Kansas Board of Regents Postsecondary Technical Education Authority

Transcription

1 Kansas Board of Regents Postsecondary Technical Education Authority Elaine Frisbie, Vice President for Finance & Administration Kelly Oliver, Senior Director for Finance Blake Flanders, University and College Officials, Senior Staff June 20, 2017 State Appropriations for FY 2017, FY 2018 and FY 2019 On June 10, 2017, both houses of the Legislature adopted the Conference Committee report for Senate Substitute for House Bill 2002 which contains appropriations for postsecondary education and various other provisions affecting postsecondary institutions of education. The Governor received the legislation on June 15, 2017, and we do not yet know if he will line-item veto any provisions. During the 2017 Session, the Legislature considered the Governor s proposed budget for FY 2018 and FY 2019, with amendments to the current year FY The purpose of this memorandum is to describe the Board s request, Governor s recommendations and the approved changes to the FY 2018 and FY 2019 appropriations. Senate Substitute for HB 2002 can be found at In summary, SGF appropriations approved for FY 2018 total $753.0 million and $757.3 million for FY In many respects, the FY 2019 budget is the same as FY The tables attached to this memo detail the amounts across the system. Changes to the FY 2017 Approved Budget For FY 2017, the one revision requested by the Board and TEA was to add $4.6 million from the SGF for the Excel in Career Technical Education ( SB 155 ). The tuition would have been used for greater numbers of students participating in the program than had been originally estimated. The Governor did not amend his original budget, nor did the Legislature add funding. Amounts distributed across the colleges were reduced on a pro rata basis by 17.9 percent to accommodate the insufficient budget. FY 2018 Approved Budget SGF appropriations adopted at the end of the 2017 Session for FY 2018 totaled $753.0 million. Board s Request. The Board had requested $784.8 million from the State General Fund in its budget request for FY This request incorporated restoration of $30.7 million the Governor had reduced out of the budget as a 4.0 percent allotment.

2 Governor s Recommendations. In January, the Governor forwarded to the Legislature his recommendations which had included funding the Board s base budget without restoration of the cuts, but with the following: Add $3.0 million for a new college scholarship program to attract more teachers into underserved areas of Kansas, TeachersKan. Add $1.0 million to the Board of Regents budget for the Governor s challenge to the system to provide a $15,000 four-year degree program. Add $800,000 from the Educational Building Fund (EBF) for preliminary planning work for a new Dental School at the KU Medical Center. Reduce the SGF appropriation to Kansas State University for the Global Food Systems research project from $5.0 million to $1.0 million. Additional expenditures are directed to be made from the University s Sponsored Research Overhead Fund so that necessary debt service payments are made for the Biosecurity Research Institute Session Appropriations. The Legislature used money within the Governor s budget for the first two items noted above plus some additional out of the Teacher s Service Scholarship Program to restore some of the budget reductions in FY KU ($1.6 million) and Kansas State ($1.3 million) received partial restoration of the prior year s budget reduction. Emporia State University was appropriated $500,000 for their nursing program, but for only the one year, not as an ongoing line-item. FY 2019 Approved Budget The FY 2019 budget does not vary much from what was adopted for FY 2018, with the following exceptions: The Board s funding for tiered ($215,000) and non-tiered ($285,000) state aid was increased by 0.4 percent in FY 2019 over FY This was intended to be a partial restoration of the budget reductions referenced earlier. The grant for Washburn University was increased $119,000 (1.0 percent) over FY 2018, a partial restoration of the prior budget cut. The other universities also benefitted from a partial restoration of the prior budget cut, detailed in the attached table. Because Emporia State s nursing program was not funded in FY 2019, the SGF amount appears lower in FY 2019 compared to FY In FY 2019, the Legislature eliminated the $1.0 million that has been annually provided to the Center of Innovation for Biomaterials in Orthopedic Research (CIBOR) at Wichita State University from the State General Fund. Aspects of the Budget Where There is No Change to the Approved Budget No change to the support in the Department of Commerce budget for the engineering expansion program with $10.5 million in FY 2018 and FY /22/2017 Kansas Board of Regents Page 2

