MINUTES OF THE EXECUTIVE COMMITTEE
OF THE BOARD OF GOVERNORS
MISSOURI STATE UNIVERSITY
December 15, 2008
1. Roll Call
Present — Mr. Michael Duggan, Chair of the Board (by conference call)
Mr. Gordon Elliott, Governor
Mr. Brian Hammons, Vice-Chair of the Board (by conference call)
Ms. Phyllis Washington, Governor (by conference call)
Also
Present — Michael Nietzel, President
Ken McClure, Vice President for Administrative and Information Services
Clif Smart, General Counsel
Nila Hayes, Chief Financial Officer
Paul Kincaid, Chief of Staff
Belinda McCarthy, Provost
John McAlear, Secretary of the Board
2. Presiding — Mr. Michael Duggan, Chair of the Board of Governors, called the Executive Committee meeting to order at 1:00 p.m. in Room 203 of Carrington Hall on the campus of Missouri State University in Springfield, Missouri.
3. FY2009-10 Budget Plans – Dr. Michael Nietzel began by explaining the purpose of this meeting. On December 2, he received a request from the Department of Higher Education, that originated from the budget leaders of both the Missouri House and Senate, for impact statements to the university of FY10 core budget cuts of 15%, 20%, and 25%. The response is due on December 18, 2008 – before our next Board of Governors meeting on December 19. All agencies of the State have received this request. Dr. Nietzel explained that previous to receiving this request, he had already asked each budget unit to prepare contingency plans for a possible FY10 budget cut of 5%. These plans will be helpful but possible reductions of 15%, 20%, and 25% will have an enormous negative impact on the university.
Dr. Nietzel next reported that after the Executive Budget Committee met on December 5, 2008, the following cost saving steps were instituted:
- All maintenance and repair expenditures will be postponed except for life and safety projects.
- All classroom improvement projects will be suspended.
- International travel funded through the University’s General Fund will be suspended.
- Effective immediately, everyone has been asked to be very conservative on all discretionary use of General Funds.
Dr. Nietzel indicated that the 15%, 20%, and 25% core-cut scenarios would amount, respectively, to $12.3 million, $16.5 million, and $20.6 million. Based on current allocation percentages, these possible cuts would be allocated approximately 94% to Springfield and 6% to West Plains (with about .1% being allocated to the Center for Defense and Strategic Studies in Washington D.C.). He commented that these possible scenarios are due to revenues not keeping up with expenditures at the State level. He added that the Coordinating Board for Higher Education will combine all of the impact statements collected from educational institutions and turn them over to the House and Senate. Mr. Duggan commented that Dr. Nietzel had done a great job of communicating this issue to the campus community. Dr. Nietzel indicated that a special web site on the budget will be set up. Upon being asked what method would be followed in reducing university budgets, he responded that he does not see this being accomplished with an across-the-board cut – he would try to protect academic areas over nonacademic areas as much as possible. He then mentioned that this bad news has coincided with our applications for Fall 2010 being up 18% which amounts to about 900 additional students. He indicated that we will not know the exact amount of a budget cut until late January, when Governor Nixon presents his FY10 budget.
4. Resolution Authorizing a Closed Meeting – Thereupon, the following resolution was offered: Be it resolved by the Executive Committee of the Board of Governors of Missouri State University that a closed meeting, with closed records and closed vote, be held pursuant to Sections 610.021 (1) and (2) of the Revised Statutes of the State of Missouri. Motion made by Mr. Elliott and seconded by Ms. Washington. A roll call vote was held with Mr. Elliott, Mr. Hammons, and Ms. Washington voting for the motion and no one voting against the motion.
Motion passed 3-0.
5. Adjournment — Mr. Duggan adjourned the conference call meeting at 1:30 p.m. on the motion of Ms. Washington, the second of Mr. Elliott, and the unanimous vote of the committee.
John W. McAlear
Secretary of the Board