University of Missouri System

University Communications

Spectrum

Volume 33, Number 3, May 2006

Board approves fiscal year 2007 budget

The University of Missouri Board of Curators approved a general operating budget of $410 million for fiscal year 2007, which begins July 1, at its May 4–5 meeting in St. Louis.

Gov. Matt Blunt recommended a 2 percent increase for the University’s general operations, which was approved by the General Assembly.

UM Vice President for Finance and Administration Nikki Krawitz told curators that the state appropriation figures used in developing the FY07 operating budget plan reflect the governor’s recommendation, less the traditional 3 percent statutory withholding.

The budget also is based on a 5 percent increase in tuition, as well as increases in supplemental, professional school, and activity, facility and health fees, approved by the board at its March 2006 meeting.
Krawitz said the two major revenue sources for the general operating budget are state appropriations and gross student fees, which account for 85 percent of the total -- a decrease from a combined 92 percent of the total in FY00. State funds comprise 38 percent and student fees, before student aid, comprise 47 percent.

The operating budget comprises approximately 42.7 percent of the University’s total current funds budget, which is about $2.2 billion, or a 7 percent increase above last year’s original budget. In addition to the operating budget, this includes operating budgets for the hospitals, auxiliary enterprises and restricted activities.

Of the $148.2 million increase in budgeted revenues, net student fees contribute $29 million, or 19.5 percent, of total revenues. Sales and services provide about 30 percent of the total.

Gross student fees are budgeted at $541.9 million, a 7.9 percent increase over FY06, which reflects anticipated enrollment growth as well as fee increases.

Budgeted student aid of $176.5 million is 6.6 percent higher than last year’s budget. This results in a net student fees budget of $365.5 million, or 8.6 percent more than last year’s budget.

Budgeted revenues from gifts, grants and contracts total $344.3 million, an estimated increase of 2.7 percent from FY06.

Revenues for sales and service total $878.2 million, up 9.6 percent from FY06. Of those revenues, approximately 60 percent are attributed to University Hospitals.

The University’s expenditure budget is estimated at $2.2 billion, 6.7 percent higher than last year. Of the increase, only 35.4 percent is in the operations fund, while 66.7 percent is in auxiliary and restricted funds.

Budgets for salaries and wages include a 2 percent planned increase in funds available for salary adjustments.

Employee benefits are budgeted at $283.5 million, a 13.9 percent increase over FY06 estimated benefit expenses.

Expense and equipment is budgeted at $697 million, an increase of about $50.2 million from FY06. The budget also includes 1 percent of the replacement value of physical plant for maintenance and repair.

As part of the board action, University of Missouri President Elson S. Floyd was authorized to modify the FY07 budget and allocation to bring it into harmony with the state appropriation as eventually approved by the governor.

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