Nevada System Of Higher Education

Nevada System Of

Higher Education

2012-2013 Operating Budget

System Administration ? University of Nevada, Reno ? University of Nevada, Las Vegas ? College of Southern Nevada ? Great Basin College ? Truckee Meadows Community College ?

Western Nevada College ? Desert Research Institute ? Nevada State College

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NEVADA SYSTEM OF HIGHER EDUCATION

BOARD OF REGENTS

Dr. Jason Geddes, Chair Mr. Kevin J. Page, Vice Chair

Mr. Mark Alden Mr. Robert Blakely Dr. Mark W. Doubrava Mr. James Dean Leavitt Dr. Jack Lund Schofield

Mr. Michael B. Wixom

Dr. Andrea Anderson Mr. Cedric Crear Mr. Ron Knecht Mr. Kevin C. Melcher Mr. Rick Trachok

Mr. Scott Wasserman, Chief Executive Officer and Special Counsel to the Board of Regents

OFFICERS OF THE NEVADA SYSTEM OF HIGHER EDUCATION

Mr. Daniel J. Klaich, Chancellor Nevada System of Higher Education

Dr. Marc Johnson, President University of Nevada, Reno

Dr. Michael D. Richards, President College of Southern Nevada

Dr. Maria Sheehan, President Truckee Meadows Community College

Dr. Stephen G. Wells, President Desert Research Institute

Dr. Neal J. Smatresk, President University of Nevada, Las Vegas

Dr. Mark A. Curtis, President Great Basin College

Dr. Carol A. Lucey, President Western Nevada College

Mr. Bart Patterson, President Nevada State College

Document Prepared by the Finance Department Office of the Chancellor

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NEVADA SYSTEM OF HIGHER EDUCATION STATE-SUPPORTED OPERATING BUDGET

FISCAL YEAR 2012-2013

TABLE OF CONTENTS

Overview.................................................................................................................. 5 Overview of Legislation .......................................................................................... 13 Summary of Legislation........................................................................................... 17 Appropriation Summary .......................................................................................... 27 Capital Improvement Program................................................................................. 29

Summary Tables Revenues by Source ................................................................................................. 33 Allocation of Resources by Appropriation Area ..................................................... 34 Allocation of Resources by Budget Function .......................................................... 35 Allocations of Resources by Expenditure Object .................................................... 36 Student Headcount Enrollment ................................................................................ 37 Annualized Student Full-Time Equivalent Enrollments and Projections ................ 38 Student/ Faculty Ratios ? 2005-07 Biennium .......................................................... 39

State Supported Operating Budget Detail System Administration............................................................................................. 43 University Press ....................................................................................................... 49 NSHE Special Projects ............................................................................................ 53 System Computing Services .................................................................................... 57 W.I.C.H.E. ............................................................................................................... 63 University of Nevada, Reno..................................................................................... 67 Intercollegiate Athletics, UNR ............................................................................... 97 Statewide Programs, UNR ....................................................................................... 101 Cooperative Extension Service ................................................................................ 105 Agricultural Experiment Station .............................................................................. 109 Business Center North ............................................................................................. 113 School of Medicine .................................................................................................. 117 State Health Lab....................................................................................................... 129 University of Nevada, Las Vegas ............................................................................ 133 Intercollegiate Athletics, UNLV .............................................................................. 163 Statewide Programs, UNLV .................................................................................... 165 Business Center South ............................................................................................. 167 Law School .............................................................................................................. 173 Dental School........................................................................................................... 179 College of Southern Nevada .................................................................................... 185 Great Basin College ................................................................................................. 215 Truckee Meadows Community College .................................................................. 229 Western Nevada College.......................................................................................... 249

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State Funded Perkins Loans..................................................................................... 271 Desert Research Institute ......................................................................................... 273 Nevada State College ............................................................................................... 279

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NEVADA SYSTEM OF HIGHER EDUCATION STATE-SUPPORTED OPERATING BUDGET

Fiscal year 2012-13

OVERVIEW

The Nevada System of Higher Education (NSHE) budget is comprised of 8 institutions and central administration:

University of Nevada, Reno University of Nevada, Las Vegas Nevada State College ? Henderson Desert Research Institute College of Southern Nevada Great Basin College Truckee Meadows Community College Western Nevada College System Administration

Through FY 2010-11, a total of 25 separate budget accounts/ appropriation areas comprised the State supported operating budgets of these entities. By action of the 2011 Legislature, several budget accounts were consolidated within their respective institution accounts. This change impacted budget accounts associated with the University of Nevada Reno, the University of Nevada, Las Vegas, the University of Nevada School of Medicine, and System Administration. Specifically, the budget account consolidations were:

University of Nevada, Reno ? now includes: - Intercollegiate Athletics, UNR, - Statewide Programs, UNR, - Cooperative Extension Service, - Agricultural Experiment Station, and - Business Center North.

University of Nevada, Las Vegas ? now includes: - Intercollegiate Athletics, UNLV, - Statewide Programs, UNLV, and - Business Center South.

University of Nevada School of Medicine ? now includes: - State Health Lab.

System Administration ? now includes: - University Press.

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The remaining budgets will continue as separate accounts. For the purpose of presentation in this book, the newly combined budget accounts are shown as consolidated revenues at the beginning of each section with the expenditures associated with each budget area displayed separately.

Biennial Budget

As with state agencies, NSHE receives legislative appropriations and authorization for its operating budget on a biennial cycle. Fiscal years 2011-2012 (FY 12) and 2012-2013 (FY 13) comprise this biennium.

