Presidential Updates

Clif’s Notes for Oct. 20, 2020

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The Board of Governors met last week.

At the Finance and Facilities Committee, the board reviewed financial statements from last fiscal year. The university had a $6.4 million decrease in its operating fund reserve on the Springfield campus and a $229,000 decrease in its operating fund reserve on the West Plains campus.

These decreases can primarily be attributed to withholds of our state operating appropriation. However, we were successful at decreasing our expenses to offset a portion of those revenue losses.

Financial review

I also updated the Finance and Facilities Committee on the current fiscal year.

As you know, our enrollment exceeded projections. For the Springfield campus, this resulted in $2.9 million in additional tuition and fees in the summer and fall.

Scholarship expenses were also $1.9 million less than budgeted, and the university saved $1.2 million in payroll and benefits through the hiring freeze.

Depending on the impact of COVID-19 on the spring semester, this additional revenue and expense savings may minimize the Springfield campus’s need to spend reserves to balance the FY21 budget as was initially anticipated.

Similarly, on the West Plains campus, additional tuition and fee revenue as well as scholarship and payroll savings will reduce the amount of reserves needed to balance the FY21 budget.

Parson releases appropriations

The board discussed Gov. Mike Parson’s recent decision to release $1.7 million of the university’s operating appropriation. I will reconvene the Executive Budget Committee in the coming weeks to discuss how to invest those funds in the university’s operations.

Parson also released $3.2 million for the Bright Flight program. This is half of the withheld funds for that scholarship program.

I personally met with Parson to advocate that the Bright Flight funds be released along with a portion of our operating appropriation. I am pleased those efforts paid off.

I hope you will join me in thanking Parson for supporting higher education, Missouri State University and our students during these difficult times.

Gourleys awarded Bronze Bear

The board voted to award the Bronze Bear to Robert and Marlese Gourley. Mr. Gourley is an alum of Missouri State University who worked his way through college and enlisted in the U.S. Army after graduation. Together the Gourleys started and owned a series of successful businesses in the Kansas City area.

For many years, the Gourley family has financially supported programs on the university’s West Plains and Mountain Grove campuses as well as scholarships and athletic programs on the Springfield campus. In 2015, the Gourley family made a significant gift to the MSU Foundation and the university named the 37,000 square foot addition to Glass Hall the Robert Gourley Student Success Center.

McClure selected for Government Excellence Award

The board also voted to award the Government Excellence Award to Mayor Charles Kenneth (“Ken”) McClure. McClure has tirelessly advocated for Missouri State University and the Springfield community throughout his career.

As mayor, he has provided an unprecedented level of leadership to protect our community during the coronavirus pandemic by establishing a mask mandate, facility occupancy and gathering restrictions, and other policies designed to mitigate spread of the virus. He also championed legislation to change the name of our university to Missouri State University during his time as chief of staff to Gov. Matt Blunt.

Recognizing dedication to public affairs

The board also approved a resolution acknowledging this year’s Excellence in Public Affairs Award recipients. This year’s faculty recipients include:

  • Dr. Kevin Evans
  • Dr. Lisa Hall
  • Dr. Elizabeth Sobel

This year’s staff recipients include:

  • Samantha Francka
  • Diana Garland
  • A’dja Jones

The award recognizes individuals with an established record of distinctive work and accomplishments in support of the university’s public affairs mission. Each awardee receives a $1,500 grant to be used for research, travel or projects related to their public affairs activities.

Other board updates

The board also received updates on key performance indicators and the long-range plan and strategic enrollment management plan processes.

Finally, the board elected officers for next calendar year. Beginning in January, the board will be chaired by Gov. Amy Counts, and Gov. Carol Silvey will serve as vice chair. I am excited to work with them as we continue to move the university forward.

Thanks for all you do for Missouri State!

 

Clif’s Notes for Feb. 18, 2020

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Earlier this month the Springfield campus Executive Budget Committee held its first meeting to discuss the fiscal year 2021 budget. This year’s chair is Dr. Richard Gebken, and each college has an elected faculty representative on the committee. Leaders of Faculty Senate, Staff Senate, the Student Government Association also sit on this committee.

The purpose of this meeting was to evaluate preliminary budget numbers and discuss strategies to increase revenue and reduce expenses to fill the budget shortfall. The Executive Budget Committee makes recommendations that the Board of Governors considers when finalizing and approving the university’s operating budget.

Reviewing the current budget

Before beginning to work on next year’s budget, the committee first reviewed this year’s budget.

This year’s budget includes:

  • A modest tuition increase that was substantially less than the increases at most other public universities in Missouri
  • $9 million in new revenue due to a substantial increase in state appropriations (this is net of the state’s standard 3% withholding and the West Plains campus’s share of the increase)
  • $1.4 million in additional interest income
  • $6.9 million in payroll and benefit increases
  • $2.4 million in expense reductions and re-allocations

Unfortunately, we also had to budget for $4.6 million in reduced revenue because of a decline in credit hour enrollment.

