Regents Approve $96.7 Million Operating Budget, Auxiliary Operating Budgets for FY2012

CAPE GIRARDEAU, Mo., June 29, 2011 — The Southeast Missouri State University Board of Regents today approved a $96.7 million operating budget for the University and $34.8 million in auxiliary operating budgets, both for fiscal 2012, the year which begins July 1.

Kathy Mangels, vice president for finance and administration, said the new $96.7 million operating budget approved today includes a faculty base merit salary increase of 1.75 percent and a .25 percent salary pool to fund post-professsorial merit increases. The budget also includes a staff base merit salary increase of 2 percent for administration and professional staff, 2 percent or $450 minimum for clerical/technical/service staff and 2 percent for graduate assistant stipends.

“Faculty Senate was pleased to work together with the Budget Review Committee and the President, Provost, and Vice President Mangels to develop a budget recommendation that included both a faculty merit pay increase and staff merit pay increases during challenging financial times,” said Dr. Kevin Dickson, chair of Faculty Senate.

Mangels said Kenneth W. Dobbins, president of Southeast Missouri State University, had recommended funding faculty promotions as a cost to continue, creating an administrative and clerical/service/technical staff extraordinary merit pool and a 2 percent increase in the stipend for graduate assistants. This was based on the possibility the final reduction to state appropriations would be less than 7 percent originally proposed by the governor.  Since the final executive version of House Bill 3 remained at a 7 percent reduction to Southeast’s state appropriations, it is proposed these initiatives be funded in fiscal 2012 from one-time dollars and incorporated into the fiscal 2013 base budget by the Budget Review Committee, Mangels said. This will require $228,763 of one-time funds, which will be available from summer 2012 increased enrollments, she said.

Based on the Board’s directive in March 2010, the Budget Review Committee has been deliberating on ways to meet an anticipated budget need of $20 million over the next five years, from fiscal 2011 to fiscal 2015. The shortfall was estimated based on the assumption that state appropriations could be reduced by 15 to 20 percent during this period, the University would have costs to continue normal operations averaging $1.2 million per fiscal year and the University would need to address salary needs for employees during this period.

“The University has now identified $9.55 million in fiscal 2011 and 2012 toward meeting that $20 million budget need,” Mangels said.

She added that the governor recommended a 7 percent reduction in state appropriations for higher education for fiscal 2012, which equated to a $3.13 million reduction for Southeast. Due to previous budget planning the Budget Review Committee and the University started in fiscal 2010, there were revenue enhancements and expense reductions previously identified that could be used to offset the state appropriation reduction. This included $1.1 million from redesigning employee benefits and $540,000 from increased enrollment revenue from summer course offerings, both of which were approved by the Board Oct. 22. In addition, the University had assessed a 5 percent reduction of operation budgets on all divisions for fiscal 2011 and 2012.

“A total of $1.8 million of these identified budget reductions is available for the fiscal 2012 budget,” Mangels said.

“Budget Review Committee’s commitment to keeping college affordable had to be balanced with the University’s need to fund the cost of continuing institutional commitments and operating expenditure, and faculty and staff compensation committee reports,” she said.

Mangles said merit based salary increases were a priority for all groups represented on the Budget Review Committee.

The budget approved by the Regents today includes estimated income of $41.6 million in state appropriations after a 3 percent withholding for the governor’s executive reserve. Anticipated income from state appropriations accounts for 43 percent of the University’s total operating budget, Mangels said. The budget also includes estimated income of $52.6 million in student fees, accounting for 54.4 percent of Southeast’s total operating budget and $2.5 million from other sources, accounting for 2.6 percent of the total budget.

In related action, the Regents approved the fiscal 2012 operating budgets for the University’s “auxiliary” units, totaling $34.8 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.