June 17, 2008Regular Board Meeting System Operating Budget FY 2009$3,018,798,316 FY 20082,834,719,601 $ Increase$184,078,715 % Increase6.5%

June 17, 2008Regular Board Meeting Comparison of System Budget FY 2008 to FY 2009 FY 2008FY 2009 $ Change % Change ASU$54,795,255$56,670,274$1,875,0193.4% DSU51,955,92052,797,323841,4031.6% JSU110,130,535112,057,4331,926,8981.7% MSU351,220,118367,401,79616,181,6784.6% MUW32,435,00032,966,691531,6911.6% MVSU40,783,50941,383,035599,5261.5% UM271,177,542285,134,46713,956,9255.1% USM239,218,256248,684,7219,466,4654.0% UMMC937,405,613996,782,53159,376,9186.3% Exec. Office10,443,8699,459, , % Ayers25,700, % Financial Aid30,486,72630,631,151144,4250.5% Board Initiatives1,000,0002,000,0001,000, % Other677,967,258757,129,78579,162, % Total$2,834,719,601$3,018,798,316$184,078,7156.5%

June 17, 2008Regular Board Meeting Higher Education Accounting System General Fund Auxiliary Fund Designated Fund Restricted Fund Loan Fund Endowment Fund Plant Fund Agency Fund Separates into 8 Basic Funds Unexpended Plant Repair & Renovation Debt Service Net Investment in Plant

June 17, 2008Regular Board Meeting Classroom Instruction (E&G) Budget of Revenue Sources Revenue SourceFY 2008FY 2009 $ Change % Change Tuition$373,448,736$401,923,581$28,474,8457.6% State Appropriations390,469,141393,519,8573,050,7160.8% Grants, Contracts, & Federal Appropriations12,226,59114,462,2572,235, % Sales & Service8,282,14310,094,7091,812, % Other43,339,88539,320,057-4,019, % Total$827,766,496$859,320,461$31,553,9653.8%

June 17, 2008Regular Board Meeting Classroom Instruction (E&G) Budget Expense by Function FunctionFY 2008FY 2009 $ Change % Change Instruction$373,576,112$381,288,832$7,712,7202.1% Research21,345,71221,919,049573,3372.7% Public Service4,879,7875,294,658414,8718.5% Academic Support83,183,16289,256,7246,073,5627.3% Student Services60,486,52062,478,7461,992,2263.3% Institutional Support107,513,958108,577,9041,063,9461.0% Operation & Maintenance101,767,096104,161,7242,394,6282.4% Scholarships68,891,70679,759,58710,867, % Transfers6,122,4436,583,236460,7937.5% Total$827,766,496$859,320,461$31,553,9653.8%

June 17, 2008Regular Board Meeting Classroom Instruction (E&G) Budget Expenses by Class Expense ClassFY 2008FY 2009 $ Change % Change Salaries & Wages$432,394,947$446,819,292$14,424,3453.3% Fringe Benefits141,231,443145,633,7334,402,2903.1% Travel12,572,47010,048,401-2,524, % Contractual Services180,782,147198,083,44217,301,2959.6% Commodities22,268,45421,933, , % Capital Outlay9,499,5179,315, , % Equipment11,367,91510,056,990-1,310, % Transfers17,649,60317,429, , % Total$827,766,496$859,320,461$31,553,9653.8%

June 17, 2008Regular Board Meeting Auxiliary Budgets Expenses by Class Expense ClassFY 2008FY 2009 $ Change % Change Salaries & Wages$44,391,271$47,693,291$3,302,0207.4% Fringe Benefits12,339,10613,333,138994,0328.1% Travel5,776,1736,073,065296,8925.1% Contractual Services60,405,58463,783,2163,377,6325.6% Commodities34,052,57636,541,6002,489,0247.3% Capital Outlay702,969205, , % Equipment2,218,5432,845,105626, % Transfers26,733,08029,181,2452,448,1659.2% Total$186,619,302$199,655,660$13,036,3587.0%

June 17, 2008Regular Board Meeting Classroom Instruction Appropriation Funding Formula w/o Capital Renewal $ 71,384,318 $ 466,904,175 $ 395,519,857 State Appropriation for Classroom Instruction (excluding Ayers) Increase over FY 2009 FY 2010 Request FY 2009 Actual Category

June 17, 2008Regular Board Meeting Student Financial Aid $ 10,108,003 $ 40,485,376 $ 30,377,373 Student Financial Aid Increase over FY 2009 FY 2010 Request FY 2009 Actual Category ProgramFY 2009FY 2010$ Increase% Increase MTAG $ 16,500,000 $ 17,325,000 $ 825,0005.0% MESG 4,400,000 4,500, ,0352.3% HELP 1,685,411 1,700,000 14,5890.9% CJC Transfer - 5,000,000 N/A GEAR-UP Scholarships - 1,200,000 N/A Other Programs & Administration 7,791,962 10,760,341 2,968, % Total $ 30,377,373 $ 40,485,376 $ 10,108, %

June 17, 2008Regular Board Meeting University of Mississippi Medical Center Health Care $ 59,181,512 $ 289,118,084 $ 229,936,572 UMMC Increase over FY 2009 FY 2010 Request FY 2009 Actual Category Reason for Increase:Amount Increase size of residency program $ 15,000,000 Start-up cardiovascular facility 2,100,000 Indigent Care 30,000,000 Poison Control 1,176,512 Multicultural program 905,000 Medical transfer 3,000,000 Core Operations 7,000,000 TOTAL $ 59,181,512