Planning for next year

As we begin to work on next year’s budget, we will start with a carry-forward of $3.2 million in revenue. We intentionally left this carry-forward in this year’s budget because enrollment projections indicate another enrollment decline in fall 2020.

Next year’s budget assumptions include:

  • More than $300,000 in faculty promotions
  • Funding for enrollment strategies that were rolled out this year, such as the application fee waiver, the Academic Advising and Transfer Center, the Center for Academic Success and Transition, and scholarship program changes
  • Increases in the cost of employment benefits, such as a $900,000 increase in the university’s pension premiums, $1 million in increased health care costs and more than $200,000 in increased usage of the credit course fee waiver program.
  • A $1.3 million reduction in the support the university’s auxiliary system can contribute to the operating budget

Unfortunately, our enrollment model continues to project another enrollment decline in fall 2020.  This will impact the budget with:

  • Another $5.2 million decrease in tuition revenue
  • A $700,000 decrease in anticipated auxiliary student fee and parking revenue

If Missouri State increases undergraduate in-state tuition by the maximum amount allowed by the law, we will still have an anticipated budget shortfall of nearly $7 million that must be filled for the upcoming fiscal year.

How we move foward

We are developing several strategies to address this budget shortfall.

First, we are implementing cost reductions of $2.9 million across campus. I have asked all cost centers to begin the thoughtful process of identifying where these reductions can be taken.

Second, we are working to improve our enrollment situation for the fall semester. Due to state and national demographic shifts, we will not have increased (or even flat) enrollment in fall 2020. However, we are working on strategies to reduce the amount of our enrollment decline. Some indicators show that these strategies are making an impact, but we will not know for sure until the fall semester begins.

Third, we are advocating for an increase in operating appropriations from the state. Last week Chairman of the Board of Governors Craig Frazier and I traveled to Jefferson City and met with legislators to discuss the importance of year-over-year operating appropriation increases for Missouri State. You can find additional information about these meetings and the other work we are doing in Jefferson City in the most recent MSU Legislative Network update.

Board will discuss this week

We will present this same information to the Board of Governors later this week during the Finance and Facilities Committee meeting. Discussion at that meeting will focus on tuition and fees for the 2020-21 academic year.

Due to last year’s appropriations increase, we were able to hold the tuition increase for in-state undergraduate students to 2.87%. Our tuition increase was significantly lower than the increases at other public universities throughout Missouri. This allows us flexibility to increase tuition in the coming year while still being competitive with our affordability.

If you have input on any issues relevant to the university’s budget, please feel free to reach out to the members of the Executive Budget Committee. You can find the roster in the university’s Committees Handbook.

Thanks for all you do for Missouri State!

Clif’s Notes for May 21, 2019

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The Board of Governors met last week.

The Finance and Facilities Committee reviewed recommendations from the Executive Budget Committee. We are very fortunate to have new revenue in this year’s budget due to a substantial increase in state appropriations, a modest tuition increase and reallocation of $2.4 million in existing resources.

However, we are anticipating a 2.8% enrollment decline next fall. This will cost the university approximately $4.6 million in lost revenue.

Investing in our employees

The Executive Budget Committee has recommended that the bulk of the revenue remaining after we account for the enrollment decline go toward our employees. Highlights include:

  • $4.7 million in compensation increases for employees (including a cost-of-living adjustment, faculty promotions and the full professorship incentive program, and a student minimum wage increase)
  • $1.3 million in a mandatory increase in the university’s pension contribution
  • $200,000 in increased usage of employee fee waivers
  • $400,000 in stipend and fee waiver increases for graduate assistants
  • $300,000 in new positions

The compensation increases include a 1.9% across-the-board cost-of-living pay adjustment for employees. If approved by the board in June, this increase will go into effect on July 1.

We also plan to set aside $800,000 in a scholarship and recruitment fund to develop strategies to increase enrollment.

Commendations and awards

During its regular meeting, the board approved this year’s slate of inductees into the Wall of Fame. This year’s inductees are:

  • Earle Doman
  • Neosha Mackey
  • Virginia Mee
  • Linda Pettijohn
  • Denny Pilant
  • Burnie Snodgrass

As in years past, we will have an induction ceremony honoring these individuals during Homecoming week.

The Board also acknowledged this year’s recipients of the Excellence in Public Affairs Award:

  • Heather Blades
  • Lyle Foster
  • Janice Greene
  • Carol Miller
  • Sheryl Ruff-Hensley
  • Katie Stinnett

The board also approved commendations for Tom Dickey (outgoing chair of faculty senate) and Jon Lee (outgoing chair of staff senate) as well as our SGA President Isaiah Villarreal and SGA Vice President Dillon Cordon. Congratulations to all of you on a great year. The university is a better place because of your leadership.

