UM Board of Curators approve FY19-20 budget, five-year financial plan

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Christian Basi

June 20, 2019

COLUMBIA, Mo. — The University of Missouri Board of Curators today approved the university’s fiscal year 2019-20 budget and a financial plan that officials say will provide leaders with clear guidance on goals over the next five years. Curators also approved a preliminary request for state appropriations as planning begins for the fiscal year 2020-21.

“Due to the hard work of our legislators and governor as well as those across the system who have worked to increase our enrollment, the University of Missouri System and our four universities are in a strong financial position as we begin the new fiscal year,” said Jon Sundvold, chair of the Board of Curators. “Additionally, the work of our leaders, faculty and staff have led to an overall increase in freshman enrollment. This is indicative of the resolve of this institution. We stand tall and continue to be here to serve the state of Missouri, educating our future leaders, discovering new technologies and serving the state whenever it’s needed.”

At its meeting, the Board approved a $3.5 billion budget. Approximately half of the revenue is expected to come from auxiliary and patient revenues at MU Health Care. Other significant sources of revenue include state appropriations, tuition and fees, grants and contracts, gifts, and investment income. The majority of the funds, approximately 63 percent, are applied to compensation, while the remaining funds are spent on operational expenses, including utilities, equipment and supplies.

In addition to the budget, Vice President for Finance Ryan Rapp presented a five-year financial plan that will give guidelines to leaders who are making strategic decisions for their institution’s future. The financial plan provides leaders with good information about the financial sustainability of their strategic and operational plans.  

“This plan integrates a university’s strategic plan and its financial plan,” Rapp said. “It ensures the institution’s strategic objectives are financially sustainable. This will help us be more proactive, accountable and transparent in our annual budget process. It is our obligation to ensure we utilize our financial resources in a responsible manner to deliver on our mission and support the needs of the state.”

The Board also approved an appropriation request, typically due to the Missouri Department of Higher Education each year around Aug. 1. The request calls for total core funding of $426.5 million, which would include an additional $10 million for the precision health complex. It also requests $28.8 million in equity funding (to reflect the UM System’s important contribution to workforce development in professional and doctoral programs as well as research programs to grow economic development in Missouri), $8 million for maintenance and repair of facilities, and $20 million for a MoExcels proposal, a program created by the state of Missouri to increase jobs. With other legislative requirements, the total request is $507.55 million.

In other actions, the Board approved two new degree programs. The degrees, a Bachelors of Arts in Constitutional Democracy and a Masters of Arts in Atlantic History and Politics, will be housed in the College of Arts and Science at the University of Missouri-Columbia. Both degrees involve an interdisciplinary curriculum in history, political science and public affairs that provide a detailed review of American political history. The programs will be coordinated through MU’s Kinder Institute on Constitutional Democracy.

“This is yet another indication of how the University of Missouri is responding to the needs of our state and nation,” UM System President Mun Choi said. “We take our responsibility to educate our students seriously. These types of programs that provide important information about our nation’s history are valuable for future leaders, and our faculty are intentional about engaging diverse perspectives of thought as they discuss today’s issues in the classroom. We are proud to play a strong role in the development of young people who will lead our cities, states and nation in the years to come.”

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