MISSOURI SOUTHERN STATE UNIVERSITY

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ECONOMIC SUMMIT
    JULY 22, 2008
   What are our sources of operating revenues?
   How much are our operating revenues?
   How much are our expenses?
   How do we budget revenues?
   What are our current budget realities?
   How do we intend to address these realities?
   What does the future hold?
   Operating Revenue – This revenue consists primarily
    of student tuition and fees and state appropriations to
    be used for the University’s general operations.

   Capital Revenue – This is revenue from various
    sources that is designated for a specific project, such
    as: state capital appropriations for the Health Science
    building, student recreation center fee for the
    Beimdiek Recreation center, private contributions
    funded through the Foundation for the Mansion
    renovation, etc. These funds are restricted from use
    within the University’s general operations.
Summary – FY08 Operating Revenue
   Revenue Source                   $ of total revenue   % of total revenue

  Tuition and Fees                    $23,000,000            34.8%


  State appropriations                 22,800,000            34.5%




                     Continued on subsequent slides.
      Student fees and state appropriations
 as a percentage of operating fund revenues
75.0%
                   1980 - 2008
        69.4%

65.0%
                   61.7%
                            57.1%
55.0%

                                            45.7%     44.4%
                                    44.3%
45.0%
                                                                           36.9%
                                                                   36.5%           35.4% 34.3% 33.6%       35.6% 34.8%
35.0%
                                                                                   35.2%
                                                              32.6%    33.1%                33.1%   33.5% 33.0% 34.5%
                                31.4%
25.0%                  27.4%                        27.1%
                                        26.9%
                 22.7%
15.0%
        12.9%
5.0%
        1980    1985     1990   1995    2000         2001     2002     2003        2004     2005    2006   2007   2008
                                                    Student Fees           Appropriations
Summary – FY08 Operating Revenue
   Revenue Source                           $ of total revenue   % of total revenue

  Tuition and Fees                           $23,000,000             34.8%


  State appropriations                         22,800,000            34.5%


  Grants/Sponsored programs                    10,100,000            15.3%
  Pell, MO Access Grant, TRIO, Etc.



  Foundation support                            1,100,000              1.7%




                             Continued on subsequent slide.
   The Foundation is a separate entity from the University.
   Most of the money in the Foundation is invested.
   The University profits from the Foundation’s investment
    income.
    ◦ Example: $500,000 in a non-restricted scholarship fund yields about
      5% per year for the University or $25,000 in scholarships.
   The role of the Foundation is to raise funds to support
    the University with scholarships and capital projects.
Summary – FY08 Operating Revenue
   Revenue Source                      $ of total revenue   % of total revenue

  Tuition and Fees                      $23,000,000             34.8%


  State appropriations                   22,800,000             34.5%


  Grants/Sponsored programs              10,100,000             15.3%
   Pell, MO Access Grant, TRIO, Etc.


  Foundation support                       1,100,000              1.7%


  Auxiliaries                              5,000,000              7.5%
   Residence Life, Bookstore


  Other revenue                            4,100,000              6.2%
   Gifts, Interest Inc, Seminars



                            TOTAL:      $66,100,000            100.0%
Compensation and benefits                       $ 35,300,000   51.5%

Institutional scholarships                        5,300,000     7.7%*

Financial aid awards                             10,100,000    14.7%

Utilities                                         1,800,000     2.6%

Supplies, travel, repair & maintenance, etc.     16,000,000    23.5%

Total                                           $ 68,500,000   100.0%

* Represents 25% of tuition and fees revenue.
Revenues             $ 66,100,000

Expenses             $ 68,500,000

Net Operating Loss   ($ 2,400,000)
       Operating Revenue and Expenses
           FY02 – FY08 (In Millions)
70.0
                                                                            68.5
                                                              67.5


                                                                            66.1
65.0

                                               62.0               63.1

                                   59.4
60.0
                                                 60.9



                       55.5          57.1
55.0           54.4



                53.4    53.4
       49.3
50.0


       48.3

45.0
        2002   2003    2004        2005         2006       2007          2008

                        Revenues            Expenditures
                                  Profit (Loss)
3,000,000

                                                         2,285,106
2,000,000
                                          2,065,912

1,000,000
                            1,015,979

         0
              2002        2003          2004          2005      2006          2007           2008
(1,000,000)
              (986,033)                                                (1,100,089)

(2,000,000)
                                                                                               (2,400,000)

(3,000,000)


(4,000,000)
                                                                                     (4,421,726)
(5,000,000)


              $102        $124           $127         $127           $125        $130          $135
                                           Tuition Rate
                FY 02        FY 03       FY 04       FY 05       FY 06         FY 07         FY 08


Per Credit
Hour Increase     $23.00      $22.00       $3.00       $0.00        ($2.00)        $5.00         $5.00




Rate per hour     102.00      124.00      127.00      127.00        125.00        130.00        135.00




Enrollment         5,899       5,782       5,410       5,256         5,473         5,675         5,593




Profit (Loss)   (986,033)   1,015,979   2,065,912   2,285,106   (1,100,089)   (4,421,726)   (2,400,000)
   Enrollment.
   State Appropriations.
   Limits on tuition increases and student fees.
   Rising costs: Fuel, utilities, MOSERS, health insurance,
    increase in federal minimum wage, etc.
   Competition.
   New costs: Required mandates due to SB389, campus
    website development, campus card system, etc.
Expected Revenues             $66,643,102

Expected Expenses               69,273,491

Projected Loss               ($ 2,630,389)



How are we going to cover our projected loss?
   Cut at least $500,000 in FY09 – Per Board directive
   Eliminate/reduce certain expenditures (e.g.: flowers sent
    from President’s office for death & sickness, faculty dinner,
    International party, travel, etc.)
   Develop a campus-wide awareness of needed behavioral
    changes (utilities, spreading the work load, etc.). These
    changes will become a way of life.
   Leave positions unfilled.
   Analyze how we do business – when tuition is paid, how
    scholarships are administered, how we recruit and retain
    students, how much we travel, etc.
   10% departmental operating budget reductions.
   The near future
    ◦ 2008-2009 will be a lean year for Missouri.
    ◦ We may have state appropriation withholdings
      compounding our budget challenges.
    ◦ Our 2009-2010 budget may be leaner than we would like.
   Immediately after the near future
    ◦ The changes we make in our business practices should
      begin to show positive economic results in 2009-2010, but
      those results will only help us keep afloat.
    ◦ We will need to start building reserves.
   After that…..depends on
    ◦ Increasing enrollment and retention.
    ◦ Adopting and using good business practices.
    ◦ Fostering Teamwork.
                     MSSU Pride
MSSU has a great sense of community and teamwork!
The campus has many exciting opportunities just around
  the corner. There is a new energy on campus.
The Health Science Building and Recreation Center will
  enhance our programs and increase enrollment.
Our First Year Experience programs will improve retention
  and provide valuable knowledge to our incoming
  freshman.
Invigorating Marketing Campaign “Join The Pride.”
Fall enrollment looks positive.
Successful HLC visit.
Development of a campus-wide strategic plan.
Thank you goes out to the campus community for the many
 excellent cost-saving suggestions that have been
 submitted.

We wish to say “Keep them coming!”

No idea is too small or too large for consideration.

Please send any ideas you have to SuggestionBox@mssu.edu

If you have any future questions or concerns, please email
   Bruce Speck, Terri Agee, John Messick, Rob Yust, Jeff
   Gibson or Linda Eis.

				
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