Post on 19-Mar-2022
2
Investment in Intellectual Capital Necessary to sustain our state’s economic
framework • Existing appropriation to higher education lags inflation-
adjusted 2011 appropriation by approximately $140M
• Michigan ranks 47th of 48 states reporting for 10-year
change in appropriations, lags the national average for
change by 25 percentage points
• Since 2007, State spending reduced for higher
education, only major budgetary component to
experience reduction
• Michigan ranks 32nd nationally for proportion of
residents with a Bachelor’s, lags national median for
per capita income and 7 year change in per capita
income
3
Big Ten Appropriations Per StudentMSU lags the Big Ten average by over $3,775 per student,
approximating $174 million in resources
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$5,408
Big Ten Average: $9,186*
Source: IPEDS 2014
* Does not include Wayne State
4
Appropriations Overview• Main campus operating appropriation increase 2.6%
• Tuition restraint provision caps resident increases to 4.2%
• Overall state appropriations increase by 2.9%, formula outcomes range
from 2.4% to 4.5%
• MSU AgBioResearch and MSU Extension increase 2.3%, restored to
unadjusted 2011 levels, but lag overall higher education increase of 2.9%
• An additional $0.5M non-recurring for DCPAH
• An additional $0.4M recurring and $0.5M non-recurring for Animal
Initiative
5
Appropriations Support – Change since 2011
Of the institutions complying with tuition restraint provision, MSU lags 2011 formula appropriation by more than any state peer
Collectively, the University Research Corridor institutions comprise over 85% of lost appropriations since 2011
($20,000,000)
($15,000,000)
($10,000,000)
($5,000,000)
$0
$5,000,000
$10,000,000
GVSU CMU FSU UM-F SVSU NMU LSSU MTU UM-D OU Western EMU UM-AA MSU Wayne
$6.25M
$3.79M$3.64M
$1.65M$1.39M
$1.14M $0.87M $0.17M $0.1M
-$0.84M
-$2.17M-$2.43M
-$7.62M
-$7.82M
-$18.11M
Institutions complying with tuition restraint provisions
Institutions in violation tuition restraint provisions (FY15 or FY16)
Cost Pressures• Over ten years, MSU STEM credit hours increased by over 30%, related cost increases
exceed $20 million
• State disinvestment in capital outlay and financial aid
• National regulation governing research and sponsored programs
• Change in Fair Labor Standards Act (FLSA) requirements concerning overtime work -
Employees earning less than $47,476 must be paid over time for authorized work over 40
hours
• Major areas of concern include 282 Research Associates and 158 MSU
Extension Specialists - Approximately $5 million necessary to increases
salaries in these areas above Federal eligibility threshold of $47,476
• In lieu of salary increases, employee work schedules will be closely
monitored, authorizing only the most essential overtime work
• IT support necessary to address escalating data needs, cyber-security, networking and other
infrastructure
6
2015-16 Faculty Salaries
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$1
10
,38
3
Big Ten average*: $116,373
MSU Rank in AAUP Big10 Institutions for Faculty Salary
Rank 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16²
Professor 10 9 9 10 10 8 9 9 11 10 8 8
Associate Professor 7 8 8 7 7 5 8 6 9 9 9 9
Assistant Professor 13 13 14 14 13 14 13 14 14 14 14 14
All Ranks Average 10 10 11 11 11 9 12 12 13 13 13 11
*Does not include Northwestern – average including Northwestern $119,365
1 Maryland has not responded to survey – data form 2014
2 Rankings overtime adjusted to include Rutgers and Maryland
Michigan State University
the most resident undergraduates in the State
Over 10,000 more than nearest peer
8
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
MSU GVSU CMU Western EMU Wayne UM-AA OU FSU SVSU UM-D UM-F NMU MTU LSSU
Source: HEIDI headcount 2015
9
MSU success indicators
all improved over 10 years ↑ Six year graduation rate up 3 percent over 10 years
↑ Undergraduate retention approximates 91 percent, also
improved
↑ Degrees/certificates up 1,200 over ten years, approximate
12,000 annually
↑ 93% of graduates employed or continue education within six months of graduation
↑ 92% of students rate their educational experience as good or excellent
↑ Total sponsored programs exceed $583M, an increase of 53% over the period
↑ Grant dollars per faculty member exceeds $277,000, an increase of 43%
↑ MSU benchmarks for net cost approximate national average, far exceed outcomes for
graduation rate and salary upon completion
Sustained AccessOver ten years, MSU financial aid increments have outpaced
resident undergraduate by 42 percentage points
10
8.8%8.0%
5.2% 4.9%
6.9%
3.5%2.8%
2.8% 2.7%3.7%
14.6%13.3%
17.0%
13.0%
10.0%
5.5%4.5% 4.0%
4.5% 4.5%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Tuition Financial Aid
Sustained AccessMSU maintaining the proportion of students from families
across income levels over time
0
200
400
600
800
1,000
1,200
1,400
1,600
2015
Five Year Average
# of Fam
ilies
Families with income of over $200,000 truncated for purposes of this analysis
Distribution represented in 2015 inflation adjusted dollars
11
Sustained AccessLess students graduating with debt than ten years ago
Over ten years, the proportion of students with debt has decreased from 56% to 45%, in
stark contrast with the national average increasing to 69% from 57%
Avg. Student Debt (2014)
MSU lags the State and National average
for average debt load by 11.3% and 9.8%
respectively
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
MSU State National
$26,122
$29,450 $28,950
Proportion with Debt (2014)MSU lags the State and National average
for proportion of students with debt by 17
and 24 percentage points respectively
0%
10%
20%
30%
40%
50%
60%
70%
MSU State National
45%
62%
69%
12
13
Energy & Efficiency• FY17 fuel and energy production expenditures
anticipated to decline 5.5% or $3.5M, reflected in budget
planning
• Budgetary increments for FY16 – FY18 acknowledge
cost mitigation in natural gas market while preserving
long-term flexibility and addressing infrastructure needs
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
FY14 FY15 FY16 FY17 FY18 FY19 FY20
Projected ExpenseActual Expense
Budget Trend
Operational Fuel Expenditures
FY14-FY20 • Greenhouse gas emissions
down 25% since 2010
• Energy consumption per capita
reduced over 10 years
FY17 & FY18 Budget PlanningBudget Item 2016-17
Proposal2017-18
Pro-Forma
State Appropriations 2.6% 4%Includes restoration
Tuition & Fees 3.7% Res Lower Div3.9% Res Upper Div4.2% Non-Res UG
4.0% Res Lower Div4.0% Res Upper Div4.0% Non-Res UG
Financial Aid 4.5% 4.5%
Faculty Salaries 2.5% 2.5%
Utilities -5.5% 0.0%
Health Care 5.0% 5.0%
Competitive Programs - $5.0
Competitive Talent 0.5% Provost Market0.5% Special Retention
0.5% Provost Market
Technology $5.0 $5.0
Base Budget Reduction 0.0% -1.0%
Total Budget $1,317.0 $1,363.4
Preliminary 2016-17 budget approved by the BOT in June 201514