferred to the Florida College System – ($9.9 M)

o   This issue transfers FCLA funds, which are currently in UF’s base budget, to the Florida College System. These funds would be merged with the College System Library and Distance Learning Consortium to form the Florida Virtual Campus. Additionally, $2.5 M is added for the UWF Degree Completion Pilot project and $2.5 M is provided to the Western Governors University Student Access Pilot project.

Board General Office

·         4 positions ($128,000 in Salaries & Benefits), plus $25,000 in operating expenses are eliminated