UM Board of Curators meeting addresses state budget cuts, FY2018

The University of Missouri Board of Curators is meeting in Columbia.

The meeting began at 10 a.m. Thursday morning with a call to order followed by an executive session.

After the executive session, the curators met for a public session that included a budget update from University of Missouri System’s Chief Audit Executive Ryan Rapp.

As ABC 17 News previously reported, Greitens’ budget for the 2018 fiscal year will reduce funding for higher education by more than $100 million. Interim MU Chancellor Hank Foley told us earlier this month that he expects Mizzou to receive $22 million less in FY 2018, if the budget passes as is.

The budget update primarily focused on the UM System’s “operating fund”–which is where the majority of instructional and public services activities are budgeted.

In FY2017, the operations fund revenue totaled $1.21 billion, including 49.9 percent in net tuition and fees, 37.3 percent in state appropriations and 12.8 percent in other income. The FY2017 operations fund expenditures totaled $1.20 billion, including 59.8 percent in salaries and wages, 18.5 percent in benefits expense and 21.8 percent in other expenses.

A plan for FY2018 is already being hammered out. Rapp said the plan will include a tuition strategy and pricing model, a cost structure review and resource utilization opportunities. Faculty and staff will also have input on the principals and priorities of the plan.

Aside from the operating fund, Rapp noted that health care performance has continued to strengthen, with the December 2016 revenue being 11 percent higher than December 2015 revenue. He also pointed out that the UM System has a history of managing lower costs, spending significantly less than its peers. He said state withholdings will challenge the university’s operating fund budget, but added that the system is well equipped to solve the shortfalls.

ABC 17 News will continue to update this story as the curators’ meeting continues.