Budget 101: Preparing for Fiscal Year 2019 (FY 19)

Budget 101: Preparing for Fiscal Year 2019 (FY 19)

Budget 101 Budgetary Questions 2 Where do we get our money? Where do we spend our money? What is our budget history? What have we done to reduce costs? What do we do now? Office of the Chancellor

Budget 101 FY18 Operating Fund Summary - Total Revenues Revenue Type Tuition and Fees State Appropriations Other Revenue Gifts Investment Income Sales/Services-Educational Grants and Contracts* Total Revenues 3 Percentage 43.22% 54.49% 0.27% 0.42% 0.28% 1.32% 0.00% 100.00% Office of the Chancellor

Budget 101 FY18 Revenue 4 Office of the Chancellor

Budget 101 Total Rec'd from Grants FY17 1.148 million 2.5 million over 4 years: Trade Adjustment Assistance Community College and Career Training (TAACCCT) Federal grant (Year 4; ends Sept 2017) 1.1 million over 5 years: Federal TRIO Program grant (Year 2. ends August 2019) 286,502: Adult Education and Literacy State funds (1 year. Grant renewed for FY17) 10,000: TRIM Grant (State funds) (1 year) 7,000: Agricultural Coop Initiative (1 year) 5 Office of the Chancellor

Budget 101 Grant Funded Positions 6 Full-Time Employees Mary Kellum (TRiO) Vickie Petkovic (TRiO) Kathy Mann (TRiO) Shelia Barton (TAACCCT) Joan Wright (AEL) Part-Time Employees 6 tutors in TRiO 19 employees in AEL Office of the Chancellor

Budget 101 Total Rec’d from Gifts in FY17 exceeded 766,000 23rd Annual Auction netted over 13,700 with 100 participants 19,500 received in Year 10 of the Annual Fund campaign Philanthropic Women for Education funded over 12,600 in special projects including the group's Honors Professorship pledge Gifts and pledges totaling over 365,000 was raised for the new Carol Silvey Student Union and Veterans Center in Hass-Darr Hall 7 Office of the Chancellor

Budget 101 Support for Grizzly Athletics Assets in the Grizzly Athletic endowed scholarship fund total approximately 1.3 million and continues to grow. Annual earnings used to offset cost of athletic scholarships. Grizzly Booster Club provides approximately 74,000 additional funding for Grizzly Athletics. Additional fundraising includes Herb Lunday Grizzly Golf Classic, Grizzly Basketball Trivia Night, game and tournament sponsors, advertising banners displayed around basketball/volleyball court. 8 Office of the Chancellor

Budget 101 Giving to Higher Education Charitable contributions to colleges and universities in the United States increased 1.7 percent in 2016 for a total of 41 billion, according to the Voluntary Support of Education (VSE) survey, conducted by the Council for Aid to Education (CAE). Approximately 98% of that money goes to 4-year schools despite the fact that almost half of the undergraduates in the US attend a 2-year school Missouri State-West Plains accounts represent 10% of the total market value of the Missouri State University Foundation endowment 9 Office of the Chancellor

Budget 101 Disadvantages We are not like a typical community college and receive no tax based revenue from the city or county like Ozarks Technical Community College, Three Rivers, and other community colleges. We are not a member of the Missouri Community College Association (MCCA) and are not eligible for state grants to MCCA. West Plains is located in the 18th poorest congressional district in the country making fund raising and tuition increases extremely challenging. 10 Office of the Chancellor

