UWM’s Budget in Brief

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This document was modeled after UW-Madison’s Budget in Brief document and is intended to provide a similar, easy-to-understand synopsis of UWM’s budget. UWM is grateful to UW-Madison for granting permission to use its Budget in Brief in this way. The document is based on the most recent available information. Generally, budget information is available for 2014-’15 and actual expenses are available for 2013-’14.


Revenue Sources

UW–Milwaukee gets revenue from multiple sources for its $667 million “redbook” budget. The
university’s mission is supported by state and federal government investments, tuition, research grants, and contributions from friends of the university.b-i-b_v2-1

  • The largest portion of the university’s published budget, more than $230 million, or 35 percent, is from the federal government. Most of this is student financial aid and supports tuition and fees for students
  • The second‐largest amount ($190 million, or 28 percent) comes from student tuition and fees.
  • Revenues from state government totaled $108 million, or 16 percent of the overal budget. State revenue includes general purpose revenue ($68 million), over which the university has some discretion, and specific‐ purpose revenue ($40 million), which goes to predetermined programs.
  • Revenues from auxiliary enterprises, such as University Housing and the Student Union, account for $105 million, or 16 percent, of the overall budget. This money is collected and spent entirely within these units and typically cannot be used for other university purposes.
  • Revenue from gifts from donors and private grants are 2% ($14 million) of the budget.

It is important to note that UWM’s actual operating budget is different than its published budget. $186 million in federal financial aid is included in UWM’s published budget but is passed through to students and eventually a portion is received by UWM in the form of tuition revenues or other receipts. Also, UWM has access to another revenue source ‐ credit online or outreach fees ‐ that is not included in the published budget. With the subtraction of financial aid pass‐through funds, and the addition of credit outreach fees, UWM’s budgeted revenues for operating purposes are $528 million.

 


Changing Budget Landscape


UWM’s funding sources have shifted over the decades. As the chart at right indicates, the amount of support we receive in state funds relative to our overall budget has declined, and the university has become increasingly reliant on private donations, federal dollars, and tuition payments.

The federal funding shown in the chart includes federal financial aid that is passed through to students.

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Tuition and Fees

b-i-b_v2-3Tuition and fees are part of the overall cost of attending UW–Milwaukee. Tuition currently is frozen for in-state undergraduates enrolled at UW System campuses. UW–Milwaukee is consistently ranked one of the nation’s best values among public colleges and universities.

UW–Milwaukee ranked twelfth among peer institutions in 2014-’15 for both in-state resident undergraduate tuition and fees and for non-resident undergraduate students.

2014-’15 Academic Year Tuition & Required Fees at UW-Milwaukee and Peers

Undergraduate:

Resident Non-Resident
University  Amount Rank Amount Rank
Temple  $15,188 1 $25,494 6
U. of Illinois-Chicago  $14,816 2 $27,672 4
Rutgers-Newark  $13,597 3 $28,987 2
U. of Texas-Dallas  $11,806 4 $32,168 1
Wayne State  $11,405 5 $24,845 8
U. of Cincinnati  $11,000 6 $26,334 5
Georgia State  $10,686 7 $28,896 3
U. of Louisville  $10,542 8 $24,848 7
U. of Akron  $9,920 9 $18,451 14
Cleveland State  $9,636 10 $12,878 15
U. of Missouri-Kansas City  $9,553 11 $22,714 10
UW-Milwaukee  $9,391 12 $19,119 12
U. of Toledo  $9,242 13 $18,580 13
SUNY-Buffalo  $9,381 14 $24,461 9
U. of New Orleans  $7,150 15 $20,967 11
Average excluding UW-Milwaukee  $10,994 $24,092
UW-Milwaukee distance from average -$1,565 -$4,489

Research Funding

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  • Over the last four years, UWM has spent an average of over $31 million per year from federal and non-federal sources for research. Federal research programs are the major sources, and federal funding has declined due to federal budget cuts.
  • The largest source of external funding is the National Science Foundation, followed by Health and Human Services and the Department of Energy.
  • These research dollars are awarded through competitive review processes that require faculty to develop cutting-edge proposals for specific projects.

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Distribution of Research Funds

b-i-b_v2-6This chart shows how research funding is distributed across the UW–Milwaukee campus.

Faculty and staff across the university—in science, engineering, business, education, social sciences, arts and humanities—compete for research dollars and help grow UWM’s research profile.

This research fuels economic growth and development through the money spent here in the state of Wisconsin to support this research infrastructure.

The research reputation of UW–Milwaukee attracts businesses and generates new start‐up companies.

 


Gifts and Grants

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UW–Milwaukee also receives a significant amount of funding, $23 million in 2014–15, from private gifts, non‐federal grants, private contracts, and licensing fees. These funds are typically earmarked for very specific purposes.

The funds received must be spent on pre-approved projects. They are not allocated for discretionary use.

Both private and public universities across the country increasingly depend upon support from their alumni and friends to help them invest in special programs.

The majority of gift funds at UW–Milwaukee are spent to provide need‐based financial aid to students, to improve facilities, to spur innovation, and to enrich the academic experience.

