Regents approve operating budget; small raise first in two years for staff

The Southeast Missouri State University Board of Regents approved a total operating budget of nearly $174 million for the university’s upcoming fiscal year during its two-day annual retreat Thursday and Friday in St. Louis.

The budget for fiscal year 2020, which begins July 1, is 0.8% more than the university’s budget for the current fiscal year ending June 30 and includes a merit salary increase for faculty and staff amounting to 1% or $700, whichever is greater, over their current salary. Information provided to the regents noted it is the first salary increase the university has provided for its employees in the past two fiscal years.

The budget also takes into account tuition and fee rate increases for the 2019-2020 academic year approved by the regents in May as well as several other areas of revenue increases and some anticipated expense reductions.

At $123.3 million, the university’s education and general (E&G) budget accounts for the largest portion of the school’s total budget and includes $3.28 million in net revenue increases to meet the FY20 budget need. According to university officials, the additional revenue will come from an increased overhead contribution from auxiliary operations, adjustment to high-cost program fees and changes to the fees charged for online courses, transcripts and orientation.

The university has also committed to just more than $1 million in expense reductions in FY20 utility costs; salary and benefit savings generated from existing and future faculty and staff replacements and vacancies; savings from previous reorganizations in academic affairs at the university’s regional campuses and in advanced placement activities; and through previously identified reductions in athletics.

The E&G operating budget includes estimated income of $43.53 million in state appropriations, accounting for 35.3% of the university’s revenue; $73.6 million in tuition and student fees, representing 59.6% of the revenue budget; and $6.31 million from other sources, or 5.1% of the total revenue budget.

The regents also approved the FY20 operating budget for the university’s auxiliary units, totaling $35.5 million. University auxiliaries are self-supporting operations and include residence life, textbook services, the Student Recreation Center and Aquatic Center, the Show Me Center, parking and transit, telecommunications and the university’s National Public Radio station, 90.9 KRCU-FM.

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