FINANCIAL UPDATE2012 AND 2013 BUDGET

Aspirations• Bankable Bal. Sht.• Healthy Reserves• Competitive Comp.• Affordable Tuition• 3X Funded Research

Challenges• State Support• Expense Increases• Tuition Ceiling• Competitive Comp.• NIH, NSF Funding• Facilities – Labs• Philanthropy - AlumniApproach

• UG Enrollment• Reputation - Mktg• Facilities/Progs.• Selective Hiring• Capital Campaign• Expense Management

Budget Discussion Background

Net Revenues and ExpensesAll Funds

(in millions)

FY10 FY11 FY12 FY 13B$270

$280

$290

$300

$310

$320

$330

$340

309.6 309.4

319.2

318.6

292.1

306.1

314.1

328.3

Net Revenues*Expenses**

*Net Revenues = Gross revenues less scholarships** Expenses = Total expenditures including transfers

1

RevenuesAll Funds

(in millions)

FY10 FY11 FY12 FY13B$0

$20$40$60$80

$100$120$140$160$180$200

153.3163.2

171.5178.6

117.5129.8

137.3 141.5

95.4

79.5 75.4 75.8

96.7 100106.4 101.2

Gross tuitionNet tuitionState AppropriationsOther revenues

2

State Appropriation, Total Expenses and CompensationAll Funds

(in millions)

*Compensation = Salaries, Wages and Benefits**Expenses = Total expenditures including transfers

FY10 FY11 FY12 FY13B$0

$50

$100

$150

$200

$250

$300

$350

95.479.5 75.4 75.8

202.9 210 218.9 224.3

292.1306.1 314.1

328.3

State AllocationCompensation*Total Expenses**

3

Net Revenues and ExpensesOperating Fund

(in millions)

FY10 FY11 FY12 FY13B$200

$210

$220

$230

$240

$250

$260

238.1

233.1236

242.3

220

231.8235.4

256.1

Net RevenuesExpenses

*Net Revenues = Gross revenues less scholarships**Expenses = Total expenditures including transfers

4

FY12 Budget FY12 Variances

Net Revenues $231.8 $236.0 $4.2Tuition ($0.6)Scholarships $3.6Miscellaneous & sales $1.2

Expenditures & Transfers 242.0 235.6 $6.4

Salaries ($0.7)Benefits $0.4Operating expenses ($4.4)Capital $9.4Internal transfers $1.7

Operatingincome (loss)

($10.2) $0.4 $10.6

FY12 Budget vs. FY12 ActualOperating Fund

(in millions)

5

FY12 Proforma FY12 Variances

Net Revenues $229.2 $236.0 $6.8

Tuition $0.3Scholarships $2.0State funding $3.8Sales & Service ($.5)Miscellaneous $1.2

Expenditures & Transfers 239.6 235.6 4.0

Salaries ($7.1)Benefits $2.4Other operating $1.9Capital $5.1Transfers $.8Internal Sales $.9

Operating income(loss)

($10.4) $0.4 $10.8

FY12 Proforma vs. FY12 Actual Operating Fund Only

(in millions)

6

FY13 Budget vs. FY12 ActualOperating Fund Only

(in millions)

FY13 Budget FY12 Variances

Revenues $242.3 $236.0 $6.3Tuition $8.7Scholarships ($3.6)State funding $.4Sales & Service $.3Miscellaneous & other $.5

Expenditures & Transfers 256.1 235.6 (20.5)

Salaries ($1.5)Benefits ($3.5)Operating cost ($.9)Capital ($11.9)Transfers ($2.7)

Operatingincome (loss)

($13.8) $0.4 ($14.2)

7

FY13 Budget vs. FY13 ProformaOperating Fund Only

(in millions)

FY13Budget

FY 13 Proforma Variances

Revenues $240.9 $235.0 $5.9Tuition $.8Scholarships ($.5)State funding $4.2Sales & Services ($.6)Miscellaneous $2.0

Expenditures & Transfers 254.7 235.8 (18.9)

Salaries ($5.9)Benefits $1.6Operating expenses ($6.8)Capital ($6.6)Internal Sales $.6Transfers ($2.0)

Operatingincome (loss)

($13.8) ($.8) ($13.0)

8

Student Credit Hours

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000 134,460

28,025 38,343

21,720 25,929 23,795 14,763 15,275 8,799

Student Credit Hours FY13B

A&S Education BlochSCE SBS NursingConservatory Law Other Professional Schools

(1,000)

(500)

-

500

1,000

1,500

2,000

2,500

33

1,077

1,835

1,060 1,477

2,178

(641)

133

(59)

Average Annual Growth in SCH (FY10 vs. FY13B)

A&S Education BlochSCE SBS NursingConservatory Law Other Professional Schools

(Total 311,109 hours)

(Total 7,069 hours)

9

Mix of Student Credit Hours Percentage by unit

46.4%

8.6%

11.3%

6.4%

7.4%

6.0%

5.8%

5.1%3.2%

FY10

A&S Education Bloch SCE SBS

Nursing Conservatory Law Other Professional Schools

43.2%

9.0%

12.3%

7.0%

8.3%

7.6%

4.7%

4.9%2.9%

FY13B

A&S Education Bloch

SCE SBS Nursing

Conservatory Law Other Professional Schools

Includes credit hours from calendar year 2008 Includes credit hours from calendar year 2011

10

Expenses(Operating Fund)

Compensa-tion76%

Operating Expense

13%

Utilities3% Capital

5%Library Acquisitions

1%Debt Service

2%

11

20072008

20092010

20112012

2013 Budget

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BenefitsSalaries

UMKC Expense Trends Compensation (Operating Fund)

12

FY10 FY120

500

1000

1500

2000

2500

3000

3500

1,548 1,629

794 793634 616

2,976 3,038

AcademicAcademic - AdministrativeAdministrative (non academic)Total

Average Full Time Equivalent EmployeesFY10 vs. FY12

15

-20

-10

0

10

20

30

40

50

60

70

80

Academic (+81)

SCEPharmacyResearchNursingBlochMedA&S

-20

-10

0

10

20

30

40

50

60

70

80

Academic – Administrative (-1)

LawMedEducationResearchLibraryAll other

-20

-10

0

10

20

30

40

50

60

70

80

Administrative (-18)

AdvancementFinance and AdministrationAll Other

Change in Average Full Time Equivalent EmployeesFY10 vs. FY12

16

FY 10 FY12 $-

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

$98.3 $105.6

$37.0 $38.1 $28.4 $29.1

$163.7 $172.8

AcademicAcademic- AdministrativeAdministrativeTotal

Salaries and WagesFY10 vs. FY12

(in millions)

13

$(2.0)

$-

$2.0

$4.0

$6.0

$8.0

$10.0

Academic (+$7.3 million)

EducationMedBlochA&SPharmacyLawnursingAll other

$(2.0)

$-

$2.0

$4.0

$6.0

$8.0

$10.0

Academic-Administration (+$1.1 million)

BlochMedAll other

$(2.0)

$-

$2.0

$4.0

$6.0

$8.0

$10.0

Administrative (+$700,000)

AthleticsStudent Affairs

Change in Salaries and WagesFY10 vs. FY12

(in millions)

14