Trautwein h t T t i photo
MSU Moorhead Budget & Enrollment Trends
November 13, 2008
Presentation Outline
•Financial stability factors
•MSUM budget and enrollment trends
•MSUM budget planning – FYs 2009 & 2010
•Current initiatives to address budget challenges
Factors that influence MSUM’s financial stability
•State of MN spending on higher education •State of MN economic condition •MnSCU appropriation f di M SCU i ti funding
•MnSCU allocation framework •Student full-year equivalent (FYE) •Position amongst other MnSCU institutions •Tuition rate increases •Base expenditure increases
Higher Education Share of the State of MN Budget
includes MnSCU, U of M, and the Office of Higher Education
14.0% 11.8% 11.2% 10.8%
11.7% 12.0%
10.0%
9.1%
9.1% 8.6% 8.7%
9.0%
8.0%
6.0%
4.0%
2.0%
0.0%
Components of the MnSCU Allocation Framework
Set Asides - Allocations for which the model does not apply. Priority Funds - Incentive and performance funds that are used to drive compelling educational interests. Fixed C t All Fi d Cost Allocations - All ti Allocations f ti for factors that are unlikely to vary due to enrollment (library, most of facilities, research & public service) Variable Administrative Allocations Administrative expenditures that vary considering headcount and FYE enrollment. Instructional Allocations -Direct instructional and academic support allocations which recognize the level of instruction and cost of programs.
Set Asides
Priority Funds
Institutional Base Allocations
Fixed Costs
Variable Administrative Allocations
Instructional and Academic Support Allocations
MnSCU Allocation Framework Category Summary g y y
Set Asides
Set asides are allocations for which the formula does not apply. It includes such areas as the Office of the Chancellor, debt service, attorney general, legislative auditor, etc.
Priority Funds y
Priority funds are incentive and performance funds that are used to drive compelling educational interests. These priorities can be determined by the Legislature, the Board, or the Chancellor. Academic and Student Affairs leadership will recommend quality, collaboration, and access initiative strategies.
MnSCU Allocation Framework Category Summary
INSTITUTIONAL BASE ALLOCATIONS
Programmatic comparisons by level of instruction using Classification of g g Instructional Program codes at a combination of 2-, 4-, and 6-digit levels. A band of 20% around the MnSCU program average is adjusted by the difference that MnSCU spending is below the national average. The programmatic comparison recognizes state university costs at lower division for departmental research.
Instruction
Administrative d Ad i i t ti and Student Support Services
Based on national peer spending levels. Allocation gives state universities and colleges a core amount of variable funding per FYE.
Facilities
Operations includes square f t O ti i l d footage, three-year rolling average f utilities, th lli for tiliti recognized leases, student duplicated headcount. It also recognizes multi-campus, residential impact, and steam plant. Repair and replacement is allocated on square footage. Allocation gives state universities 6% and state colleges 3.5% of the allocated amount for library expenditures
Library Separately Budgeted R B d t d Research h and Public Service
Allocation gives state universities 2.62% and state colleges 1 17% of the allocation 2 62% 1.17% amount for research and public service.
MSUM Student Full-Year Equivalent (FYE)
percentage change from prior year
6% 4% 4.1% 2% 0% -2% -4% % -6% -8% -10% -12% -10.7% FY 1996 FY 2001 FY 2006 FY 2007 FY 2008 FY 2009 projected FY 2010 projected -2.9% -0.6% 0.3% -0.9% -2.7% -3.6% -2.3% -1.2% -0.7% 1.2% 1.6% 0.8% 0.6% 1.3% 0.9% 0.0% 5.1% 4.6% 3.0%
MSU Moorhead
State Universities
MnSCU System
MSUM Percentage Share of MnSCU Student Full-Year Equivalent (FYE) and Allocation
8%
5.70% 6%
5.63% 5.47% 5.42%
5.08% 4%
4.90%
4.70%
4.63%
4.57%
2%
0% FY 2006 FY 2007 FY 2008 FY 2009 projected FY 2010 projected
Share of MnSCU allocation
Share of MnSCU student FYE
MSUM Tuition and Allocation of State Appropriation
as percentages of the total general fund budget
70% 64% 60% 51% 50% 49% 40% 36% 30% 36% 50% 48% 48% 48% 47% 50% 52% 52% 52% 53% 64%
20%
10%
0% FY 1996 $36.3M FY 2001 $47.6M FY 2005 $54.8M FY 2006 $58.1M FY 2007 $60M FY 2008 $61.7M FY 2009 $64M projected FY 2010 $65.3M projected
State Appropriation
MSUM Tuition Revenue
MSUM Undergraduate Tuition Rate per Credit
$200
$169.46 $181.52 $174.54 $162.94
$150 $100 $50
$9.00 $29.25
$148.80
$73.60
$0
MSUM Revenue vs. Base Expenditure Increases
Millio ons $4 $3.6M $3.3M $3 $3.3M
$2.2M $2.1M $2 $1.9M $1.9M $1.7M $2.0M
$2.3M $2.0M
$1.3M $1
$0 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 projected FY 2010 projected
Revenue Increase
Base Expenditure Increase
FY 2009 MSUM General Fund Budget Plan
Projected tuition revenue shortfall : - $641 177 $641,177 •withhold 2nd allocations of University equipment ($200,000) and R&R funding ($300,000) •January 2009 health insurance increase will be 3.5%; budget projected at 10.4% ($196,422) •Academic Affairs reorganization savings ($152,550) •FY 2009 frozen positions – one-time savings ($217,294)
This budget plan will carryforward approximately $425,000 into FY 2010 to ensure student credit hour generation remains stable. g
FY 2010 MSUM General Fund Budget Planning
Projected MSUM structural deficit: - $3 2M $3.2M Projected change in MSUM’s state appropriation: -$1M to -$2M per fiscal year of the biennium Proposed budget corrections: $3.9M •FY 2008 frozen carryforward – one-time funds ($1 2M) FY one time ($1.2M) •FY 2010 frozen positions - base savings ($1.4M) •General university b d t projection changes – operating b d t G l i it budget j ti h ti budget increase, fuel & utilities, scholarships, & work plan initiatives ($1.3M) •MnSCU Board of Trustees may raise the cap on tuition increases y p beyond 4%
Current Initiatives to Address Budget Challenges
•Student retention efforts (e.g. Academic Resource Office early warning (e g Office, system, School of Business FYE pilot, living-learning communities) •Vision task force •Summer school task force •Energy conservation task force Energy •Tuition and fee study group •Public-private partnerships P bli i t t hi •Various marketing initiatives
Questions?
Dr. Bette Midgarden
Vice President for Academic Affairs
midgard@mnstate.edu midgard@mnstate edu 218.477.2765
Jean Hollaar
University Planning & Budget Officer
hollaar@mnstate.edu hollaar@mnstate edu 218.477.2336