A Glance Back

We have made significant progress in spite of significant financial challenges created from: Declining state appropriations Pressure to minimize/cap tuition increases Increasing unfunded mandates Increasing federal and state operating regulations Increasing fixed costs

Healthcare and retirement benefits Utilities and Technology

We made improvements or held stable 40 of 54 Key Performance Indicators that were identified to measure progress in the 2010-2014 ASPIRE Strategic Plan Fall 2013 Enrollment 11,358 with 1,675 FTFR Average FTFR ACT 22.2 (record high)

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CPE Public Agenda (Written in Support of HB1)

Aspire to Greatness: MSU Strategic Plan 2010-2014

MSU Operating Budget

M O R E H E A D S T A T E U N I V E R S I T Y

Progress in Partnerships

y

Strategic Planning “Plan our Work and Work our Plan”

Primary Areas for Immediate Improvement(Based on Early Planning Results)

Operating Central Advising Model Improved Processes and Efficiencies through

Technology Employee Compensation Plan

Market Salaries (3 year phase in) Performance Component (under development by

committee)

Capital IT Infrastructure Electrical Infrastructure Residence Halls (600 beds on campus / 50 beds at DAC) Parking Structures Expanded and Updated Food Service Facilities

State Budget Forecast 2014-15

$246 million

Auxiliary Enterprises($18.6 million)

Money comes from:•Housing•Food Service•University Store•Eagle Trace Golf•Concessions & Vending•Document Services

Pays for:•Self-supporting auxiliary units pay all their expenses and receive no taxpayer or tuition support•Contributes to E&G budget

E&G Non-RecurringFund Balance ($7.7 million)

Money comes from:•Savings and reserves from prior years

Pays for:•Capital Projects•Non-recurring Strategic Investments

Source and Uses of Funds (2013-14)($144 million)

7

• State Appropriation revenue as a percentage of E&G budget continues to decline• $7.2 million reduction since 2007-08 through 2013-14

$12,865 / FTE

$12,116 / FTE

Total of State Appropriations and Tuition Revenue per student FTE (net of institutionally funded scholarships and adjusted 2% annually for inflation)

Two Options to Improve our Budget

Increase Revenue State Appropriations – not without major state

tax reform Significant Additional Enrollment Growth –

unrealistic expectation Retention improvements – within our control

Decrease Expenses Personnel – 57% Operating – 20% Scholarships – 13% Other – 10%

How Can We Continue to Improve under even more challenging financial pressure?

Focus on things we CAN control Enrollment and Retention Use of Private Funds Operating Efficiencies and

Productivity Full equitable employment for all

personnel

Full-Time Employee Count, Student Count and Credit Hour Production 2003 - 2012

Fall 2003 Fall 201210 Year Change

Faculty 361 370 9 Administrative Staff 51 59 8 Prof/Clerical/Technical Staff 522 555 33 Skilled/Service/Maintenance 171 172 1 Total Faculty and Staff 1,105 1,156 51

Student Headcount* 9,388 8,848 (540)Credit Hours Generated* 112,835 102,059 (10,776)

*Excludes Early College Students and Hours Taught in the High Schools**Includes only full-time faculty and staff

Action Items Achieve a stable retention rate of FTFR at 80% within

two years

Be “Student Centric” in all we do

Stabilize enrollment between 11,000 – 12,000

Implement a student-focused centralized scheduling system

Implement technology to develop more efficient and effective institutional processes

Identify where shared support services can reduce operating overhead

Develop a strategic direction: Online instruction Regional Campus Centers Max impact for our region (SOAR)