The first Murray State University Board of Regents meeting of the new academic year began this morning with a ceremony swearing in four regents: two Governor appointees Lisa Rudolph and Dr. Walter Bumphus, Faculty Regent Katherine Farmer and (returning) Student Regent Clint Combs.
Annual Retreat and Big Picture Topics
A day earlier, the Board held their annual retreat, where they discussed big picture plans for the academic year (see recent conversation with MSU President Dr. Bob Davies), an update on performance funding (which Davies says in the "preseason" phase) and the current status on dual credit learning for high school students in light of a recent scholarship effort by Governor Matt Bevin (more on this with Acting Provost Dr. Renae Duncan). Many of these topics were reiterated in information sessions at Friday's meeting.
Financial Report
In a financial report update, Finance and Administrative Services Vice President Jackie Dudley said last fiscal year had $200 million in pension liabilities. This year, expenditures are being hit again as changes continue in the retirement system.
The tuition report budgeted $77.7 million in tuition fees and earned $76 million, down $1.7 million. There was $2 million budgeted into a contingency fund that helped offset that loss. There will be a more detailed update on this year's tuition at the December meeting, though Dudley noted that it may be similar to last year's numbers and again there is $2 million in contingency.
Other large changes involved cash assets down an expected $7 million. Capital assets now at $236 million, an increase from $183 million last year (this is due to the capitalization of new facilities coming online). There was also an increase of $40.3 million in net assets. The operating fund nearly broke even - this includes the appropriation reduction and $2.3 million in retirement expense. Auxiliaries gained $1.2 million. There were also additional gains related to assets being constructed.
Enrollment & Retention
Preliminary enrollment numbers are in. Though Murray State has a larger incoming freshmen class - also coming in with new, higher standards - of 1,500, the overall enrollment is down by 2%. This is largely due to a drop in first-time graduate students and a drop in international students - these groups have overlap. Two primary factors explained involved competition with online masters degree courses in education and a scaling back from countries that sponsored students.
The overall (preliminary) enrollment for fall 2016 is 10,486.
The final enrollment numbers will be released in October.
The current graduation rate is at 48.5% as of FY15. Davies said experiential learning is a concept of high priority developing over the coming years coinciding with an effort to increase retention and graduation rates.
Retention rates are up slightly in fall 2016, at 73.7%
Construction & Other Building Projects
Franklin Residential College is now online. Regents and members of the university community held a ribbon-cutting ceremony Thursday. Finishing work is still being done on the exterior.
The Engineering and Physics building is past the 65% completion point. The project is struggling with keeping on schedule due to weather conditions. The January opening will not be met. The grand opening and ribbon cutting is planned for April 21.
Breathitt Veterinary Center is closing in on completion of construction. Staff will be transitioning over the next couple of months. A ribbon cutting ceremony is planned to coincide with the Engineering and Physics Building.
The second floor expansion of the Hopkinsville regional campus is complete. Final touches, like bringing in furniture, are underway for a spring opening. An open house was suggested for sometime in the spring.
The Madisonville regional campus construction is underway. A green-space has been designated. Project completion is loosely-planned for spring 2018.
Over the past couple of weeks evidence of two types of mold have appeared in Springer College. Students moving into other Colleges. More on this story.
Consultants are in the process of looking for a sorority complex. This project is on hold pending recommendation from the consulting group.
The electrical grid system, particularly in the older buildings around the 'academic core,' are more than 40 years old and in significant need of high voltage maintenance and repair. Officials say this is a $16 million dollar project brought in over phases. Davies said he will see if some funding can be achieved through state legislature, but added that it's not possible to update this completely in one year.
University officials are dismantling the "5 MR" TVA agreement which had been viable through October 2017. However, within the last few years, litigation had begun challenging these types of plans. The plans went back and forth between federal courts and the EPA. In May 2016, MSU was notified they had to dismantle the plan. On October 1, 2016, MSU will withdraw the agreement from TVA. Murray State has 50 emergency generators burning propane and diesel fuel. Sierra Club was the litigant, claiming the generators emitted pollutants 'not allowable.' They determined the generators could not be used in an emergency situation and were reimbursed by the TVA for having a discount plan. The generators could be made approved, but the cost on that would be more than the discount (would cost $2 million). The effect will be an add on the budget by $325,000 per year, however this change was anticipated.
Economic Impact Study
An assessment determining Murray State's economic impact on Kentucky and the region has concluded. The study was a cost/benefit impact analysis that looked at Murray State's impact to the state, region and county. Dr. Gil Mathis, Professor Emeritus of Economics and Finance, led the study.
Cost:
The direct appropriation to Murray State in the 14-15 fiscal year was $48 million. Roughly 37% of the university's budget, MSU is technically a state-assisted (not supported) university. State government services (the cost of providing goods and services by the government to the university totaled $84 million. Revenue loss from property was $129 thousand. Overall, Murray State costs Kentucky $132 million.
Similar procedures measuring the 18-county western Kentucky region found a total cost of $10.6 million and for Calloway County $8.3 million.
Benefit Impact:
An analysis of university budget, construction, employees, students, visitors and taxes. Total spending by these groups in Kentucky was $260.8 million. Factoring in concept multipliers (for instance a dollar spent by one person is a dollar saved or re-spend by another) the estimated benefit impact Murray State has on Kentucky totals $495 million.
In western Kentucky, spending was $203.8 million and the impact was $306 million. In Calloway County, $159 million spent amounted to $210 million impact.
Direct employment by the university was 1,385. Indirect employment (services contracts, etc) was 4,640. Total employment by the university was 6,025.
Citing the U.S. Department of Commerce Bureau of Census, Mathis said, in 2013 male full time workers with college degrees in Kentucky earned on average $31,654 more than high school graduates. For females, the number is $23,391. Currently, there are 34,442 MSU graduates in Kentucky, an estimated 20,000 female and 14,000 male. For the sake of exercise, if all of them were employed on average it would add an additional $921 million dollars in earning capacity in the commonwealth - or $657.9 million in western Kentucky or $139 million in Calloway County.
Mathis said "Murray State is a great bargain to the state and an even greater bargain to the west Kentucky region and Calloway County."
He remarked that the 15 counties that have the highest average number of people with bachelors degrees or higher, 10 of them have a four-year university. On the flip-side, it's almost none. He said the numbers are similar for per-capita income and rate of employment.
"Having a university in your backyard means higher educated workforce, higher per-capita income and usually lower unemployment," Mathis said.
Other Topics of Note
The board approved a letter in support of Davies' efforts to negotiate a blend of quantity and quality metrics in the Performance Funding Work Group (more on this here - also an earlier discussion here).
Vice President of Marketing and Outreach Dr. Adrienne King introduced a web portal for prospective students called "My Opportunity" - murraystate.edu/myopportunity
The new Masters of Occupational Therapy program is getting underway. The development of a curriculum and the accreditation process are underway. Anticipated enrollment for the first students is fall 2018.
The Board approved the naming of the Timothy D. Jones Gateway, a two-story walkway connecting the new Engineering and Physics Building to the existing Jones Hall. Also, the Smith-Johnson Genealogy and History Room in Pogue Library.
The Board also approved extending the four-year contract of Men's Basketball Head Coach Matt McMahon by one year and an increase in a buyout should another university seek him out.
Watch the Meeting:
