University of Central Missouri

Strategic Governance For Student Success

General Faculty MeetingMarch 16, 2011

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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

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• 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

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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

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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.

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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

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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

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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

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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

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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

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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 %

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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

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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

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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%

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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

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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

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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

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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

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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

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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.

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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

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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

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State of Missouri Four Year Public Universities2011 Tuition & Mandatory Fees Comparison

“Booked Not Charged”Source: CBHE

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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

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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

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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)

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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