a THE SELF-STUDY DOCUMENT SHOULD INCLUDE A DESCRIPTION OF THE BUDGETARY AND ALLOCATION PROCESSES, INCLUDING ALL SOURCES OF

FUNDING SUPPORTIVE OF THE INSTRUCTION, RESEARCH AND SERVICE ACTIVITIES. THIS DESCRIPTION SHOULD INCLUDE, AS APPROPRIATE, DISCUSSION ABOUT LEGISLATIVE APPROPRIATIONS, FORMULA FOR FUNDS DISTRIBUTION, TUITION GENERATION AND RETENTION, GIFTS, GRANTS AND CONTRACTS, INDIRECT COST RECOVERY, TAXES OR LEVIES IMPOSED BY THE UNIVERSITY OR OTHER ENTITY WITHIN THE UNIVERSITY, AND OTHER POLICIES THAT IMPACT ON THE RESOURCES AVAILABLE TO THE SCHOOL.

Legislative Appropriations

The University of California is a State land grant institution. As such, it receives State general funds through the Governor’s and State Legislature’s annual budget process. The UC Office of the President submits the UC budget to the Governor in November of each year. The Governor prepares his budget and submits it to the State Legislature each January. After various revisions by both the Governor and the Legislature, the budget is then signed and enacted by the end of June for the following fiscal year (July through June).

The State budget is primarily an incremental one. Due to significant cuts in the State budget to UC (see table below), the increment received no longer has any direct relationship to

instructional or other operating cost increases. In addition the State funds, including the

increments, are not designated for Berkeley or any other campus, as a rule, but to the system as a whole. UC Office of the President distributes the State resources to the 10 campuses based on varying methodologies, which currently are primarily based on student enrollment targets. UC does not designate Berkeley’s State funds for any particular school, college or other division.

UC Berkeley State Educational Appropriations, 2003 compared with 2014 (Nominal and CPI-adjusted, $ in Million)

In $ Million 2003 2014 % Change

State Educational Appropriations (Nominal) 497 319 -36%

State Educational Appropriations (in 2003 dollars) 497 248 -50%

Consumer Price Index 182 234

Formula for Funds Distribution

At Berkeley State funds are distributed to units as part of a “General fund” that includes other central resources, primarily tuition. Central funds, including General funds, overhead funds and other resources, are not distributed based on a formula but on the aggregate of prior year ‘on-going’ funding decisions (the “Permanent” budget or General Allocations) plus any in-year funding decisions. These in-year commitments may be on-going or of limited term.

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Each year the Provost separately requests budget submissions for faculty FTE and operating funds from each school and college. The School’s faculty FTE is usually limited by an omega number determined by campus for a campuswide faculty FTE count. Funding for the School’s Senate Academic faculty, including salary and benefits increases, comes from central funds.

Only incremental needs for operating funds are requested by the School. Some staff salaries are already covered in the annual General Allocations. For those staff, additional funding is

automatically provided each year to cover a portion of the staff salary and benefits increases, thus does not need to be requested by the School. In general, the School’s teaching and academic support needs are met from a combination of central funds and the School’s own degree program revenue (see Tuition generation and retention below.)

Tuition generation and retention

State budget cuts at Berkeley have been substantially offset to date by tuition and fee increases.

The standard tuition flows first to the central campus as revenue, and is distributed to campus units along with State funds as part of the General fund.

In the Fall of 2005 the School implemented a Professional Degree Supplemental Tuition (PDST) fee (originally known as a Professional Degree Fee) to provide funding for meeting the increased institutional expenditures and to improve the educational experience for SPH students. The fee is currently $3,616 per semester and applies to the DrPH and MPH programs. Revenue from this fee goes to the School directly, rather than through the central campus.

UC Regents’ policy requires campuses to commit at least 30% of this revenue for financial aid.

In 2013/14, the School of Public Health used 40% for direct student aid. Revenue from this tuition fee comes directly to the School and is available to fund any of its programmatic needs, once the minimum contribution to financial aid has been met. In 2013/14 it was used to provide additional student administrative support and fund new student initiatives.

Revenue:

Total 2013/14 PDST Revenue $1,955,590 Transfer from UCSF 2013/14 17,015 Total Revenue & Operating Transfers $1,972,605

Beginning Balance 525,596

Total Available 2013/14 $2,498,201 Expenses:

Student financial aid $773,953 Student Financial Aid Admin Support 541,311 Field Studies 48,224 Other Programmatic Expenditures 1,029,560 Total Expenses $2,393,046 Ending Balance $105,154

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The School also participates in the UCB-UCSF Joint Medical Program, which has a fee of

$9,957 per semester for the second year of the program only. In addition, an online self-supporting MPH program which began in 2011/12, charges a program fee of $1,000 per unit.

The program anticipates beginning to provide net resources to the School in 2015/16, once the campus’ extension division has been reimbursed for the development costs it incurred on the program’s behalf.

Gifts, Grants and Contracts

It is the policy of UC Berkeley to offset a portion of the costs of fundraising and research gift administration by assessing a fee. Under current policy, research gifts are assessed an

administrative fee of 10.5% and all other gifts are assessed a gift fee of 2.5%. (Research gifts are defined as unrestricted funds to support the research of one or more specified faculty members or research programs.)

The 2.5% gift fee is distributed on a quarterly basis to the vice chancellors and deans of the units which received the gifts. Vice chancellors and deans are expected to use their portion of the gift fee within their division, college, or school to defray the costs of fundraising efforts, consistent with the campus’ explanation of the gift fee to donors.

Research Gifts are assessed an up-front administrative fee of 10.5%: 7.5% to cover the costs of the administering unit; 2% to cover the costs of central campus units involved in research administration; and 1% to investment in future research via the Berkeley Futures Fund and Cost Sharing Fund .

Indirect Cost Recovery

George W. Breslauer, then Executive Vice Chancellor and Provost, issued a memorandum on August 29, 2013 regarding new recommendations for campus distribution of indirect cost recovery funds. (Online at http://evcp.berkeley.edu/news/indirect-cost-recovery-icr) The new recommendations were approved as a 3-year pilot, beginning July 1, 2014. The Indirect Cost Recovery (ICR) working group recommended that 1.4% be used to avoid inequities among decanal units with the transition of research administration to Shared Services, that 2.6% be used to address the research needs of all individual faculty members, and that 6% be provided to deans and the Vice Chancellor for Research to enable them to address shared faculty research needs. In its follow-up report, the working group recommended providing qualified faculty members with $4,000 per year by consolidating and redirecting several existing programs and using other campus revenue streams in addition to 2.6% of ICR. It is unknown at the time of this Self-Study document how the School will be affected by this change.

Beginning in 2010/11, the UC Berkeley campus retains all indirect cost recovery from contract and grant overhead, as well as all tuition and all earnings on UC Berkeley cash balances.

Previously, a portion of each was retained by the UC Office of the President to cover OP’s operating costs and special allocations to campuses. Now each campus is assessed an amount to cover its share of these costs and allocations, including an annual allocation to the School of

$950k for one of its research centers.

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1.6b THE SELF-STUDY DOCUMENT SHOULD INCLUDE A CLEARLY