2016-17 Budget Planning Assumptions

UC Davis Budget Planning Parameters

Updated: April 13, 2016

The following planning parameters are intended to provide information and resources to the campus community to support budget planning efforts. Information on this page is subject to change based on the timing of the annual budget process, changes in estimates based on new data, when information is available and actions of the Regents, Office of the President, or Legislature. It will be updated with the most recent information as it becomes available. 

Prior Year Assumptions
Planning Parameters

Planning Parameters

Description Amounts (if known) Other Information/Resources

Budget Model Allocations

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Undergraduate Tuition Revenue Pool

The pool of Undergraduate Tuition Revenue distributed through the budget model is based on:


Estimated UG Tuition (enrollment x tuition rate)
Less financial aid (~30% RTA rate)
Less set-asides to OP
Plus UG NRST

Less NRST Held Centrally

Net UG Tuition Pool Allocated

Net UG Tuition is allocated to the units responsible for the activity as follows:

70% to colleges, divisions and schools based on 3 metrics: 60% on student credit hours, 30% on degree majors, and 10% on degrees awarded.

30% to Provost to be incorporated into Provost Allocation resources.

2015-16
Pool Allocated: $221,960,000
NRST in Pool: $20,480,000

Value of SCH: $81
Value of Major: $1,726
Value of Degree: $2,049

2016-17
Pool Allocated: $237,021,000 State enrollment growth funds: $1,000,000
NRST in Pool: $25,247,000

Value of SCH: $85
Value of Major: $1,772
Value of Degree: $2,199

General Information on the Budget Model

Budget Model Issue Paper on UG Tuition

2015-16 Budget Decision Letter, Showing Final Allocations by Unit (See Attachment 1)

Tuition Rate Increase

If a tuition rate increase is approved by the Regents, it is assumed that the increased revenue from this change will be added to the Provost Allocation and used to fund fixed cost increases campuswide.  It will not be allocated through the Budget model.

2015-16 and 2016-17

8% increase on Nonresident Supplemental Tuition for undergraduate students.

Most updated estimates based on current approvals are here.

Indirect Cost Recovery (ICR)

Indirect cost recovery is collected from research sponsors in one year and distributed to the units that generated it the following year. Categorical set-asides (including ARRA, Garamendi-financed buildings) are taken off the top prior to distribution.  Of the pool available for distribution, 37% will be distributed to the units and 63% to the provost.

Funds distributed to the units go to the Dean, who is then responsible for determining how they will be allocated within the unit.

Funds held by the Provost are used to fund central activities in support of research.

2015-16 Allocations
ICR generated in 2014-15: $120.3 million
Categorical Set Asides: $20.4 million
Pool Allocated: $99.9 million

37% to Units: $37 million
63% to Provost: $62.9 million

General Information on the Budget Model

Budget Model Issue Paper on ICR

ICR Allocation By Unit, history

Summer Session Tuition Revenue

Summer Session Tuition Revenue is distributed to the units based on student credit hours taught during summer sessions.  Allocations are made in the fall based on the revenue pool available for distribution.

The revenue pool is determined based on:
Total Summer Sessions Revenue
Less Waivers (typically CalVet)
Less Return-to-Aid (~30%)
Less 8% to Student Affairs (equivalent of Student Service Fee in F,W,S, provide same support)
Less Funds Held Centrally (backfill historic state budget reductions)
Net Summer Session Pool Allocated

Of the pool, Academic Units Receive 80% and the Provost 20%.

2015-16
Summer Revenue generated in 2015: $22,439,000
Pool Allocated: $9,274,000
80% to Units: $7,419,000 base, plus $193,000 one-time (total $7,612,000)
20% to Provost: $1,855,000
$/SCH: $92.10 plus $2.39 (total $94.49)

2016-17
$94/SCH

General Information on the Budget Model

Budget Model Issue Paper on Summer Sessions

2015-16 Budget Decision Letter, Showing Final Allocations by Unit (See Attachment 1)
Graduate Tuition and Nonresident Supplemental Tuition (NRST) Revenue

Using 2013-14 as the base year, the budget model allocates incremental growth in graduate tuition and NRST revenue as follows:

Tuition:
67% to the Provost (includes the 50% return-to-aid amount), primarily for graduate student support.
33% to the Deans based on lead dean for graduate programs and enrollment.

NRST:
100% paid by Ph.D. and M.F.A. students and 50% paid by Master’s students to the Provost for graduate student support.  Mostly funds new NRST allocations and increased GSR buy-down for 2nd & 3rd year international students.

50% paid by Master’s Students to the graduate programs via OGS.

Allocations based on revenue increase in 2014-15 will occur in 2015-16.

Incremental Growth Allocated in 2015-16:
Total Available: $2,615,000
33% tuition to Deans: $369,000
50% master’s NRST to Programs: $250,000

Remainder to Provost: $1,996,000 (includes 50% RTA requirement on tuition).

2016-17
50% master’s NRST to Programs: $407,000

Current estimates indicate no other incremental growth will be available in 2016-17.

