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Board of GovernorsState Appropriations and Budget

PresentationMay 15, 2013

•Work-force readiness•Placement•Missouri Placement•Improve Remediation•Student Success Program•Enhance College Transfer

•Maintaining low increases to tuition

•Innovation•Administrative Efficiencies•Strategic Resource Allocation

•Reduce Student Indebtedness

•Time to Degree•Progression, Retention & Graduation Rates

•Reduce Average Credit Hour to Degree

•Measure Competencies

•Student Readiness College Success

•Diversity•Special Populations•Missourians•Requirement to Meet 2025 Goal

•Military

STUDENT-CENTERED PERFORMANCE

MEASURES

Access Completion

Affordability Student Success

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State Appropriations

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Fiscal Year - 2010 ( 0.0 ) % $ ( 0.0 ) M

Fiscal Year - 2011 ( 5.0 ) % ( 3.0 ) M

Fiscal Year - 2012 ( 7.0 ) % ( 5.3 ) M

Fiscal Year - 2013 ( 0.0 ) % ( 0.0 ) M

State Appropriation History

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$51 $52 $51 $52 $52 $53$56 $58

$59$55

$51 $51

$60 $61 $63 $65 $67 $69 $71 $71 $73 $74 $75$78 $81

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

UCM Appropriation CPI Adjusted

$ (30) MGAP

State Appropriations Received versus

Appropriations Adjusted by the CPI Index(As of Fiscal Year 2013)

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Weighting of State Appropriations versus

Tuition & Fees Revenue

$0

$10

$20

$30

$40

$50

$60

$70

$80

2000 2006 2013

Ap

pro

pri

ati

on

s, $

57

Ap

pro

pri

ati

on

s, $

52

Ap

pro

pri

ati

on

s, $

51

Tu

itio

n, $

30

Tu

itio

n, $

54

Tu

itio

n, $

78

Mil

lio

n

Fiscal Year

65%

35%

61%

39%49% 51%

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State of MissouriFY 2013 Higher Education “Net” Appropriations

Four - Year Universities($ millions)

Harris

Linco

ln

Mo So

uth

Mo W

estM

SU

NWM

SUSE

MO

Truman

UCM

UM Sy

stem

$-

$50

$100

$150

$200

$250

$300

$350

$400

$450

$9 $17 $22 $20

$76 $28 $42 $38 $51

$382

2013 "Net" Appropriation7

Grand Total = $685 million

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State of MissouriProposed 2014 AppropriationsUniversity of Central Missouri

Governing Body % Increase $ Amount

Conference Committee Substitute (truly agreed to and finally passed) 2.5% $1,294,000

* The Missouri Constitution requires all budget bills to be truly agreed to and finally passed by Friday, May 10 at 6:00 p.m.

Student Enrollment

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2006 2007 2008 2009 2010 2011 2012 -

2,000

4,000

6,000

8,000

10,000

12,000

14,000

8,970 8,919 8,980 9,088 9,168 9,466 9,683

1,741 1,999 2,083 2,103 2,183 2,171 2,195

Undergraduate Headcount Graduate Headcount

10,71110

10,918

11,19111,06311,63711,351

11,878

Fall Semester Student Headcount

10

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2006 2007 2008 2009 2010 2011 2012 1,350

1,400

1,450

1,500

1,550

1,600

1,650

1,700

1,750

1,800

1,592 1,554

1,613

1,504

1,570

1,689

1,787

New FreshmanFall Semester

(Calendar Year)

New Freshman

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2006 2007 2008 2009 2010 2011 2012 -

200

400

600

800

1,000

1,200

775 845 789 836

944 966 1,006

TransfersFall Semester

(Calendar Year)

Transfers

UCM is Keeping Higher Education Affordable for all Missourians:

UCM - Tuition Rate Increases:

2010 0.0% 2011 1.5% (CPI Index) 2012 2.7% (CPI Index) 2013 3.0% (CPI Index) 2014 1.7% (CPI Index)

(Average Annual UCM Tuition Increase is only 1.78% Over Five Years)

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University

FY 2013 Tuition and Fees

(30 Hours)1. University of Missouri - Rolla $ 9,3502. University of Missouri - St Louis 9,3143. University of Missouri - Kansas City 9,2994. University of Missouri - Columbia 9,2575. Northwest 7,7196. Truman 7,2167. UCM 7,1478. Southeast 6,9209. Missouri State 6,792

10. Lincoln 6,72511. Missouri Western 6,38612. Harris Stowe 5,11013. Missouri Southern 5,610

Average Tuition $ 7,450

Tuition Benchmark Comparison(Source: MDHE)

Fiscal Year 2014 Budget Discussion

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STRATEGIC RESOURCE MODEL 2011-2013Revenue Growth

• New Enrollment Management Growth Paradigm

• FY13 Enrollment Headcount Increase 2.3%

• FY13 Tuition Rev. Forecast Increase of $3.2 M (CPI)

• Tuition Rate Increases Within CPI Index

• Grants & Contracts

• Development/Advancement

• Identify New/Expanding Sources of Revenue

• Strategic Positioning Platform

Fiscal Management: Institutional Budgeting• O

perating Fund Processes

• Institutional-Wide Processes and Priorities

• Utilization of Annual and Recurring Savings

• Targets for 2011-13 Budget Savings

• Net Unrestricted Assets/Expenditure Controls

• Costs Associated with Mission and Revenue Growth

Academic Program Viability & Productivity• C

ooperation with State Board of Higher Education

• Inventory of Program Productivity

• Reduced 5 to 4 Colleges – Savings of $612k

• Reduced Add’l 8 Academic Depts. – Savings of $500k

• Faculty Early Retirement – Savings of $400k.

