In this issue of Clif’s Notes, I provide an update on this year’s budget, summarize the renovation of Pummill Hall, report on the recent trip to China and draw your attention to the University’s new pouring rights contract.
Fiscal year 2014 budget update
On May 20, Governor Jay Nixon announced budget withholdings from higher education and other state agencies due to insufficient revenues, specifically from lottery proceeds. For Missouri State, that means $1,158,338. This withholding is on top of the $353,017 that was announced a few weeks ago — for a total of $1,511,355 in withholdings for this current fiscal year (FY 2014).
As you would expect, we are disappointed that the withholding was necessary, especially this late in the fiscal year, but we understand the relationship between state revenues and state appropriations. Because this comes so late in the year, there is no reasonable way to adjust the annual budget. We will, therefore, cover this from reserves.
Fortunately, through good stewardship over many years by multiple presidents and all of you, Missouri State has sufficient reserves to cover such emergencies. That is the purpose of the reserves.
As you recall, I have previously committed to fund the first withholding of $353,017 from the president’s reserve. That has not changed. In addition, the president’s reserve will cover half — $579,169 – of the most recent withholding. That means of the $1,511,355 total withholding, the president’s reserve will cover $932,186. The remaining $579,169 will be distributed proportionally to West Plains and the cost centers on the Springfield campus. All will use their reserves to cover their share.
Pummill Hall renovation
Renovation of Pummill Hall will begin in June, with a completion target of July 2015 in time for the 2015 fall semester. The construction contract was approved by the Board of Governors Executive Committee on May 21.
Pummill Hall was built in 1957 and includes 41,948 square feet of space. The renovation budget is $6.9 million, $5.4 of which will be paid centrally with maintenance and repair, classroom upgrades and the president’s budget. The remaining $1.5 million will be shared equally among private donations, the College of Natural and Applied Sciences and the College of Health and Human Services.
All four floors of the building will be renovated. The hospitality and restaurant administration department will occupy the top two floors, the School of Social Work will be on the first floor and the second floor will consist of general classroom space. In addition to the interior renovation, the exterior curtain wall and all exterior glazing will be replaced and upgraded to a much more energy efficient system.
We are very excited to get this project under way. Not only will it provide quality space for these units, but it also will free up much-needed space for our health programs in the Professional Building.
As you know, on May 17, I joined a Missouri State delegation on a 10-day trip to China. It was a very productive trip, and I wanted to summarize it for you.
- We had two very good alumni events, with 100 alumni turning out in Jinan and 82 in Beijing. Those attending included alumni of our undergraduate programs, graduate programs and Executive MBA. All are very proud of Missouri State.
- Our new International Leadership and Training Center is becoming more well-known and appears to be meeting a need. We were able to identify several potential clients for the Center.
- We also met with several potential partner universities who could send us new undergraduate and graduate students, including President Liu of Xian International Studies (at right).
- We were pleased that students completing our Study in China Program, who are now living and working in Shanghai, have been instrumental in creating paid internship opportunities at their companies for our students.
- We visited with many of our current partners, including a 10-year anniversary celebration dinner with representatives from the Ningxia Forestry Institute and China Agricultural University. Plus, we signed several new agreements:
- Memorandum of Understanding for Collaborative Program of the Master of Business Administration Studies in the U.S. with the Henan University of Economics and Law
- Memorandum of Understanding with Ningxia Forestry Institute (The State Key Laboratory of Seedling Biotechnology)
Missouri State was among the first U.S. universities to work with China 15 years ago, and the University has been a leader in educational partnerships since then. Our China Program continues to be a signature program for Missouri State, thanks to the strong relationshipsbuilt by Dr. Jim Baker, Steve Robinette, Dave Meinert, Brad Bodenhausen and others.
Coke awarded contract
Ozarks Coca-Cola/Dr Pepper Bottling has been awarded the University’s pouring rights contract. At a maximum duration of 11 years and valued at approximately $6 million, the pouring rights contracts is one of the largest non-construction contracts the University signs. Coca-Cola won the exclusive right to serve its products on campus with a bid more than $500,000 better than PepsiCo for the life of the contract.
I want to thank Chief Financial Officer Steve Foucart, General Counsel Penni Groves, and Director of Procurement Mike Wills, along with the members of the evaluation committee, for their good work on this RFP process. I believe we ended up with a very good contract.
Enjoy your break, no matter how long you have. For some, I know the beginning of summer school will be here shortly.
Thanks for all you do for Missouri State University.