Board of Trustees
Budget Update
04/13/2012
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Budget Objectives
Building Value for Michigan
• Build upon status as one of world’s top 100 universities, serving
Michigan first
• Sustain land-grant mission - preserve access for talented students,
prepare students to be part of a highly talented work force and
provide cutting edge research and outreach, – the key drivers for
21st century prosperity
• Fulfill obligations of a responsible long-term steward of MSU’s
people, programs and facilities
• Assure MSU remains a best value for students and other
stakeholders
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MSU Context
Metrics
Academics, Research & Outreach
• 77% graduation rate – up 3% in 5 years, the largest increase in the Big
Ten
• Exceeds predicted (U.S. News) graduation rate by 15%
• 91% retention rate – Carnegie peer median 87%
• 90% of seniors rated their educational experience as good or excellent
• Student faculty ratio – 16:1, approximates Big Ten average
• $439M in external support, up 15% in five years
• 1,000,000+ outreach contacts per year
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MSU Context
Metrics
Financial Aid
• Over $600M in financial aid administered, 200% increase over 10
years, general fund supported aid up 67% over five years
• Student debt levels beneath national averages
1,800
MSU Maintains Distribution of Family Income Within Student Population
1,600
# of Families
1,400
1,200
2011
1,000
800
600
5 Year
Average
400
200
0
Families with incomes > $200,000 omitted for purposes of this analysis. Distribution represented in inflation adjusted 2011 dollars.
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MSU Context
Metrics
Stewardship
• Over past five years, reengineered employee health care programs
Eliminated funded post-retirement health care for new employees
Incentivized use of generic drugs
Capped funded health care growth at 5% per year
• Top 6th percentile over 10 years for endowment performance
• Among the lowest energy cost and consumption patterns in the Big Ten
• Over $110M in reductions and cost containment efforts over 3 years
• 58% of expenses dedicated to core activities (Instruction, research, public
service), 2nd in the Big Ten
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Appropriation “What if Analysis”
All Other Tuition &
Fees
Note
If Appropriations
Resident Undergraduate
Tuition
0%
5.0%
5.0%
June 2011 Planning
1.0%
4.3%
5.0%
1.4%
Governor
4.1%
5.0%
Cap at 4.0%
Costs $0.4K
1.8%
Senate
4.0%
5.0%
Cap at 3.5%
Costs $1.8M
2.0%
3.6%
5.0%
3.0%
2.9%
5.0%
4.0%
2.2%
5.0%
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Appropriation Analysis-AgBio/MSUE
AgBio
MSU E
11-12 Approp
$28.3M
$24.4M
3%
$0.9M
$0.7M
• Governor, Senate, and House recommendation each call for
appropriations at 2011-12 levels
• House recommendation includes provision that could allocate an
additional $1.6M (3.0%) if performance funding remains unallocated
• Impact of state funds are compounded by leveraging of federal match
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Appropriation Analysis-FRIB
• Governor and Senate include FRIB funding of $2.4M in 12-13 in
their respective recommendations
• Governor also includes $5.0M in 13-14
• House proposal shifts like amount to Department of Treasury
appropriation
• Amounts are dedicated to pay debt service on community costshare portion of project
• Longer term, work to receive appropriations adequate to fund
project expenditures directly instead of debt service model
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MSU Planning Model Summary
2011-12
2012-13
June 2011*
2012-13***
April 2012
State Appropriations
-15%
0%
0-1.8%
Tuition & Fees
6.9%
5.0%
3.5%-5.0%
Financial Aid
10%
5.5%
5.5%
Graduate Assistants
0%
3.0%
3.0%
2.0%**
2.0%**
2.0%**
Utilities
5.0%
8%
4.0%
Health Care
5.0%
5%
5.0%
$0
$0
$0.0-$1.5
Budget Item
Faculty Salaries
Surplus/(Deficit)
*Preliminary budget approved by the BOT in June, 2011
**Includes 1.5% general merit, 0.5% college market, plus 1.0% provost market pool
*** Appropriations and resident undergraduate tuition based upon Governor’s recommendation, utilities
reduced by 2.1M, entering class assumed at 7,650
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