Regents Approve $96.9 Million Operating Budget, Auxiliary Operating Budgets for FY2010

CAPE GIRARDEAU, Mo., June 19, 2009 — The Southeast Missouri State University Board of Regents today approved a $96.9 million operating budget for the University and $31.8 million in auxiliary operating budgets, both for fiscal year 2010, the year which begins July 1.

Kathy Mangels, vice president for finance and administration, said the new $96.9 million operating budget includes funding for administrative commitments, including an increase in employee medical insurance, minimum wage increases and state mandated scholarship programs; program enhancements, including base funding and one-time funding for international student recruitment to assist in meeting the goals of the University’s enrollment management plans; and faculty merit promotion dollars for those faculty receiving associate professor and full professor rank, and post-professorial merit.

With no increased revenue from state appropriations or tuition, faculty, staff and students worked together to redesign faculty/staff fee waivers and part-time employee health insurance benefits to reduce expenditures; and identified a two percent cut on instructional budgets and a three percent cut on non-instructional budgets to reduce expenditures to be implemented over two fiscal years.

Mangels said open forums were held with faculty, staff and students at the beginning of the spring semester to gather ideas for increasing revenues and reducing expenditures. These ideas, she said, were considered by the Budget Review Committee in their deliberations, along with factors such as program enhancement requests, faculty and staff compensation committee reports and enrollment projections.

She said the Budget Review Committee was especially challenged in developing the budget this year with the need to cover continuing costs of operations, with no increased revenue from state appropriations or tuition. The University’s Board of Regents in April voted not to raise fees for the coming academic year as part of an agreement between Missouri’s colleges and universities and Missouri Gov. Jay Nixon. The governor proposed a flat budget for higher education for fiscal 2010 with the understanding that institutions would not increase their incidental or general fees.

The budget approved by the Regents today includes estimated income of $47.1 million in state appropriations after a three percent withholding for the Governor’s executive reserve. Anticipated income from state appropriations accounts for 48.7 percent of the University’s total operating budget, Mangels said. The budget also includes estimated income of $47.3 million in student fees, accounting for 48.9 percent of Southeast’s total operating budget, and $2.3 million from other sources, accounting for 2.4 percent of the total budget.

The University’s 32-member Budget Review Committee presented the fiscal 2010 budget to Kenneth W. Dobbins, president of Southeast Missouri State University, for approval. The committee represents all major interest groups on campus, including Student Government. The Budget Review Committee began meeting in December in response to requests by the state legislature for plans to meet substantial potential cuts in state funding. Nixon subsequently proposed a flat budget for higher education if institutions agreed not to raise incidental or general fees.

In related action, the Regents approved the fiscal 2010 operating budgets for the University’s “auxiliary” units, totaling $31.8 million. These self-supporting operations include such units as Southeast Bookstore, the Show Me Center, University Center, Telecommunications, Residence Life, Southeast Public Radio and the Student Recreation Center.