1. Deans, Chairs & Directors Meeting April 30, 2009

3. Governor’s Budget Reduction Order FY 08 Base Appropriation$124,392,100 Reduction: (June 2008)6.1%$7,605,300 FY 09 Base Appropriation$116,786,800 Reversion: (October 2008) (became a base cut in Jan. ’09) 3.24% 4,034,800 FY 09 Revised Appropriation$112,752,000 Reduction: (July 2009)12.74%15,851,500 FY 10 Base Appropriation$ 96,900,500 Appropriation Reductions Note: Total reductions from FY 08 Appropriation equal 22.1% ($27,491,600)

4. FY09 Revenues – All Sources If the General Assembly approves the Governor’s budget, the University ‘s appropriation will be restored in the current year to it’s original level. Total Estimated Revenues $408.1 million with Federal Restoration- preliminary “E&G” is the Unrestricted Educational & General Budget, funded primarily by State Appropriations & Student Tuition & Fees

5. University Budget FY2009 The three main components of the University’s Budget: Educational & General (E&G) -- primarily state & tuition/fee funded Auxiliaries & Athletics – Revenue supported activities including student housing, bookstore, food services, & vending; intercollegiate athletics Restricted – Federal & State Grants, Sponsored Research, Private Gifts, Lottery, Pell, and Other Financial Aid Programs Total FY09 Budget (in millions)Original Preliminary Spring (with restored funds) Estimated + ARRA Educational & General260.8271.3 Auxiliaries/Athletics46.448.6 Restricted87.788.2 Total394.9408.1

6. Student Fees – Current Year FY10 planning assumptions project a 5% increase in fees overall, factoring in both rates & cap phase-out On average, 5% equates to approximately $250 annually, or $125 per semester for full- time Phased implementation of the cap elimination over 3-5 years is under review by TBR Per hour costs above the full-time cap are expected to be at reduced rates The 5% projection represents the tuition estimate and the effects of the cap phase out

7. How UOM Compares To The Peers, 2008-2009 University of South Florida University of Houston, University ParkUniversity of Alabama Georgia State University University of Oklahoma, NormanUniversity of Louisville Virginia Commonwealth University George Mason UniversityFlorida International Univ. University of Arkansas, Fayetteville University of South Carolina, ColumbiaTexas Tech University Maintenance and Mandatory Fees Source: TBR March 2009 Board Meeting

8. How UOM Compares To The Peers, 2007-2008 Source: TBR March 2009 Board Meeting University of South Florida University of Houston, University ParkUniversity of Alabama Georgia State University University of Oklahoma, NormanUniversity of Louisville Virginia Commonwealth University George Mason UniversityFlorida International Univ. University of Arkansas, Fayetteville University of South Carolina, ColumbiaTexas Tech University

9. State Appropriation & Federal Stimulus Funds Current Year Stimulus + MOE Current Year Expected to be Restored with Federal Funds; MOE = Maintenance of Effort-State matching Source: Governor’s Budget & TBR Guidelines; All figures are preliminary and subject to Legislative Revision Beginning July 1, 2011

10. o Enrollment, Recruitment, and Retention o Growth enrollment areas such as: Nursing, Public Health, & Distance Learning o Minimize impact on students (timely graduation) o Maximize external research funding o Meet research contract requirements o Target investments offering best potential for growing external research funding support Priorities for this budget cycle

11. – Develop TBR Budget for FY10 – Formulate TBR 3-Year Budget Plan – Develop Comprehensive Infrastructure Project Plan & Proposals for Stimulus Opportunities Budget Development

12. Voluntary Buyout Plan 126 Applicants; all were accepted into the Program – 79 of 126 also retired from the University Total Severance Payout: $3.4 million Budget impact $6.2 million in salary and benefit dollars Type# Avg. Severance PaymentAvg. Salary Avg. Yrs of Univ. Service Faculty25$46,497$81,30528 Admin/Acad Prof’l29$29,325$51,66521 Hourly paid72$19,741$23,66917 Total126$27,256$41,54820

13. Academic Affairs Tier II Cuts DescriptionNumberAmount Faculty Positions46$ 2,116,800 Staff Positions12375,000 Part Time Instruction565,000 Summer School575,000 Graduate Assistants290,000 Operating441,200 TOTAL$4,363,000

14. Academic Affairs Total Cuts DescriptionNumberAmount Faculty Positions99$ 5,866,400 Staff Positions (net)391,180,300 Part Time Instruction1,040,000 Summer School1,893,000 Graduate Assistants290,000 Operating588,600 TOTAL$10,858,300

15. Stimulus Guidelines Must be spent on non-recurring items that are likely to be phased out or that are scheduled to be funded with non-state sources in future years. (such as tuition revenue). All accounting will occur in a separate fund – cannot be co-mingled with other state dollars Coordinated Maintenance & Renovation Projects

16. SET 2010 BASE BUDGET ($96.9M STATE) ALLOCATE SOME OF 2009 STIMULUS FUNDS ALLOCATE SOME OF 2010 STIMULUS FUNDS REQUIRING IMMEDIATE DECISIONS ESTABLISH 2010 AND 2011 BUDGETS INCLUDING STIMULUS FUNDS NEXT STEPS

17. 2009 STIMULUS FUND EXAMPLES Restore some of Summer School Budget Supplement the Library Materials Budget Equipment Purchases Hobson’s Software (Recruitment Initiative) Shift of Base Expenditures to Stimulus Funds High Performance Computing Equipment Lease

18. 2010 STIMULUS FUND EXAMPLES (Early Decisions) Restore Some of Part-time Instructional Budget Restore Some of Instructor, Visiting Professor, and Staff Budget Restore Some of Graduate Assistantship Budget Supplement the Library Materials Budget Faculty Start-up Funds Investment in Growth Initiatives (Nursing, Public Health, On-Line Programs)

19. 2010-11 STIMULUS FUND STRATEGY SCENARIO ONE FOR A UNIT o Maintain all the present degrees, programs, and concentrations o Make the case for the same administrative structure presently in place o Assume Stimulus Funds will cover the gap until we can return to normal in 2+ years CONSEQUENCE: Decrease in operating budget, faculty, and staff for the unit.

20. 2010-11 STIMULUS FUND STRATEGY SCENARIO TWO FOR A UNIT o Examine all programs and concentrations and build and focus on strongest programs o Explore new program options (on-line, hybrid, flexible schedule, cohort, course redesign) that would replace existing programs o Examine the administrative and staff structure for efficiencies o Aggressively pursue recruitment and retention programs o Continue research growth CONSEQUENCE: Potential for Increase Funding for the Unit

21. State Appropriation & Federal Stimulus Funds Current Year Stimulus + MOE Current Year Expected to be Restored with Federal Funds; MOE = Maintenance of Effort-State matching Source: Governor’s Budget & TBR Guidelines; All figures are preliminary and subject to Legislative Revision Beginning July 1, 2011