A Glance Back  We have made significant progress in spite of significant financial challenges created from:  Declining state appropriations  Pressure to minimize/cap tuition increases  Increasing unfunded mandates  Increasing federal and state operating regulations  Increasing fixed costs  Healthcare and retirement benefits  Utilities and Technology  We made improvements or held stable 40 of 54 Key Performance Indicators that were identified to measure progress in the ASPIRE Strategic Plan  Fall 2013 Enrollment 11,358 with 1,675 FTFR  Average FTFR ACT 22.2 (record high)

Enrollment Management Plan Diversity PlanSix-Year Capital Plan Technology Plan Campus Master Plan Marketing PlanAcademic and Administrative Unit Plans CPE Public Agenda (Written in Support of HB1) Aspire to Greatness: MSU Strategic Plan MSU Operating Budget M O R E H E A D S T A T E U N I V E R S I T Y Progress in Partnerships y Strategic Planning “Plan our Work and Work our Plan”

Primary Areas for Immediate Improvement ( Based on Early Planning Results) Operating  Central Advising Model  Improved Processes and Efficiencies through Technology  Employee Compensation Plan  Market Salaries (3 year phase in)  Performance Component (under development by committee) Capital  IT Infrastructure  Electrical Infrastructure  Residence Halls (600 beds on campus / 50 beds at DAC)  Parking Structures  Expanded and Updated Food Service Facilities

State Budget Forecast $246 million

Auxiliary Enterprises ($18.6 million) Money comes from: Housing Food Service University Store Eagle Trace Golf Concessions & Vending Document Services Pays for: Self-supporting auxiliary units pay all their expenses and receive no taxpayer or tuition support Contributes to E&G budget E&G Non-Recurring Fund Balance ($7.7 million) Money comes from: Savings and reserves from prior years Pays for: Capital Projects Non-recurring Strategic Investments Source and Uses of Funds ( ) ($144 million)

7 State Appropriation revenue as a percentage of E&G budget continues to decline $7.2 million reduction since through $12,865 / FTE $12,116 / FTE Total of State Appropriations and Tuition Revenue per student FTE (net of institutionally funded scholarships and adjusted 2% annually for inflation)

Two Options to Improve our Budget  Increase Revenue  State Appropriations – not without major state tax reform  Significant Additional Enrollment Growth – unrealistic expectation  Retention improvements – within our control  Decrease Expenses  Personnel – 57%  Operating – 20%  Scholarships – 13%  Other – 10%

How Can We Continue to Improve under even more challenging financial pressure?  Focus on things we CAN control  Enrollment and Retention  Use of Private Funds  Operating Efficiencies and Productivity  Full equitable employment for all personnel

Full-Time Employee Count, Student Count and Credit Hour Production Fall 2003Fall Year Change Faculty Administrative Staff Prof/Clerical/Technical Staff Skilled/Service/Maintenance Total Faculty and Staff 1,105 1, Student Headcount* 9,388 8,848 (540) Credit Hours Generated* 112, ,059 (10,776) *Excludes Early College Students and Hours Taught in the High Schools **Includes only full-time faculty and staff

Action Items  Achieve a stable retention rate of FTFR at 80% within two years  Be “Student Centric” in all we do  Stabilize enrollment between 11,000 – 12,000  Implement a student-focused centralized scheduling system  Implement technology to develop more efficient and effective institutional processes  Identify where shared support services can reduce operating overhead  Develop a strategic direction:  Online instruction  Regional Campus Centers  Max impact for our region (SOAR)