President’s Leadership Council Budget Update February 10, 2016

Governor’s Proposed Budget for MSU 2016-2018 2015-16 Enacted Budget $43,339,500 Current Year Reduction (4.5%) $-1,950,300 2015-16 Revised Budget $41,389,200 2016-17 Reduction (9%) $-3,900,600 2016-17 Proposed Budget $39,438,900 2017-18 Performance Pool (33.3%) $-13,133,200 2017-18 Proposed Budget $26,305,700 $5,850,900 (by July 1) CYR Tuition Shortfall $3,000,000 $8,859,900

What impact has the recession had on our operating revenues?

Tuition Increases FY07-FY15 Annual average increase of 5.8% Total Eight-year increase of 53.4%

Revenue Trends FY06 – FY15 (Actual) Gross Total Public Fund Revenues Changes in Gross Total Public Funds Revenue, Student Financial Aid and Gross TPF Revenue per FTE Student  Year Tuition & Fees State Appropriations Total Public Funds Student Financial Aid Gross TPF / FTE 2005-06 $39,372,287 $44,901,703 $84,273,990 $7,182,718 $12,650 2014-15 $71,742,999 $41,039,500 $112,782,499 $20,954,311 $16,050 10 Year Change $32,370,712 $(3,862,203) $28,508,509 $13,771,593 $3,400 % Change 82.2% -8.6% 33.8% 191.7% 26.9%

Revenue Trends FY06 – FY15 (Actual) Net Total Public Fund Revenues Changes in Net Total Public Fund Revenues and Net Total Public Funds per FTE Student Year   Net Tuition (excludes institutional aid) State Appropriations Total Public Funds TPF / FTE 2005-06 $32,189,569 $44,901,703 $77,091,272 $11,572 2014-15 $50,788,688 $41,039,500 $91,828,188 $13,068 10 Year Change $18,599,119 $(3,862,203) $14,736,916 $1,496 % Change 57.8% -8.6% 19.1% 12.9%

Net Tuition (excludes institutional aid) Revenue Trends FY06 – FY15 (Actual) Net Total Public Fund Revenues - Adjusted for Inflation  Change in Net Total Public Funds Adjusted for Inflation Year Net Tuition (excludes institutional aid) State Appropriations Total Public Funds Higher Ed Price Index Net TPF / FTE 2005-06 $39,845,879 $55,581,602 $95,427,481 253.1 $14,324 2014-15 $50,788,688 $41,039,500 $91,828,188 313.3 $13,068 10 Year Change $10,942,809 -$14,542,102 -$3,599,293   -$1,256 % Change 27.5% -26.2% -3.8% -8.8%

Expenditures 2001/02 – 2014-15 Education & General Expenditures by Functional Category Instruction Research Public Service Library Academic Support Student Services Institutional Support Operation & Maint. Of Plant Student Financial Aid Total E&G Expenditures 2001-2002 $31,568,757 $263,492 $1,546,491 $2,568,186 $5,201,639 $6,566,892 $9,670,332 $5,629,973 $5,318,167 $68,333,929 2014-2015 $42,301,315 $262,673 $2,705,855 $3,223,109 $9,674,397 $15,243,824 $16,630,544 $11,583,553 $20,954,311 $122,579,581   Change $10,732,558 $(819) $1,159,364 $654,923 $4,472,758 $8,676,932 $6,960,212 $5,953,580 $15,636,144 $54,245,652 Pct. Change 19.8% 0.0% 2.1% 1.2% 8.2% 16.0% 12.8% 11.0% 28.8%  79.4% Total Unrestricted Expenditures by Major Object Personnel Operating Grants, Loans & Benefits Capital Outlay Debt Service Transfers Total Expenditures 2001-2002 $52,227,026 $16,505,838 $2,857,321 $5,318,167 $5,111,906 $3,768,929 $85,789,187 2014-2015 $79,805,660 $29,204,138 $20,954,311 $6,681,279 $7,121,946 $275,838 $144,043,172 Change $27,578,634 $12,698,300 $18,096,990 $1,363,112 $2,010,040 $(3,493,091) $58,253,985 Pct. Change 47.3% 21.8% 31.1% 2.3% 3.5% -6.0% 67.9% Discount Rate Institutional Aid per Student FTE UG FT Tuition Rate (fall/spring semester) Instructional Expenditures per FTE Average Faculty Salary (all ranks) 2001-2002 18.0% $774 $1,355 $4,607 $45,999 2014-2015 29.2% $2,982 $4,049 $6,020 $61,258 Change 11.2% $2,208 $2,694 $1,413 $15,259

Primary Expenditure Drivers Scholarships Retirement Healthcare Benefits Salary (Compensation Plan) Utilities Liability and Unemployment Insurances Technology Unfunded M&O for new E&G facilities CHER, SSC and Equine Facility

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