Budget Information

According to the most recent revenue estimates from the Comptroller of Public Accounts, Texas faces a budget shortfall of at least $15 billion and perhaps as much as $27 billion for the 2012-2013 biennium. For the University, this could mean a reduction in state appropriations as high as 25 to 30 percent.

This site was developed to provide the campus community information regarding the budget impact as it relates to the University.

UTB/TSC Budget Q&A

• What were the total budget reductions in FY 2010 and FY 2011?
  • UTB/TSC was required to reduce budgets by 5% early in the spring of 2010. The reduction totaled $3.975 million which was split between FY 2010 and 2011 or just under $2.0 million per year.
• How did we manage the budget reductions in FY 2010 and FY 2011?
  • Each division was asked to develop a budget reduction plan for their respective areas. Most budget units reduced M&O, travel and in some instances, staff positions were eliminated.
• Will there be additional budget cuts in the current year?
  • On December 6, 2010, Governor Rick Perry, Lieutenant Governor David Dewhurst and Speaker of the House Joe Staus sent a letter to all state agencies outlining the budget situation for the next biennium. In that letter, the three asked all agencies to plan for additional budget savings equal to 2.5% of the original amount of state appropriations received for FY 2011. The letter indicates that reduced spending in the current year will place us in a better position to prepare for budget reductions in the 2012-2013 biennium. For UTB/TSC the additional reduction totals $1,007,803.
• How will decisions be made on additional budget cuts in the current year?
  • Each division head was asked to develop plans to reduce budgets by another 2.5% through input from each budget unit manager. Plans were submitted on December 14, 2010, and will be reviewed in the coming weeks to determine our course of action.
• Will there be layoffs or salary reductions in the current fiscal year? If so, how will they be handled?
  • Although UTB/TSC is reviewing all options to meet targeted budget reductions, we cannot guarantee that layoffs or salary reductions will not occur. All budget units have been asked to develop unit plans that will allow us to continue to provide mission critical services to students while managing budget reductions. Each unit will be responsible for determining what areas of budget will be reduced.
• Is there a hiring freeze in place for the current year? If so, how were decisions made to freeze certain positions?
  • Vacant positions at December 1, 2010 were reviewed by each division to determine which were mission critical and which could be frozen for a period of time in the current year. Frozen positions will remain in this status until April 1, 2011. This will allow us to evaluate the status of budget development by the legislature before a final decision is made on all frozen positions.
• Is there a freeze on job reclassifications for the current year?
  • All job reclassifications resulting in salary increases have been suspended until the FY 2012 budget process. The amount of state funding received for the next biennium will determine what course of action will be taken regarding reclassifications that result in salary increases in the next budget cycle.
• Will there be a spending freeze in the current year?
  • Last summer, expenditures were frozen on July 1, 2010. The suspension resulted in budget savings totaling $1.122 million and places us in a stronger financial position to manage budget cuts in the current year and the next biennium. Dollars saved last year and today will minimize the impact caused by the loss of funding in future years, therefore, this strategy will be continued in FY 2011.
• What is the most recent information on the state budgeting process for 2012-2013 and how does it affect UTB/TSC?
  • Texas faces a budget shortfall estimated at $25 billion, according to recent numbers. State agencies were asked to include budget cuts of 10% in their Legislative Appropriation Requests (LARs) for 2012-2013. It is important to note that higher education has taken on disproportionate cuts totaling $520 million or 41% of overall reductions in relation to its total share of the state budget. Higher Education represents 12.5% of the total state budget or 18% of the total General Revenue expenditures. The state budget shortfall will be confirmed after the State Comptroller issues biennial revenue estimates to the legislature in mid January 2011.
• What happened to cause the state's budget shortfall?
  • Like other states, Texas is dealing with the effects of the recession and rising health care costs. Key factors which caused the state’s budget shortfall include lower-than-expected tax collections, the use of one-time funds, including federal stimulus dollars, that no longer are available, and the increase needed to maintain basic state services at current levels in a growing state.
