President Andrews' Open Forum, Spring 2009, Morehead State University

1. March 23 and 24, 2009
FACULTY AND STAFF
FORUM WITH THE PRESIDENT

2. Today’s Agenda
 Share some good news
 Discuss the economy
 Discuss the impact of the economy on our
budget
 Review status of the Academic Curriculum Audit
 Provide an update on General Education Reform
 Reinforce our strategic direction
 Share next steps

3. In spite of the economy,
we’ve had a good year…

4. Average ACT of FTFR cohort
continues to improve
22 21.6
21.5
20.9
20.7
21
20.4
20.5
19.7
20
19.5
19
18.5
2004 2005 2006 2007 2008

5. FTFR retention rates continue
to improve
70.0%
68.0%
68.0%
66.1%
66.0% 64.8%
63.4%
64.0%
62.0% 61.0%
60.0%
58.0%
56.0%
2004 to 2005 2005 to 2006 2006 to 2007 2007 to 2008P 2009 to 2010
goal

6. Research and scholarly
activity continues to improve
 07-08 was the best year in history
 17 million in new research funding support
 10% increase over last year
 75% of the proposals submitted were funded
 17 students presented “Posters at the Capitol”
 85 students participating in the Undergraduate
Research Fellowship Program
 Mark your calendars for April 23rd for celebration
of student scholarship (50 oral presentations; 75
posters) participation up 50% over last year

7. Capital buildings and
improvements underway
 Completed renovation of Nunn Hall
 Completed renovation of pollution
control system on the heating plant
 Space Science building nearly complete
 CHER building well underway
 Will issue an RFP for the new Student
Recreation Center shortly

8. Other projects…
 Phase 1 of the Academic Audit is complete
 General Education review is underway
 SACS leadership teams in place and
preliminary work has begun

9. Great year in
Intercollegiate Athletics
 Completed the Certification Self Study and
campus review
 Won OVC titles in Men’s Basketball and Soccer
 Won regular season in Volleyball
 Won the OVC Academic Achievement Award
 82 student athletes named to the OVC
Commissioner’s Honor Roll
 41 student athletes named to the Pioneer
Football League Honor Roll
 24th National Title for the Cheer Squad

10. “States are facing a fiscal crisis of
historic proportions that will continue
for number of years.”
Projected by:
• National Conference of State Legislatures
• Nation Association of State budget Officers
• Center on Budget and Policy Priorities
Source: Center on Budget and Policy Priorities, January 14, 2009

11. All States Budget Shortfall (in billions)
------------- Last Recession -------------
2002 2003 2004 2005 // 2009 2010 2011
0
-40 -45
-75 -80 -80
-91
-50
-180
-100
-150 -145
-200
Estimates
-250

12. Options for States to Address
Budget Shortfalls
 Draw down on available reserves
 Many states have already depleted these
“rainy day” funds
 Cut Expenditures These can further
slow an economy
 Raise Taxes

13. Annual Percent Change in Kentucky Public
Postsecondary Net General Fund Appropriations
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
-2.0%
-4.0%
Note: Net General Fund equals gross General Fund minus debt service and UofL hospital contract

14. Where Do Resources Come From?
2007-08 Revenues (Actual)
Auxiliary
Enterprises
Other 11%
5%
Sales and Services
of Educ. Activities
2% Tuition and
Fees
41%
State
Appropriations
41%

15. How Do We Spend Resources?
2007-08 Expenses by Major Function (Actual)
Auxiliaries
7%
100% 11% Student Aid
14%
90% 9%
Maint & Operations
8%
80% 9%
70%
Public Service
60% 30%
34%
50% Research
40%
Other
30%
40%
31%
20%
Instruction
10%
0% Other Includes:
• Library
Morehead State Kentucky • Academic Support
• Student Services
Comprehensives • Institutional Support

16. Options for institutions to
address budget shortfalls
 Draw down on available reserves
 Only a source for mid-year or one-time reductions
 Cost Containment Strategies
 Budget flexibility cut in prior reductions
 Numerous cost management strategies implemented
 Additional cuts will require strategic reductions in
programs and services
 Raise Tuition
 Must maintain affordability for students

17. Morehead State University
2007-2008 Full-time Undergraduate Grant Aid Recipients
$9,000
$8,000
$7,000
$6,000
Tuition $5,280
$5,000
$4,000
$3,000
$2,000
$1,000
$-
Lowest Second Third Highest Lowest Second Third Highest No Income
Info
$ 27,235 – $49,545 – $78,721 + < $2,741 $2,741 – $8,707 – $27,206 +
< $27,235
$49,545 $78,721 $8,706 $22,205
Dependent Students Independent Students

