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Other:

$14M 2%

1990: $0.7B 2012: $2.0B

•Office of Planning and Budgets

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Tuition & Fees:

$134M 19%

Tuition & Fees:

$641M 31%

Auxiliary:

$121M 17%

Auxiliary:

$293M 14%

Appropriations:

$206M 30%

Appropriations:

$241M 12%

AgBio Research/MSUE

:

$38M 5%

AgBio Research/MSU

E:

$52M 3%

Sponsored Programs:

$137M 20%Sponsored Programs:

$443M 22%

Gifts:

$44M 6%

Gifts:

$174M 9%

Other:

$31M 1%

Departmental

$165M 8%

Departmental

$40M 6%

Ranking:

1)Appropriation

2)Sponsored Programs

3)Tuition & Fees

4)Auxiliary

5)Gifts

Ranking:

1)Tuition & Fees

2)Sponsored Programs

3)Auxiliary

4)Appropriation

5)Gifts

MSU All Funds Revenues

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By Fund

1990: $0.7B 2012: $2.0B

Fluctuations between annual revenue and expense totals vary with investment performance and state appropriations outcomes

MSU All Funds Expenses

•4

•State Appropriations SupportState Appropriations History

Appropriations down

$81M over 10 years

If increased at inflation, MSU appropriations

would be $166.6M more than current

levels

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•6

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Tuition & Fees / Cost of Attendance

Northwestern University $43,779University of Michigan $39,122Michigan State University $32,580Indiana University $31,484University of Illinois $29,102Penn State University $28,746Purdue University $28,702University of Wisconsin $26,628University of Iowa $26,279Ohio State University $25,450University of Nebraska $20,734University of Minnesota $18,774

Northwestern University $60,840University of Michigan $51,940Indiana University $44,568Penn State University $44,458Michigan State University $43,986University of Illinois $43,144Purdue University $42,010University of Wisconsin $40,988Ohio State University $40,902University of Iowa $40,054University of Nebraska $34,450University of Minnesota $29,774

Non-Resident Tuition & Fees Non-Resident Cost of Attendance

MSU ranks 3rd in the Big Ten for non-resident tuition and fees and 5th for cost of attendance

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Big Ten Non-Resident

Tuition & Fees / Cost of Attendance

Resident Tuition & Fees Resident Cost of Attendance

MSU ranks 6th in the Big Ten for resident tuition and fees and cost of attendance

Northwestern University $43,779Penn State University $16,444University of Illinois $14,960University of Minnesota $13,524University of Michigan $12,994Michigan State University $12,623University of Wisconsin $10,379Indiana University $10,034Ohio State University $10,034Purdue University $9,900University of Iowa $8,057University of Nebraska $7,984

Northwestern University $60,840Penn State University $32,156University of Illinois $29,002University of Michigan $25,812Ohio State University $24,850University of Minnesota $24,524Michigan State University $24,029University of Wisconsin $23,759Purdue University $23,208Indiana University $23,118University of Iowa $21,832University of Nebraska $21,700

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Big Ten Resident

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MSU Endowment Status

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IPEDS 2010-11 reporting

Big Ten Revenues

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Big Ten Median & MSU

FY07-FY11

Big Ten Min Big Ten Median

Big Ten Max

As of 06/30/2011

Total Growth in Expenses

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As of 06/30/2011

Commonly used peer comparison that does not account for structural differences between institutions (i.e. Hospitals, System Consolidation, Agricultural Experiment Stations, etc

Big Ten Net Assets

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Big Ten & MSU

FY07-FY11

Big Ten Min Big Ten Median

Big Ten Max

As of 06/30/2011

Total Growth in Unrestricted Net Assets

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Big Ten Median & MSU

FY07-FY11

Big Ten Min Big Ten Median

Big Ten Max

As of 06/30/2011

Total Growth in Debt

Moody’s Long Term Credit Ratings

S&P Moody’s

(Northwestern, University of Michigan) AAA Aaa(Indiana, Northwestern, Purdue, University of Michigan)

