Regents Approve $81.6 Million Operating Budget for Fiscal 2005, Auxiliary Operating Budgets

The Southeast Missouri State University Board of Regents today approved an $81.6 million operating budget for the University and a $25.2 million auxiliary operating budget, both for fiscal 2005, the year which begins July 1.

The new $81.6 million operating budget includes funding for current operations along with allocations for anticipated increases in employee medical insurance, the Missouri State Employees’ Retirement System rate and utilities; academic commitment to base funding for library periodicals; employee salary increases; the establishment of a $400 medical reimbursement account for each employee; base funding of $14,000 for an employee assistance program; and a one percent increase in operations budgets.

The budget, as presented to the Regents, was $749,626 in deficit, since all of the first phase of the University’s Program Review, including elimination of several faculty positions, will not be complete until fiscal 2006. The deficit will be funded through one-time savings in fiscal 2005, Southeast officials said.

Kenneth W. Dobbins, president of Southeast Missouri State University, noted that Gov. Bob Holden has signed the recommended appropriation for fiscal 2005 of $43.8 million, which is $1.026 million above the University’s fiscal 2004 appropriations.

The budget includes estimated income of $42.5 million in state appropriations after a three percent withholding for the Governor’s executive reserve. Income from state appropriations accounts for 52.5 percent of the University’s total operating budget.

In addition, the University fiscal 2005 budget includes estimated income of $36.4 million in student fees and $1.9 million from other income sources. Income from student fees accounts for 45.1 percent, and income from other sources for 2.4 percent of the University’s total operating budget, Dobbins said.

The budget was developed by the University’s Budget Review Committee, which is composed of 28 individuals who represent all major interest groups on campus. The Budget Review Committee met during the spring semester to review current operating revenues and expenditures, evaluate proposed program enhancements and formulate the proposed fiscal 2005 operating budget. The committee considered many factors in preparing the budget, including anticipated fiscal 2005 state funding for Southeast, fiscal 2005 fee rates approved by the Board in February, programmatic requests, faculty and staff compensation committee reports, and fall 2004 enrollment projections. 

The operating budget includes merit-based salary increases of 2 percent or $600, whichever is greater, for all faculty and employee groups. No automatic increases will be given, University officials said, adding that all raises are based on performance appraisals. The $400 medical reimbursement account contribution for each eligible full-time employee is in addition to the base salary increases.

In related action, the Regents approved the fiscal 2005 operating budgets for the University’s “auxiliary” units, total $25.2 million. These self-supporting operations, which do not receive state appropriations, include campus housing, Southeast Bookstore, the Show Me Center, University Center, Telecommunications and the Student Recreation Center.