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University of Central Missouri
Strategic Governance For Student Success
General Faculty MeetingMarch 16, 2011
1
UNIVERSITY OF CENTRAL MISSOURI GOVERNANCE FOR STUDENT SUCCESSASSOCIATION OF GOVERNING BOARDS & LUMINA FOUNDATION
THREE COMPONENTS
Strategic Governance w/ Board of Governors and Institutional Governing
BodiesOctober 2010
Strategic Positioning, Visioning for the Future and Platform for
the Future of the UniversityFebruary/March 2011
Strategic Resource Allocation and Institutional Productivity Models
November/December 2010
2
• Collegiate Experience• Meeting Changing Needs• Persistence and Graduation• Student Engagement
• Public Education• Two-Year Institutions• Businesses/Corporations• 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 DrivenStudent SuccessPartnerships
and Collaboration
UNIVERSITY OF CENTRAL MISSOURISTRATEGIC PRIORITIES 2010-2011
3
Revenue Growth
•New Enrollment Management Growth Paradigm
•Tuition•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 2011 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• Signature Programs• Multi-Year Plan• Statewide Collaborative Academic Initiatives
Administrative Efficiencies
•Review of Administrative Structure
•Review of Operating and Support Expenditures
•Assess Savings Produced by Partnerships, Collaborations and Academic Support
•Create Inventory of Cost Savings and Administrative Efficiencies
Strategic Resource Model
UNIVERSITY OF CENTRAL MISSOURISTRATEGIC RESOURCE MODEL 2010-2011
4
Academic Program Viability & Productivity
MDHE & UCM Program ReviewMDHE Academic Program Review of 35 UCM Programs:
• 12 programs eliminated – Phased elimination over 3-year period. Year 3 projected annual savings of $800,000.
• 23 programs recommended for continuation.
• 7 programs under extended review by MDHE.
UCM Academic Program Review (beyond MDHE list):
• 21 Programs (beyond MDHE list) identified by UCM for extended review by UCM ad hoc faculty committee.
• Projected base budget savings of additional $800,000 in Year 3 of phased elimination.
5
6
Level Name Action
Bacc Speech Communication Program has been or will be terminated Bacc Liberal Studies Program has been or will be terminated Bacc General Recreation Program has been or will be terminated Bacc Earth Science Program has been or will be terminated Bacc Geography Program has been or will be terminated Bacc Journalism Program has been or will be terminated Bacc Agricultural Technology Program has been or will be terminated Bacc Industrial Technology Program has been or will be terminated Bacc French Program has been or will be terminated Bacc Tourism Program has been or will be terminated Bacc Technology New program -- is exempt from MDHE program review processBacc Biochemistry New program -- is exempt from MDHE program review processBacc Forensic Chemistry New program -- is exempt from MDHE program review processBacc Professional Pilot New program -- is exempt from MDHE program review processBacc Airport Management New program -- is exempt from MDHE program review process
Bacc Occupational EducationProgram is critical to mission and will be retained; Program shares a substantial number of courses and faculty with other similar programs; Program meets a unique need in the region, state, or nation; development plan is in place to increase completion rate with specific date for results
Bacc Medical TechnologyProgram shares a substantial number of courses and faculty with other similar programs; Program meets a unique need in the region, state, or nation; development plan is in place to increase completion rate with specific date for results
BaccActuarial Science & Mathematics
Program shares a substantial number of courses and faculty with other similar programs; Program meets a unique need in the region, state, or nation; development plan is in place to increase completion rate with specific date for results
BaccOccupational Safety & Health
Program shares a substantial number of courses and faculty with other similar programs; Program meets a unique need in the region, state, or nation; development plan is in place to increase completion rate with specific date for results
Bacc Computer ScienceProgram shares a substantial number of courses and faculty with other similar programs; development plan is in place to increase completion rate with specific date for results
Bacc MathematicsProgram shares a substantial number of courses and faculty with other similar programs; development plan is in place to increase completion rate with specific date for results
Bacc ChemistryProgram shares a substantial number of courses and faculty with other similar programs; development plan is in place to increase completion rate with specific date for results
Bacc Studio ArtProgram shares a substantial number of courses and faculty with other similar programs; development plan is in place to increase completion rate with specific date for results
BaccCrisis & Disaster Management
Program shares a substantial number of courses and faculty with other similar programs; development plan is in place to increase completion rate with specific date for results; program will be offered as part of a multi-university collaborative agreement
Bacc EconomicsProgram shares a substantial number of courses and faculty with other similar programs; development plan is in place to increase completion rate with specific date for results; program will be offered as part of a multi-university collaborative agreement
Bacc SpanishProgram shares a substantial number of courses and faculty with other similar programs; development plan is in place to increase completion rate with specific date for results; program will be offered as part of a multi-university collaborative agreement
Mstr Mathematics A development plan is in place to increase completion rate with specific date for resultsMstr Psychology A development plan is in place to increase completion rate with specific date for resultsMstr Theatre A development plan is in place to increase completion rate with specific date for resultsMstr Music A development plan is in place to increase completion rate with specific date for resultsMstr History A development plan is in place to increase completion rate with specific date for results
Mstr Industrial HygieneProgram shares a substantial number of courses and faculty with other similar programs; Program meets a unique need in the region, state, or nation; development plan is in place to increase completion rate with specific date for results
EdS Curriculum & Instruction Program has been or will be terminated
University of Central MissouriResponses to Missouri Department of Higher Education Program Review
7
Academic Affairs Administrative Reorganization
August 2010 – President’s Charge to Provost and Deans
(1) promote positive interaction of faculty and mutually-supportive academic programs; (2) highlight academic program strengths and promote public recognition of high-quality programs offered
by UCM; and (3) produce administrative cost savings without reducing academic program quality
August 2010 – December 2010
Deans and provost consider alternative reorganization models – preliminary recommendation to President Ambrose
December 2, 2010
President shares preliminary recommendation with the campus
December 2010 – Feb 2011
Faculty and chair input—revisions of the initial plan
College of Health, Science and Technology
College of Arts, Humanities and Social Sciences
College of Business and Professional Studies
College of Education
School of Health Professions*
Nursing & Communication Disorders
Nutrition & Health
Biology & Earth Science
Environmental Sciences & Natural Resources
School of Technology
Mathematics, Computer Science & Physics
School of Fine & Performing Arts*
Art & Design
Music
Communication
History, Anthropology & Geography
Government & International Studies
English & Philosophy
Psychology & Sociology
Theatre & Dance
School of Business Administration*
Accounting & Computer Information Systems
