Regents Approve $135 Million Operating, Auxiliary Operating Budgets for FY2013

by News Bureau on Wednesday, Jun. 20, 2012

CAPE GIRARDEAU, Mo., June 20, 2012 — The Southeast Missouri State University Board of Regents today approved a $98.3 million operating budget for the University and $36.7 million in auxiliary operating budgets, both for fiscal 2013, the year which begins July 1.

Kathy Mangels, vice president for finance and administration, said the new $98.3 million operating budget includes a faculty base merit salary increase of 1.75 percent and a .25 percent salary pool to fund post-professorial merit increases and an increase to regular non-tenure track merit pay from $1,250 to $2,000. The budget also includes a staff base merit salary increase of 2 percent for administrative and professional staff, 2 percent or $475, whichever is higher, for clerical/technical/service staff and bargaining units, and 2 percent increase for graduate assistant stipends.

Mangels said throughout the FY2013 budget planning process, the Budget Review Committee was committed to keeping college affordable while balancing the University’s need to fund the cost of continuing institutional commitments and operating expenditures and faculty and staff compensation requests.

“Considering that University faculty and staff have only received a 2 percent salary increase in the last three fiscal years, and the demands placed on personnel to continue University operations with reduced budgets, merit based salary increases were a priority for all groups represented on the Budget Review Committee,” Mangels said.

The Budget Review committee is composed of 30 members who represent all major interest groups on campus, including Student Government.

Based on the Board of Regents’ directive in March 2010, the Budget Review Committee deliberated on ways to meet an anticipated budget need of $20 million between fiscal 2011 and fiscal 2015. This shortfall was estimated based on an assumption that state appropriations could be reduced by 15 to 20 percent during this period, the University would have costs to continue normal operations which average $1.2 million per fiscal year, and the University would have to address salary needs for employees during this period, she said.

Mangels said Gov. Jay Nixon has recommended an 8 percent reduction in state appropriations for higher education for fiscal 2013, amounting to a $3.33 million reduction for Southeast. The Governor is currently reviewing the appropriation bills passed by the General Assembly and must approve a balanced state budget prior to July 1.

Based on the assumption of an 8 percent reduction in FY2013, state appropriations would represent only 38.9 percent of the University’s fiscal 2013 general operating income. This is down from 43 percent in fiscal 2012, she said.

“It is the Governor’s responsibility to balance the budget with the actual revenue,” Mangels said. “So if revenues are below projections, the Governor must make changes to appropriations which could result in withholding a portion of all higher education appropriations.”

Due to the Budget Review Committee’s and the University’s previous budget planning which began in fiscal 2010, revenue enhancements and expense reductions previously identified could be used to offset a proposed state appropriation reduction, she said.

“A total of about $300,000 of these revenue enhancements and expense reductions is available for the fiscal 2013 budget,” Mangels said.

“If the more optimistic appropriations are approved by the Governor and Southeast receives more appropriations than the 8 percent reduction used by the BRC, we will treat those appropriations as one-time dollars and use them to purchase much-needed departmental equipment; accomplish campus maintenance and repair projects; and increase the rainy day fund in anticipation of a challenging FY2014 budget year,” Mangels said.

The budget approved by the Regents today includes estimated income of $38.2 million in state appropriations. Anticipated income from state appropriations accounts for 38.9 percent of the University’s total operating budget, Mangels said. The budget also includes estimated income of $57.4 million in student fees, accounting for 58.4 percent of Southeast’s total operating budget and $2.5 million from other sources, accounting for 2.7 percent of the total budget.

In related action, the Regents approved the fiscal 2013 operating budgets for the University’s “auxiliary” units, totaling $36.7 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.