Budget 101 2017-2018 Out-of-Taxing District Resident Attending On-Campus State Institutions Per Credit Hour Tuition Total Required Fees Per Semester (15 hours) Total Tuition & Required Fees Per Year (30 hours) State Technical College of Missouri 166.00 540.00 6,060.00 Metropolitan Community Colleges 183.00 10.00 5,510.00 North Central Missouri College 145.00 480.00 5,310.00 Ozarks Technical Community College 148.50 425.00 5,305.00 State Fair Community College 160.00 225.00 5,250.00 Three Rivers Community College 140.00 525.00 5,250.00 Moberly Area Community College 147.00 300.00 5,010.00 St. Charles Community College 154.00 120.00 4,860.00 Jefferson College 158.00 50.00 4,840.00 Crowder College 137.00 345.00 4,800.00 St. Louis Community College 140.00 247.50 4,695.00 Mineral Area College 150.00 10.00 4,520.00 East Central College 122.00 345.00 4,350.00 Missouri State University-West Plains 124.00 255.00 4,230.00 11 Office of the Chancellor

Budget 101 Tuition and Credit Hour Impact Given the current tuition rate of 124 per credit hour and the number of credit hours taught in a given year: – A 1% increase in tuition would increase revenue approximately 45,000 – A 1% increase in credit hours would increase revenue approximately 45,000 12 Office of the Chancellor

Budget 101 State Funding Decisions Impact Missouri State-West Plains Disproportionately In FY18, 54.5% of revenue for West Plains is from state appropriations In FY18, 33.8% of revenue for Springfield is from state appropriations 13 Office of the Chancellor

Budget 101 Allied Health Additional Funds For FY14, the State of Missouri provided Missouri State University additional funds through a special request to enhance programs. Springfield campus - 825,000 for occupational therapy West Plains campus - 500,000 for allied health / health information technology (designated account) For FY15, the funds released mid to late fiscal year For FY16, the funds were available at the beginning of the fiscal year For FY17, the funds have been added to the core funding For FY18, full funding still available 14 Office of the Chancellor

Budget 101 FY18 Operating Fund Summary Total Expenses & Transfers Expenses/Transfer Type Faculty and Staff Salaries Other Salaries Benefits Utilities Institutional Scholarships & Fee Waivers* Travel, Supplies & Services Transfers Bad Debt Expenses Total Expenses * Actively pursuing reduction through privatization of current institutional scholarships 15 Office of the Chancellor Percentage 56.80% 4.19% 19.56% 2.46% 4.17% 13.47% -0.93% 0.28% 100.00%

Budget 101 FY18 Expenses l e n n o Pers 16 Office of the Chancellor

Budget 101 FY18 Operating Fund Summary Total Expenses by Program Program Instruction Public Service Academic Support Student Services Institutional Support Operation & Maintenance of Plant Institutional Scholarships & Fee Waivers Total Expenses Percentage 37.28% 3.59% 11.37% 12.21% 22.38% 8.75% 4.41% 100.00% * Transfers are not included ** Many private Universities spend 25% or more on marketing/advertising and less than 25% on instruction. 17 Office of the Chancellor

Budget 101 FY17 Operating Expenses by Program 18 Office of the Chancellor

Budget 101 Impact of Faculty Increases Additions in full-time faculty and overall instruction has increased budget by 1,280,000 since 2007 (FY08) Full-Time Faculty Instruction Budget Faculty Salaries Faculty Salaries & Benefits 2007 (FY08) 30 2.71M 2008-2011 (FY09-12) 33 2.94M - 3.22M 2.1M- 2.3M 2.81M - 2.85M 2012 (FY13) 36 3.43M 2.58M 3.22M 2013 (FY14) 37 3.57M 2.65M 3.35M 2014-15 (FY15 - FY16) 40* 3.63M 2.73M- 2.78M 3.45M- 3.56M 2016 (FY17) 38 4.03M 2.75M 3.50M 2017 (FY18) 38 3.99M 2.83M 3.67M 26.7% 47.2% 34.8% 30.6% Year Percentage Increases * one was grant funded (HIT through TAACCCT), but will be institutionally funded in FY17 using the Allied Health plus up 19 Office of the Chancellor

Budget 101 FY18 Operating Fund Summary Revenue/Expense Total Revenues* Total Operating Transfers In (included in revenue above) Total Expenses* Total Debt Transfers Out (included in expenses above) Excess Revenues (budget surplus) * now includes Allied Health Plus Up 20 Office of the Chancellor Total 10,693,137 137,606 10,630,800 39,044 62,337