Economics,& Management
Marketing & Finance
School of Professional Studies*
Professional Services
Aviation
Criminal Justice
Military Science & Leadership
Educational Foundations & Literacy
Elementary & Early Childhood
Career & Technical Education
Educational Leadership & Human Development
Original Proposal
College of Health, Science and Technology
College of Arts, Humanities and Social Sciences
College of Business and Professional Studies
College of Education
School of Health Professions*
Nursing
Nutrition & Kinesiology
Biology & Earth Science
School of Environmental , Physical & Applied Sciences
School of Technology
Mathematics & Computer Science
School of Visual & Performing Arts*
Art & Design
Music
Communication & Sociology
History& Anthropology
Government & International Studies
English & Philosophy
Theatre & Dance
School of Business Administration*
School of Accountancy & Computer Information Systems
Economics, Finance & Marketing
Management
School of Professional Studies*
Communication Disorders & Social Work
Aviation
Criminal Justice
Military Science & Leadership
Current Revision
Educational Foundations & Literacy
Elementary & Early Childhood
Career & Technical Education
Educational Leadership & Human Development
Psychological Science
LEARNING ENVIRONMENT
AcademicStudent Experience & EngagementTechnologyLearning OutcomesEnrollment Management
ADVANCEMENT
Resource DevelopmentCommunicationsConstituent Engagement
STRATEGIC RESOURCES
Strategic Resource ModelCampus Facilities & PlanningHuman Capital
University of Central MissouriAdministrative Model
11
Areas of Duplication/Policies
Organizational Assessment
Facilities New Revenues/ Auxiliaries
Technology Contract Review/ Purchasing
Shelly Gonzalez (F) President Patrick Bradley (F) Joe Vaughn (F) Mollie Dinwiddie (F) Michael Lucas (F)
Manuel Bryant Cabinet Kathy Anderson Susan Brockhaus Curtis Beasley Terry Bond
Wendy Geiger Alyssa Brown Mark Manley Corey Bowman Trevor Cunningham
Barbara Hicks Deb Hobson Bill Rankin Mel Gross Vici Hughes
Amy Kiger Greg Sorrell Scott Rhoad Toni Kreke Carole Nimmer
Robin Krause Cheryl Trelow Amanda Sasek Mike Jeffries Jeffrey Robinson
Beth Rutt Chris Wellman Jenne Vanderbout Odin Jurkowski Victoria Steel
Monica Huffman (CR) Dale Carder (CR) Jerry Hughes (CR) Jim Graham (CR) Rich Morrell (CR)
University of Central MissouriAdministrative ReviewRapid Response Teams
(F) Facilitator(CR) Cabinet Resource
12
Core Strategic Objectives
Each of the six rapid response teams (RRTs) has a specific area of concentration which is outlined below. It is understood that a degree of overlap work may occur between the respective teams. The Lead Facilitation Group will provide oversight of the deliverables among the teams. Questions and requests for clarification should be directed to the Lead Facilitation Group. As the teams undertake their assignment, the members should be mindful that the University’s Administrative Review Process has three core strategic objectives.
1. Provide opportunities to enhance the success and experience of UCM students
2. Create opportunities to fulfill the University mission while enhancing student service and satisfaction
3. Create efficiencies and cost savings for the University
Administrative Review - Rapid Response Teams Charges
ChargesAreas of Duplication/Policies: Review functional responsibilities across all administrative units Identify areas of duplication in service delivery Identify existing University policies that do not maximize resources and services and are considered to be
impediments/limiters of efficiencies and cost savings opportunities. For each identified area of duplication, the team will provide:o A description of the duplicated service(s) and identify any University policy that should
be examined in order to achieve better business practices o An organization chart depicting the affected areaso The budgetary resources, including personnel and operating, allocated to these areas o The opportunity for cost reduction and service enhancement as a result of consolidating
