Texas Prepaid Higher Education Tuition Program Annual Report, 2011 Page: 23
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Pages from the Texas Prepaid Higher Education Tuition Board - ANNUAL REPORT- Year Ended August 3 1, 2011 (continued)
TEXAS PREPAID HIGHER EDUCATION TUITION BOARD
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended August 31, 2011
This section of the Texas Prepaid Higher Education Tuition Board's (the "Board" or "Agency") annual financial
report presents a discussion and analysis of the Agency's financial performance during the fiscal year ended August
31, 2011. Please read it in conjunction with the Agency's financial statements. The Board administers the Texas
Guaranteed Tuition Plan, Texas Tuition Promise Fund, Texas Prepaid Scholarship Foundation, the Texas College
Savings Plan and the LoneStar 529 Plan. The Board administers the Texas Save and Match Program in
cooperation with the Texas Match the Promise FoundationsM.
Financial Highlights of the Texas Guaranteed Tuition Plan
Net assets of the Texas Guaranteed Tuition Plan decreased $41 million in fiscal 2011.
Financial highlights include:
* Payment of participants' benefits to colleges and universities of $140,128,443.65
* Net investment income of $120,201,166.57
* Contract receipts of $17,619,626.50
* Earnings paid on refunds of $10,848,201.75
* Operating expenses of $4,302,858.48
* Increase in the unfunded liability for contract benefits payable of $41,221,165.77
The Texas Guaranteed Tuition Plan opened for enrollment in 1997 and plan benefits are guaranteed by the full faith
and credit of the State of Texas (the "State"). The plan closed for new enrollment in 2003 when tuition was
deregulated; however, there were approximately 89,000 active contracts as of August 31, 2011. The fund's unfunded
liability at August 31, 2010, was ($600,221,946.07) compared to ($641,443,111.84) at August 31, 2011, an increase
in the unfunded liability of $41,221,165.77. Since the plan is closed to new enrollment, the number of plan
beneficiaries using the plan will continue to decrease after peaking in 2010:
Number of Students Using Texas Guaranteed Tuition Plan Benefits by Academic Year*
30,000 -
m ? " r. r.
00 N N Cvm m N
S15 ,000
10,000u
5,000
0 0000 00 00 00
*Academic Years 2012-2018 are projected based on the projected high school graduation dates of beneficiaries. The
plan's actuary projects that all accounts will be depleted by the year 2028.
2I I
2011 ANNUAL REPORT -Texas Prepaid Higher Education Tuition Program
23
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Texas Prepaid Higher Education Tuition Program. Texas Prepaid Higher Education Tuition Program Annual Report, 2011, report, July 2012; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth303621/m1/29/?q=%222010-09-01%2F2011-08-31%22: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.