3 The Legislature continued EDIF/SGF spending on equipment for technical colleges and eligible community colleges ($2.6 million), technology innovation and internship ($179,284), community college competitive grants ($500,000), EPSCoR program ($993,265), KSU-ESARP ($299,295). The SGF transfer for the Faculty of Distinction Program is sustained, in accordance with statute. Other Aspects of the State Budget of Interest to the Board The Legislature made no substantive change to the multi-year appropriations that have been made for the Regents Research Initiative - KUMC Cancer Center, KSU Animal Health and Global Food Research, aviation research at WSU and the operating enhancement at Kansas State University-Veterinary Medical Center. In previous year these had been routed through the Department of Commerce but are now appropriated directly to the universities. The Educational Building Fund budget was altered in its structure so that the Board of Regents will no longer have to rely on any specific appropriation from the Legislature, but will have the authority to determine best uses of the fund and how much to allocate, according to revenues to the Fund. The Legislature enacted a pay plan for state employees. Benefits-eligible employees who have been continuously employed by any state agency since July 1, 2012 but have not received any increases to their regular, base rate of pay since that date are to receive a 5% increase. Benefitseligible employees who first became employed by the State of Kansas after July 1, 2012 are proposed to receive a 2.5% increase. Funding that had been designated for incentives to participate in the Excel in CTE initiative has been shifted from the Board s budget over to the Department of Education. The funds are for high schools and that is a more natural fit. This memorandum is intended to be a summary so please let us know if we can provide any additional information. 6/22/2017 Kansas Board of Regents Page 3

4 State Appropriations for Kansas Board of Regents FY 2017 Approved FY 2018 Approved FY 2019 Approved State General Fund Postsecondary Tiered Technical State Aid 55,968,922 55,968,922 56,183,922 Non-Tiered Course Credit Hour Grant 73,436,476 73,436,476 73,721,476 Technology Eqpmt at Comm Colleges & Washburn 382, , ,536 Vocational Education Capital Outlay 68,722 68,722 68,722 Nursing Faculty and Supplies Grant Program 1,715,705 1,715,705 1,715,705 Incentive for Technical Education * 50, Tuition for Technical Education (HS Students) 20,750,000 20,750,000 20,750,000 Washburn University Operating Grant 11,424,883 11,424,883 11,543,883 IT Education Opportunities PEI Infrastructure-Debt Service 107, Comprehensive Grant Program 15,758,338 15,758,338 15,758,338 State Scholarship Program 1,015, , ,254 Ethnic Minority Scholarship Program 518, , ,498 National Guard Educational Assistance 1,176, , ,869 Military Service Scholarships 504, , ,314 ROTC Scholarship Reimbursement 168, , ,335 Teachers Scholarship Program 1,446,320 1,717,124 1,147,023 Optometry Education Program 107, , ,089 Kansas Work-Study Program 446, , ,813 Career Technical Workforce Grant 183, , ,075 Nursing Student Scholarship Program 245, , ,255 Nurse Educator Grant Program 132, , ,126 Tuition Waivers 64,657 64,657 64,657 $15k Degree Pilot ^ TeachersKan ^ Agency Operations, TEA, MHEC 4,407,590 4,317,123 4,328,006 Adult Basic Education 1,398,750 1,398,750 1,398,750 Total-State General Fund $ 191,479,130 $ 190,799,864 $ 190,859,646 Economic Development Initiatives Fund Vocational Education Capital Outlay 2,547,726 2,547,726 2,547,726 EPSCoR 993, , ,265 Tech Innovation & Internship Program 219, , ,284 Community College Competitive Grants 500, , ,000 Total-Economic Development Initiatives Fund $ 4,260,879 $ 4,220,275 $ 4,220,275 * Funding moved to KSDE for FY 2018 and beyond. ^ Proposals by the Governor removed by the Legislature. SGF Total-System Appropriations $ 761,760,050 $ 753,034,722 $ 757,333,382 6/22/2017 Kansas Board of Regents - Finance

