The University of Montana-Missoula

General Funds Operating Budget Plan - FY05

Executive Summary

The upcoming fiscal year presents a mix of challenges and opportunities for The University of Montana-Missoula.

 

Challenges:

  • Continued decline in non-resident enrollments, declining numbers of Montana high school graduates, and increasing concerns for affordability�

  • A 15% increase in the cost of utilities

  • Greatly increased healthcare costs

  • Morale issues resulting from the biennial pay-freeze

  • Looming faculty retirements as the economy recovers

  • A carry back obligation of over $700 thousand from FY04

  • Transfers of $1 million from Auxiliaries and Enhanced Business Practices to balance the State Funds budget

 

Opportunities:

  • The resources invested in our affiliate campuses via the Sustained Growth Initiative show early promise

  • The athletics deficit elimination plan is underway, and over 800 people are on the season ticket waiting list for football

  • We are moving forward with Academic Quality Initiatives in undergraduate education as a means to improve retention

  • We have established an American Indian Support Services function in an effort to increase retention in this area

  • Proceeds from bond re-financing yielded close to $3 million to address deferred maintenance needs

  • Early indications are that our non-resident recruiting strategies appear to be yielding good results

 

Although we face continued challenges both in revenues and expenses, we are guardedly optimistic that the initiatives we have put in place will move us in the right direction.�� Simply put, our short term strategy is to implement a frugal budget in FY05, with modest tuition increases, prudent cost cutting and containment measures, and limited investments in our long term recovery.� Looking forward, we are hopeful that our efforts to reverse the trend in nonresident enrollment will bear fruit, and that the partnerships being forged between the Montana University System and the Executive and Legislative leadership of the State will yield greater support� for Higher Education in the coming biennium, allowing us to assist in the long term economic development of Montana.