budget Archives - Presidential Updates

Clif’s Notes for Aug. 8, 2017

August 8, 2017 by Clif Smart

The Board of Governors had its annual retreat last week. The main discussion topic for the first part of the retreat was the university’s financial model.

Our 2016-21 Long-Range Plan stated “among the most influential changes affecting higher education is the decreasing support at the state level.” In the last six months, Missouri State has sustained three significant reductions in state funding:

FY17 withholding of approximately $6.7 million
FY18 budget reduction of $6.5 million
FY18 withholding of approximately $2.7 million

This is a pattern we expect to continue for the foreseeable future.

How should the university move forward to develop a sustainable financial model in this era of declining state support? We will continue to make the case for additional state funding, but Missouri State can no longer rely solely on state funding to support its goals. Accordingly, with the complete support of the Board of Governors, we have begun to develop a plan and will initiate a new direction in the coming year.

The proposed solution

The plan will stand on four pillars:

Pillar 1 – Affordability

The university must maintain its emphasis on affordability, recognizing that we can reduce costs for students without keeping tuition and fees flat. To accomplish this, we may pursue additional dual credit classes, expand accelerated masters programs, reduce the minimum number of hours to graduate, reduce the number of students who take developmental classes (through co-requisite models and other strategies), expand the availability of open access textbooks, create structured schedules and enhance advising to reduce the number of unnecessary courses taken by students.

Pillar 2 – Efficiency

While Missouri State has had a tremendous track record of efficiency over the past six years, the university must become even more efficient in all areas of operation including staffing structure, procurement, successful academic program selection, and the like. This will enable the university to reallocate funds from one area to another. This next level of efficiency will be challenging for us all.

Pillar 3 – Revenue growth (separate from tuition and fee increases)

The university must increase revenue in order to sustain excellence and thrive. Enrollment growth will continue to be a key factor through expanding high-demand programs, adding additional programs based on workforce demand and revamping existing programs to make them more competitive. Initiatives designed to increase retention and graduation rates will grow revenue while also improving student success. We will also continue to grow private giving and grant funding.

Pillar 4 – Revision of tuition, fee and scholarship policies

The university will evaluate differential tuition options along with the possibility of increasing tuition above CPI for the first time in a decade. Meanwhile, we will reevaluate our scholarship programs to ensure that needs-based scholarships are in place to support students from lower income families who are adversely affected.

The needs

The university will allocate revenue under this plan to ensure maintenance and expansion of quality programs and services:

New faculty lines

Missouri State’s student to faculty ratio has increased to 22:1 while its peers average 17:1 with a range of 15:1 to 19:1. We cannot allow this number to increase further and we must begin to bring it down. Staff positions in counseling, financial aid and other critical areas are also needed.

Compensation

Compensation of faculty, staff and administrators is below the average for universities of similar size (89-95 percentile of the midpoint depending on category). Missouri State is losing talented employees because the pay is better elsewhere.

New programs

Funding is required to add new programs to address the work force needs of the community, state and region. To add new programs or expand existing programs, the university will need additional faculty and staff, incremental operating budgets and in some cases new facilities.

Increased expenses

Deferred maintenance, infrastructure and other obligations continue to increase. We anticipate another major increase in contribution to the MOSERS pension fund in FY2019.

What Missouri State is experiencing is not unique; this paradigm shift is occurring across the nation. Missouri State will proactively determine its future as it has done in the past. Employees, the university’s most valuable asset, will drive the success in meeting the challenges. Missouri State University will not only survive, it will thrive. Working together, Missouri State will continue to be the most efficient, affordable and effective public university in Missouri.

Thanks for all you do for Missouri State!

Clif’s Notes for June 27, 2017

June 27, 2017 by Clif Smart

Last week our Board of Governors met on the West Plains campus.

Approval of the FY 2018 budget

The board approved our fiscal year 2018 operating budget. The budget includes $8 million less in state appropriations than last year’s budget. To balance the budget, it also includes the cuts that we discussed throughout the spring and additional revenue generated through enrollment growth and an inflationary tuition and fee increase.

