Regents Approve $106.7 Million FY2015 Operating Budget

Board of RegentsCAPE GIRARDEAU, Mo., June 30, 2014 – The Southeast Missouri State University Board of Regents approved a $106.7 million operating budget for the University and $36.8 million in auxiliary operating budgets, both for fiscal 2015 which begins July 1 at their June 26 meeting.

The university’s Budget Review Committee (BRC) developed and recommended to President Kenneth W. Dobbins the fiscal year 2015 budget assuming a 4 percent increase in state funding, which equated to $1.7 million. When Gov. Jay Nixon signed House Bill 2003 last week, he withheld all appropriations increases for all higher education institutions.  Therefore, the proposed University budget had a $1.7 million shortfall.  Regents voted to make up the budget shortfall by raising tuition $3.50 per credit hour to generate an estimated $620,000.

Additionally, the Board decided to fund half (first six months of the fiscal year) of the shortfall ($850,000) and to reassess options in October with the hope that the revenue picture will be better and the Governor’s appropriation withholdings will be reversed. Consequently, the Board used several funding mechanisms to balance the $850,000 budget shortfall, including a $3.50 increase in tuition ($300,000), University fund balance (Rainy Day Fund, $350,000), and a delay in all faculty and staff merit pay increases (excluding promotions) until September 1, 2014 ($200,000).

According to Kathy Mangels, vice president of finance and administration, the $106.7 million operating budget includes a faculty base merit salary increase of 2.1875 percent, a .3125 percent salary pool to fund post-professorial merit increases and a 20 percent increase to the overload and part-time faculty compensation levels. The budget also includes a staff base merit salary increase of 2.5 percent for administrative and professional staff, clerical-technical-service staff, bargaining units and graduate assistant stipends.

The Budget Review Committee is comprised of 30 individuals who represent all major interest groups on campus, including Student Government.

The budget approved by the Regents included estimated income of $44.7 million in state appropriations which accounts for 41.9 percent of the University’s total operating budget, Mangels said. The budget also included estimated income of $59.1 million in student fees, accounting for 55.4 percent of Southeast’s total operating budget and $2.8 million from other sources, accounting for 2.7 percent of the total budget.

The Regents also approved the fiscal 2015 operating budgets for the University’s “auxiliary” units, totaling $36.8 million. These self-supporting operations include such units as Southeast Textbook Services, the Show Me Center, University Center, Telecommunications, Residence Life, KRCU-FM National Public Radio and the Student Recreation Center.

In related action, the Board approved a $94.5 million biennial capital budget request for fiscal 2016 and fiscal 2017 to be submitted to the Missouri Department of Higher Education. The request includes the University fiscal 2016 and fiscal 2017 budget request and long-range plan requests. The first priority for fiscal 2016 capital funding is for remaining campus-wide deferred maintenance projects, including updating building envelopes and mechanical, electrical and HVAC systems throughout many of the University’s oldest campus buildings. Funding also is requested for maintenance to the tunnel system. Renovation of Grauel Building is the next priority. Long-range plans requests for fiscal 2018 funding and beyond are for rehabilitation of the Art Building, and renovation of Crisp Hall in fiscal 2019 and Brandt Hall in fiscal 2020.