(Indiana, Purdue) AA+ Aa1* (MSU, Iowa, Minnesota, Nebraska, OSU)(MSU, Iowa, Minnesota, Nebraska, OSU,

PSU) AA* Aa2 (University of Illinois, PSU)

(University of Illinois) AA- Aa3A+ A1A A2A- A3

Note: University of Wisconsin not rated by S&P or Moody’s

*Big Ten Median

Big Ten

As of 01/11/13

*In addition to the above, MSU also has $81M in short-term commercial paper to be converted to long-term debt, and $143M in short-term commercial paper to be repaid by internal units

Outstanding debt includes issues 2000A, 2003A, 2005, 2007A, 2007B, 2010A, 2010C

Long Term Bonds

General Fund General Fund $338

Revenue Based Residential and Hospitality Services $169 Intercollegiate Athletics $57

Projects Parking Operations $47 Facility for Rare Isotope Beams $17 MSU College of Law $18 Recycling $12 Vet Oncology $5 National Superconducting Cyclotron Laboratory $5 Executive Development CenterAnaerobic Digestion Research and Ed. Center

Donor Supported Projects Secchia Center-CHM West MI $16 Wharton Center $13

Total $697*

Summary of Current Bonded Debt

Five Year Performance

Targeted range from 6-7

Adverse performance results mainly from loss of appropriations and negative investment returns

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Composite Financial Index

•19•Dollars in Thousands

Source: NSF Survey

Big Ten Comparison

Research Expenditures

  2006 2010 20111 Yr.

ChangeU of M* $837,529 $1,184,445 $1,279,123 8.0%Wisconsin* $904,787 $1,029,295 $1,111,642 8.0%Minnesota* $609,918 $786,074 $847,419 7.8%OSU $643,283 $755,194 $832,126 10.2%PSU* $656,634 $770,449 $794,846 3.2%Purdue* $420,426 $548,980 $578,231 5.3%Illinois $524,680 $515,133 $545,669 5.9%MSU $388,845 $431,373 $454,248 5.3%Iowa* $356,169 $444,034 $443,893 0.0%Nebraska $214,053 $191,268 $235,296 23.0%Indiana* $378,212 $177,520 $184,096 3.7%

* Institutional numbers represent all campus amounts for 2006.  

MSU Financial Data

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Total Annual Giving 2006 2011 % ChangePennsylvania State University $165,218,147 $274,832,042 66%University of Nebraska $126,945,265 $171,672,448 35%Ohio State University $211,316,845 $258,450,886 22%University of Iowa $103,271,605 $123,487,703 20%Indiana University $250,677,402 $296,822,003 18%University of Michigan $257,443,519 $273,142,460 6%University of Minnesota $269,600,597 $275,273,205 2%University of Wisconsin $328,625,770 $316,756,282 -4%Purdue University $177,435,105 $157,108,205 -11%Michigan State University $147,363,851 (9th) $128,360,845 (10th) -13% (10th)Univ of Illinois - Urbana $156,748,647 $128,822,182 -18%

As of 06/30/2011Source: VSE Report

Base year represents capital campaign effort for MSU and Purdue

Private Support

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Institutions with on campus hospitals, such as U of M, include patient donor support in the above calculations

Includes approximately $749M traditional endowment, $651M endowment trust and $318M MSU FoundationSOURCE: Council for Aid to Education reports

2006 2011 % ChangeUniversity of Michigan $5,652,262,026 $7,834,751,733 39%Purdue University $1,494,553,799 $2,001,600,855 34%Pennsylvania State University $1,389,600,000 $1,831,100,000 32%University of Iowa $832,869,000 $1,058,694,909 27%University of Wisconsin $1,639,014,521 $2,066,958,201 26%Indiana University $1,276,159,743 $1,574,815,344 23%Michigan State University $1,482,844,988 (6th) $1,718,100,760 (6th) 16% (7th)University of Minnesota $2,287,562,061 $2,514,007,307 10%University of Nebraska $1,153,559,000 $1,241,577,000 8%Univ of Illinois - Urbana $1,252,289,994 $1,132,625,790 -10%Ohio State University $1,996,839,412 $1,405,646,025 -30%

Endowment Market Value

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• Involves engagement of campus stakeholder groups

• Board of Trustees

• Academic governance

• ASMSU

• COGS

• Refines multi-year planning focused on improving the

value proposition for stakeholder

• University administrators

• Collective bargaining

groups

• RHA

• State policy makers

MSU Budget Process

Spartans Will.