The budget does not include an across the board pay raise or funding for discretionary raises based on merit. While it was necessary to forego raises this year due to the state funding reduction, the board indicated that this was not a sustainable strategy long term. The university must find ways to increase compensation to avoid losing its most talented employees.

Making MSU an even better place to work

While the budget does not include an across the board raise or a pool for merit raises, it does include several items that affect compensation:

A $2 million increase in the university’s contribution under the MOSERS pension system
$190,000 for faculty promotions on the Springfield campus and $34,000 on the West Plains campus
$34,000 for the full professor salary incentive program
$270,000 for salary and fringe increases provided to more than 60 employees under the university’s FLSA compliance plan
$46,000 for salary and fringe increases provided to 89 staff members due to inflationary adjustments to the job classification system

The board also approved changes to the faculty and staff handbooks. The faculty handbook now provides for sick leave accrual by faculty and clarifies the situations in which faculty are eligible for paid FMLA leave.

The staff handbook now gives the university additional flexibility to move an employee into an open position when the employee’s current position is eliminated. It also updated telecommuting and compensation provisions to make them consistent with current practices. The staff handbook also modified appeal and grievance provisions to streamline these processes.

Identifying needs in health, technology fields

The board approved the Master of Athletic Training program. The university will now begin to transition its Bachelor of Science in Athletic Training program to a professional level Master of Athletic Training program. In addition to meeting accreditation requirements, this new graduate program will align with the university’s mission and strategic initiatives and meet a critical workforce need throughout the state of Missouri.

The board also discussed the Greater Ozarks Center for Advanced Technology (GOCAT) on the West Plains campus and approved a memorandum of understanding with the city of West Plains and the West Plains R-7 School District to establish the GOCAT. This GOCAT is the result of a joint effort by stakeholders in West Plains to bring advanced technical training and degree and certificate programs to area residents through a combination of seated, blended, online and laboratory courses. I encourage you to visit the GOCAT webpage to learn more.

Thanks for all you do for Missouri State!

Clif’s Notes for May 9, 2017

May 9, 2017 by Clif Smart

I have good news to report from Jefferson City. We have invested significant time and effort this year advocating that the legislature reduce the cut to our core appropriation.

Good news from the legislature

Last Wednesday I made another trip to Jefferson City to testify before the House Higher Education Committee. My testimony focused on Missouri State’s quality, affordability and efficiency. I informed the committee of the decisions we have made this year to balance Missouri State’s budget, and I stated that additional cuts would result in Missouri State University — and the entire Missouri higher education community — taking steps backward in terms of quality and affordability. I have delivered this same message to many of our legislators and other elected leaders over the past several months.

Later in the week, the General Assembly’s budget conference committee announced, and the House and Senate passed, the legislature’s final version of the state budget.

The final budget will include a 6.58 percent core cut for Missouri State as opposed to the 9 percent cut proposed by Governor Greitens. If the Governor approves the budget, and there are no withholds during the fiscal year, Missouri State will receive $2.1 million more in state appropriations than originally anticipated.

Please join me in thanking Sen. Dan Brown (Senate Appropriations Chair), Rep. Scott Fitzpatrick (House Budget Chair) and the other legislators involved in the budget process for working to restore a portion of our core cut.

An unanticipated $2.1 million

As you know, we developed our fiscal year 2018 budget recommendations on the assumption of a 9 percent cut. Accordingly, this additional $2.1 million in anticipated revenue is currently unallocated.

I have already informed the Executive Budget Committee that we will meet in the fall to evaluate the actual revenues received from the state and develop recommendations for a mid-year compensation increase.

West Plains flooding update

I want to take a moment to update you on the status of our West Plains campus.

On April 29, West Plains received over nine inches of rain in a six-hour period. The result was flooding throughout Howell County and surrounding areas. It was a historic weather event that destroyed homes and businesses, caused several deaths and threatened the safety of countless others.

Roads, bridges and other infrastructure throughout the West Plains community have been damaged, making travel difficult for some and impossible for others. Cellular service was disrupted, and the entire community has been without power and other services at times following the storm.

