4.                  Funding formula - Nora Miller made a power point presentation about IHL’s funding formula, which she said has been several years in the making. It is based on a model used in Texas and other states and is used to allocate the lump sum appropriation from the Legislature to the eight institutions for education and general (E&G) purposes. The five components to the model are: (1) instruction and administration, (2) facilities - based on predicted space, (3) capital renewal, (4) small school supplement, and (5) Board incentives. The instruction and administration component multiplies the student FTE and the SREB average to get the appropriation per FTE. The student FTE is calculated using the weighted student credit hours. The facilities cost component is based on five types of predicted space: teaching, library, office, research, and support. The model includes $8.22 per predicted square foot, which covers custodial costs, utilities, electrical/mechanical and building trades, grounds, administration, and overhead. MUW’s predicted space is 275,346 square feet, actual space is 1,333,673, and active E&G space is 589,438. The capital renewal component is figured by the predicted space in facilities model square feet multiplied by the current construction cost per square feet multiplied by two percent. The small school supplement component is a $750,000. To receive this, institutions must both have a FTE enrollment of 5,000 or fewer and the most recent year’s funding per FTE is less than 110% of SREB average appropriation per FTE by institutional type. MUW fits the first criteria, but not the second. We need about 1,000 more students to get our percentage down. The incentives component, which is an amount set aside for the Board to allocate funds to individual institutions based on missions, performance, services, recognitions, priorities, merit, etc., includes Best Practices, equity, and Hurricane Katrina for FY 2007. Comparing what the model predicts IHL needs for FY 2007 to the actual funding, IHL is short $63.1 million. Four of the five components of the new model are determined by enrollment.

5.                  Enrollment plan - Dr. Bucky Wesley said MUW’s goal is to have 3,000 students within five years. This would be a 5.5% annual growth. 128 more students are needed this fall to stay on track. MUW needs to get to the level of 3,000 students to get the most out of the new funding formula. Our enrollment growth for 2005-2006 was 2.2 %. If we continue to grow at that rate, we will have about 2,600 students in 2010. To meet our goal of 3,000 students by 2010, we need to maintain new freshmen enrollment, increase new transfer and new graduate enrollment; grow current enrollment at each class level; increase enrollment in W@Night; and increase part-time enrollment. We are going to need new programs to reach into new demographics. We will all need to work together and all be actively engaged in the planning process.

6.                  Budget outlook for 2007 - Ms. Miller reported that FY2007 was supposed to be IHL’s year to get more money from the legislature. IHL did get a $90 million or 15% increase, but the legislature designated most of it to salaries and other things. The IHL Board had $4 million left to its discretion. Of that, $1 million was used for equity funding for Mississippi Valley State University and Ole Miss. MUW received a $1.4 million or 10.8% increase, but all went to salary increases. MUW requested a 9.08% tuition increase to cover estimated utilities of $500,000 and property insurance of $150,000. The IHL Board gave tentative support of a 5.5% increase, plus a 1% surcharge for utilities. When the departments are preparing their FY2007 budget requests, they should recognize the reality of the budget situation and tie requests to the university’s budget priorities, which are to continue the development and implementation of the academic master plan; continue the development and implementation of the enrollment plan; continue the development and implementation of the technology plan;, develop and implement a plan to promote diversity among MUW students, faculty, and staff; and promote activities to support increased external funding.

In conclusion, Dr. Limbert said she felt it was important for these presentations to be made to the Administrative Council so the representatives are aware and sensible about the situation. Dr. Sam Gingerich added that enrollment is the key, but it will be a delicate balance to start doing new things for the Admissions Office to promote while on a limited budget. Dr. Wesley said that the enrollment numbers look like they will be up for this fall. Dr. Limbert said that all categories of students need to increase. She said it can be done by us all working together. She asked that the representatives talk with their groups about the budget/enrollment situation and brainstorm new ideas.