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University of Central Missouri
Administration 302
Warrensburg, MO 64093
Phone: 660-543-4640
Fax: 660-543-4943

BOG April2017

Board Adopts $151.3 Million Budget, Approves 2.09 Percent Tuition Increase

Contact: Jeff Murphy
WARRENSBURG, MO (May 2, 2017) – Faced with a challenging revenue outlook that includes a decline in state support, the University of Central Missouri Board of Governors has approved a Fiscal Year 2018 operating budget of approximately $151.3 million. The budget includes revenue from a 2.09 percent increase in undergraduate undergraduate tuition, which also was approved when the board met in plenary session on campus April 28.

The budget adopted by the board considered two revenue scenarios presented by Toni Kreke, associate vice president for finance. The first one was based on a 9.1 percent decrease in state appropriations recommended by Missouri Gov. Eric Greitens. This is approximately $5.2 million less in net state general fund appropriations than what UCM received FY17.  Under the second scenario presented to the board, the university would receive a 6.6 percent reduction proposed by the House of Representatives. If this level of funding is approved by the General Assembly in May and approved by the governor, it would equate to a $3.8 million decline in appropriations. Believing that the level of state support the university will receive for FY18 is most likely the first scenario, the board adopted a budget that is based on $52.7 million in state funding.

As part of the FY18 budget process, the board also approved a 2.09 percent increase for in-state undergraduate base tuition. This rate is within the 2.1 percent consumer price index for universities, so by statute UCM will not have to obtain a state waiver for the increase. This amounts to a $4.52 per-credit-hour increase in tuition to become effective for the fall 2017 semester. It is in addition to a 0.7 percent mid-year increase – an additional $1.63 per credit hour that was approved by the board in March for in-state undergraduates, but will not be charged until fall. With these combined increases, in-state undergraduates will pay $221 per-semester hour. In addition to the rate increases for in-state undergraduate tuition, in-state graduate tuition was set at $292.35 per credit hour, a 4.99 percent increase.

With the increases in undergraduate tuition, Kreke said the average annual increase in academic fees over seven years will be 1.79 percent. This is consistently below the annual rate of inflation.

The board also set total student general fees at $29.65 per credit hour, an increase of $0.45 per credit hour for students taking less than nine hours and a flat rate of $44.75 for students taking nine credit hours or more, a $6.75 increase overall. General fees help cover costs in areas that include athletics, facilities, Pertle Springs, student activities, technology, Elliott Student Union, and Student Recreation and Wellness Center.

While the university strives to help maintain the affordability of a college education, increases in tuition and fees will help the university deal with challenges that include a loss of state funding, lower revenue associated with anticipated student enrollment, particularly related to a decline in international students. Other factors impacting the budget include mandatory cost increases in areas such as utilities, insurance, software maintenance contracts, health benefits, and a 14.6 percent increase in the FY18 contribution for the Missouri State Employees Retirement System (MOSERS).

In other business, to assist with recruitment efforts, the board approved a  contract with the search and enrollment optimization company, National Research Center for College and University Admissions (NRCCUA) to become effective after the current contract with Ruffalo-Noel Levitz expires June 30.  NRCCUA will help the university strategically search for and recruit students interested in UCM, and help determine how to best communicate with these potential students. NRCCUA provides adult and graduate search and enrollment services and digital and social media ad placement for these students at a cost estimated at $226,500 for the first year. The university will have renewal options at the same price for each of four additional years.

The board approved additional construction document preparation services including drawings, solicitation preparation, and construction administration as a percentage fee for Phase I of the Elliott Student Union Master Plan project. The university plans to enhance and upgrade key areas of the building which have served the campus meeting and student service needs for more than 25 years without a major renovation or addition. Phase 1 projects  will consist of development of a new south entrance to the building and a new retractable seating auditorium in the current Smiser Alumni Center/Union Courtyard space on the north side of Steak N Shake. With Union construction debt being satisfied and energy management bonds to be paid off in October 2017, the Union has adequate reserves and revenue generation to support a bond initiative of $7 million. It is believed that the renovations/additions to the facility will enhance recruitment efforts as the facility currently houses all major recruitment events. The percentage fee for these services is 8.7 percent of the total project construction cost. The board approved Cannon Design/KWK for these services.

The board approved a new minor in Global Security Studies to be housed in the Department of Government, International Studies, and Languages within the College of Arts, Humanities, and Social Sciences, effective for the 2017 fall semester. The interdisciplinary program offers students a comprehensive understanding of the many factors that shape and create national security concerns. The new  minor is expected to appeal to students majoring in political science, history, international studies, sociology, international business, and criminal justice, who want to “add value” to their major. No additional funding is needed for the program, and all courses for the minor are offered regularly at UCM with the faculty currently on staff.

A new Bachelor of Science in Business Administration in Risk Management and Insurance degree was approved, and will become effective in fall 2018, pending approval by the Missouri Coordinating Board for Higher Education.  This program will be housed in the Department of Economics and Finance in the Harmon College of Business and Professional Studies. Based on a focus meeting with insurance executives from Missouri and Kansas, the future demand for professionals in this field is promising due to the number of insurance professionals who plan to retire in the next five to seven years, and with insurance organizations struggling to hire people in this area. Having this degree program would facilitate recruitment within cities such as Kansas City and St. Louis, and would expand the potential network of corporate partnerships within the Harmon College. A tenure-track faculty member will be reassigned to staff four new senior courses associated with this program.