Our West Plains campus sits on high ground, so we suffered only minor property damage. The GOCAT facility suffered some flooding. Moreover, the Grizzly Lofts, which we lease as part of a public-private partnership, were flooded, requiring an emergency evacuation of students residing there. Additionally, our faculty, staff and students in the West Plains area have had to deal with the ramification of their homes and communities being flooded.

I was in contact with Chancellor Bennett during the flooding and its aftermath. We decided to close the campus on May 1 and 2, with only essential personnel reporting. As we evaluated the situation we then canceled classes for the rest of the week, but reopened offices on May 3. This allowed as many faculty, staff and students as possible to avoid the travel difficulties and attend to their personal needs.

The Springfield campus provided dispatch services during the flooding (which proved critical given the cellular outage and communications problems resulting from the flooding) and has offered other support to ensure that the West Plains campus operates as smoothly as possible in the coming weeks and months.

West Plains campus open again

I am pleased to report that the West Plains campus opened for business yesterday. I traveled there yesterday to ensure that things ran according to plan and to recognize several members of our Missouri State community who exhibited extraordinary commitment during the flooding. Those individuals include:

Jared Cates, director of student life
Bruce Cavitt, academic adviser
Anyta Cavitt, teacher education adviser
Stanley Mugeki, director of student housing
Angie Totty, dean of student services

Please join me in congratulating and thanking these individuals for their exemplary work. Please also join me in remaining mindful of the obstacles that our West Plains campus has surmounted, and the obstacles they will continue to encounter, as we close out the semester.

How can I help?

I have been asked by many of our faculty and staff what they can do to help our students in West Plains. The Missouri State Foundation has an Emergency Scholarship Fund. This fund provides assistance to students who face an unforeseen crisis that makes them unable to meet their financial obligations. The Foundation has agreed to use this fund to solicit contributions and provide assistance for our students in West Plains who have been impacted by the flooding.

The Foundation will begin an email and crowdfunding campaign to solicit contributions to the fund this week. In the meantime, if you would like to contribute to the fund, you may either contact the Missouri State Foundation at 417-836-4143 or contribute online.

Thanks for all you do for Missouri State!

Clif’s Notes for May 2, 2017

May 2, 2017 by Clif Smart

Last week the Executive Budget Committee developed its recommendations that I will present at the Board of Governors’ May meeting. I want to take a moment to summarize those recommendations for you.

Identifying expense reductions

You will recall that due to a state revenue gap, Missouri State is developing a budget for the Springfield campus that includes $7.4 million less in anticipated revenue from the state.

One of our guiding principles in our budgeting process is that we will not rely solely on increased tuition and fees to replace the budget shortfall. Guided by this principle, the Executive Budget Committee previously recommended, and the board decided, to raise tuition and fees for in-state undergraduate students only by the amount of inflation. Tuition and fee increases will generate around $3.4 million in additional revenue, leaving $4 million to be identified through expense reductions.

Another of our guiding principles is that protecting the core mission of the university — academic achievement, scholarship and student success—is paramount. Hence, as scenarios were analyzed during the budgeting process, the decision was made that the office of the provost and non-academic units would receive a 4.9 percent reduction, but colleges would receive only a 1.2 percent reduction.

Budget committees across the university have worked throughout the spring to identify $4 million in expense reductions required to develop a balanced budget. In reaching its decision, the Executive Budget Committee discussed the recommendations received from college and university level budget committees as well as feedback received at the budget town hall meeting and other input received from various members of the university community.

I am pleased to report that the Executive Budget Committee has identified the remaining $4 million in expense reductions. These reductions include:

Eliminating 22 vacant staff positions
Eliminating 5 vacant faculty positions
Eliminating 8 occupied staff positions
Reducing the online course incentive payments from $55 to $40 per student
Eliminating institutional support for multiple campus research centers
Reducing event-related expenses by eliminating the Ozarks Celebration Festival, reducing the length of the Public Affairs Conference, eliminating summer commencement and reducing or eliminating several other university events

The impact

By focusing on vacant positions, we were able to eliminate staff and faculty positions largely through attrition. However, these cuts will involve eight staff layoffs. We know layoffs dramatically impact lives, and we anticipate that several of these individuals will find other positions within the university.