General Information on the Budget Model

Budget Model Paper on Graduate Tuition

Communication about 2015-16 Allocation of Graduate Tuition

Professional Tuition and NRST Revenue

Professional Programs, defined as those who charge a professional degree supplemental tuition, retain all of the tuition and NRST generated by the students enrolled in their programs, net of aid.  This is calculated quarterly based on:

Enrollment x tuition rate
Less return to aid amount (~30% of tuition)
Plus NRST Paying Enrollment x NRST rate
Total Tuition Allocated to Program

Varies by Program, adjusted annually.

Enrollment Data

Tuition and Fee Information
2015-16  |  2016-17

Self-Supporting Degree Program Revenue Self-Supporting Degree Programs are mid-level graduate professional degrees that allow the university to serve additional students above and beyond the resources provided by the state while meeting educational and workforce needs.  These programs cannot be subsidized by state funds or tuition.  Self-Supporting Degree Programs keep the revenue they generate based on their enrollment and the fee levels approved by UCOP.

Varies by program. 

Units offering program keep revenue and use based on system and campus policies.

General SSDP Information

Enrollment Data

Fee Information
2015-16  |  2016-17

Faculty Resources When faculty retire or resign, the salary and benefits associated with the position are divided between the Provost and Dean.  The Provost uses these funds to reinvest in new faculty positions and support faculty merit funding and the Dean can use the funds retained to replace the vacated position.

Faculty Salary and Benefit Allocation at Retirement

Colleges & Divisions:
70% Retained by Dean
30% Returned to Provost

Professional Schools:
80% retained by Dean
20% returned to Provost

Faculty Salary and Benefit Allocation at Resignation
90% retained by Dean
10% returned to Provost

Please see paper for certain special circumstances and information on faculty paid on sources that are not state funds or tuition.

Faculty Resources Issue Paper

Provost Allocation

The Provost Allocation is the combination of state funds and the Provost’s share of undergraduate tuition. 

It is used to support the common good and promote excellence across campus, specifically:

  • Provide the primary source of funds for administrative and academic support units.
  • Provide funds for campus priorities and initiatives.
  • Provide a portion of base funding for academic units.
Changes in the amount of provost allocation funds provided to campus units are based on incremental decisions through the annual budget process.

2015-16
Share from UG Tuition: $66.6 million
Share from State Funds: $369 million
Total: $435.6million

2016-17
Share from UG Tuition: $71.5 million
Share from State Funds: $383 million
Total: $454.5 million

Provost Allocation Issue Paper

Provost Allocation Executive Summary

Information about Base Budget Allocations and Incremental Changes in the Provost Allocation are described in the Budget Allocation Letter

Planning Parameters

Description Amounts (if known) Other Information/Resources

Revenue Assumptions

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Undergraduate Tuition No change.

2015-16
$11,220/student
Total Revenue: $298.5 million

2016-17
$11,220/student
Total Revenue: $315.9 million

Fee Information

Undergraduate NRST Increase of 8% over 2014-15.

2015-16
$24,708/student
Total Revenue Estimate:$78.3 million

2016-17
$26,682/student
Total Revenue Estimate:$110.6 million

Fee Information

Graduate Tuition No change.

2015-16
$11,220/student
Total Revenue: $48.4million

2016-17
$11,220/student
Total Revenue Estimate: TBD

Fee Information

Graduate NRST No change.

2015-16
$15,102/student
Total Revenue: $16million

2016-17
$15,102/student
Total Revenue Estimate: TBD

Fee Information

Professional Tuition No change.

2015-16
$11,220/student
Total Revenue: $13.8 million

2016-17
$11,220/student
Total Revenue Estimate: TBD

Fee Information

Professional NRST No change.

2015-16
$12,245/student
Total Revenue: $1 million

2016-17
$12,245/student
Total Revenue Estimate: TBD

Fee Information

Professional Degree Supplemental Tuition (PDST) Varies by program.  Most capped at a 5% increase.  Varies by program.

Fee Information

PDST specific Information

Self-Supporting Degree Program Fees Varies by program.

Varies by program.

Fee Information

SSDP specific Information

Student Service Fee Increase of 5% over 2014-15.

2015-16
$1,020/student
Total Revenue: $33.8 million

2016-17
$1,074/student
Total Revenue Estimate: TBD

Fee Information

Regents Actions: November 2014 Meeting

Regents Actions: November 2015 Meeting

UC Long-term Stability Plan for Tuition and Financial Aid

Other Campus-Based Fees Varies by fee.  Some are subject to annual CPI increases if approved by campus committee.  CPI for 2015-16 is approximately 2.8%. Varies by fee.

Fee Information

Campus-Based Fee specific Information

Course Materials and Services Fees Varies by course, only applied to certain courses if approved by committee per campus policy.

Varies by course, but are capped at either $65 or $80 depending on the actual cost of materials.

Professional students may pay a single annual fee for course materials that covers all of their courses, per course caps do not apply.

Fee Information

CMSF specific Information

State Support

Assume 4% increase in state support per prior agreements with the state.

For 2015-16 unrestricted state support is estimated to be $369 million.  The state also provides an estimated additional $11.2 million for undergraduate financial aid.

