1. Montana University System 2008 Finances Update From the Campuses For the Board of Regents May 2008

2. The State appropriation per FTE student is less than half of the peer average for Montana’s Doctoral Universities. Funding Montana’s Universities

3. Higher tuition revenue per FTE student does not make up the gap. Doctoral Campuses’ total revenue is less than 3/4 ths that of peers. Funding Montana’s Universities

4. The State appropriation per FTE student is about 4/5 ths of the peer average for Montana’s four year institutions. Funding Montana’s Four Year Campuses

5. Higher tuition revenue per FTE student nearly evens the revenue picture. Funding MUS Four Year Campuses

6. The State appropriation per FTE student is just over 2/3 rds of the peer average for Montana’s stand-alone COTs. Funding Montana’s COTs

7. Higher tuition revenue per FTE student does not make up the gap. The stand-alone COT total revenue is 82% that of peers. Funding Montana’s COTs

8. State Support for Montanans Note: Funding shown includes just Base Appropriations of Millage and General Funds, for on- going Education & General Operations. This does not include LRBP or any other One-Time-Only funds.

9. Increased State Support in 2008/09 Essentially all new State Funding for the 2008/2009 Biennium was used to freeze tuition for Montana students – by providing sufficient funds to continue existing programs and services (PLAs). Salaries & Benefits Utilities IT Fixed Costs Library Acquisitions State Overhead Cost Increases Fee Waiver Utilization (Honors, etc.)

10. Over the past 5 Years MUS campuses have made Millions of Dollars of Enhancements through Reallocation. The following list is of a few examples from Montana State University. Addition of 5 undergraduate majors, 7 minors, 2 Master’s programs, 4 PhD programs, and 4 certificate programs – as well as the termination of 4 programs Implementation of new CORE 2.0 Curriculum with Base Reallocation of $358,000 per year Expansion of Upper Division Nursing with Base Reallocation of $532,750 Expansion of Architecture Program with Base Reallocation of $250,000 Over the past 5 Years MUS campuses have made Millions of Dollars of Enhancements through Reallocation. The following list is of a few examples from Montana State University. Addition of 5 undergraduate majors, 7 minors, 2 Master’s programs, 4 PhD programs, and 4 certificate programs – as well as the termination of 4 programs Implementation of new CORE 2.0 Curriculum with Base Reallocation of $358,000 per year Expansion of Upper Division Nursing with Base Reallocation of $532,750 Expansion of Architecture Program with Base Reallocation of $250,000 Enhancement through Reallocation

11. Doubled the Financial Support for K-12 Teachers who Supervise Student Teachers with Base Reallocation of $63,000 per year Reduced Class Size of English Composition from 33 to 25 (the national average) with Base Reallocation of $80,000 per year Established a Supplemental Instruction Program in residence halls for Math and Chemistry with Base Reallocation of $18,500 per year Reorganized advising, created Advising Council & added transfer advisor Created over 10 New Faculty Positions in High-Demand Programs with a Cost- Sharing Base Reallocation of $194,245 per year Invested OTO $125,000 for development of Distance Delivery Program to Enhance Access for high-demand general education and key entry courses in high demand areas Doubled the Financial Support for K-12 Teachers who Supervise Student Teachers with Base Reallocation of $63,000 per year Reduced Class Size of English Composition from 33 to 25 (the national average) with Base Reallocation of $80,000 per year Established a Supplemental Instruction Program in residence halls for Math and Chemistry with Base Reallocation of $18,500 per year Reorganized advising, created Advising Council & added transfer advisor Created over 10 New Faculty Positions in High-Demand Programs with a Cost- Sharing Base Reallocation of $194,245 per year Invested OTO $125,000 for development of Distance Delivery Program to Enhance Access for high-demand general education and key entry courses in high demand areas

12. FY06 Reallocation of $116,000 in Annual Base funding, for enhanced salaries, to fill several essential positions in Police and Mail services Annual Application of internal Academic Base Reallocation Model Data-driven process through which college budgets are adjusted to accommodate enrollment shifts Based on Delaware Study data and student credit hour generation Over $300,000 (l%) moved among colleges in FY08 Creation of Academic Support Centers on both campuses (Billings) Development of Dual Credit Program w/ local high schools (Billings) Development of new Nursing Pathways Program and Power Plant Program (Billings) Creation of success-enhancement programs and services for adult learners, in College of Technology and College of Professional Studies and Life Long Learning (Billings) FY06 Reallocation of $116,000 in Annual Base funding, for enhanced salaries, to fill several essential positions in Police and Mail services Annual Application of internal Academic Base Reallocation Model Data-driven process through which college budgets are adjusted to accommodate enrollment shifts Based on Delaware Study data and student credit hour generation Over $300,000 (l%) moved among colleges in FY08 Creation of Academic Support Centers on both campuses (Billings) Development of Dual Credit Program w/ local high schools (Billings) Development of new Nursing Pathways Program and Power Plant Program (Billings) Creation of success-enhancement programs and services for adult learners, in College of Technology and College of Professional Studies and Life Long Learning (Billings)