 


Auxiliary Funds and Other Revenue

b-i-b_v2-8Auxiliary funds are user fees paid for services the university provides to the campus community and general public, such as our residence halls or parking services. UW–Milwaukee budgeted $96 million in auxiliary revenues in 2014-’15. These funds typically must be used to support the units where they are collected and cannot be used for other university purposes.
b-i-b_v2-9The university budgeted $18 million in revenue in 2014-’15 from other sources, including certifications provided to the public by the School of Letters and Science and the Business School.

Fiscal 2014-15 Expenditures by Unit

Expenditures at UW-Milwaukee reflect our core missions of education, research, and outreach.

  • In the 2013-’14 academic year, nearly $344 million, about 46 percent of our total expenditures, was allocated to our academic units.
  • In addition, 26 percent was spent on support units necessary to the academic and research mission of the university, including auxiliary units, information technology, facilities planning and management, the police department, etc.
UW-Milwaukee Expenditures by Unit 2014-15
(In Millions)
All Revenue Sources
Academic Units All Funds % of
Total
Academic Affairs $21.9 2.9%
Health Sciences $18.8 2.5%
Architecture & Urban Planning $6.3 0.8%
Business Administration $21.7 2.9%
Education $18.8 2.5%
Engineering & Applied Science $24.8 3.3%
Arts $17.9 2.4%
Freshwater Sciences $12.4 1.7%
Office of Research $3.9 0.5%
Graduate School $2.7 0.4%
Information Technology Services $15.9 2.1%
Letters & Science $117.2 15.6%
Library $10.3 1.4%
Information Studies $7.6 1.0%
Nursing $14.5 1.9%
Public Health $9.9 1.3%
Social Welfare $11.3 1.5%
Continuing Education $9.3 1.2%
Academic Support $3.8 0.5%
Subtotal $349.2 46.4%
Support Units All Funds % of
Total
General Educational Administration $14.7 2.0%
Finance & Administrative Affairs $60.6 8.1%
Student Affairs $87.6 11.6%
Unit Wide $35.2 4.7%
Subtotal $198.0 26.3%
Student Financial Aid (Loans) $205.0 27.2%
TOTAL $752.2 100.0%

Faculty and Staff

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At UW-Milwaukee, people are our greatest asset. Accordingly, a large portion of our budget — roughly 50 percent — goes toward compensating the faculty, academic staff and classified staff who support our education and research missions. In addition to the more than 5,300 members of the faculty and staff, the university also employs more than 3,000 undergraduate students.


Financial Aid

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Though UW–Milwaukee strives to keep higher education affordable, for many students and families, additional help is needed. In 2014‐15, 3 in 4 of UW–Milwaukee undergraduates received some form of financial aid, including student loans.

  •  Through a combination of federal, state, and gift funding, many students received some financial aid. Although we have less aid available than some peer institutions, we work to be good stewards of limited resources by targeting available funds to students with the greatest need.
  • The bottom pie chart shows annual grants, scholarships, loans and other aid for UW-Milwaukee students. Loans include subsidized, unsubsidized, private, state and institutional.
  • Private aid is provided by sources other than the federal/state government and UW-Milwaukee funds, including private donors, nonprofits, and service organizations.

Year-End Fund Balances

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In response to directives from the State Legislature and UW System Board of Regents, UW–Milwaukee is working hard to manage fund balances with greater transparency. The university’s tuition balance, as calculated by Legislative Audit Bureau methodology, declined from 15 percent in 2014 to 9 percent in 2015.

  • All of the tuition fund balance is already fully committed to various university programs. Most of the dollars are designated for commitments that have been made but are not yet paid for, such as start-up costs for new schools of Public Health and Freshwater Sciences and faculty and staff hiring.
  • UWM has a very small amount of reserves. Reserves comprise less than 1 percent of annual expenditures and are held as a safeguard against revenue fluctuations caused by enrollment shifts.

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Administrative Overhead

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UW-Milwaukee’s central administration costs are low compared to its peers.

According to 2013 data, the amount spent on day-to-day administrative support as a percentage of total operating expenses at UW-Milwaukee is almost 30percent less than our peer average.  These support services include general administrative services, legal and fiscal operations, purchasing and printing, employee personnel and records, and information technology.

State Appropriations and Tuition Revenue per Student

Following is an analysis that shows a historical comparison between UWM’s revenues (state appropriations and tuition) per full-time equivalent student compared to inflation.

Sources:
State Appropriations and Tuition, Redbook Budget – Exhibit II
Student FTE, UW-System OPAR website
Higher Education Price Index (HEPI), Research Associates of Washington and Commonfund Institute, July 1 – June 30 data

Notes: 1. Per student calculations use FTE 2. HEPI represents state appropriations plus tuition revenue per student if the amount per the base year [1990] grew at the HEPI calculated rate of inflation

Notes:
1. Per student calculations use FTE
2. HEPI represents state appropriations plus tuition revenue per student if the amount per the base year [1990] grew at the HEPI calculated rate of inflation

Comparison-of-State-Appropriation-and-Tuition-Revenue-per-Student-

Trend-in-State-Appropriations-and-Tuition-Revenue-per-Student

Notes:
1. Per student calculations use FTE
2. State appropriations and tuition revenue per student above is adjusted for the HEPI calculated rate of inflation.
3. Methodology:
First, the state appropriations and tuition revenue per student dollars were adjusted for the HEPI rate of inflation using 1990 as the base year
Then, the change between the inflation adjusted dollars per student and the base year [1990] value were calculated in order. to provide the trend