Minutes of the
Board of Governors Finance and Facilities Committee
Missouri State University
Friday, February 19, 2021
Governor Chris Waters, Chair of the Finance and Facilities Committee, called the meeting to order at 8:32 a.m. in the Bond Learning Center Ballroom at the Missouri State University Darr Agriculture Center in Springfield, Missouri. The meeting was livestreamed via Zoom webinar for the public.
Roll Call
Present –
- Chris Waters, Committee Chair
- Amelia “Amy” Counts, Committee Member
- Briar Douglas, Committee Member
- Craig Frazier, Committee Member
- Gabriel Gore, Committee Member
- Beverly Miller Keltner, Committee Member
- Lynn Parman, Committee Member
- Carol Silvey, Committee Member
- Carrie Tergin, Committee Member
- Jay Wasson, Committee Member
Also Present –
- Clif Smart, President
- Jeff Coiner, Chief Information Officer (via webinar)
- Jen Cox, University Space Manager and Director of Support Services
- Ryan DeBoef, Chief of Staff and Assistant to the President for Governmental Relations
- Rachael Dockery, General Counsel and Chief Compliance Officer
- Brent Dunn, Vice President for University Advancement (via webinar)
- Frank Einhellig, Provost
- Steve Foucart, Chief Financial Officer
- Rob Hornberger, Associate Vice President for Enrollment Management and Services
- Tammy Jahnke, Dean of the College of Natural and Applied Sciences
- Dennis Lancaster, Interim Chancellor of the West Plains Campus
- Julie Masterson, Associate Provost and Dean of the Graduate College
- Natalie McNish, Interim Director of Internal Audit and Risk Management
- Matt Morris, Vice President for Administrative Services
- Suzanne Shaw, Vice President for Marketing and Communications
- Dee Siscoe, Vice President for Student Affairs (via webinar)
- Rowena Stone, Secretary to the Board of Governors
- Shawn Wahl, Dean of the Reynolds College of Arts and Letters
Approval of Minutes
Governor Waters called for a motion to approve the minutes of the December 10, 2020, Finance and Facilities Committee meeting. Governor Carol Silvey provided a motion, receiving a second from Governor Lynn Parman.
Motion passed 9-0.
Review of Year-to-Date Financials
Steve Foucart, Chief Financial Officer, provided an overview of the university’s year-to-date financials through December 31, 2020. He shared that while the university is down in revenue, it more than offset this with its expense reductions. He added that the West Plains campus is doing better than budget.
Preliminary FY2022 Budget Discussion
President Clif Smart shared that the university is starting out in a very good financial position. He stated that the university’s budget is mostly funded by state appropriations and tuition and fees. He reviewed the process and timeline used to create the budget. President Smart said that based on uncertainties of enrollment, the university based their FY2022 budget on flat enrollment. The university works on revenue first and then decides where reductions, new expenditures, and investments are necessary or advantageous.
President Smart provided an update on Governor Parson’s proposed budget for FY2022. The proposed budget would restore the university’s full core operating budget and sources of funding. This was the university’s top priority for the year and administration is pleased with this recommendation. President Smart shared that the university is working with legislators to advocate for an inflationary increase to the university’s core operating appropriation and funding for capital projects.
President Smart provided an update on the Missouri resident undergraduate tuition and student services fee proposal. The university currently charges in-state undergraduate tuition of $299 per credit hour for online classes and $228 for seated classes. University leadership has recommended to modify the tuition model to charge a blended tuition rate of $257 per credit hour for all classes taken by in-state undergraduate students. He added that Student Government Association leadership was supportive of this framework. He shared that under this model, the university does not anticipate receiving any additional revenue and that the modification is considered revenue neutral. Student service fees charged under this model stayed the same from previous discussions held in December by the Board.
President Smart commented that the university is also proposing several measures to reduce costs to students in conjunction with creating the new fee structure. These measures include new scholarships and dispersing additional federal money to students this semester. Information was reviewed on the CARES Act funds awarded to the university; the Springfield campus plans to refund a portion of online tuition paid by qualifying students in the fall 2020 semester. Both campuses will also distribute emergency financial aid grants to qualifying students, with Pell eligible students receiving a larger.
President Smart shared that the Executive Budget Committee met and discussed what they viewed as most important in regard to funding. Top priorities included a cost-of-living increase, additional pay increases for faculty and staff, improvements to the dental plan, and restoring open positions. President Smart reviewed historical data pertaining to compensation and CPI comparison. He stated that as a whole, the university is around 3% behind in terms of keeping up with inflation of compensation of its employees. President Smart concluded his report by sharing that the university has managed its money well. He stated that with the Governor’s proposed budget and the support of other legislators in the stabilization of our funding, the university has an opportunity to catch up in the area of employee compensation.
The Board voiced their support of updating the fee structure and the commitment to provide salary increases for faculty and staff. President Smart thanked the Board for their support and shared that the university will now begin work on a specific FY2022 budget that will be presented to the Board for approval in June.
Bond Refinance Review
Mr. Foucart provided a summary of the FY2021 bond refinancing resolutions. He shared that he met with Hilltop Securities to review interest rate market over a year to determine when the university could issue bonds to replace the Arena bonds. Eleven banks were contacted, and six banks submitted proposals.
Mr. Foucart reviewed the Board of Governors authority to issue bonds and shared that the April Executive Committee meeting will be changed to a special Board meeting in order to comply with state laws to pass the approval of the bonds.
Mr. Foucart reviewed the resolution for preliminary approval of terms and a resolution for the declaration of intent towards the issuance of auxiliary revenue bonds with the purpose to buy the new Residence Life facility, both to be presented during the full Board meeting later in the day.
The Board thanked Mr. Foucart for his review of the items and commended him on finding new ways for the university to save money.
Real Estate Update
Matt Morris, Vice President for Administrative Services, provided an update on university real estate. He shared that the items reviewed will be presented for approval at the full Board meeting later in the afternoon.
Mr. Morris reviewed properties and facilities located at Bull Shoals in Taney County. He shared that with the completion of the Ozarks Education Center, the university is looking to sell Mincy House, a 47-year-old, 1,600 square feet house on five acres located at 547 Drury Road, Kirbyville, Missouri. Mincy House had previously been used for overnight stays and classroom storage space. He added that the sale will clean up the university’s property inventory and proceeds of the sale will go directly to help fund internet at the Ozarks Education Center.
Mr. Morris reviewed the property at 326 North Boonville in Springfield, Missouri, that the Foundation purchased through the Student Art Exhibition Fee Endowment Fund. The Foundation owns the basement and first floor of the building consisting of 7,112 square feet. The space is to be utilized as an art gallery but is flexible enough to be used for university events and receptions. The resolution is for approval to transfer ownership of the space from the Foundation to the university. Once the university owns the space, it is able to consolidate additional property. The university would look to sell the existing Student Exhibition Center located at 838 East Walnut Street, Springfield, Missouri, that is currently underutilized. The money from the sale would be allocated to the Reynolds College of Arts and Letters for future projects.
Scholarship Update
Dr. Rob Hornberger, Associate Vice President for Enrollment Management and Services, provided an update on scholarships. He discussed changes to university’s scholarships that include a test optional scholarship package that is competitive with similar scholarships being implemented by other area universities.
Adjournment
With no additional information needing to be discussed, Governor Waters called for a motion to adjourn the meeting. Governor Silvey provided a motion, receiving a second from Governor Amy Counts.
Motion passed 9-0.
Meeting adjourned at 10:09 a.m.
Rowena Stone
Rowena Stone
Secretary to the Board