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Opportunities and Challenges in the Coming Months

The Missouri 100 Annual MeetingGary D. Forsee, UM System President

Saturday, November 9, 2009

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Higher Education Issues

• Accountability for student learning (e.g., outcomes)• Access and student success• Price of tuition• Budgets and funding (states’ fiscal crisis)• Student aid policy• Aligning the P-20 education system• Tax policies, benefits• e-learning• Diversity• Competition from for-profit institutions

Sources: Association of Governing Boards of Universities and Colleges; Association of Public Land-Grant Universities; Institute of Government and Public Affairs; National Education Association; American Association of State Colleges and Universities; JBL Associates; James Duderstadt

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Missouri-Specific Challenges

• Missourians’ attitudes about support for higher education (2008 survey)

• Dramatic funding and enrollment growth at community colleges

• State economy lagging behind national recovery?

• No capital or M&R funding mechanisms

• Not ‘producing’ enough STEM or health care professionals

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10-Year Profile for UM System

• Dramatic enrollment increase• Maintain selective admissions standards • Outcomes (e.g., graduation rates, research grants)

show improvements• Requirement for significant ‘productivity’

increase• Decline in state support offset by shift of

burden to tuition

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Stewardship—Access & Affordability

Funding/FTE Student FTE Enrollment

2001 2002 2003 2004 2005 2006 2007 2008 2009$0

$4,000

$8,000

$12,000

$16,000

$20,000

$24,000

0

10,000

20,000

30,000

40,000

50,000

State Appr./FTE Net Tuition/FTE Funding/FTE Adj. for Inflation (HEPI) Total Funding/FTE Adj. for Inflation(CPI)FTE Enrollment

25% Efficiency

Est.

11% Efficiency

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Endowment Update

$ Millions 09/30/08 12/31/08 03/31/09 6/30/09 09/30/09

$1,062 $931 $895 $990 $1,058

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Budget & Upcoming Legislative Session

• 2010 use of ~$50M in federal stimulus to keep operating budget flat to ’09 levels• Tuition held flat• Cost-reduction measures in place• Real savings estimated at $64M

• Cuts to programs ‘outside of core’• MOREnet: $3M cut• Hospitals and clinics: $3.1M cut• State Historical Society: $364K cut• Telehealth: $203K cut• Missouri Institute of Mental Health: $413K cut• Missouri Kidney Program: $926K cut

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Budget & Upcoming Legislative Session (continued)

• Current revenue through September off 11% to budget

• Will adequate stimulus dollars be available in 2011?• What will final fiscal 2010 revenue be?• For planning purposes, assuming $25M of

stimulus (~ half 2010 level) plus 5% revenue decline—a decline of 10% or greater

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5 Key Priorities

1. Focus on “outside-in”2. Ensure the P-20 pipeline is strong, seamless3. Audit accountability and measurement plans4. Grow revenue derived from tech transfer 5. Deploy shared service center concept across

four campuses, extend offer to higher education colleagues

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Accountability Measures

• Highlights strategic goals in four key mission-related areas

• Goals for resources, communication and accountability

• Accountability measures benchmarked against peer institutions particular to each campus

• Results of benchmarking study nearly complete

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Tiger Institute for Health Innovation

• Recently announced collaboration with Cerner Corp. to integrate electronic patient health records to improve patient care and reduce costs

• Main components• IT works• Millennium Lighthouse• Regional/Statewide network• Living lab

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What Else Do We Need to Do?Actions:

Manage Costs-Cash Capital Projects, Maintenance and Repair

Sources of Revenue—Research and Economic

Development

•Cost-management activities in place• More needed for 2011-

2012

•Further 5% reduction off 2010 run rate

•Conduct regional capital project forums to engage:

•Campuses •Communities •Investors•Developers•State

•Seek additional partnerships

•IP & commercialization—new companies, jobs

•Tuition variable by four campuses

•Fund salary requirement•Invest in S.T.E.M. disciplines, research mission

•Establish state match program

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Significant National Discussion Underway…

Newsweek, October 26, 2009 BusinessWeek, October 19, 2009

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Leading the Change Through Challenging, Uncertain Times

Work across UM system and with key stakeholdersto evaluate and examine:• Bachelor’s degree completion programs• Investment by all in e-learning • Investment in hybrid classrooms (classrooms, distance,

e-learning)• Encourage articulation agreements with high schools and

community colleges• 3-year, no-frills degrees• Year-round cycles• ‘Fix’ hours for bachelor’s degrees

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Questions?