For 2016-17, unrestricted state support is estimated to be $383 million, plus $1 million in enrollment growth funding. The state also provides an estimated additional $12.7  million for undergraduate financial aid.

California Budget

UC Long-term Stability Plan for Tuition and Financial Aid

Planning Parameters

Description

Amounts (if known)

Other Information/Resources

Fixed Costs

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Employee Benefits

Based on composite benefit rates and varies by employee group.

2015-16 Approved
Retirement eligible rates range from 19.2%-66.3% of salary.

Non-Retirement eligible rates range from 1.3%-17.1% of salary.

2016-17 Projected
Retirement eligible rates range from 20.3%-66.7% of salary.

Non-Retirement eligible rates range from 1.3%-17.1% of salary.

Composite Benefit Rate Website

Staff Salary Increases Annual merit/range salary increases for staff employees.

Schedule of salary actions July 2015-July 2017

Information on Staff Salary
Faculty Merits and Promotions

Salary increases for ladder rank faculty that are the result of the merit and promotion process are funded centrally for faculty salaries paid on state funds and tuition. 

Beginning in 2014-15, this includes merits that fall under the new step-plus system.
Varies by individual.

Information on the faculty advancement process, policies & procedures, faculty salary scales and more can be found on the Academic Affairs website

Faculty and Other Academic Salary Increases In addition to merits, the UC president also can authorize other types of salary adjustments for faculty.

2015-16
1.5% across-the-board range adjustment effective July 1, 2014. Pool for ladder faculty equities equivalent to 1.5% of salaries per UCOP guidelines. The campus added 1% to this pool for a total pool equivalent to 2.5%. Distribution methodology and eligibility criteria apply, see academic affairs website.

2016-17 Projection
Pool for ladder faculty equities equivalent to approximately 2.5%. Distribution methodology and eligibility criteria apply, see academic affairs website.  Other adjustments TBD.

Academic Affairs website

Academic Affairs: Equity Adjustment

TA and GSR Fee Remission

Graduate students who are employed as teaching assistants (TAs) or graduate student researchers (GSRs) with an appointment of at least 25% are eligible for partial tuition and fee remission for certain types of fees.  In some cases these benefits are covered by a collective bargaining agreement.

Central campus funds fee remission for TAs and considers this a fixed cost.  Campus units are responsible for paying the salaries of TAs.

GSR fee remission is funded by the source paying the GSR salary (generally extramural grants).

Remission includes tuition, student services fee, student services health fee, and the premium for the Student Health Insurance Program.  Rates are set based on the student fees charged.

For information on graduate student employment, including TA and GSR fee remission and related policies, see here.

Fee Information

General, Employment and Automobile Liability (GAEL) Varies by Unit.

2014-15 GAEL Rates

2015-16 GAEL Rates

Planning Parameters

Description

Amounts (if known)

Other Information/Resources

Overhead

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UCOP Tax

UCOP tax refers to an assessment that the Office of the President levies on campuses to support the operations of the office and various systemwide programs.

The tax is based on all expenditures two-years prior. For example, the 2015-16 tax rate will be applied to the 2013-14 expenditures.

2015-16
Assessed on total 2013-14 expenditures.
Rate: 1.55%

2016-17
Assessed on total 2014-15 expenditures.
The rate for 2016-17 has not been finalized; units may use 1.55% for planning purposes.

General information on the UCOP tax and funding streams is available here.

See unit-specific SmartSite for detailed information.

Campus Assessment (CA) and Non-University Differential (NUD)

CA is required for all accounts that generate revenue; the assessment is 3% of the income and recharge revenue generated (excluding applicable exemptions).

NUD is required to be charged for income generated from external clients (non UC affiliates, excluding applicable exemptions). The NUD surcharge is based on the F&A negotiated rates and is 33.3% for FY15/16, of which the department retains 16%.
Information on Non-University Differential (NUD)
SSDP Assessment Assessment charged to SSDPs to support campus administrative activities that support SSDP programs. 1.5% of SSDP income
Common Good Assessment (CGA)
Payroll-based assessment that eliminates recharge for certain goods and services that are essential and routinely consumed in the regular course of unit operations. Implemented in January 2016. Rate varies by unit. Common Good Assessment
Planning Parameters

Description

Amounts (if known)

Other Information/Resources

Other

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Patent Revenue Allocations

Patent revenue is shared between inventors and the university. Patent revenue will be distributed by September 2015, following the same methodology as 2014-15. Information on Patent Income

Return-to-Aid (RTA) Requirements

The university requires that a set amount of tuition revenue is used to support student financial aid, this is called RTA. The effective rate reflects incremental changes in the rate over time. The rates are different by tuition type. Institutional aid awarded may exceed the required RTA in any given year.

2015-16 Rates
Undergraduate tuition: ~30%
Graduate tuition: ~49%
Professional tuition and PDST: ~30-33% (depends on when the program was established)

2016-17 Rates (preliminary)
Undergraduate tuition: ~30%
Graduate tuition: ~49%
Professional tuition and PDST: ~30-33% (depends on when the program was established)

Information on Financial Aid at UC Davis