delivery areas/serviceso Recommendation for functional realignment within the reporting structure as a result
of consolidation
Organizational Assessment: Evaluate existing personnel vacancies and recommendation for position elimination, reallocation or recruitment Create a revised University organization chart under the proposed structural and contextual framework of Learning
Environment, Strategic Resource Allocation and Advancement
Facilities: Review facilities management and maintenance requirements, with consideration of both personnel and operating
allocation requirements Review utilities consumption and commodity purchasing to identify opportunities for cost reduction or containment
( this analysis should include the opportunity for capital investment that will result in short-term and long-term energy savings and commodity purchasing that have a positive budgetary impact)
Review current scheduling practices for facilities to determine opportunities for increased utilization of current facilities and reduction or elimination of future capital investments associated with currently projected facilities expansion
14
Charges (Continued)
New Revenue/Auxiliaries: Evaluate opportunities to increase net revenue through growth of existing revenue generating areas or through
the identification of new revenue generating sources (note: this review will include an evaluation of existing University auxiliary enterprises)
Identify new revenue opportunities should include all necessary operating or capital investment so that the net revenue impact of these recommendations can be evaluated
Technology: Create hardware and software standards that can be implemented throughout the University and analyze
projected cost savings and service impacts Review student services, including telecommunications and email requirements and analyze opportunities for
service outsourcing or elimination Evaluate current service delivery models and identify cost savings (e.g., thin client computer clusters, desktop
imaging, telecommunications, cycle for turnover of network, desktop and laptop hardware)
Purchasing/Contract Review: Review current contracts for the purchase of goods and services and create a matrix outlining date of last bid,
current vendor, value of contract, contract expiration and provisions for terminating the contract Identify contracts eligible for rebid and projected savings Evaluate opportunities for strategic sourcing including, but not limited to, publishing/printing/copying, travel and
supply purchases and identifying related projected savings
15
Date TaskMarch 11 Rapid Response Teams Announced
March 15 Kick-off Meeting for Teams
April 15 Teams’ Updates Due
May 15 Draft Teams’ Reports Due
June 1 Final Teams’ Reports Due
June 16 Rapid Response Teams’ Reports presented to Board with recommendations
Administrative Review – Rapid Response TeamsTimeline
UCMUnrestricted Revenues
Fiscal Year 2011 Budget
Tuition $ 61.3 m 48 %State Appropriations (Net) 54.9 m 43
%General Fees 4.6 m 4
%Flight & Lab Fees 2.2 m 2 %Sales and Services 1.7 m 1 %Other 2.6 m 2 %
Total Revenues $ 127.3 M 100 %
16
UCMState Appropriations – Historical Trend
$0
$10
$20
$30
$40
$50
$60
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
$49$54
$57$60
$51 $52 $51 $52 $52$53 $56 $58
$59
$55$51
Appropriations
Fiscal Year 2012 - Assumes a 7%
Reduction
17
UCM Appropriations at CPI
$51 $52 $51 $52 $52 $53$56 $58
$59$55
$51
$60 $61 $63 $65 $67 $69 $71 $71 $73 $74 $76 $77
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
UCM Appropriation CPI Adjusted
$26 M Gap
Note: Below Graph Uses Modest 2% CPI Projections for 2011 and 2012
Assumes a 7% Appropriation
Reduction in 2012
18
UCMWeighting of State Appropriations versus Tuition Revenue
$0
$10
$20
$30
$40
$50
$60
$70
$80
2000 2006 2012
Ap
pro
pri
atio
ns, $
57
Ap
pro
pri
atio
ns, $
52
Ap
pro
pri
atio
ns, $
51
Tuiti
on
, $30
Tuiti
on
, $54
Tuiti
on
, $72
Mill
ion
Fiscal Year
65%
35%
59%
41%49% 51%
19
UCM “SPRING” STUDENT HEADCOUNT
