2018-19 Budget Planning Assumptions

UC Davis Budget Planning Parameters

Updated: March 7, 2018

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. 

Planning Parameters

Planning Parameters

Description Amounts (if known) Other Information/Resources

Budget Model Allocations

Back to top

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.

2017-18

Pool Allocated: $244,990,000

NRST in Pool: $28,745,000

Value of SCH: $85

Value of Major: $1,773

Value of Degree: $2,147


2018-19 Estimate

Pool to Allocate: $249,932,000

NRST in Pool: $31,316,000

Value of SCH: $84

Value of Major: $1,741

Value of Degree: $2,092

General Information on the Budget Model

Budget Model Issue Paper on UG Tuition

2017-18 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.

2017-18

2.5% increase on Tuition

5% increase on Nonresident Supplemental Tuition for undergraduate students.

2018-19

0% increase on Tuition

3.5% 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, 32% will be distributed to the units and 68% to the Provost for FY18/19. FY19/20 will be 30%/70% respectively.

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.

2017-18 Allocations

ICR generated in 2016-17: $130.6M

Categorical Set Asides: $25.1M

Pool Allocated: $105.4M

34% to Units: $35.8M

66% to Provost: $69.6M


2018-19

Preliminary Estimate ICR Generated 2017-18 $133.8M

Categorical Set Asides: $25M

Pool Allocated: $108.8M

32% to Units: $34.8M

68% to Provost: $74M

General Information on the Budget Model

Budget Model Issue Paper on ICR

ICR Allocation by Unit, history

2018-19 Unit ICR Estimates

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%.

2017-18

Summer Revenue generated in 2017: $23,875,000

Pool Allocated: $10,287,000

80% to Units: $8,230,000 base

20% to Provost: $2,057,000

$/SCH: $96

2018-19 Est.

$94/SCH minimum

General Information on the Budget Model

Budget Model Issue Paper on Summer Sessions

2017-18 Budget Decision Letter, Showing Final Allocations by Unit (See Attachment 1)
Graduate Tuition and Nonresident Supplemental Tuition (NRST) Revenue

Graduate Tuition Model:

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 will be based on actual revenue collected and will occur by the end of the fiscal year.

Optional Masters Enrollment Incentive Program (MEIP)

Programs must have opted-in to the MEIP model. Graduate tuition and NRST revenue paid by Master’s Students are distributed for enrollment over base enrollment at opt-in as follows:

Tuition:
10% to the Provost. 50% return-to-aid amount primarily for graduate student support made available to programs via the Office of Graduate Studies.
40% to the lead deans (includes amount to be shared with program per previously established Dean/program agreement.

NRST:
20% 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 lead deans (includes amount to be shared with program per previously established Dean/program agreement.

Allocations based on revenue in 2017-18 will occur by the end of the 2017-18 fiscal year. Programs should estimate allocations based on enrollment.

2017-18
50% master’s NRST to Programs: $407,000

Current estimates indicate no other incremental growth will be available in 2017-18.

2018-19

TBD

General Information on the Budget Model

Budget Model Paper on Graduate Tuition

Communication about 2015-16 Allocation of Graduate Tuition

General Information on the optional Masters Enrollment Incentive Program (MEIP)

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

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

Tuition and Fee Information

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:
65% Retained by Dean

35% 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.
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.

2017-18

Share from UG Tuition: $73.5 million

Share from State Funds: $412.3 million

Total: $485.8 million

2018-19 Estimate

Share from UG Tuition: $74.7 million

Share from State Funds: $423.9 million

Total: $498.6 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 2017-18 Budget Decision Letter

Planning Parameters

Description Amounts (if known) Other Information/Resources

Revenue Assumptions

Back to top

Undergraduate Tuition No increase anticipated.

2017-18
$11,502/student
Total Revenue: $304.5 million

2018-19

$11,502/student

Total Revenue: $318.4 million

Fee Information

Undergraduate NRST Increase of 3.5% from 2017-18 level.

2017-18
$28,014/student
Total Revenue Estimate: $131.9 million

2018-19

$28,995/student

Total Revenue Estimate: $149.1 million

Fee Information

Graduate Tuition No increase anticipated.

2017-18
$11,502/student
Total Revenue Estimate: $47.8 million

2018-19

$11,502/student

Total Revenue Estimate: $47.8 million

Fee Information

Graduate NRST No increase anticipated.

2017-18
$15,102/student
Total Revenue Estimate: $16.2 million

2018-19

$15,102/student
Total Revenue Estimate: $16.2 million

Fee Information

Professional Tuition No increase anticipated.

2017-18
$11,502/student
Total Revenue Estimate: $21.8 million

2018-19
$11,502/student
Total Revenue Estimate: $21.8 million

Fee Information

Professional NRST No change.

2017-18
$12,245/student
Total Revenue Estimate: $2.1 million

2018-19
$12,245/student
Total Revenue Estimate: $2.1 million

Fee Information

Professional Degree Supplemental Tuition (PDST) Varies by program. Varies by program, generally less than 5%.

Fee Information

PDST specific Information

Self-Supporting Degree Program Fees Varies by program.

