1 Board of Governors State Appropriations and Budget Presentation May 15, 2013

Work-force readiness Placement Missouri Placement Improve Remediation Student Success Program Enhance College Transfer Maintaining low increases to tuition Innovation Administrative Efficiencies Strategic Resource Allocation Reduce Student Indebtedness Time to Degree Progression, Retention & Graduation Rates Reduce Average Credit Hour to Degree Measure Competencies Student Readiness College Success Diversity Special Populations Missourians Requirement to Meet 2025 Goal Military STUDENT-CENTERED PERFORMANCE MEASURES STUDENT-CENTERED PERFORMANCE MEASURES AccessCompletion AffordabilityStudent Success 2

State Appropriations 3

State Appropriation History 4

State Appropriations Received versus Appropriations Adjusted by the CPI Index (As of Fiscal Year 2013) 5

Weighting of State Appropriations versus Tuition & Fees Revenue 6

State of Missouri FY 2013 Higher Education “Net” Appropriations Four - Year Universities ($ millions) 7 Grand Total = $685 million

8 State of Missouri Proposed 2014 Appropriations University of Central Missouri Governing Body% Increase$ Amount Conference Committee Substitute (truly agreed to and finally passed) 2.5%$1,294,000 * The Missouri Constitution requires all budget bills to be truly agreed to and finally passed by Friday, May 10 at 6:00 p.m.

Student Enrollment 9

Fall Semester Student Headcount 10

11

12

UCM is Keeping Higher Education Affordable for all Missourians: UCM - Tuition Rate Increases:  %  % (CPI Index)  % (CPI Index)  % (CPI Index)  % (CPI Index) (Average Annual UCM Tuition Increase is only 1.78% Over Five Years) 13

14 University FY 2013 Tuition and Fees (30 Hours) 1.University of Missouri - Rolla$ 9,350 2.University of Missouri - St Louis9,314 3.University of Missouri - Kansas City 9,299 4.University of Missouri - Columbia 9,257 5.Northwest 7,719 6.Truman 7,216 7.UCM 7,147 8.Southeast 6,920 9.Missouri State 6, Lincoln 6, Missouri Western 6, Harris Stowe 5, Missouri Southern 5,610 Average Tuition$ 7,450 Tuition Benchmark Comparison (Source: MDHE)

Fiscal Year 2014 Budget Discussion 15

STRATEGIC RESOURCE MODEL Revenue Growth New Enrollment Management Growth Paradigm FY13 Enrollment Headcount Increase 2.3% FY13 Tuition Rev. Forecast Increase of $3.2 M (CPI) Tuition Rate Increases Within CPI Index Grants & Contracts Development/Advancement Identify New/Expanding Sources of Revenue Strategic Positioning Platform Fiscal Management: Institutional Budgeting Operating Fund Processes Institutional-Wide Processes and Priorities Utilization of Annual and Recurring Savings Targets for Budget Savings Net Unrestricted Assets/Expenditure Controls Costs Associated with Mission and Revenue Growth Academic Program Viability & Productivity Cooperation with State Board of Higher Education Inventory of Program Productivity Reduced 5 to 4 Colleges – Savings of $612k Reduced Add’l 8 Academic Depts. – Savings of $500k Faculty Early Retirement – Savings of $400k. Signature Programs Statewide Collaborative Academic Initiatives Administrative Efficiencies Review of Administrative Structure FY2012 Admin Review Expense Savings of $2 million FY2013 Admin Review Expense Savings of $772,000 Hiring Freeze Savings of $1.5 million annually Athletics General Operations Savings of $120,000 Debt Refinancing Savings of $400,000 annually Strategic Resource Model 16

Fiscal Years’ 2011 thru 2014 Savings Initiatives 17 Description$ Amount Administrative Review – Year 1$2,000,000 Administrative Review – Year 2944,000 Administrative Review – Year 3431,000 Academic Review (Reduction from 5 to 4 Colleges, and 8 Depts.) 1,100,000 Permanent Salary Savings (reduction of 16 vacant staff positions) 890,000 Facilities Management Savings (Brought In-House)800,000 ESCO – Energy Savings Program (Utilities)550,000 Faculty Early Retirement (Projected Savings for 2013)400,000 Bond and Capital Lease Refinancing400,000 Athletics – General Operating Expense Reduction120,000 Total 2011 – 2014 Cost Savings Initiatives$7,635,000

18 2.5% State Appropriation Increase* *Conference Committee substitute (truly agreed to and finally passed) $ 1,294,000 2 % Enrollment Growth$ 1,263, % (CPI Index) Tuition Rate Increase$ 1,073, Budget Revenue Assumptions

Mosers & CURP (Mosers 14.45% to 16.98% CURP 6.80% to 6.38%) $1,500,000 Faculty Promotions, Market Minimums (Includes Benefits) 560,000 Academic, Military and Athletic Scholarships425,000 Whiteman Advantage, Inst’l Research, Strategist411,000 Health Insurance- Estimate 5.00% Premium Increase 346,000 Incremental Revenue Share150,000 Marching Band, Academic Competitions119,000 Missouri Innovation Campus90,000 Broadcasting Initiatives90,000 Software Contracts82, Budget Mandatory and Other Expense Increases 19

20 Revenue FY 2013 Budget FY % State Appropriation Proposed Budget Student Tuition – Fall$ 33,849,000$ 34,970,000 Student Tuition – Spring31,731,00032,755,000 Student Tuition – Summer 5,994,0006,589,000 Student Fees 6,070,0006,254,000 State Appropriations 51,029,000 52,323,000 Aviation, Lab, & Course Fees 2,296,0002,368,000 Other Sources3,481,0003,385,000 Sales & Service of Educ. Activities 1,282,0001,388,000 Investment Income100,000 Total Revenue$ 135,832,000$ 140,132,000 Proposed Budget Revenues Fiscal Year 2014

21 FY 2013 Budget FY 2014 Proposed Budget 2. 5% Approp. Increase Salaries and Wages$ 64,236,000$ 64,845,000 Staff and Faculty Benefits22,020,00023,805,000 Student Wages1,522,000 Subtotal – Salaries & Benefits$ 87,778,000$ 90,172,000 General Operations23,031,00024,710,000 Scholarships and Aid10,574,00010,999,000 Debt Service (Bond Payments)5,718,000 Facilities Operations4,816,000 Utilities2,665,000 Maintenance and Repair1,509,000 Library Books and Serials1,241,000 Total Expenditures$ 137,332,000 $ 141,830,000 Proposed Budget Expenses Fiscal Year 2014

Description 2014 Budget 2.5% Increase Tuition – Incremental Revenue$ 1,683,000 State Appropriation Increase 1,294,000 a. Total Incremental Revenues$ 2,851,000 b. Incremental Expenses (Slide 19) $ 4,341,000 FY Base Budget Balance (a. – b.) (Expenses Exceed Revenues) $ ( 1,698,000) Day Hiring Freeze 250, Expense Savings Target 1,448, Budget – After Expense Savings Target$ 0 22 Proposed Budget Summary Fiscal Year 2014

Collegiate Experience Meeting Changing Needs Persistence and Graduation Student Engagement Public Education Two-Year Institutions Businesses/Corporation Community Agencies Four-Year Institutions Destination Alignment Telling the Story/Branding Community Engagement Academic Leadership Signature Programs Attainment Access & Affordability Student Satisfaction Resource Stewardship Public Mission Costs/Quality Charitable Giving Value Proposition Mission Driven Student Success Partnerships and Collaboration UNIVERSITY OF CENTRAL MISSOURI STRATEGIC PRIORITIES