• Signature Programs

• Statewide Collaborative Academic Initiatives

Administrative Efficiencies

• Review of Administrative Structure

• FY2012 Admin Review Expense Savings of $2 million

• FY2013 Admin Review Expense Savings of $772,000

• Hiring Freeze Savings of $1.5 million annually

• Athletics General Operations Savings of $120,000

• Debt Refinancing Savings of $400,000 annually

Strategic Resource Model

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Fiscal Years’ 2011 thru 2014 Savings Initiatives

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Description $ Amount

Administrative Review – Year 1 $2,000,000

Administrative Review – Year 2 944,000

Administrative Review – Year 3 431,000

Academic Review (Reduction from 5 to 4 Colleges, and 8 Depts.) 1,100,000

Permanent Salary Savings (reduction of 16 vacant staff positions) 890,000

Facilities Management Savings (Brought In-House) 800,000

ESCO – Energy Savings Program (Utilities) 550,000

Faculty Early Retirement (Projected Savings for 2013) 400,000

Bond and Capital Lease Refinancing 400,000

Athletics – General Operating Expense Reduction 120,000

Total 2011 – 2014 Cost Savings Initiatives $7,635,000

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2.5% State Appropriation Increase**Conference Committee substitute (truly agreed to and finally passed)

$ 1,294,000

2 % Enrollment Growth $ 1,263,000

1.7 % (CPI Index) Tuition Rate Increase $ 1,073,000

2014 Budget Revenue Assumptions

Mosers & CURP(Mosers 14.45% to 16.98% CURP 6.80% to 6.38%) $1,500,000

Faculty Promotions, Market Minimums (Includes Benefits) 560,000

Academic, Military and Athletic Scholarships 425,000

Whiteman Advantage, Inst’l Research, Strategist 411,000

Health Insurance- Estimate 5.00% Premium Increase 346,000

Incremental Revenue Share 150,000

Marching Band, Academic Competitions 119,000

Missouri Innovation Campus 90,000

Broadcasting Initiatives 90,000

Software Contracts 82,000

2014 BudgetMandatory and Other Expense Increases

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RevenueFY 2013 Budget

FY 20142.5% State

Appropriation Proposed Budget

Student Tuition – Fall $ 33,849,000 $ 34,970,000

Student Tuition – Spring 31,731,000 32,755,000

Student Tuition – Summer 5,994,000 6,589,000

Student Fees 6,070,000 6,254,000

State Appropriations 51,029,000 52,323,000

Aviation, Lab, & Course Fees 2,296,000 2,368,000

Other Sources 3,481,000 3,385,000

Sales & Service of Educ. Activities

1,282,000 1,388,000

Investment Income 100,000 100,000

Total Revenue $ 135,832,000 $ 140,132,000

Proposed BudgetRevenues

Fiscal Year 2014

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Expenditures FY 2013 Budget

FY 2014 Proposed Budget

2. 5% Approp. Increase

Salaries and Wages $ 64,236,000 $ 64,845,000Staff and Faculty Benefits 22,020,000 23,805,000

Student Wages 1,522,000 1,522,000 Subtotal – Salaries & Benefits $ 87,778,000 $ 90,172,000

General Operations 23,031,000 24,710,000Scholarships and Aid 10,574,000 10,999,000Debt Service (Bond Payments) 5,718,000 5,718,000

Facilities Operations 4,816,000 4,816,000Utilities 2,665,000 2,665,000Maintenance and Repair 1,509,000 1,509,000

Library Books and Serials 1,241,000 1,241,000

Total Expenditures $ 137,332,000 $ 141,830,000

Proposed Budget Expenses

Fiscal Year 2014

Description2014 Budget

2.5% Increase

Tuition – Incremental Revenue $ 1,683,000

State Appropriation Increase 1,294,000

a. Total Incremental Revenues $ 2,851,000

b. Incremental Expenses (Slide 19) $ 4,341,000

FY 2014 - Base Budget Balance (a. – b.) (Expenses Exceed Revenues) $ ( 1,698,000)

2014 - 90 Day Hiring Freeze 250,000

2014 - Expense Savings Target 1,448,000

2014 Budget – After Expense Savings Target $ 0

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Proposed Budget Summary Fiscal Year 2014

Value Proposition

Mission Driven

Student Success

Partnerships and

Collaboration

UNIVERSITY OF CENTRAL MISSOURISTRATEGIC PRIORITIES 2012-2013

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