5 State Appropriations for Kansas Board of Regents State General Fund FY 2017 Approved FY 2018 Approved FY 2019 Approved University of Kansas Operations 123,409, ,379, ,932,492 Geological Survey 5,747,524 5,699,859 5,774,032 Umbilical Cord Matrix Project 124, , ,450 Debt Service-Pharmacy School 4,152,620 3,485,095 3,487,914 Total-University of Kansas $ 133,433,434 $ 131,689,452 $ 133,320,888 University of Kansas Medical Center Operations 98,142,600 95,124,592 95,605,572 Midwest Stem Cell Therapy Center 742, , ,733 Rural Health Bridging 135, , ,792 Research: Cancer Center 5,124,063 4,950,814 4,957,327 Medical Student Loans 4,328,342 4,429,349 4,353,262 Total-University of Kansas Medical Center $ 108,473,031 $ 105,363,786 $ 105,778,686 Kansas State University Operations 90,256,114 89,780,558 91,031,275 Midwest Inst for Compar Stem Cell Biology 123, , ,938 Research: Global Food Systems/Animal Health 949, , ,000 Salina Polytechnic Campus 5,904,089 5,837,859 5,920,065 Total-Kansas State University $ 97,232,474 $ 96,703,057 $ 98,047,278 KSU-Extension Systems & Ag Research Programs Cooperative Extension Service 17,492,587 17,528,414 17,565,919 Agricultural Experiment Stations 28,581,820 28,091,957 28,158,705 Total-Kansas State University-ESARP $ 46,074,407 $ 45,620,371 $ 45,724,624 KSU-Veterinary Medical Center Operations 9,339,031 9,164,548 9,234,741 Operating Enhancement 4,848,460 4,820,967 4,842,934 Veterinary Training Program 400, , ,000 Total-KSU-Veterinary Medical Center $ 14,587,491 $ 14,385,515 $ 14,477,675 Wichita State University Operations 61,617,393 60,668,439 61,395,912 Research: Aviation Research 4,809,000 4,809,000 4,850,000 Technology Transfer Facility 1,924,000 1,924,000 1,940,000 Aviation Infrastructure 3,367,000 3,367,000 3,396,000 Total-Wichita State University $ 71,717,393 $ 70,768,439 $ 71,581,912 Emporia State University Operations 30,438,810 30,466,691 30,065,500 Resading Recovery Program 206, , ,836 National Board Cert/Future Teacher Academy 125, , ,566 Total-Emporia State University $ 30,770,432 $ 30,798,944 $ 30,397,902 Pittsburg State University Operations 33,483,168 32,733,957 32,828,070 Resading Recovery Program 722, , ,041 National Board Cert/Future Teacher Academy 964, , ,382 Total-Pittsburg State University $ 35,169,718 $ 34,420,231 $ 34,514,493 Fort Hays State University Operations 31,744,168 31,407,939 31,552,129 Master's Level Nursing Capacity 130, , ,758 KS Wetlands Education Ctr at Cheyenne Bottoms 249, , ,368 Kansas Academy for Math & Science 698, , ,023 Total-Fort Hays State University $ 32,822,540 $ 32,485,063 $ 32,630,278 Total-State General Fund $ 570,280,920 $ 562,234,858 $ 566,473,736 OTHER INVESTMENTS EDIF KSU-ESARP (Ag Experiment Stations) 296, , ,046 Water Plan Fund KU (Geological Survey) 26,841 26,841 26,841 ELARF Transfer (Kan-Grow Engineering ) 10,500,000 10,500,000 10,500,000 SGF Transfer KSU (NBAF) 5,000,000 5,000,000 5,000,000 SGF Transfer WSU (CIBOR) 1,000,000 1,000, SGF Transfer KUMC (Psych Rural Health) -- 1,000,000 1,000,000 SGF Debt Service KUMC Health Ed Building 1,089,750 1,864,750 1,866,000 SGF Debt Service KSU NBAF 16,247,336 23,483,888 23,457,044 6/22/2017 Kansas Board of Regents - Finance