2006 2007 2008 2009 2010 -
2,000
4,000
6,000
8,000
10,000
12,000
8,893 8,864 8,925 9,003 9,168
1,834 2,055 2,137 2,184 2,183
Undergraduate Headcount Graduate Headcount
10,727 10,919 11,062 11,187 11,351
20
2002 2003 2004 2005 2006 2007 2008$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
2002-2008 Spending Trends per FTE Student
Instruction Student Services Admin Supp
UCM 2002-2008 Spending by Category
21
UCM Five Year - Historical Cost Reduction Initiatives
Description Annual $
Health Insurance Savings Initiatives $5,258,000
Textbook Rental Program – Savings to Students $3,100,000
Negotiated Purchases (Includes E-Procurement) $3,000,000
0% Across-the-Board Salary Increases (FY 2010 & FY 2011) $3,000,000
Information Technology / Systems Savings $2,075,000
ESCO - Energy Savings and M&R Cost Reductions $1,500,000
Facilities Management - Brought In-House (Aramark) $800,000
Early Retirement Health Plan Phase Out $367,000
Bond Refinancing – Interest Expense Savings $235,000
Credit Card Fees (VISA) on Student Payments $225,000
Travel Savings $184,000
Property Insurance Premium Savings $177,00022
UCM Five Year - Historical Cost Reduction Initiatives
(Continued From Previous Slide)
Description Annual $
State of Missouri Contract - Natural Gas Hedging $150,000
Flight Simulator Fee Savings to Students; plus M&R Savings $140,000
Branch Bank/Student Debit Card System $31,000
Grand Total – Cost Reduction Initiatives $20,242,000
Other One-Time University Initiatives:
*Negotiated Food Service Contract Savings to Fund Capital Improvements to Student Dining Services
$5,166,000
*Capital Donations $5,500,000
23
2012 Base Budget Needs
FY 2011 - 5% Appropriation Reduction $2,950,000
FY 2012 – 7% Appropriation Reduction 3,800,000
Faculty / Staff Compensation (UCM Employees Rec’d 0% Increases in FY2010 and 2011) $2,165,000
* Equity & Market Adjustments
* Promotions
* Health Care
* MOSERS
Maintenance and Repair $450,000
Student Activities and Support 210,000
Information Systems – Maintenance Contracts 150,000
Investment Income Decline 150,000
ESCO Lease Payment 55,000
UCM Incremental 2012 Budget Challenges
24
UCM2012 Balanced Budget Strategy
Revenue Growth Via Enrollment Increase
Revenue Growth Via Tuition Rate Increase of 4.2%
Expense Savings – Academic & Administrative Review
2011 Budget Savings of “One-Time” Funds
Employ Reserves if Necessary
15
Revenue Growth
Fiscal Management: Institutional Budgeting• A
GB Strategic Planning Conference with UCM Board of Governors, President’s Cabinet, Deans & Faculty
• 0% Salary and Wage Increase for Fiscal Years 2010 & 2011
• Temporary Hiring Freeze in 2011 Generating $2.2 M Savings
• Targets for 2011 Budget Savings
• Institutional-Wide Processes and Priorities
• Utilization of Annual and Recurring Savings
• Net Unrestricted Assets/Expenditure Controls
• Costs Associated with Mission and Revenue Growth
Strategic Resource Model
UNIVERSITY OF CENTRAL MISSOURIBudget Development for Fiscal Year 2012
Enrollment Growth:• Fall 2011 – Credit Hours is targeted to be 3% higher vs.
2010• 2 % Main Campus Growth• 12 % On-Line Growth
Partnering / Community College Access to UCM
Tuition Rate Increase:• UCM – UG Tuition was not increased in FY 2010 & 2011
• UCM Considering 4% UG increase in 2012. 4% represents 2010 CPI of 2.7% + 2012 increase of 1.3%.
Academic Program Viability & Productivity
• MDHE Program Review with 3-year Base Budget Savings of Approximately $800,000
• Extended UCM Program Review with Anticipated Savings of $500,000 to $800,000
• Identification of Signature and Enhanced Programs
• Statewide Collaborative Academic Initiatives
Administrative Efficiencies
UCM Academic Reorganization:• Reduction of One College• Reduction from 33 to 25 Departments• Projected $612,000 Annual Cost Savings• Additional UCM Academic Program Review Underway
with Additional Savings Phasing in Over Three Year Period. Savings of $500,000 projected for Year 1 and $800,000 by Year 3.
• Institution-Wide Administrative / Budget Review with Targeted $2 million savings.
