I presented fall 2022 census enrollment data at the State of the University address.

Highlights include:

• We are down 311 (1.3%) in total headcount enrollment, and our freshman class is down 253 (10%) students.
• We continued on a trend of declining undergraduate enrollment. We are down 3,810 undergraduate degree-seeking students since 2017.
• We are up 17 (0.5%) underrepresented students, 258 (16.1%) international students, and 433 (9.8%) dual credit students.
• Our first to second year retention rate — 75.9% — is higher than last year but still well under the 77-79% rates we experienced before the pandemic.

Due to changes in our “mix” of students, the decline in our credit hour enrollment (3.6%) is larger than the decline in our headcount enrollment.

Reduction in revenue

This enrollment decrease will reduce revenue this year by an estimated $6 million.

When we account for increases in interest income and other unbudgeted revenue and expenses for FY23, we anticipate being down $3.3 million in net revenue this fiscal year.

While we cannot ignore this decline, we are fortunate that no immediate budget adjustments are necessary. We are managing the revenue decline this year with nearly $6 million in open positions.

Additional expenses

As we begin to plan for next fiscal year (July 1, 2023 – June 30, 2024), some changes will be necessary.

In addition to the $3.3 million mentioned above, we anticipate more than $5 million in other additional expenses next year, including:

• $2.9 million in MOSERS contributions that are currently funded with a one-time state appropriation.
• $1 million in new MOSERS contribution increases.
• $1.2 million in new transfer required to meet auxiliary bond covenants.

Between now and when the Board of Governors approves the FY24 budget in June, we will identify reductions and reallocation opportunities to balance the budget while reinvesting in initiatives and programs designed to grow enrollment and improve processes.

Zora Mulligan and John Jasinski will lead this effort.

I would encourage our entire university community to be mindful when making hiring decisions this year. Given the budget assumptions for next year, preserving open lines will be important when developing the FY24 budget.

Revenue growth opportunities

Even more important, however, is the work we are doing to grow revenue.

Work is underway to:

• Reexamine recruiting strategies.
• Explore new markets.
• Develop and expand partnerships.
• Reassess retention efforts.
• Start new academic programs.
• Invest in programs that have potential to grow.
• Reinvigorate under-performing programs.

The MoState Access Award announced last week is one of the strategies we have implemented to grow revenue.

I hope you will join me in promoting this important new award and working to increase enrollment and grow revenue.

Thanks for all you do for Missouri State!