The board concluded its meeting with a discussion of the department of defense and strategic studies (DSS). The program is highly acclaimed for its emphasis on practical application as well as theoretical comprehension. DSS plans to submit a proposal for approval of a professional doctorate degree program to the Missouri Department of Higher Education this summer.

Thanks for all you do for Missouri State!

Clif’s Notes for Oct. 9, 2018

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In June, I told you that if we received the funds appropriated by the legislature for fiscal year 2019, we would reconvene the Executive Budget Committee to evaluate options for a mid-year compensation increase.

We are over three months into the fiscal year, and I am pleased to report that we are on pace to receive the funds appropriated by the legislature. Many thanks to the Missouri General Assembly and Governor Mike Parson for restoring the funding cuts proposed earlier in the year.

As promised, the Executive Budget Committee met last week and developed its recommendation for a mid-year compensation increase. The committee will recommend that the Board of Governors approve an ongoing across-the-board compensation increase of one percent plus $600 for all full-time faculty and staff hired on or before Sept. 30, 2018. The proposed increase will be added to base pay starting on Jan. 1, 2019, for 12-month employees and on Feb. 1, 2019 for 9- and10-month employees.

This will cost the Springfield campus approximately $2.5 million in annual operating funds. This is the same cost as a 2.1 percent across-the-board raise. The Executive Budget Committee opted to structure the raise with a $600 flat component to soften the impact of increased premiums in the medical plan and to ensure that the pay raise helps our lowest paid employees the most.

Under this model:

  • An employee whose salary is $30,000 will receive a $900 pay increase (a 3 percent raise). A 2.1 percent raise would have resulted in a $630 pay increase.
  • An employee whose salary is $50,000 will receive a $1,100 pay increase (a 2.2 percent raise). A 2.1 percent raise would have resulted in a $1,050 pay increase.
  • An employee whose salary is $100,000 will receive a $1,600 pay increase (a 1.6 percent raise). A 2.1 percent raise would have resulted in a $2,100 pay increase.

Even with this increase, I recognize that our salaries at Missouri State lag behind national averages for all employee groups. Compensation remains a concern for the board and the administration, and we will continue to prioritize compensation increases as we develop budgets in the future.

Thanks for all you do for Missouri State!

Clif’s Notes for Feb. 13, 2018

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Last week the Executive Budget Committee had its first meeting of the year. The committee will work in the coming months to develop budget recommendations for the Board of Governors.

Performance funding measures

The Executive Budget Committee discussed Missouri State’s results under the new performance funding model. The Springfield campus met all six of its measures. The West Plains campus met four of its six measures. These results formed a part of the governor’s budget recommendations for fiscal year 2019.

As you know, the governor recommended a 10 percent across-the-board cut to core operating appropriations for all public universities and community colleges. The governor also recommended additional cuts for institutions that did not meet all of their performance funding measures.

The result is that the West Plains campus would receive a cut of more than 13 percent to its operating appropriation under the governor’s recommendations. I have joined the presidents from the other public universities to advocate against the governor’s proposal to reduce appropriations for institutions that did not meet all of their performance funding measures.

Staying true to the strategic plan

The Executive Budget Committee looked at the guiding principles we created a year ago. Those principles will continue to guide us as we develop our budget this year. We remain committed to protecting the core mission and strategic plan of the university. Expense reductions will be strategic, and we will continue to prioritize enrollment growth, affordability and transparency as we make financial decisions.

Filling the $8 million gap

The Executive Budget Committee also evaluated projected revenues and expenses for fiscal year 2019.

This year we must fill an $8 million funding gap on the Springfield campus. This gap consists of:

  • A $5.9 million reduction in state appropriations under the governor’s budget recommendations
  • $1 million in lost enrollment revenue because the mix of our student body changed this year (i.e., we enrolled fewer international students and more domestic students)
  • $1.4 million in cost increases for items such as required pension plan contributions, faculty promotions and utility costs
  • An offset for $300,000 in new revenue from procurement card incentives and additional interest income

We have identified $4 million in new revenue and expenditure reductions to help fill this gap. The first $2.5 million will be generated by increasing in-state undergraduate tuition by 2.1 percent (which is the amount of CPI) and increasing out-of-state and graduate tuition by 4.2 percent. We have also identified $1.5 million in administrative expenses that we can eliminate before the next fiscal year begins.

This leaves a remaining gap of $4 million. The Executive Budget Committee evaluated several strategies to generate additional revenue to address the remaining funding gap. We will continue to work in the coming months to close the gap and develop a stable fiscal year 2019 budget. We will also continue to aggressively advocate that the legislature restore the appropriation cuts recommended by the governor.

Diving into Missouri’s economy

The Missouri Budget Project is a public policy analysis organization that researches and analyzes state budget, tax and economic issues. Amy Blouin, the executive director of the Missouri Budget Project, will be on campus to present and discuss issues related to Missouri’s budget, taxes and economy on Feb. 26 at 7 p.m. in the Welcome Center. Please join me in participating in this conversation.

Thanks for all you do for Missouri State!