We also recognize that our compensation at the university lags behind our peers, and the recommended budget will likely place us even further behind with regard to faculty and staff pay. While living expenses continue to rise, the budget recommendations do not include a cost-of-living increase for employees. Moreover, the online course incentive reduction will result in compensation decreases for some of our faculty.

I know I speak for all members of the Executive Budget Committee when I say that we do not take layoffs and compensation concerns lightly. I am saddened by the impact these decisions have on people who have invested their careers with us at Missouri State. However, I am confident that the reductions are necessary to sustain the financial health of the university. I remain committed to continuing to work on increasing compensation as we move forward.

I encourage all faculty and staff to remain positive and to continue to pursue the university’s mission. Missouri State is strong. We have grown enrollment in 19 of the past 21 years, topping 26,000 students in fall 2016. We anticipate additional growth again in fall 2017. We have a stable leadership team who has managed budget cuts before. I am confident that, together, we can continue our growth and emerge from these cuts stronger than ever.

Thanks for all you do for Missouri State!

Clif’s Notes for April 11, 2017

April 11, 2017 by Clif Smart

With a month remaining in the state’s legislative session, I wanted to give you an update on our work with the Missouri General Assembly.

Focus on the budget

We have spent an enormous amount of time working with our elected leaders on appropriations for the upcoming fiscal year.

You will recall that due to a revenue gap for the state, Governor Greitens’ budget recommendations for fiscal year 2018 included an $8.2 million reduction to our core operating appropriation. Governor Greitens also recommended that appropriations designated for higher education projects, including our collaborative mechanical engineering program, be eliminated from the budget.

Last week the House of Representatives passed its budget. This budget includes approximately $2.1 million more than the Governor’s recommendations in our operating appropriation. It also includes $1 million — half of last year’s total — for the collaborative mechanical engineering program. Our southwest Missouri members in the House worked very hard to reduce the impact that the state’s budget gap will have on Missouri State University. I want to thank Rep. Scott Fitzpatrick, chair of the House Budget Committee, in particular for his strong leadership.

The Senate will immediately begin to work on the budget. We have already met with our local senators and the members of the Senate Appropriations Committee to advocate for additional funding.

We will continue to monitor the budget process, meet with our elected representatives and work to achieve the best possible budget position given the state’s revenue situation.

Legislation on degree offerings

We have also worked this year on legislation that would create a pathway for Missouri State to expand its professional doctorate degree offerings.

You will recall that I was part of a task force that met throughout the past year to resolve several concerns about the state’s academic program approval process. This task force reached a consensus solution to many concerns, and all public universities and community colleges agreed to support the final report from that task force. Removal of the statutes currently limiting Missouri State’s ability to offer professional doctorate programs was one of the solutions recommended in the report.

Two bills were filed this year to implement the task force recommendations — one bill was filed in the House and the other in the Senate.

I am pleased to report that the House passed one of these bills by a vote of 141 to 5. Our southwest Missouri members of the House of Representatives were very supportive. I want to thank Rep. Kevin Austin and Rep. Steve Cookson for leading the charge to get this bill passed in the House.

The Senate has debated the other bill but not yet passed it. We remain actively engaged with our senators, and we are continuing to advocate for the passage of this important legislation.

Other important legislation

We have been engaged on other legislation throughout the session as well. Many of the bills we opposed last year (e.g., limitations on ability to bond, elimination of student health fees, etc.) have not been debated this year.

Last year we addressed multiple bills that would have drastically reduced the Board of Governors’ ability to regulate the possession of firearms on campus. Similar bills were dormant this year until a few weeks ago when one House bill gained modest momentum. This bill would authorize permit holders to possess firearms on university campuses and in several other areas where property owners may currently prohibit firearms. Unlike last year’s bills, this bill does not include any carve outs or exceptions for particular areas and situations on campus where firearms may be prohibited.

The House General Laws Committee held a hearing on the bill yesterday, and we testified in opposition. We have also met with the bill sponsor to advocate for the university on this bill. We will continue to monitor this legislation and work to ensure that our Board of Governors retains the ability to reasonably regulate firearms on campus.

Thanks for all you do for Missouri State!