Presidential Updates

Missouri State responds to governor’s budget recommendation

by

Students StudyingLast night, Governor Nixon delivered his State of the State address and made public his proposed budget for fiscal year 2012.  As you probably know by now, he had good news for public higher education.

Specifically, Governor Nixon has proposed a 7 percent reduction in state appropriations for higher education.  For the Missouri State University System, that means a reduction of about $5.9 million in state appropriations.  This is significantly lower than the 10-20 percent that had been predicted for some time, and it is less than the $17 million “worst case scenario” we had as our target.

Obviously, the governor’s recommendation is welcome news, and on behalf of the entire campus, I want to thank Governor Nixon and his staff for their hard work to minimize the reduction as much as possible.  In the very short time I have been in Missouri, I have been struck by how committed Governor Nixon is to education, and higher education in-particular.  He understands that the state’s future depends in great part on the strength of our education system.  He has demonstrated that again with this measured reduction in operating budget, as well as his maintaining or increasing funding for the three statewide financial aid programs:  the Bright Flight Scholarship, the Access Missouri program, and the A+ program.

The members of the Missouri General Assembly also understand the importance of higher education to Missouri’s future, so I am hopeful they will support the governor’s recommendations. We will know in early May when the state budget is finalized.  In the meantime, we will be working with our local delegation and the leadership to provide whatever information would be helpful to them.

Next steps in developing the budget

Now that we have the specific amount that will be recommended, we can begin to be more precise in our work on the budget.  Toward that end, tomorrow (Friday, January 21), the Executive Budget Committee will meet to recalibrate both the charge to the various budget committees and the target reduction.  Dr. Eric Bosch, who charges the Executive Budget Committee, will report back to campus soon after that meeting, probably early the week of January 24.

I do believe the governor’s recommendation allows us to shift our focus from cutting to reallocating.  We have the opportunity to reallocate to support the priorities in the long-range plan and to fund the strategies that will allow our academic programs to elevate over the next several years.  The budget committees have the opportunity to generate the best ideas for accomplishing this goal.  This is an opportunity that not all institutions have, and we should not let it slip through our fingers.

Approach to tuition increases

Since the governor has done his best to limit the reduction in state appropriations, we need to do our best to hold any tuition increase to a reasonable rate.  Affordability and accessibility continue to be priorities at the state level, and we should embrace those goals as well.

Over the coming weeks, we will work closely with our student leaders to determine what tuition rate is fair and appropriate.  We will take the fee resolution to the Board of Governors at the April meeting for approval.

Part of the overall process

As I told you from the beginning, the budget process would have ups and downs, and be a “messy process.”  I also indicated that if we erred, it would be on the conservative side.  In response to requests from the budget committees, we provided a conservative target and worked with ranges and scenarios and options.  Like you, I am pleased to have more specifics, and I look forward to working with you to develop our budget plan for Fiscal Year 2012.

Thank you for your understanding, your patience, your involvement, and your good ideas.

Dr. James E. Cofer, SrSincerely,

James E. Cofer, Sr.

President

Dear Colleague Vol. 1, No. 6

by

Classroom

I am writing to inform you about a Voluntary Retirement Incentive Plan we will make available to eligible full-time faculty and staff on all campuses (Springfield, West Plains, Mountain Grove) in early 2011. The proposal was approved today (Dec. 17) by the Board of Governors.

Voluntary Retirement Incentive Plan
Details and Timeline

As you know, we anticipate having a significant reduction in our state appropriations for Fiscal Year 2012 (July 1, 2011–June 30, 2012). With about 70 percent of Missouri State’s budget in salaries and benefits, there is little doubt that personnel will be affected by the reduction in appropriations. This is one element of the “smaller footprint” I have been discussing over the past several months.

Plan to accomplish two goals

The 2011 Voluntary Retirement Incentive Plan is designed to accomplish two goals:

  • Provide maximum budget flexibility to address the reduction in state appropriations
  • Provide an opportunity to reallocate salary dollars to better compensate a smaller workforce that will continue to provide a high-quality educational environment.

Retirement eligibility for MOSERS and CURP are defined separately by each respective plan. Generally, they include an age-plus-years-of-service threshold for eligibility. According to recent lists provided by MOSERS and CURP, 213 faculty and 248 staff are eligible for the program; however, the program will be limited to the first 50 faculty and the first 100 staff who submit their paperwork beginning February 1, 2011.

