1 Budget Allocation Advisory Council Budget Overview December 15, 2014

Financial Reports & Background Public Financial Reports Changes In Net Position Statement of Revenues, Expenses and Changes in Net Position – by Fund 2

Operating Fund Targeted Tuition & Student Fees Restricted Appropriations Grants & Contracts Gifts, Endowment & Investment Income Enterprise Operations Total Revenue $608M 108M 30M 163M 73M 1,198M $2,180M 27.9% 5.0% 1.4% 7.4% 3.3% 55.0% 100% Fiscal Year 2015 Budget Funding Sources

“Enterprise” Operations Hospitals & Clinics University Physicians Athletics University Stores Residential Life Campus Dining Veterinary Medicine Research Reactor Agriculture Parking KOMU Office of Research/Patent & Royalty Other $739M 162M 56M 53M 47M 30M 15M 14M 9M 8M 7M 4M 54M $1,198M 61.7% 13.5% 4.7% 4.5% 3.9% 2.5% 1.2% 0.8% 0.6% 0.3% 4.5% 100% Fiscal Year 2015 Budget

General Operating Sources Total: $608M Operating Fund State Appropriations$217M Tuition$355M Indirect Cost $36M Fiscal Year 2015 Budget

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

Revenue Aspects of the Cycle – State Funding – Senate Bill 389 – MUSOP 7

State Appropriations for Operations FY 2001 – FY 2015

Head Count CPI State Appropriations Revenue Drivers FY 2001 – FY 2014

SENATE BILL NO TH GENERAL ASSEMBLY The provisions of sections to shall be 2 known and may be cited as the "Higher Education Student Funding 3 Act" Beginning with the academic year, each 2 approved public institution, as such term is defined in section , 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 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. 10

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). 11

Strategic Operating Plan University of Missouri 12