Minutes of the
Board of Governors Finance and Facilities Committee
Missouri State University
Wednesday, May 12, 2021, 1:00 p.m.
Governor Chris Waters, Chair of the Finance and Facilities Committee, called the meeting to order at 1:00 p.m. in Plaster Student Union, Ballroom East on the Missouri State University campus 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
- Beverly Miller Keltner, Committee Member
- Lynn Parman, Committee Member
- Carol Silvey, Committee Member
- Jay Wasson, Committee Member
Absent –
- Gabriel Gore, Committee Member
- Carrie Tergin, Committee Member
Also present –
- Clif Smart, President
- Jeff Coiner, Chief Information Officer (via webinar)
- 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
- Frank Einhellig, Provost (via webinar)
- Steve Foucart, Chief Financial Officer
- Dennis Lancaster, Interim Chancellor of the West Plains Campus
- 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
- 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 February 19, 2021, Finance and Facilities Committee meeting. Governor Carol Silvey provided a motion, receiving a second from Governor Lynn Parman.
Motion passed 7-0.
Governor Gore joined the meeting at 1:08 p.m.
Review of Year-to-Date Financials
Steve Foucart, Chief Financial Officer, provided an overview of the university’s year-to-date financials through March 30, 2021. The university’s net position has increased by $29.5 million over last year on the Springfield campus. While operating revenue declined more than $13 million, operating expenses declined by $17 million, and the university received over $26.5 million in CARES Act Funds.
Review of COVID-19 Economic Relief
Mr. Foucart reviewed a summary of the COVID-19 economic relief funds allocated to the university. The federal government enacted three COVID-19 relief packages. The university does not yet know how much it will receive and what restrictions will exist for the funds under the third package.
The university was awarded $42.2 million directly from the federal government with the first two relief packages. Of those funds, $15.2 million went to student grants, $6.6 million went to student refunds, $1.3 million paid for COVID-19 expenses, $200,000 went toward payroll associated with the pandemic, and $13.2 million has been allocated to offset lost revenue. $5.6 million remains unallocated, and the university anticipates utilizing the remaining funds for additional COVID expenses and lost revenue.
The Board commended the university on its work on having a quality product and the relationships it has cultivated with legislators.
Jefferson City Budget Update
President Smart provided an update on the state budget. He stated that this past year, the university was viewing the best-case scenario as restoration of appropriated funds. When this occurred, the university began to advocate for four additional appropriations priorities. These priorities included a 3.7% increase for public university core operating appropriations, $1.8 million in one-time funds to establish the Missouri Cybersecurity Center of Excellence at the Roy Blunt Jordan Valley Innovation Center, $4 million in one-time funding for a facility expansion at the Darr Agricultural Center, and $1 million in one-time funds for a welding lab on the West Plains campus. He shared that the House and Senate have passed the final versions of the bills that included these priorities. The next step in the process is for Governor Parson to sign, veto, or line-item veto these bills which will occur before the fiscal year begins on July 1.
President Smart shared that the 3.7% increase equates to a $3.5 million on-going appropriation increase for Missouri State. President Smart thanked Senator Lincoln Hough, Vice-Chair of the Senate Appropriations Committee, for strongly supporting the increase for public universities. He thanked Senators Esslinger, Crawford, Brown, Hegeman, and Williams who served on the Senate appropriations committee, and Representatives Evans, Cupps, Fishel, Fogle, and Black who served on the House budget committee for being strong advocates for the university.
Review of FY2022 Operating Budget Recommendations
President Smart commented that the Springfield and West Plains campuses create two separate budgets. He reviewed the recommendations from the university’s executive budget committee. On the Springfield campus, recommendations include a total of $7.5 million in benefit and compensation increases. More specifically, a 3% across-the-board compensation increase for fulltime faculty and staff, enhanced dental plan benefits for employees, a minimum wage increase, salary increases under the professor salary incentive program, and faculty promotions. The executive budget committee recommendations also include increases for several university programs, services, and initiatives, including over $65,000 to expand access to LinkedIn Learning, more than $300,000 in technology upgrades, $120,000 in additional student recruitment travel costs, and $300,000 in diversity and inclusion initiatives. President Smart added that the university plans to restore $2 million in frozen faculty and staff positions.
Governor Carrie Tergin joined the meeting at 2:04 p.m.
Recommendations for the West Plains campus include the same compensation and benefit increases as the Springfield campus along with increases for the campus’s multicultural budget and technology contracts.
The university discussed the recommendations and instructed leadership to prepare a final budget that aligns with these recommendations for approval at the June Board of Governors meeting. The Board was supportive of the proposed budget recommendations.
Development Report
Brent Dunn, Vice President for University Advancement, provided a development report through the end of April. Gifts to the foundation are $3 million ahead of April 2020 and the number of donors was also larger than in April 2020.
Closed Session
It was determined that the Board of Governors needed to meet in a closed session to consider items of business provided in the Revised Statues of Missouri. Governor Waters asked if a resolution authorizing a closed meeting of the Board was prepared. Thereupon, the following resolution was presented for consideration:
BE IT RESOLVED by the Finance and Facilities Committee of the Board of Governors for Missouri State University that a closed meeting with closed records and closed vote, be held during a recess of the Finance and Facilities meeting of the Board of Governors to consider items pursuant to:
- R.S.Mo. 610.021 (1). “Legal actions, causes of action, or litigation involving a public governmental body…”
Governor Gabriel Gore provided a motion for approval, receiving a second from Governor Craig Frazier.
A roll call vote on the motion was as follows: those voting in favor – Governors Counts, Frazier, Gore, Miller Keltner, Parman, Silvey, Tergin, Wasson, and Waters; those voting against – none.
The open meeting was recessed at 2:34 p.m. to go into closed session.
The open meeting was reconvened at 2:55 p.m.
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 Gore.
Motion passed 9-0.
Meeting adjourned at 2:55 p.m.
Chris Waters
Chris Waters
Committee Chair
Passed at the meeting of
June 18, 2021
Rowena Stone
Rowena Stone
Secretary to the Board