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MSU Long-Term Planning

•24

Academic Initiatives• Creating a Campus-wide Strategy for data,

technology, teaching and learning

• Creating a campus climate to support interdisciplinary work

• Closing the graduation gap

• Fostering a healthier campus

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• An updated ten year analysis of eight critical university areas requiring long-term support because of current state and federal financial circumstances

• The eight categories are:

– Just-in-Time Facilities Renewal– Administrative Computing (EBSP, EBSP Transition,

Research Administration, SIS)– Specialized Research Space – Financial Aid – Health Care– F-RIB – Academic Quality – Energy/Other Regulatory Issues

Long-Term Financial Framework

November-December 2013Executive Branch

July 2014State appropriation

passed

January 20142013-14 executive

budget recommendation

March, April, May, 2014

Legislative hearings: House and Senate

State Appropriations Timeline

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June-October, 2013Trustees act on 2013-14

budgets and 2012-13 budget request

April-May, 2014Admin/Board discussion on

2014-15 budget guidelines

February - May 2014Budget Planning Meetings

Fall 2013Budget & Planning - Strategic Issues

June-July, 2014Board action on final 2014-15

budgets

June, 2014Preliminary 2015-16 operating

and capital outlay request formulated

August, 2014Administration consultation on

2015-16 budget request

October, 2014Trustees act on 2014-15 budget

request

MSU Internal Timeline

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Formula based on budget proposal

•Salary increments

•Operating support

•1% reallocation

Differential

•Program allocations

•Reductions

Operating UnitsSeparately

Reviewed Items

•Financial aid

•Utilities

•Health care

•Other benefits

•Financial framework

General Fund Budget Development

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• 29

Budget Guidelines Summary

Budget Item2011-12

Approved2012-13

Approved2013-14 Proposed

2014-15Preliminary

State Appropriations (15.0)% 1.6% 1.82% 2%

Tuition & Fees6.9% 3.6%

1.9% Lower Div

3.6% Upper Div

3.0% Lower Div

3.0% Upper Div

Financial Aid 10.0% 5.5% 4.5% 4.0%

Graduate Assistants 2.0% 2.0% 2.0% 2.0%

Faculty Salaries 2.0%* 2.0%* 2.25%** 2.0%*

Utilities 5.0% 4.0% 4.0% 4.0%***

Health Care 5.0% 5.0% 1.5% 5.0%

Framework-Academic Competitiveness

$2.0 $4.7 $2.0 $2.0

Balance $0 $0 $0 $0

•Preliminary 2013-14 budget approved by the BOT in June 2012 •*Includes 1.5% general merit, 0.5% college market, and 0.5% provost market pool•** Includes 1.5% general merit, 0.75% college market, and 0.5% provost market pool•***Infrastructure financing

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Higher education Price index average approximates 2.44% for most recent five year period (through 2012)

FY10 FY11 FY12 FY13 FY14 5 Year AverageBase 1.72% 1.10% 0.03% 2.97% 2.63% 1.69%

Financial aid 1.37% 1.10% 0.98% 0.64% 0.45% 0.91%Enrollment Growth 0.16% 0.00% 0.18% 0.14% 0.14% 0.12%Indirect Cost Pass-Through 0.02% 0.10% 0.27% 0.23% 0.00% 0.13%Revenue Based Initiative 1.17% 1.43% 1.67% 1.35% 0.76% 1.28%

Total 4.45% 3.73% 3.13% 5.33% 3.98% 4.12%

Budget Rates of Change

Thank You

•31