FY 1996 Appropriations Report

Utah System of Higher Education

The Legislature appropriated $584.0 million to the Utah System of Higher Education (USHE) for Fiscal Year 1996. This is an increase of $39.0 million over the $545.0 million appropriated for FY 1995.

The plan of financing includes: $418.3 million for the General Fund and the Uniform School Fund, $154.2 million for tuition revenue and $11.5 million from other revenue sources.

State tax support from the General Fund and the Uniform School Fund increased $28.2 million or 7.2 percent over FY 1995.

Tuition revenue increased $9.5 million. This increase is partially due to projected enrollment growth ($2.4 million) and partly from adopted changes in tuition rates ($7.0 million) charged at each institution.

Enrollment Growth

The legislature funded 1,542 additional FTE students for FY 1996 at a cost of $5.2 million. Reflected in this amount is $2.8 million from the General Fund and $2.4 million from tuition revenue. The appropriation fully funded expected growth for FY 1996. It is noted that the rate of enrollment growth has dropped over the past several years. In the 1994-95 academic year, a number of schools failed to meet funded enrollment target expectations. This question of over funding enrollment in the system of higher education was a major item of discussion during the General Session. Whether institutions should be permitted to retain State funds when actual enrollments are below funded targets was the main issue. Intent language was adopted by the Legislature directing the Regents to "develop a policy for addressing funding at institutions when dealing with enrollment fluctuations varying from funded target levels."

Technology/Information Highway

Technology received an increase of $2.5 million in ongoing funding for technical support personnel, equipment maintenance and replacement, LIBNET, communication and video transmission line charges and software site licenses. The Legislature also appropriated $6.4 million in a one-time FY 1996 supplemental for systemwide development of the electronic highway. The expenditure of these funds is for "the development of the statewide technology delivery system and programs." Also associated with this appropriation is intent language giving oversight approval and review of funding distribution to the Utah Education Network (UEN) and the State Board of Regents. Included in the FY 1995 supplemental to higher education is $626,800 for technology equipment, campus fiber-optic networks, and technology enhanced classrooms.

Student Financial Aid

The State Board of Regents and the institutions of higher education administer approximately $105.0 million in student financial aid funds. Student financial aid programs are available at the nine public universities and colleges and some private institutions in the state. The Legislature increased the funding for student financial aid by $559,900 from the General Fund to the Board of Regents to maintain changes in federal matching requirements and to fund anticipated increases in demand for student financial aid. Another $50,000 was appropriated to the Board of Regents for a State-sponsored minority scholarship program.

Tuition

Tuition increases for the Utah System of Higher Education for FY 1996 varied considerably by school. The increases run from zero percent at Dixie College to 6 percent at the four year institutions. Tuition at Snow College and the College of Eastern Utah will increase by 5 percent while Utah Valley State College and Salt Lake Community College will experience a 3 percent rate increase. The adopted tuition rate increase is part of a three-year plan to bring tuition at all schools to a certain percentage of the tuition rate assessed at the University of Utah. Once each school's tuition is "indexed" to a certain percentage of the University of Utah's, future tuition rate increases will be the same at each institution. The projected tuition revenue from the adopted rate increases is estimated at $7.0 million for FY 1996.

The use of tuition revenue for USHE programs from rate increases are an issue of some concern. Generally, these funds are used for compensation increases, "urgent student support," and various other student-related needs. The Legislature funded the compensation package with tuition bearing approximately 25 percent of the cost. The remaining funds were used for the "student support" package.

Compensation

The Legislature appropriated $16.5 million to provide a 4.0 percent salary and benefit increase. The plan of financing the compensation package included $12.2 million from State revenues and $4.3 million from tuition revenue. In addition, an appropriation of $272,500 was funded for selective salary increases at Southern Utah University, Dixie College and Salt Lake Community College.

Student Support Funding

Included in the FY 1996 appropriation to the Utah System of Higher Education is an increase of $3.5 million for "Student Support." The plan of financing includes $1.0 million from State funds and $2.5 million from tuition revenue. Spending for student support includes money for academic counseling, financial aid advisement, library materials and computer labs.

Operation and Maintenance of Facilities

For FY 1996, the Legislature appropriated $2.9 million for the operation and maintenance of new facilities at the system's nine campuses. The distribution of this appropriation is reflected in the following table:

Considering the number of anticipated new facilities throughout the system of higher education, it is forecast that the demand for O & M funding will continue to accelerate. The Legislature's concern with this issue prompted them to hold back future O & M costs by limiting State-funded projects to $3.3 million for the WSU Browning Center Building remodel and by appropriating only $0.8 million for two design projects. The Regents are also working on this matter. They are in the process of developing a systemwide policy governing requests for State-funded O & M on facilities constructed with institutional funds.

Americans with Disabilities Act

The purpose of the Americans with Disabilities Act (ADA) is to remove barriers that would deny any individual access to all facilities or programs offered to the general public. The Legislature increased its funding for this purpose by $500,000 to the Board of Regents for FY 1996 for distribution to the nine USHE institutions. The intended purpose of the appropriation is for support staff and specialized equipment to service the disabled student. This consists of interpreters for the hearing impaired, large computer monitors, enlarged print in texts, and "readers" for the visually handicapped, taped texts, and the acquisition or modification of equipment and devices used by the disabled.