    http://www.chron.com/disp/story.mpl/metropolitan/7346648.html
• When will UTB/TSC know how much funding will be received from the state for the next biennium?
  • The State Comptroller will be issuing revenue estimates for the month ended December by mid January. It is expected that the comptroller will begin to update revenue forecasts which be the used to determine available funding for the upcoming biennium. During the legislative session, UTB/TSC will track mark up versions of the appropriations bill until the final bill is drafted which is anticipated to be completed in May 2011. However, should any special sessions be called, the final bill approval may be delayed.
• What is the timeline for the development of the FY 2012 Budget?
  • UTB/TSC Budget Office will develop preliminary revenue estimates by February 2011. Revenue estimates will be evaluated throughout the legislative session. The first draft budget will be submitted to UT System by late June 2011 or mid July 2011 at the latest.
• When will the FY 2012 Budget be finalized?
  • The first draft of the FY 2012 budget will be submitted in June 2011 in order to meet UT System budget deadlines. It is anticipated that the U.T. System Board of Regents will approve the university operating budget during the middle of August 2011.
• Will there be budget reductions in the 2012-2013 biennium?
  • UTB/TSC is anticipating budget cuts of 25% for the next biennium as compared to 2010-2011 this will reduce budgets by $19.9 million or slightly less than $10 million per year. This amount will be confirmed once appropriations bill is passed by the state legislature and includes budget reductions already taken in FY 2010.
• Will there be layoffs or salary reduction in the next biennium?
  • Although UTB/TSC is reviewing all options to meet targeted budget reductions, we cannot guarantee that layoffs or salary reductions will not occur.
• What actions will be taken to cut expenses?
  • Each unit has been asked to think before spending and define mission critical services and expenditures for core functions. In FY 2010 over $2.8 million was saved by implementing cost savings strategies which resulted in salary savings due to hiring freezes and budget cuts in M&O and travel.
• Will budget cuts eliminate any salary increases for FY 2012 and FY 2013?
  • Salary increases for promotion, tenure and exceptional merit for faculty and staff will be continued in FY 2012 if funds are available to support the increases.
• Who will be deciding on the current year, FY 2012 and FY 2013 budget reductions?
  • Each VP submitted budget reduction suggestions at the end of December 2010 that included reduction strategies developed by departments in their division. All budget reduction suggestions for FY 2012 and FY 2013 will be approved by Executive Council.
• Will tuition and fees increase in FY 2012 and FY 2013? If so, by how much?
  • Yes. FY 2012 tuition and fee increases were determined as part of a two year proposal submitted to the Board or Regents in March 2010. Tuition and fee increases are expected to increase no more than $140 for 15 hours per long semester. FY 2013 tuition and fee increases have not yet been determined. Any proposed increases must be approved by the U.T. System Board of Regents.
• Will any academic programs or majors be discontinued?
  • All programs will be reviewed to improve efficiencies. Low producing programs will be eliminated, class sizes will be increased and electives offerings will be reduced. All programs will be evaluated accordingly to determine viability and sustainability going forward.
• Will budget cuts affect the academic calendar? Summer School, May Semester, Winter Session?
  • Instruction for students and expansion of student support services will continue to be a significant priority while managing budget cuts. However, each academic term will be evaluated to ensure that revenues earned at a minimum cover the cost of instructional related costs.
• How can I make suggestions regarding UTB/TSC’s budget?
  • Suggestions regarding budget planning may be sent to BudgetInfo@utb.edu or may be provided by using the virtual Suggestion Box.
• Where do I go on the UTB website to find the syllabus for my professors?
  • Preliminary course syllabus are available at: www.utb.edu/its/olt/Pages/preliminarysyllabus.aspx
• Can you please provide me with your budget cycle 2012?
  • The cycle for the Fiscal Year 2012-2013 Budget started March 2012 and ended June 2012. The only item remaining is approval of the budget by the UT System Board of Regents, which is scheduled for August 22-23, 2012. After the budget is approved, it will be available at: www.utb.edu/ba/Pages/Reports.aspx