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University of Missouri Facts (PDF 8.4 MB)
The University of Missouri is implementing a plan to save $20 million in administrative costs, far exceeding the original goal of $12.5 million set last year, President Elson S. Floyd told the Board of Curators at its July 21 meeting in Kansas City.
“This is a tremendous accomplishment,” Floyd said. “I am deeply proud of our chancellors and staff for their vigilant efforts to enhance our academic mission while protecting access and affordability for our students.”
In December 2005, Floyd directed each campus, the system and UM Health Care to reduce administrative expenditures by 10 percent and reinvest those resources in academic and strategic priorities.
Each campus was charged with determining its own list of suggestions. Efforts were focused on eliminating unnecessary academic and non-academic administrative duplication; enhancing efficiency and productivity; reducing costs in administrative service areas; enhancing the use of technology without increasing cost; and streamlining the structure and function of UM Health Care.
The final plan totals $20 million, or $7.7 million more than the original goal. While some reductions have already been implemented, others will be accomplished over a one- or two-year period.
Actions taken to reduce costs include eliminating or combining administrative staff positions; reducing operating budgets; consolidating support functions; and eliminating organizational layers.
The University also is exploring the potential for additional savings through e-procurement as well as the consolidation and outsourcing of information technology.
Resources will be reallocated to achieve targeted academic and strategic initiatives and to enable the University to reduce or better control future tuition increases.
Approximately $18 million in administrative savings will be applied to academic priorities that directly benefit students, such as increased instructional capacity, student financial aid, and initiatives to retain students once they are enrolled.
The University also will make investments in academic programs and faculty in areas such as the life sciences, public policy and autism. Funds will be directed to faculty retention and recruitment, employee diversity and staff benefits.
More than $4 million will go toward permanent expense reductions to balance the budget at UM-Rolla and toward expense reductions and reallocations for facilities, maintenance and repair, and increases in utilities and insurance costs at UM-Kansas City.
Floyd said the long-term objective of the plan is to continue to improve efficiency and control future tuition increases without reducing quality.