26
UCM 2012 Budget
Revenue Growth & Expense SavingsFiscal Year 2012 - Enrollment Growth Targets $
2,985,000• Target of 2% Main Campus Growth• Target of 12% On-Line Growth
4.2% Tuition Rate Increase (MDHE – CPI Index) 1,975,000
Total Revenue Growth – Base Budget (Discounted at 15%) $ 4,960,000
Academic - “Admin. Review” Savings $ 612,000
• Reduction of 1 College / 8 Departments
Academic Program Review – Year 1 Savings 500,000
Institutional - Administrative Review Target 2,000,000
Total Expense Savings – Base Budget $ 3,112,000
16
UCMProposed 2012 Tuition Increase
2011 CPI – “Booked but Not Charged” 2.7%
2012 CPI – Provided by MDHE 1.5%
Total Rate Increase to Students 4.2%
•Recommended by Governor’s Office to Keep the Cost of Tuition Affordable•MDHE – CPI Index
17
State of Missouri Four Year Public Universities2011 Tuition & Mandatory Fees Comparison
“Booked Not Charged”Source: CBHE
29
RankInstitution
(Does Not Include 2012 Tuition Rate Increases)
"2.7 % Booked" Undergrad
30 Credit Hours
1 University of Missouri-St. Louis 8,631.00$ 2 University of Missouri-Kansas City 8,602.48 3 Missouri University of Science and Technology 8,528.45 4 University of Missouri-Columbia 8,500.90 5 Northwest Missouri State University 7,227.60 6 University of Central Missouri 6,759.00 7 Truman State University 6,692.00 8 Missouri State University 6,426.00 9 Southeast Missouri State University 6,257.70
10 Lincoln University 6,175.00 11 Missouri Western State University 5,726.30 12 Harris-Stowe State University 5,320.00 13 Missouri Southern State University 4,981.90
18
UCMFiscal Year 2011 – “One-Time Savings”
Apply to 2012 Budget
2011 – Enrollment Greater than Budget $ 1,300,000• Fall Semester – Total Credit Hour Growth of 2%• Fall Semester – On-Line Credit Hour Growth of 21%• 0% Under Grad Tuition Rate Increase
University “Temporary” Hiring Freeze $ 2,200,000
Total – 2011 “One-Time Savings” $ 3,500,000
19
UCM - 2012 Budget Projections
Line Item
7% Appropriation Decrease
4.2% Tuition IncreaseNotes
Tuition and Fees $ 71,791,000 (2% Main Campus Enrollment Growth, 12% Online)(4.2% UG Rate Increase, 4.2% Grad Rate Increase)($5.9 M > than 2011 Base Budget; $4.6 >2011 Actuals)
State Appropriations 51,105,000 (7% Reduction)
Other Revenue 6,354,000 Aviation Fees , Intensive English, Non-Credit Courses, Ticket Sales, Orientation & Transcript fees etc.
* Total Revenue $ 129,250,000
Salaries and Benefits $ 87,263,000 (UCM employees received 0% ATB in 2010 and 2011)
General Operations 48,599,000 (Approximate $450k increase in Maint. & Repair)(Student Waivers – 15% of Tuition Increase = $900k)
* Total Expenses $ 135,862,000
* Shortfall in Annual Base Budget $ (6,612,000)
Academic Administrative Review - Annual SavingsAcademic Program Review – Annual Savings
Institutional Administrative Review - 2012 Target
2011 – “One Time” Savings
Balanced Budget
612,000 500,000
2,000,000
3,500,000
$ 0
(Reduction of 1 College & 8 academic departments)
31
UCM Summary of Budget Scenarios
Appropriation Reduction = Tuition Rate Increase =
(7%)4.2%
(10%)7.75%
(15%)14.0%
Tuition and Fees $ 71.8 $ 73.8 $ 77.2
State Appropriations 51.1 49.4 46.6
Other Revenues 6.4 6.4 6.4
Total Revenues $ 129.3 $ 129.6 $ 130.2
Total Expenses* $ 135.9 $ 136.2 $ 136.8(*Scholarship expense increases with increased tuition)
Base Budget Shortfall $ (6.6) $ (6.6) $ (6.6)
Academic & Admin Review Savings $ 3.1 $ 3.1 $ 3.1
FY 2011 – “One-Time” Savings $ 3.5 $ 3.5 $ 3.5
Balanced Budget $ 0 $ 0 $ 0 3222