Financial Strategy | Michigan State University

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Financial Strategy

Financial Report Highlights for the fiscal year ending June 30, 2024:

The University's financial assets totaled 9.3 billion.
Revenues totaled $3.7 billion while expenses totaled $3.3 billion.
MSU's net position was $5.6 billion.

Learn more about our financial statements.

Budget Focal Points
Stewardship Practices

MSU has maintained a strong financial foundation supporting our long-term financial health and sustainability. Our institution's priorities center around the people who contribute to its success – our students, faculty, and staff. We are dedicated to providing quality education, conducting impactful research, and engaging in outreach efforts to ensure that Michigan State University grows stronger each day.

Budget Framework and Considerations

The fiscal year 2024-2025 operating budget includes the General Fund, Designated Fund, Auxiliary Fund and Expendable Restricted Fund. The General Fund consists of unrestricted operating funds that are budgeted and allocated for general operations such as instructional activity, departmental research, maintenance and utilities, financial aid, and other initiatives and support activities. MSU utilizes an incremental budgeting model. The General Fund budget is based on a framework that builds on top of the budget from the prior fiscal year. It includes both recurring and nonrecurring components.
The General Fund's revenue sources include programmatic investments, annual reallocations (Increments in salary, supplies, services, etc.), revenue-based initiatives, alterations and improvements, and indirect cost recovery.

Financial Stewardship Principles

Support education, research & outreach programs
Recurring expenses funded by recurring revenue
Use non-recurring revenues for non-recurring spending
Use long-term financial framework to determine multi-year budget path
Following these practices has been challenging due to Nassar lawsuits and COVID-19 impacts

MSU's Approach to Financials

MSU is a prudent financial steward of institutional resources.
MSU focuses on cost controls, pursues a long-term investment strategy to maximize risk-adjusted total returns, and appropriately utilizes debt and other resources to meet programmatic needs, including the maintenance and replacement of the University’s infrastructure.
Aligning resources with strategic outcomes is a key pillar of the plan.

Budget Focal Points

Budget Framework and Considerations

The fiscal year 2024-2025 operating budget includes the General Fund, Designated Fund, Auxiliary Fund and Expendable Restricted Fund. The General Fund consists of unrestricted operating funds that are budgeted and allocated for general operations such as instructional activity, departmental research, maintenance and utilities, financial aid, and other initiatives and support activities. MSU utilizes an incremental budgeting model. The General Fund budget is based on a framework that builds on top of the budget from the prior fiscal year. It includes both recurring and nonrecurring components.
The General Fund's revenue sources include programmatic investments, annual reallocations (Increments in salary, supplies, services, etc.), revenue-based initiatives, alterations and improvements, and indirect cost recovery.

Stewardship Practices

Financial Stewardship Principles

Support education, research & outreach programs
Recurring expenses funded by recurring revenue
Use non-recurring revenues for non-recurring spending
Use long-term financial framework to determine multi-year budget path
Following these practices has been challenging due to Nassar lawsuits and COVID-19 impacts

MSU's Approach to Financials

MSU is a prudent financial steward of institutional resources.
MSU focuses on cost controls, pursues a long-term investment strategy to maximize risk-adjusted total returns, and appropriately utilizes debt and other resources to meet programmatic needs, including the maintenance and replacement of the University’s infrastructure.
Aligning resources with strategic outcomes is a key pillar of the plan.