The NSHE Legislatively approved operating budget for state appropriations and authorized expenditures (State Supported Operating Budget), plus registration fee surcharges approved by the Board of Regents and Nevada State Legislature total $724.5 million in FY 12 and $734.1 million in FY 13 (net of WICHE). This compares to a Legislative approved amount, after budget reductions, of $797.1 million in FY 11(net of WICHE) and represents a 9.1% and 7.9% decrease from the FY 11 levels, respectively.

General fund only allocations for NSHE (net of WICHE), after budget cuts, were $557.9 million in FY 11 and are $472.4 million in FY 12 and FY 13. This equals a reduction in general funds support of 15.3%. In FY11, general fund appropriations accounted for approximately 70.0% of the total State Supported Operating Budget and in FY 12 and FY 13 general fund appropriations account for approximately 65.2% and 64.3%, respectively.

The remaining revenue sources budgeted in the state supported operating budget, including all non-appropriated sources, total $252.1 million in FY 12 (34.8% of the total) and $262.6 million in FY 13 (35.7% of the total). This is an increase in dollars over FY 11 of $13.0 million in FY 12 and $23.5 million in FY 13 and an increase in percentage of budget supported by non-general fund sources of approximately 4.8% and 9.8%, respectively, over FY 11 budget.

Student fees (including registration fees, surcharges, non-resident tuition and miscellaneous student fees), which make up the majority of the non-general fund revenue sources, increased from $220.4 million in FY 11 to $246.6 million in FY 12 and $257.1 million in FY 13. As a percentage of the total NSHE State Supported Operating Budget, student fees increased from 27.6% in FY 11 to 33.8% in FY12 35.6% in FY 13.

The Board of Regents and the Legislature's Interim Finance Committee approved an 8% undergraduate registration fee increase and student surcharge revenue in FY 13 for the universities and colleges.

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Per Credit Hour

Univ - Undergraduate Univ - Graduate

State College - Undergraduate

Community College - Upper Division Community College - Lower Division

FY 12 Reg Fee

$156.75 $239.50

FY 12 Surcharge

$20.50 $12.00

FY 13 Reg Fee

$171.00 $239.50

FY 13 Surcharge*

$20.50 $24.50

$ 113.25

$14.75

$ 123.50

$14.75

$113.25 $69.25

$14.75 $9.00

$123.50 $75.5

$14.75 $9.00

* 15% of the undergraduate and UNR graduate student surcharge and 25% of the UNLV graduate student surcharge will be allocated to student financial aid outside of the State supported budget.

Operating capital investment revenues, which comprised $3.0 million in the FY 09 State Supported Operating Budget but were omitted from the FY 10 and FY 11 budgets as a revenue source due to market performance were reinstated in FY 12. The budgeted amount in FY 12 and FY 13 is $1.7 million.

Formula Funding and Allocation:

In prior biennia, funds for the universities, state college, and community colleges were allocated based on a mechanism using formulas developed by the Committee to Study the Funding of Higher Education in Nevada as established by Senate Bill 443 (2001 Legislative Session). The Committee's formulas are published in detail in the Legislative Council Bureau's Bulletin No. 01-4 titled Committee to Study the Funding of Higher Education.

For the previous 09-11 biennium, the Board of Regents recommended, and the Legislature approved, a significant modification to the traditional formula calculation. Historically, a 3-year weighted average had been used to project budgeted FTE for the purpose of the formula calculation. In light of the financial condition of the State and the unknown impact of budget cuts on NSHE enrollments, the formula was calculated using FY 09 projected enrollments as the budgeted enrollments for FY 10 and FY 11. Additionally, the Board of Regents recommended and the Legislature approved, a redirection of non-formula budget equipment funds to the Nevada State College at Henderson in order to mitigate the institution's budget cuts.

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For the 11-13 biennium, the Board of Regents again recommended a deviation from the traditional formula. Due to the continued difficulty of forecasting the impact on enrollments in what remained a volatile economic climate, NSHE recommended proportional budget reductions rather than formula adjustments. The final budget approved by the Legislature included reductions to each appropriation area for pay and benefit reductions as well as a non-enrollment driven funding decrease.

Appropriations Area Transfer:

The 2011 Legislature granted NSHE the ability to request approval from the Interim Finance Committee (IFC) to transfer fund between appropriation areas. In June 2011 the Board of Regents granted authority to the University of Nevada, Reno to request IFC approval to move $4,539,082 from the consolidated UNR budget account to the consolidated School of Medicine budget account to reflect strategic realignment of resources due to budget cuts. This transfer is displayed in this book pending IFC approval.

Pay Reductions:

The 2011 Legislature approved, in SB 505, a 2.5% reduction in base pay for all employees of the State and State entities, including the employees of NSHE. This action included all classified and professional employees, however some classifications, such as graduate assistants, part-time instructors, resident physicians, and student workers, were not included. Salaries shown in this budget reflect the 2.5% reduction.

Budgeted Reserves/ Employee Furloughs:

The 2011 Legislature also approved, in SB 505, furloughs for state employees including NSHE classified and professional employees, in the amount of 6 days per year for both years of the biennium. Furloughs will generate an approximate 2.3% reduction to employee pay; however, employer contributions to retirement will be made on the pre furlough-reduced base salary. Salaries in this budget do not reflect the furlough savings; the savings from the furloughs are shown as an offset in the Reserves function.

Budgeted Reserves/ Pay Date Shift:

In FY 12, NSHE will be making a policy change regarding its professional and classified payrolls:

Professional Payroll ? Traditionally NSHE professional staff have been paid once each month ? on the last working day of the month for pay earned that month. In FY 12, NSHE will shift the June professional payroll pay date from the last business day of June 2012 to the first business day of July 2012. Therefore, professional employees will receive their paycheck for work done in June 2012 on the first working day of July 2012 instead of the last working day of June 2012. This change in pay dates from the last day of the month to the first day of the

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