Regents Approve $114.2 Million FY19 Operating Budget

The Southeast Missouri State University Board of Regents Tuesday, June 12, approved a $114.2 million operating budget and $37.05 million in auxiliary operating budgets for the University, both for fiscal 2019, which begins July 1.

The budget includes tuition and fee rates assessed to students for the 2018-2019 academic year approved by the Board in May. The budget also takes into account expense reductions, revenue increases, the previously Board approved academic restructuring changes, and the realignment of Academic Affairs operational and instructional budgets.

The approved budget is based on a 7.7 percent reduction in state appropriations from FY18 amounting to a $3.37 million decrease for Southeast after one-time withholdings and $1.16 million in costs to continue operations, including mandatory increased retirement contributions.

Dr. Carlos Vargas, president of Southeast Missouri State University, said the University has budgeted for a 7.7 percent reduction in state appropriations in its FY19 operating budget based on former Governor Eric Greitens’ proposed budget. Although the Missouri House and Senate have approved a bill calling for public higher education funding to remain at the FY18 level after one-time withholdings, this bill has not yet been signed, he said.

The $114.2 million operating budget includes $890,000 in revenue increases for FY19 from a small tuition increase for the coming year, an increased overhead contribution from auxiliary operations and an increase in program and web course fees.

The University also has committed to $5.44 million in expense reductions to meet the FY19 budget need. They include scholarship program changes, employee benefit changes, salary and benefit savings from future faculty and staff replacements and vacancies, instructional cost reductions and personnel and operating budget reductions across all divisions. These reductions include eliminating positions in all employee groups across the University, eliminating instruction at the Malden campus and institutional reorganizations.

The budget, which offers no salary increases for FY19 due to budget constraints, includes estimated income of $40.17 million in state appropriations, accounting for 35.5 percent of the University’s total operating budget. The budget also includes estimated income of $69.01 million in student fees, accounting for 60.9 percent of Southeast’s total general operating budget and $4.1 million from other sources, accounting for 3.6 percent of the total budget.

The Regents also approved the fiscal 2019 operating budgets for the University’s “auxiliary” units, totaling $37.05 million. These self-supporting operations include such units as Southeast Textbook Services, the Student Recreation Center, the Show Me Center, the University Center, Telecommunications, Residence Life, Parking and Transit, and KRCU-FM National Public Radio.

Vargas noted that the budgets for Residence Life and Textbook Rental incorporate rate increases approved by the Board in February.

**Photo Caption: Vice President for Finance and Administration Kathy Mangels discusses the budget during a presentation to the Board.