Budgetary Affairs Committee June 14, 2018 Referrals/issues status: Solar house sale = April report Distribution of raises given to administrators, faculty, and staff = still awaiting data from F&O Report on the “big picture balance sheet”, with tracking of changes in each item = ongoing Balance sheet for the MSU programs = this report How are decisions made about faculty retention packages; fairness of resource allocation across departments = discussed Current and next FY budget = modest changes since last BAC report New issue: OSP post-award

MSU funding Prior to FY 2017, funds went to CEC Dean. FY 2017: Originally $485K, Cut in FY 17 Prior to FY 2017, funds went to CEC Dean. FY 2017: CEC Dean Civil Electrical Parker Hall Total Revenue Tuition 416,387 409,585 91,245 917,397 State 282,906 9,284 301,474 Total: 1,218,871 Expended Salary & Wages 176,564 186,845 142,902 506,311 Benefits 58,814 49,092 49,665 157,571 Other (incl. VCC) 1,861 88,308 91,199 181,368 Transfers 250 (Teaching & Tech sponsor) 19,065 (Faculty support) (10k Cashiers, 30k Enroll Mgt, 21k Recruiter 30k Student Aid) 110,740 955,990 Net 45,417 82,361 135,103 262,881

Staffing/S&W Administrative MSU Director Admin Asst II Engr Lab Supervisor Civil Assoc Teaching Prof: Jeff Thomas MSU Assoc. Prof.: Matt Pierson Adjunct: Todd Brewer Electrical Lecturer Stephanie Thomas Asst. Prof. Tayo Obafemi-Ajayi Asst. Teaching Prof. Theresa Odun-Ayo Assoc. Teaching Prof. Rohit Dua

Retention Decisions made by Provost in consultation with appropriate Dean, Chancellor not involved Retention is to prevent leaving, ≠ equity (equity are raises to make salaries more equitable) Fairness?

Last year (FY 2017) in $ millions No update since 22 Feb Operations (GRA) Global Learning + other services Auxiliary (Food, Res Halls) Gifts & Endowments Grants & Contracts Total Revenue 145.0 11.8 24.4 7.6 22.6 211.5 Expended 146.3 3.8 16.5 5.9 21.4 193.9 Transfers 5.8 -10.3 -8.5 -0.3 -1.2 -14.5 Net +4.5 -2.2 -0.6 +1.4 -0.04 +3.1 Grants F&A is revenue to Operations Transfers: into operations is from services (arrow) from Auxiliary goes to plant fund (pay off loans, maintenance costs, reserves), but also fees to operations, which increased for FY 18 from Gifts largely go to endowment corpus (est. $160 M total S&T endowment) From Grants largely is fixed price close-outs to operations or maybe to Plant (= building purchase, maintenance, depreciation)

Expenditures and revenues (millions of $) Updated from April’s report Revenue Costs Net State Tuition & Fees Other GRA Transfers to GRA [Cost dollars?] Last year (FY 17) 51.4 81.2 12.5 145.1 146.3 (5.8) 4.5 This year (FY 18) 49.4 85.1 10.2 144.7 147.3 (2.8) 0.2 Now next year* (FY 19) 86.5 10.2? 146.1 144.4?† (5.8)? 8.0? April’s next year 44.1 88.5 142.8 144.4? 4.2? *State 0% cut assumed, 1% tuition rate + enrollment increase Tuition & Fees is net = scholarships from general operating funds deducted † Cerney says GRA = $136.0 M, net will be -5 M (= Greitens’ cut) New costs: $400k OSP (VCR&G, compliance hire); CEC $212k faculty line; $20k E&E for CDiversityO; $50K for sesquicentennial celebration

Update based on Greitens resignation Changes for FY 19 (Cuts) 0% = State, 0.0 M [was -$5.1M] +1.2% = Tuition up 1%, +1.4 M (may be less) -1.5% = 2% merit raise pool (Choi), -2.1 M -0.18% = P&T and PTR, -0.25 M -0.36% = Insurance, utilities, licenses, mandatory maintenance sum -0.5 M -0.29% = Graduate aid(?), -0.4 M -0.17% = Benefits increases, -0.25? M -1.3% = Net $2.1 M less [Maples May 9: $8.7M] System: “strong guidelines” on how to distribute raises 5.1% cut = $7 M: $2.1 M less, $3.6 M to “Strategic investments”, $1.3 M not designated/conservative

5.1% Cut 4% net cut from CEC ($1.6 M) and CASB ($0.96 M) Reduce E&E Cancelled searches Possibly from OSP, IR There is no low-hanging fruit Chancellor Maples May 9 brief, next slide

-100k ~11% Excludes $26.5 M “non-cut-able”

Non-cut-able Enrollment contingency Maintenance and repair Utilities IT fee Dedicated F&A Debt payments Insurance Strategic Initiative Positions Summer teaching

Reinvestments Half of cuts are reinvestment “Faculty and faculty support, supplemental core instruction, phonathon funding, enrollment contingency” Library open 24/7, $100K (mostly for swipe card access, add two part-time staff as security)

OSP post-award Suggestion: post-award administration at MU MU cost is roughly half of ours per grant dollar Process is largely electronic, physical presence not vital Likely to reduce risk; S&T now carrying perhaps $1M in non-pay accounts (e.g. not invoiced in time, not document effort) 5 of 15 staff (w/o VCRGS) $0.3 M of Provost’s $1.3 M cut BAC expressed concern might not work better, might simply be layoffs; F&O would require performance in any service-level agreement and possibly pre-award needs more staff