The appropriated funds carry this intent language:

Funds appropriated for Americans with Disabilities Act program implementation shall remain with the Board of Regents until a system wide allocation formula is developed. The allocation formula shall be based on: 1) documented headcounts of visual, hearing, physical, emotional, and learning disabled students; 2) standard costs for providing services to such categories of students; and 3) other available state and federal resources.

Other Appropriated Items

Other increases included in the higher education budgets in the FY 1996 budget for the Utah System of Higher Education:

Interpreters for the Deaf

There is reflected the FY 1996 appropriation to Salt lake Community College $187,000 of State tax funds (plus $70,000 in tuition) for a certified interpreter training program.

Libraries

The Legislature appropriated $1.0 million from the General Fund for library materials, acquisitions and operating costs for the nine USHE institutions. In addition, Utah State University will be moving into its new Science and Technology library. This library is an addition to existing library facilities. The Legislature appropriated $326,000 from the General Fund for the staffing and programming costs.

Applied Technology Education

The Legislature appropriated $475,000 from the General Fund for Applied Technology Education in the higher education budget for FY 1996.

Prison Education Programs

The Legislature appropriated $400,000 to the Board of Regents for prison education programs. The intended purpose of the appropriation is to help reduce recidivism. There was some concern about the viability and effectiveness of the program. The following intent language is reflected in the Appropriations Act:

The Legislature urges both the Corrections and the Educational systems personnel to coordinate educational offerings provided under the prison recidivism program.

Undergraduate Quality Initiatives

A new program funded in the FY 1996 appropriation is an initiative to improve the quality of the undergraduate learning experience. The intended purpose of the initiative is accomplished by helping students complete their education in a reasonable amount of time, improving the transition for transfer students from community colleges to universities, and increasing student retention. The Legislature provided $697,300 for this initiative.

Inflationary Rate Increases

The Legislature appropriated $1,230,000 for inflationary or rate adjustments for fuel and power, utilities, building leases and other contracted agreements. Reflected in this figure is $813,500 for shortfalls in fuel and power budgets. Contract and utility rate adjustments total $128,700. The University of Utah Regional Dental Education Program's contract with Creighton University is funded at $19,000 for FY 1996. It should be noted that the University of Utah has a contractual agreement with Creighton University in Omaha. Utah dental students attend the University of Utah during their first year for their general science and related class credits through the Medical School. They then attend Creighton University Dental School for the next three years paying resident fees, with the State paying the nonresident portion. Currently there are 40 Utah students in the four-year program.

Various adjustments in utility rates were funded at $67,000. Two ongoing building leases, with built-in inflation clauses, are reflected in the appropriation for FY 1996. Dixie College's contractual lease of a portion of the Dixie Center will increase by $10,600. Salt Lake Community College's contract for space in the Sandy Mall will go up by $32,000. Postal budgets were increased by 6.9 percent, or $192,700. Mineral Lease funding was also increased by $137,800

These cost increases were partially offset by at reduction of $478,000 for changes in property and liability insurance administered through the State Office of Risk Management.

SUPPLEMENTAL FUNDING

Senate Bill 217 appropriated the following supplemental amounts to the Utah System of Higher Education for FY 1995:

There is intent language pertaining to the University of Utah antitrust litigation that states:

It is the intent of the Legislature that after allocating all contingent appropriations or designations required by statute, $500,000 of unrestricted, undesignated and unencumbered surplus is appropriated to the University of Utah for the final payment of legal fees related to the antitrust law suit.

It is noted that other items in the Supplemental Appropriation Act (Senate Bill 217) state that remodeling of the Heber Wells Building takes precedence over the University of Utah antitrust funding.

The following intent language is included in the supplemental appropriation of $6.4 million for Electronic Highway/Technology:

This one-time supplemental appropriation is for the systemwide development of the Electronic Highway.

It is the intent of the Legislature that the statewide technology for higher education be allocated with oversight approval and review by Utah Education Network and State Board of Regents. Further, the development of the statewide technology delivery system and programs shall be the predominant emphasis and objective in developing funding allocations thought the State.

Additional Funding Bills

In addition to the above appropriations acts, five bills were passed affecting the Utah System of Higher Education that contain their own appropriations.

House Bill 234

House Bill 234 provides ongoing funding of $250,000 from the General Fund to the Center for Persons with Disabilities at Utah State University.

House Bill 305

House Bill 305 provides ongoing funding of $150,000 from the General Fund to the University of Utah School of Medicine in partnership with the Department of Health ($650,000) to establish Area Health Education Centers in rural Utah.

House Bill 359

The "Bill of Bills," appropriated $350,000 to Utah State University. Reflected in this amount is $250,000 to the Agriculture Experiment Station for their Bio-tech program, and $100,000 to the Cooperative Extension Division for their Expanded Food and Nutrition Program.

House Bill 423

House Bill 423 allows ongoing funding of $300,000 from the General Fund for the Youth Partnership Program at Utah Valley State College.

Senate Bill 119

Senate Bill 119 provides ongoing funding of $450,000 from the General Fund to enhance Engineering programs at three institutions. The distribution includes: $240,000 to the University of Utah, $170,000 to Utah State University, $40,000 to Salt lake Community College.

Senate Bill 202

Salt Lake Community College received an appropriation of $35,000 from the General Fund for ongoing funding of their Small Business Development Office.

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