Budget 101 Auxiliary Operations The Drago College Store, Putnam Food Services, Grizzly House and Student Recreation Center are not part of the regular operating budget. These entities are self-supporting by providing a revenue stream from the charges they impose for their goods and services. There is a budget transfer from the auxiliaries each year to support the regular operating budget. 21 Office of the Chancellor

Budget 101 Budget History When considering inflation and enrollment growth, we have not recovered from state budget cuts in FY02 We raised tuition for Fall 2011 for first time in 4 years State funding reduced by 5.2% in FY11 and 3.16% in FY12 State funding was flat for FY13 State funding was increased by 4.8% for FY14, 3.2% for FY15, 1.8% for FY16 and 2.9% for FY17 State funding reduced by 7.4% in FY18 Since the State budget cut in 2002, the budget has served as much as 30% more students during that time. And our budget for FY19 22 Office of the Chancellor

Budget 101 Potential State Budget Impact For FY19 decrease or flat 23 Office of the Chancellor

Budget 101 Performance Funding Measures Three-Year Completion Rates - The percentage of first-time, full-time entering students who successfully complete a certificate or degree of at least one year or longer or successfully transfer to a four-year institution. Fall-to-Fall Persistence - The percentage of students that started in the Fall of one year and returned in the Fall of the following year. Uses a threeyear rolling average to track progress. Student Performance on Gateway Math - The percentage of students who successfully complete the gateway math class. Uses a three-year rolling average to track progress. Licensure/Certification Exam Passage - The percentage of career/technical graduates who pass their required licensure/certification examination. 24 Office of the Chancellor

Budget 101 Performance Funding Measures (cont.) Tuition and Fees per Full-Time Equivalent (FTE) – Missouri State-West Plains will use information from Integrated Postsecondary Education Data System (IPEDS) in determining the tuition and fees collected and the FTE during the fall semester. Success is measured by improvement over the previous year’s performance (three-year rolling average) or sustained performance in the top third of the National Community College Benchmarking Project (for measures 1, 2, and 3). Notification from Integrated Postsecondary Education Data System (MDHE) on December 5, 2016 indicates that all five measures were met for the latest academic year (FY16). 25 Office of the Chancellor

Budget 101 State Appropriations Funding Formula for Missouri State University-West Plains The Missouri State University-West Plains campus will receive a minimum amount portion of the State's Truly Agreed To and Finally Passed Budget Appropriation for Fiscal Year 2016. This amount is 5,817,867 and will not decrease in future budget cycles unless the system's appropriations are cut by the State. Any state appropriations which are made in order to fund specific campus programs or initiatives shall be allocated directly and entirely to that campus. The West Plains Allied Health 500,000 designation is such an example. 26 Office of the Chancellor

Budget 101 State Appropriations Funding Formula for Missouri State University-West Plains (cont.) For appropriations after fiscal year 2016, any increase in appropriations received based upon performance funding measures will be allocated to each campus based upon the percent of performance funding measures met by that campus. Each campus has a line item in the Governor's budget proposal which is based upon the prior year appropriations and the percentage of funding measures met. 27 Office of the Chancellor

Budget 101 We Have Already Reduced Costs Closed Continuing Education and Outreach, Fall '07 Conducted a 1% reallocation of the budget and applied that money ( 13K) to special equity pool for salaries, FY '09 Consolidated Institutional Research and Assistant to the Chancellor into one position, Jan '09 Did not replace VESTA Executive Director, Jul '09 Closed Houston classroom site, Jan '09 Turned two full time staff positions into part time staff positions, Jan '09 and Jul '10 Reduced Athletic costs: coaches' salaries reduced 11.78% (total salary savings: 22,193), Aug '08 to Apr '09 28 Office of the Chancellor