Varies by program, generally less than 5%.

Fee Information

SSDP specific Information

Student Service Fee Although annual fee increases of 5% through 2019-20 were previously approved by Regents, zero increase to the amount students will pay is assumed at this time as budget negotiations with the State continue.

2017-18
$1,128/student (5% over prior year)
Total Revenue Estimate: $39.2M

2018-19 Est.

$1,128/student (0% over prior year)
Total Revenue Estimate: $39.25M

Fee Information


Other Campus-Based Fees Varies by fee. Some are subject to annual CPI increases, via campus approval process. (CPI rate for 2018-19 fees is approximately 3.2%). Varies by fee.

Fee Information

Campus-Based Fee specific information (pages 2-5)

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 approximately 3% increase in state support per 2018-19 Governor's Budget.

2017-18

Unrestricted state support is approximately $412.3 million.

2018-19

Unrestricted state support is estimated to be $423.9 million.

California Budget

Planning Parameters

Description

Amounts (if known)

Other Information/Resources

Fixed Costs

Back to top

Employee Benefits

Based on composite benefit rates and varies by employee group.

2017-18

Retirement eligible rates range from 19.5% to 60.7% of salary.

Non-Retirement eligible rates range from 1.5% to 17.3% of salary.

2018-19

No change

Composite Benefit Rate Website

Composite Benefit Rate Add-On

Additional benefit cost for non-General Fund, non-Contract and Grant funds to reflect the benefit amount that these funds would have otherwise paid had the State not provided $436 million to the UC Retirement Plan. The intent of the State in providing the $436 million was to help pay down the unfunded liability associated with state funds and tuition and not to reduce costs for all fund types.

Rate: 0.15% on all funds except: Sub Fund Group Types 1, B, C, D, F, G, H, J, L, N, P, S, V, W, X; Sub Fund Groups SSEDAC, SSEPDI, and OSSSO; OP Funds 20094, 20095, 20321 and 20323.

2018-19

No change from prior year, rate will remain at 0.15%

Composite Benefit Rate Add-On Overview

415(m)

UC’s 415(m) restoration plan provides a “top-up” for retirees who have their pension benefits capped by IRS established limits – typically very long serving employees with higher salaries. Annual UCOP assessment is based on estimated current and projected employee participant costs which creates funding pool to meet plans payment obligations.

Units are responsible for 415(m) costs associated with their employees.

2016-17
Assessment = $1.994M

2017-18
Figures available May/June, estimate equal to or greater than 2016-17 levels

2018-19
TBD

UCOP Program Description

Staff Salary Increases Annual merit/range salary increases for staff employees. Many are subject to labor contracts.

Tentative Schedule of salary actions July 2017-July 2018

Information on Staff Salary

HR Policies & Contracts

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.

2017-18
Pool for ladder faculty range adjustment and equities equivalent to approximately 3.0% (1.5% for each program). Distribution methodology and eligibility criteria apply, see academic affairs website. Other adjustments TBD.

2018-19

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)

2017-18

Varies by Unit.

2018-19

Varies by Unit.

2018-19 GAEL Rates

Planning Parameters

Description

Amounts (if known)

Other Information/Resources

Overhead

Back to top

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.

2017-18
Assessed on total 2015-16 expenditures.

Rate: 1.55% for OP Tax, plus 0.06% add-on to support UC Path costs.

2018-19
Assessed on total 2016-17 expenditures.

Rate: 1.55% for OP Tax, plus 0.13% add-on to support UC Path costs.

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

See unit-specific Box Site for detailed information available in April each year.

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 33.7% for FY17/18, of which the department retains16.2%. These rates are expected to remain static for FY18/19.

2017-18

CA – 3%

NUD – 33.7%, Dept. share 16.2%

 

2018-19

CA – 3%

NUD – 33.7%, Dept. share 16.2%

Information on Non-University Differential (NUD)
SSDP Assessment Assessment charged to SSDPs to support campus administrative activities that support SSDP programs. 3.4% of SSDP income
Common Good Assessment (CGA)

Annual bill 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 as a payroll assessment; switched to annual bill for 2017-18.

Amounts vary by unit.

2018-19

TBD amounts calculated in May/June

Common Good Assessment
Annual & Special Giving Program (ASGP) Assessment

Assessment charged to units to support operational costs of the Annual & Special Giving Program (ASGP). Implemented in 2017-18, this assessment eliminated the 33% recharge on individual annual gifts.

Amounts vary by unit

See Unit Box Site for 2017-18 actual assessments and 2018-19 estimated assessments by unit.
Planning Parameters

Description

Amounts (if known)

Other Information/Resources

Other

Back to top

Patent Revenue Allocations

Patent revenue is shared between inventors and the university.

2018-19

Patent revenue will be distributed by September 2018, following the same methodology as 2017-18.

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 (RTA). The rates vary by tuition type. Institutional aid awarded may exceed the required RTA in any given year.

2017-18 Rates
Undergraduate tuition: ~30%
Graduate tuition: ~49%
Professional tuition & PDST: ~30-33% (depends on when the program was established)

2018-19 Estimates

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

Information on Financial Aid at UC Davis