June 17, 2008Regular Board Meeting Agricultural Units $ 9,168,460 $ 90,377,942 $ 81,209,482 Agricultural Units Increase over FY 2009 FY 2010 Request FY 2009 Actual Category Agriculture Programs FY 2009 FY 2010 $ Increase % Increase ASU-Agricultural Programs $ 4,779,607 $ 6,542,012 $ 1,762, % MSU-Cooperative Extension Service 29,410,885 32,260,800 2,849,9159.7% MSU-Forest & Wildlife Research Center 6,128,754 6,722, ,8769.7% MSU-MS Agricultural & Forestry Experiment Station 23,716,974 26,015,149 2,298,1759.7% MSU-College of Veterinary Medicine 17,173,262 18,837,351 1,664,0899.7% Total $ 81,209,482 $ 90,377,942 $ 9,168, %

June 17, 2008Regular Board Meeting Institutes, Centers & Executive Office $ 14,198,086 $ 40,174,931 $ 25,976,845 Institutes, Centers, & Executive Office Increase over FY 2009 FY 2010 Request FY 2009 Actual Category FY 2009FY 2010 Request$ Change Executive Office $ 7,299,523 $ 7,799,523 $ 500,000 JSU-MS Urban Research Center 535, ,276 77,617 MSU-CAVS 3,805,428 4,674, ,127 MSU-Chemical Lab 1,920,988 2,107, ,336 MSU-Stennis Institute of Government 1,086,612 1,492, ,401 MSU-Water Resources Research Institute 128, ,766 12,435 UM - Center for Manufacturing Excellence - 2,471,500 UM-Law Research Institute 883, ,436 60,317 UM-MS Mineral Resources Institute 497, ,282 4,745 UM-Research Institute of Pharmaceutical Sciences 3,681,852 7,829,126 4,147,274 UM-Small Business Development Center 277,531 1,126, ,115 UM-Supercomputer 845,947 2,091,753 1,245,806 USM-MS Polymer Institute 669,486 1,768,215 1,098,729 USM-Stennis Center for Higher Learning 546, , ,000 USM-Gulf Coast Research Lab 3,282,558 4,767,558 1,485,000 Volunteer Commission 515,673 1,135, ,684 Total Institutes and Centers: $ 25,976,845 $ 40,174,931 $ 14,198,086

June 17, 2008Regular Board Meeting Ayers $ 10,765,500 $ 36,465,500 $ 25,700,000Ayers Funding Increase over FY 2009 FY 2010 Request FY 2009 Actual Category Ayers Recap: Amount Program Funds $ 5,140,500 Summer Developmental Program Fund 625,000 Endowment Funds 5,000,000 Catch Up Funds $ 10,765,500

June 17, 2008Regular Board Meeting Capital Renewal $ 101,703,566 $ 101,703,566 $ 0Capital Renewal Increase over FY 2009 FY 2010 Request FY 2009 Actual Category Capital RenewalAmount Classroom (E&G) $ 63,296,491 Separately Budgeted 38,407,075 Total $ 101,703,566

June 17, 2008Regular Board Meeting Board Initiatives To Be Determined at the Board Retreat $ TBD $ TBD $ 0Board Initiatives Increase over FY 2009 FY 2010 Request FY 2009 Actual Category

June 17, 2008Regular Board Meeting Summary of FY 2010 Legislative Appropriation Request CategoryFY 2009 ActualFY 2010 RequestIncrease over FY 2009 Percent Change from FY 2009 Classroom Instruction (excluding Ayers) $ 395,519,857 $ 466,904,175 $ 71,384, % Student Financial Aid30,377,373 40,485,376 10,108, % UM - Medical Center 229,936, ,118,084 59,181, % Agricultural Units81,209,482 90,377,942 9,168, % Institutes, Centers, & Executive Office25,976,845 40,174,931 14,198, % Ayers25,700,000 36,465,500 10,765, % System Capital Renewal - 101,703,566 N/A System Specific Initiatives - To be determined at Retreat N/A

June 17, 2008Regular Board Meeting Mississippi Institutions of Higher Learning Funding Priorities for Legislative Request FY 2010

June 17, 2008Regular Board Meeting Mississippi Institutions of Higher Learning Appropriation Increase Request over FY 2009 FY 2010

June 17, 2008Regular Board Meeting Priorities Linked to Strategic Initiative FY 2010 Budget Request Linked to System Strategic Initiative and State Critical Needs Classroom Instruction Student Financial Aid UMMC Agricultural Units Institutes & Centers Capital Renewal Strategic Initiative Increase Retention RatesXX Increase Graduation Rates and NumbersXX Halve the Achievement Gap (NASH)XX Increase Passage Rates-PRAXIS and NCLEXX Increase Availability of Academic Advising and TutoringX Increase More Non-Traditional and Part-Time StudentsX Implement Best Practices in RemediationX Increase Community College TransfersXXX Produce More and Higher Quality School Teachers and LeadersX Improve Customer ServiceX Implement New WebsiteX Increase Need-Based Financial AidX Provide Adequate and Stable FundingXXXXXX State Critical Needs Produce More And Higher Quality Teachers and LeadersX Produce More NursesX X Serve Critical Health Care Needs X Increase Size of Residency Program X