Regents Approve $97.2 Million Operating Budget, Auxiliary Operating Budgets for FY2011
CAPE GIRARDEAU, Mo., June 22, 2010 – The Southeast Missouri State University Board of Regents today approved a $97.2 million operating budget for the University and $32.5 million in auxiliary operating budgets, both for fiscal year 2011, the year which begins July 1.
Kathy Mangels, vice president for finance and administration, said the new $97.2 operating budget approved today includes the following Budget Review Committee recommendations:
• Administrative commitments, including an increase in employee medical insurance premiums and mandated increases to employee retirement contributions.
• Faculty merit promotion dollars for those faculty receiving associate professor, full professor and post-professorial merit.
• Implementation of the fiscal 2011 portion of a 5 percent reduction on instructional and non-instructional budgets to reduce expenditures, which is being implemented over two years.
• An increase on non-resident undergraduate and resident and non-resident graduate incidental fees.
• Reduction in non-merit scholarship expenditures resulting in increased revenue from enrollment.
• Increase in undergraduate, graduate and international student application fees.
• Restructuring of late fees on inactive accounts.
• Implementation of special program course fees on high-cost undergraduate programs.
Mangels said the Budget Review Committee began meeting in November in response to state revenue shortfalls. Subsequently, Gov. Jay Nixon proposed a 5.2 percent cut for higher education appropriations for fiscal 2011, with the understanding that institutions would not increase their resident, undergraduate tuition.
The Budget Review Committee, she said, was challenged with compensating for reduced state appropriation revenues and covering continuing costs of operating, with no increased revenue from resident, undergraduate tuition. Considering that federal stimulus dollars used to fund a portion of higher education appropriations will end in fiscal 2012 and the long-term state revenue challenges, the Budget Review Committee focused their deliberations on meeting budget needs for both fiscal 2011 and fiscal 2012, Mangels said.
The Budget Review Committee identified a potential budget shortfall of $7.76 million for fiscal 2011 and fiscal 2012, she said, based on state budget projections available at the time. The committee, comprised of 30 individuals representing all major interest groups on campus, including Student Government, identified four goals to meet this potential shortfall: using funds identified through the fiscal 2010 budget process for fiscal 2011 costs to continue; a 5 percent budget reduction on instructional and non-instructional budgets; a $2 million reduction of institutional expenditures or increase of institutional revenues; and an increase in resident and non-resident tuition in fiscal 2012.
Updates and recommendations from the Budget Review Committee were presented to the Board at their March and May meetings. Open forums were also conducted by Southeast President Kenneth W. Dobbins, Provost Ron Rosati and Mangels with every college/school and division during the spring semester to discuss the Budget Review Committee’s recommendations for meeting the fiscal 2011 and fiscal 2012 budget shortfall, and additional action items identified during the Board’s March retreat to meet long-term budget challenges. Mangels said comments were considered by the Budget Review Committee in their deliberations, along with faculty and staff compensation committee reports and enrollment projections.
The budget approved by the Regents today includes estimated income of $44.7 million in state appropriations after a three percent withholding for the Governor’s executive reserve. Anticipated income from state appropriations accounts for 46.4 percent of the University’s total operating budget, Mangels said. The budget also includes estimated income of $49.1 million in student fees, accounting for 51 percent of Southeast’s total operating budget, and $2.4 million from other sources, accounting for 2.6 percent of the total budget.
In related action, the Regents approved the fiscal 2011 operating budgets for the University’s “auxiliary” units, totaling $32.5 million. These self-supporting operations include such units as Southeast Bookstore, the Show Me Center, University Center, Telecommunications, Residence Life, KRCU-FM National Public Radio and the Student Recreation Center.
In other action, the Board raised in-state undergraduate incidental fees and fees on lower division courses at Southeast’s regional campuses south of Cape Girardeau by 2.7 percent, the allowable change in the CPI-U as outlined in Senate Bill 389. The Regents then waived the increase so students will be charged the same fees as those for fiscal 2010. Resident undergraduate fees will remain at $184.80 per credit hour. The fee for lower division courses at the regional campuses south of Cape Girardeau will remain at $119 per credit hour.