1. 1 http://mubudget.missouri.edu/ Budget Allocation Advisory Council Finance Overview FY 2016

2. Financial Reports & Background Public Financial Reports Changes In Net Position Statement of Revenues, Expenses and Changes in Net Position – by Fund http://www.umsystem.edu/ums/fa/controller/financial-reports 2

3. Budget Cycle Overview July 1 st June 30 th December Long Range Planning Annual Budget Development Budget Management and Reporting

4. Operating Fund Targeted Tuition & Student Fees Restricted Appropriations Grants & Contracts Gifts, Endowment & Investment Income Enterprise Operations Total Revenue $618M 121M 21M 165M 75M 1,283M $2,284M 27.1% 5.3% 0.9% 7.2% 3.3% 56.2% 100% Fiscal Year 2016 Budget Funding Sources

5. “Enterprise” Operations Hospitals & Clinics University Physicians Athletics University Stores Residential Life Campus Dining Research Reactor Veterinary Medicine Agriculture Parking KOMU Office of Research/Patent & Royalty Other $787M 181M 68M 54M 49M 29M 16M 15M 10M 8M 4M 54M $1,283M 61.3% 14.1% 5.3% 4.2% 3.8% 2.3% 1.2% 0.8% 0.6% 0.3% 4.2% 100% Fiscal Year 2016 Budget

6. General Operating Sources Total: $617M Operating Fund State Appropriations$220M Tuition$362M Indirect Cost $35M Fiscal Year 2016 Budget

7. 27% 70% 3 % Change in General Operating Funding Sources TUITION STATE SUPPORT

8. Drivers on funding from State – State tax revenues – Historical patterns – Performance funding model – Strategic planning – Other factors 8

9. State Support to Higher Education FY 2015 National Comparison* Appropriation per Capita Ranking *Information obtained from the Grapevine Report published by Illinois State University 44 7 18 21 10 30 22 6 20

10. State Appropriations for Operations FY 2001 – FY 2015

11. Head Count CPI State Appropriations Revenue Drivers FY 2001 – FY 2015

12. Drivers on Tuition and fee revenue – State expectations – SB 389 – Competition – Access – Pool of qualified students 12

13. SENATE BILL NO. 389 94TH GENERAL ASSEMBLY 2007 173.1000. The provisions of sections 173.1000 to 173.1006 shall be 2 known and may be cited as the "Higher Education Student Funding 3 Act". 173.1003. 1. Beginning with the 2008-2009 academic year, each 2 approved public institution, as such term is defined in section 173.1102, 3 shall submit its percentage change in the amount of tuition from the 4 current academic year compared to the upcoming academic year to the 5 coordinating board for higher education by July first preceding such 6 academic year. 7 2. For institutions whose tuition is greater than the average 8 tuition, the percentage change in tuition shall not exceed the 9 percentage change of the consumer price index or zero, whichever is 10 greater. 13

14. Consumer Price Index The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. CPI market basket major groups and examples: FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks) HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture) APPAREL (men's shirts and sweaters, women's dresses, jewelry) TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance) MEDICAL CARE (prescription drugs and medical supplies, physicians' services, eyeglasses and eye care, hospital services) RECREATION (televisions, toys, pets and pet products, sports equipment, admissions); EDUCATION AND COMMUNICATION (college tuition, postage, telephone services, computer software and accessories); OTHER GOODS AND SERVICES (tobacco and smoking products, haircuts and other personal services, funeral expenses). 14

15. Tuition & Fee Comparison 2014 – 2015 Institution AAU Public AAU Public & Private SEC Public Big Ten Public Big XII Public University of Missouri-Columbia Average $11,465 $26,510 $9,268 $11,814 $8,687 $9,433 Lowest $6,313 $8,070 $6,960 Highest $17,772 $51,008 $11,876 $17,502 $9,798 Combined Tuition & Fees Resident Undergraduate Source: Association of American Universities Data Exchange (AAUDE) Annual Academic Year Tuition and Required Fees 2014-15 Composite Report

16. State Appropriations plus Net Tuition & Fees Compared to Peers

17. Where do the resources go? Operating Fund Salaries and Wages61.8% Benefits19.0% Operating Expenses 19.2% Fiscal Year 2016 Budget

18. Clearly we can’t do everything Strategic planning process brings focus Progress is being evaluated More refinement of the focus takes place 18

19. Strategic Operating Plan University of Missouri http://strategicoperatingplan.missouri.edu/ 19

20. 20 Budget Allocation Advisory Council Finance Overview FY 2016