Budget 101:

Preparing for Fiscal Year 2019

(FY 19)
 Budget 101

Budgetary Questions

• 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?

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 Budget 101

FY18 Operating Fund Summary - Total Revenues

Revenue Type Percentage
Tuition and Fees 43.22%
State Appropriations 54.49%
Other Revenue 0.27%
Gifts 0.42%
Investment Income 0.28%
Sales/Services-Educational 1.32%
Grants and Contracts* 0.00%
Total Revenues 100.00%

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 Budget 101

FY18 Revenue

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 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)

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 Budget 101

Grant Funded Positions

• Full-Time Employees • Part-Time Employees

• Mary Kellum (TRiO) • 6 tutors in TRiO
• Vickie Petkovic (TRiO) • 19 employees in AEL
• Kathy Mann (TRiO)
• Shelia Barton (TAACCCT)
• Joan Wright (AEL)

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 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

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 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.

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 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

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 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.

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 Budget 101
2017-2018 Out-of-Taxing District Resident
Attending On-Campus

Total Required Fees Total Tuition & Required Fees

State Institutions Per Credit Hour Tuition Per Semester (15 hours) 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

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 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

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 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

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 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

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 Budget 101
FY18 Operating Fund Summary -
Total Expenses & Transfers
Expenses/Transfer Type Percentage
Faculty and Staff Salaries 56.80%
Other Salaries 4.19%
Benefits 19.56%
Utilities 2.46%
Institutional Scholarships & Fee Waivers* 4.17%
Travel, Supplies & Services 13.47%
Transfers -0.93%
Bad Debt Expenses 0.28%
Total Expenses 100.00%

* Actively pursuing reduction through privatization of current institutional scholarships

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 Budget 101

FY18 Expenses

Pers o nne l

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 Budget 101
FY18 Operating Fund Summary
Total Expenses by Program
Program Percentage
Instruction 37.28%
Public Service 3.59%
Academic Support 11.37%
Student Services 12.21%
Institutional Support 22.38%
Operation & Maintenance of Plant 8.75%
Institutional Scholarships & Fee Waivers 4.41%
Total Expenses 100.00%

* Transfers are not included

** Many private Universities spend 25% or more on marketing/advertising and less
than 25% on instruction.

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 Budget 101

FY17 Operating Expenses by Program

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 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 Instruction Faculty Salaries &
Year Faculty Budget 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
Percentage Increases 26.7% 47.2% 34.8% 30.6%
* one was grant funded (HIT through TAACCCT), but will be institutionally funded in
FY17 using the Allied Health plus up

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 Budget 101

FY18 Operating Fund Summary

Revenue/Expense Total
Total Revenues* $10,693,137
Total Operating Transfers In (included in revenue above) 137,606
Total Expenses* 10,630,800
Total Debt Transfers Out (included in expenses above) 39,044
Excess Revenues (budget surplus) $62,337

* now includes Allied Health Plus Up

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 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.

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 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…

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 Budget 101

Potential State Budget Impact

• For FY19 = decrease or flat

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 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 three-
year 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.

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 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).

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 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.

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 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.

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 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

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 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

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 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

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 Budget 101

Reduced Costs (cont.)

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

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 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

* As of FY16

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 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

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 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

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