1 Mizzou Financial Overview May 2016

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

Recurring vs. One time Recurring funds (rate) are revenue sources that we anticipate will continue year after year. One time funds (cost)are balances that accumulate for a variety of reasons that are not expected to continue year after year.

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

Current Fund Budget 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

General Operating Sources Total: $618M Operating Fund State Appropriations$220M Tuition$363M Indirect Cost $35M Fiscal Year 2016 Budget

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

State Support to Higher Education FY 2015 National Comparison* Appropriation per Capita Ranking *Information obtained from the Grapevine Report published by Illinois State University

Head Count CPI State Appropriations * FY 2017 Projected Revenue Drivers FY 2001 – FY 2017*

Notable points regarding enrollment Losses are both resident and non-resident students MO State’s enrollment will be up compared to last year Illinois is a factor, but we will be down in non-resident enrollment from most other states as well Class mix is shifting significantly. FTC was 60.5% resident 39.5% non-resident Fall 15 we are expecting a move to 67% and 33% respectively for Fall 16 Scholarship competitiveness will continue to be a factor

Estimated enrollment for Fall 2016

Budget shortfall for FY17

Unavoidable expense changes

Strategic Investments

Notable points regarding financial adjustments We are not likely to recover enough by Fall 17 to cover the planned spend down of one time sources ($6.8M) and if we hold our own we could still be an additional 2,000 students down As we recover the next couple of years we are likely to be graduating larger classes than are entering creating potential budget gaps each of the next few years % Reductions across everything is not a feasible pattern for many more years

18 Mizzou Financial Overview May 2016