Budget

TSTC's annual budget includes planned expenditures for the September 1 through August 31 fiscal year, as projected by System Operations and the colleges, based upon available revenue from the legislative appropriations, tuition and fees, and other revenue sources. These budgets are approved by the Board of Regents on or before September 1 of each year Calendar.

• Budget Process
• Base Year Primer

Fiscal Year and Budget Categories

TSTC's annual budget includes planned expenditures for a September 1 through August 31 fiscal year, as projected by system operations and the colleges, based upon available revenue from legislative appropriations, tuition and fees, and other revenue sources. These budgets are approved by the Board of Regents on or before September 1 of each year.

Approximately 60% of TSTC's overall annual budget is funds that are appropriated by the State of Texas; Local Funds make up the remaining balance. Approximately 90% of all Appropriated Funds are determined through two formulas: (1) Administration and Instruction, and (2) Infrastructure Operation and Maintenance.

Appropriated Funds

Appropriated funds, also known as E & G (Education and General), are appropriated by the Texas Legislature and held in the Texas State Treasury. They fund costs that are related to instruction, administration, research, academic support, student services, institutional support, plant operation and maintenance, security, and scholarships.

Appropriated funds are divided into two categories:

• General Revenue, which is revenue of the State of Texas (Fund 1).
• Other Education and General Revenue, which is revenue from TSTC tuition income, indirect costs income, and some other TSTC-specific income (Fund 237).

Appropriated funds include the following:

• Administration and Instruction Formula (A & I) funds, which are based on the number of contact hours that TSTC generates in the preceding base year.
• Infrastructure Operation and Maintenance Formula funds, which are based on the number of TSTC’s Full Time Student Equivalents, calculated using the number of semester credit hours taught in credit programs and the number of contact hours taught in non-credit programs.
• Small Institution Supplements, which help support small institutions that lack the economy-of-scale enjoyed by larger institutions.
• HEAF (Higher Education Assistance Funds), which are authorized for the purchase, construction, and remodeling of real property and for the purchase of instructional equipment and library materials.
• Tuition Revenue Bonds (TRB), which are authorized for specified construction projects.
• Other line items, which fund various other initiatives.

Local Funds

Local funds are not appropriated by the Texas Legislature and are held in TSTC bank accounts. They include the following:

• Agency Funds, for which TSTC serves as custodian on behalf of students or organizations, e.g., student clubs, student insurance, and The TSTC Regents Circle (Fund 7).
• Auxiliary Funds, which are generated from institutional operations that furnish goods or services and charge fees related to those operations (Fund 4). Auxiliary Funds include three groups:
  
  • Student Service Fees, which are paid by students to help fund some student services, e.g., counseling, student government, health services, and intramural programs.
  • Auxiliary Enterprises, which are self-supporting activities, e.g., student housing, bookstores, food service, airport services, and leased facilities.
  • Parking Fees, which are paid by employees and students to partially fund campus security, maintenance of streets, and construction and maintenance of parking lots.
• Designated Funds, which are used only for specific purposes, e.g., grants, contracts, some student fees, continuing education tuition, surplus property, and tuition set-asides for student grants, as required by law (Texas Public Education Grants, TPEG) (Fund 3).
• Endowment Funds, which are gifts for which only the income earned from the gifts is spent (Fund 5).
• Loan Funds, which are gifts and tuition set-asides for student loans, as required by law (Texas Public Education Loan, TPEL) (Fund 2).
• Plant Funds, which may be from state appropriations, local auxiliary funds, federal construction grants, HEAF, tuition revenue bonds, or other sources; some of these funds are appropriated and held in the State Treasury (Fund 8). Plant Funds include four groups:
  • Unexpended Plant, which are available for new construction.
  • Renewals and Replacement, which are available for major repairs and rehabilitation of plant facilities.
  • Retirement of Indebtedness, which are derived from auxiliary operations to meet debt service charges.
  • Investment in Plant, which includes buildings, equipment, library books, and infrastructure; not a budget item but an inventory of value reported each year in the Annual Financial Report and maintained on the Office of the Texas Comptroller of Public Accounts State Property Accounting System.
• Restricted Funds, which are gifts and grants that are used only for the specific purposes defined by the originating external donors and agencies, other than student loans and endowments, e.g., scholarships, research projects, Carl Perkins grants, Title III grants, and Skills Development Fund grants (Fund 6).