Human resources to contact eligible employees

Carrington HallBy December 22, if not sooner, those eligible for this Voluntary Retirement Incentive Plan will be contacted via personal letter by the office of human resources;  the letters are being mailed today (December 17).  Those letters will be based on the information provided by MOSERS and CURP.  If you don’t receive a letter and believe you are eligible, please contact the Office of Human Resources. In addition, those who are able to purchase MOSERS time through other service such as the military, in order to qualify, also would be eligible if the purchase is completed prior to the date of retirement. You should also contact human resources if you fall into this category.

Between now and January 31, 2011, the office of human resources will schedule and publicize a number of information sessions to answer questions you may have.

Our hope is that this voluntary plan provides a “win-win” opportunity with good options for faculty and staff and reduced costs and reallocation opportunities for the University. I will keep you posted as we move through this process.

Sincerely,

James E. Cofer, Sr.

President

2011 Voluntary Retirement Incentive Plan

by

At its Dec. 17, 2010, meeting, the Board of Governors approved the following Voluntary Retirement Incentive Plan. See the Dear Colleague letter for additional information.

Incentives

Select only one:

  • 25% of base salary with a minimum payment of $10,000 and a maximum payment of $25,000
  • University paid health insurance for the employee only until age 65

Timing of offer: Feb. 1–March 17

  • Applications/paperwork will be accepted beginning Feb. 1
  • Open for 45 days (to March 17)

Retirement date

  • May 1, 2011–Jan. 1, 2012 (staff)
  • June 1, 2011–Feb. 1, 2012 (faculty)
  • With the specific date subject to University approval

Participation limit

  • First 100 people to submit required paperwork (staff)
  • First 50 people to submit required paperwork (faculty)

Eligibility

  • Must be eligible to retire by retirement date chosen, as defined by the plan to which the employee is a member — either MOSERS or CURP
  • For all eligible faculty and staff on all campuses (Springfield, West Plains, Mountain Grove)

Post retirement engagement

  • Limited to half-time engagement for up to three years in separate contracts for faculty, and 1,000 hour engagement for staff on a case by case basis
    Restrictions are sometimes placed on the amount of work an employee can perform for a covered institution and still remain eligible for retirement benefits under MOSERS or CURP. In some instances, MOSERS may prohibit additional benefits if an employee returns to work in a MOSERS benefit eligible position. Eligible employees are responsible for knowing and complying with any such prohibitions and restrictions.

Missouri State University provides update on state audit report

by

Today, the Board of Governors heard a report from the Presidential Audit Committee that is analyzing the state audit report released last October. The committee has developed an action plan. The university’s general counsel, Clif Smart, heads the three-person committee, which also includes Dr. John R. Williams, director of the School of Accountancy; and John McAlear, secretary to the Board of Governors.

The committee categorized the recommendations from the state auditor into three major categories:

  • A number of the recommendations have already been implemented and were categorized as “matter resolved.”
  • Several recommendations were determined to be based on incorrect information or were found to be without merit.  Those cases were categorized as “matter closed.”
  • In all other cases, the committee identified the steps it recommends be taken to address the state audit report and/or to strengthen the practices and policies. The committee identifies the office or person responsible and in many instances provides a timeline for implementation.

Download full committee report

Dear Colleague Vol. 1, No. 5

by

Snowy Carrington HallToday, we are posting revised and updated draft material for the 2011-16 Long-Range Plan. I invite you to review these items and provide feedback.

We have posted the following drafts, all of which are part of the whole:

These current documents reflect the input we received from the campus community, as well as the further refinement by the Steering Committee, the work groups, and others. We also benefited from the work of Larry Gates, former Missouri State University and University of Missouri administrator who conducted focus groups and helped guide all of us through the process.

The major change you will see is that we have moved “diversity/inclusive excellence” from a strategic direction and included it in both the Community Principles and as one of the overarching commitments. The Steering Committee wanted to elevate inclusive excellence in recognition that it is more a value than a strategic direction; it provides part of the foundation for all we do.

Next steps

The Steering Committee and work groups are now developing performance measures and specific targets for each of the objectives. We will share those with the campus community in the near future and again seek your input on them.

The final step is to develop specific tactics to achieve the performance measures. These will be developed at the major unit level and include timelines and those responsible for implementing.

I informed the Board of Governors at its October meeting that we do not want to sacrifice quality to meet an artificial deadline; therefore, we will not expect to have a draft of the document until sometime in the early part of 2011.

In the meantime, I invite your input on any or all three of these documents. We are trying to collect those comments by Wednesday, Dec. 22.

Sincerely,

James E. Cofer, Sr.

President