Budget 101 Reduced Costs (cont.) Reduced maintenance and repair Reduced campus improvements Reduced University/Community Programs Operating Budget – 7% ( 11,169), Jul 2011 Increased the Mandatory Transfer from the Bookstore to University Operating (add'l 25,000; 78,320 total), Jul 2011 Reduced Institutional Scholarships by 10,000 (Annual Fund Reimburse), Jul 2011 Reduced Men's and Women's Athletics Operating Budget – 7% ( 8,808), Jul 2011 29 Office of the Chancellor

Budget 101 Reduced Costs (cont.) Gap: Assistant to the Chancellor/Coord. of Institutional Research , July 2012 Gap: Coordinator of Academic Support & Grants, July 2012 Early pay off of Grizzly House loan, saving 100,000 in interest over the next 10 years, Feb 2013 Gap: Instructional Designer, August 2015 Continued energy efficiency improvements when replacing mechanical and lighting equipment Gap Admin Assistant in Development and History faculty member in 2016 Reduced full-time staff position to part-time to help fund Fair Labor Standards Act (FLSA) requirements in 2016 30 Office of the Chancellor

Budget 101 Reduced Costs (cont.) FY18 reductions Department Academic Affairs Information Technology (IT) University/Community Programs (U/CP) Academic Affairs Library Physical Plant Student Services Business Services IT U/CP Student Services Academic Affairs Development University-wide Academic Affairs 31 Reduction Gap Director Developmental Education (P97939) Gap Technology Support Specialist IT (P98752) Gap Coordinator Theater and Events (P98724) Position reduction Academic Administrative Assistant (P98929) Position reduction Catalog/Reference Librarian (P99605) Position reduction Custodian (P99051) Part-time position reduction (P98311) Budget reductions Budget reductions Budget reductions Budget reductions Budget reductions Budget reductions Travel Budget Reductions Reduce budget in Full-time Mountain Grove Coordinator Office of the Chancellor Amount 74,048 63,149 51,570 44,549 56,412 31,904 8,750 84,932 44,500 12,000 34,500 81,792 6,322 57,188 29,612

Budget 101 Preparing For The Future Intent is to maintain and grow where possible Enrollment Growth Collegiate Assessment of Academic Proficiency scores at / above national average in all 5 categories for 20* consecutive years. Current staffing levels * 32 As of FY16 Office of the Chancellor

Budget 101 Preparing For The Future (cont.) Retention Rate*, goal 60% – 3-year average, 2011-2013 cohort** Missouri State-West Plains 44% [2014 – 53%, 2015 – 55% ] † Missouri Average †† 61% National Average†† 59% Average Graduation Rate*, goal 30% – 3-year average, 2009-2011 cohort** Missouri State-West Plains 25% [2012 – 22%, 2013 – 23% ] † Missouri Average †† 27% National Average†† 20% * Retention rate percent of freshmen cohort returning the following fall; Graduation rate percent of freshmen cohort earning a degree/certificate within 3 years ** Cohort Fall, full-time, degree-seeking freshmen † Based on internal calculations for years not yet officially reported by IPEDS †† Missouri/National averages from IPEDS 2016 Digest of Education Statistics, tables 326.20 and 326.30 and IPEDS Data Tools Statistical Tables (online); based on 2-year degree-granting colleges 33 Office of the Chancellor

Budget 101 What do we do now? Continue the West Plains Executive Budget Committee – faculty representation increased from 2 to 6 in 2014-15. Open discussion at all levels, most of which will be bottom up Website accessible information includes – – – – – Operating budget summaries for five (5) most recent fiscal years Detailed operating budgets for five (5) most recent fiscal years Budget narrative for current fiscal year External audit reports Experts webpage with committee agendas, meeting documents, and meeting minutes Integration with Springfield budget process: – 2 Faculty Reps on Academic Affairs Budget Committee Yet to be determined – West Plains Chancellor is a member of Springfield Executive Budget Committee 34 Office of the Chancellor