13. Added investments in Campus Police Chief position, student/staff emergency alert system, increased security camera installations (Billings) Academic Program investments, to enhance compliance with accreditation standards by Northwest, AACSB and NCATE (Billings) Reallocation of General Operation funds to support large equipment purchases and new program development (Great Falls) Creation of new “student support” positions of Asst. Dean for Student Services, IT Support, and On-Line Curriculum Developer (Great Falls) Since FY05, reallocation of General Ops funds to support rural healthcare education, such as the REACH Practical Nursing Project (Great Falls) Added funding for professional development initiatives, to incent faculty to teach online – and contribute to the growth of that program (Great Falls) Added investments in Campus Police Chief position, student/staff emergency alert system, increased security camera installations (Billings) Academic Program investments, to enhance compliance with accreditation standards by Northwest, AACSB and NCATE (Billings) Reallocation of General Operation funds to support large equipment purchases and new program development (Great Falls) Creation of new “student support” positions of Asst. Dean for Student Services, IT Support, and On-Line Curriculum Developer (Great Falls) Since FY05, reallocation of General Ops funds to support rural healthcare education, such as the REACH Practical Nursing Project (Great Falls) Added funding for professional development initiatives, to incent faculty to teach online – and contribute to the growth of that program (Great Falls)

14. The Issue of Reallocation Funding levels and Reallocation Reallocation to Date Potential for Further Reallocation

15. Reallocation for Survival The level of State support during the first 2 biennia of the century included a mid-year rescission in FY03, and threatened program reductions and reductions in force on 3 smaller UM campuses Smaller campuses limited salary increases, seized vacancy savings, and reduced support & staffing in student services to sustain instruction – roughly $3 million in base Missoula campus reallocated $4.5 million in base to Helena, Butte, and Dillon, along with 1.5 million in OTO grants to develop sustainable academic programs. Missoula campus reallocated $650,000 to cover faculty retirement costs.

16. Reallocation for New Programs Established Writing Center, UM-M, $100,000 Created new academic programs, 5 doctoral, 7 bachelors, 10 certificates, UM-M, $2 million Established the American Indian Student Services Office, UM-M, $108,000 In cooperation with Residence Life and Dining Services, created Cal Murphy Awards to increase undergraduate enrollment, by assisting with the cost of housing - $900,000. Created Leadership, Achievement & Service Awards to increase non-resident enrollments, UM-M, $500,000 Established MPACT program, UM-M, $200,000

17. Reallocation for Enhancement Reallocated general funds and redirected parking revenues to fund Park & Ride lots in Missoula, $102,000 Extended the hours of the Mansfield Library in Missoula, $25,000 Allocated funds to academic quality initiatives in Missoula, $2.3 million Reallocated $600,000 to mandatory fee waivers to accommodate increased utilization of Native American, Dependent and Employee tuition waivers.

18. Reallocations for Enhancement (cont.) Absorbed asbestos abatement cost overruns in Missoula, $268,000 Purchased security cameras in Missoula, $120,000 Initiated Higher Education Center in Hamilton, $125,000

19. Reallocations for Enhancement (cont.) MT Tech purchased new equipment for academic programs, $345,000 MT Tech created a “One Stop Shop,” $150,000 MT Tech updated Data Center, $145,000 UM-Western created a Center for Student Success, and a new Assistant Provost position, $417,000

20. Summary Reallocations, within programs, across programs, and between institutions occur relatively often Smaller campuses reallocated $3,890,000 base funds in last few years Missoula reallocated $8,923,000 base funds in last few years The implementation of College Affordability Program made no provision for new programs but provided funds for current services

21. Summary (cont.) The need to enhance services in order to maintain quality and enrollments requires attention The Missoula campus will reallocate one-time-only funds in FY 2009 and base funds in the 2011 Biennium –Enrollment management and student success, $300,000 OTO in FY 2009 and $2.280 million in base in 2011 Biennium –Permanent funding of Communicative Sciences and Disorders program, $600,000 in 2011 Biennium –UM is reallocating $1.16 million in the current biennium to build the Northern Tier network. Further reallocations on current bases of the four campuses will threaten quality and service reduction, thereby affecting enrollments Imperative to increase participation in college for social and economic development and vitality