18. Changes in MSU State Appropriations
FY08 – FY09
Summary of Reduction Percentage Amount
FY08 Original Net GF $48 million
FY08 Mid-Year Cut -3% $1.4 million
FY09 Enacted Cut -2.3% $1.2 million
FY09 Mid-Year Cut -2% $0.9 million
Total Cuts FY08 Original to FY09 -7.3% $3.5 million
Recurring Cuts
Non-Recurring Cuts

19. 2008-09 Opening Budget Reduction
Primary Sources of $2.6 million
Reductions Amount
Eliminated or froze 37 positions $2.1 million
13 vacant faculty
24 staff (20 vacant and 4 filled)
Eliminated graduate tuition waiver for spouse & $62,000
dependents of employees
Delayed MAP replacement cycle by one year $500,000
Limited number of credit hours provided free to cost increase
high school students avoidance
Outsourced travel bus services cost increase
avoidance

20. 2008-09 Mid-Year Budget Reduction
Primary Sources of $.9 million
One-time Reductions Amount
Decreased support for community events and $27,000
activities
Delayed Replacement of Motor Pool Vehicles $46,000
Eliminate student activity large concert event $38,000
Decreased faculty escrow/adjunct budgets $267,000
Reduced student wage accounts $12,000
Network/telecom project efficiencies $85,000
Decreased various operating accounts in all divisions $433,000
(supplies, travel, etc.)

21. 2009-2010 Budget Priorities
 Fixed and Unavoidable Cost Increases
 Utilities
 Employee Health Benefits
 Contracts & Lease
 Debt Service
 Student Recreation Center
 Student Financial Aid
 Employee Promotion Increases
 Academic Audit Recommendations– Strategic
Implementations
 One-time investments in capital projects and facility
updates

22. Final audit report provides:
 Current program and departmental
configurations by College
 Associated rationale for recommendations
based on:
 Original audit reports at all levels
 Feedback from initial recommendations
 Audit responses received through audit
teams, departments and individual faculty

23. Final audit recommendations
include:
 Program and/or department eliminations
 Reconfiguration of programs
 Moving of units and faculty between colleges
 Transitional decisions with plans for future
change
 Renaming units at department or college level
 Programs to be enhanced

24. Next Steps – Spring/Summer 2009
 Eliminate 17 programs according to a detailed plan
and timeline consistent with academic policies
 Assess 20 academic programs identified for
enhancement according to prioritized plans with
goals, timelines, and resource needs
 Develop quality and production goals with timelines
for completion for the 17 academic programs
designated as “Maintain with Conditions”
 Conduct a cost assessment of the 89 programs
designated as “Maintain” and “Enhance”
 Recommend organizational changes to maximize
effectiveness and efficiency in support of academic
programs

25. Update on General Education Review
Completed
• December 2008 -- Faculty feedback solicited on Assessment
Instruments
• January 2009 – Faculty feedback solicited on Course Models
• February 5, 2009 -- General Education Student Learner Outcomes
ratified by Faculty Senate
In-Progress
• March 23-27, 2009 -- Course Distribution and Assessment Plans to
be finalized
– Assessment Plans will be designed to use assessment data to enhance teaching and
learning as well as identify resources to ensure instructional success
Completion Goal
• End of Spring 2009 Semester -- Present Course Distribution and
Assessment Plans for Faculty Senate approval

26. Where are we headed?
 Our current economic forecast does not
change our direction…
 State mandates for postsecondary
education are defined in House Bill 1
 Institutional vision is to become the “Best
Public University in the South”
 Timelines may be impacted but the goals
remain constant

27. What we must do…
 Stay focused on our strategic plan and
work according to our values
 Academic Excellence
 Student Success
 Productive Partnerships
 Improved Infrastructure
 Resource Enhancement
 Enrollment and Retention
 Continue to identify ways to contain costs and
increase efficiency
 It will be necessary to redistribute resources
from less mission-critical areas
 Continue to analyze and monitor KPI data

28. What do our key performance
indicators tell us?
Internal Assessments
• Areas to be improved
• Impact of policy/process changes
External Measuring Stick
• Performance compared to peer institutions
– US News and World Report
• Progress toward goals of Strategic Plan and
CPE Goals of HB1

29. Primary Key Performance Indicators
ASPIRE CPE US News
Undergraduate Enrollment X X X
Freshman Retention Rate X X X
Graduation Rate X X X
Average ACT X X X
Faculty Terminal Degrees X
Full-time Faculty Percentage X
Student/Faculty Ratio X X
Graduate Enrollments X X
Minority Enrollment & Retention X X
FTFR Acceptant Rates X
FTFR High School Class Standing X
KCTCS Transfers X X
Bachelor’s Degrees Conferred X X X
R&D Investments X X X

30. QUESTIONS?