SEMO regents to consider $174M budget

Southeast Missouri State University's Board of Regents will consider an operating budget for the coming fiscal year when it meets today in St. Louis.

The proposed budget for fiscal year 2020, which begins July 1, totals nearly $174 million, which is a 0.8% increase over the school's current fiscal year budget and incorporates the increased tuition approved by the regents in May.

According to documents provided by the university, the proposed budget includes a merit salary increase for all employees equal to 1% of their current salary or $700, whichever is greater. This would be the first salary increase the university has provided for its employees in the past two fiscal years.

The budget is based on an assumption the university's state appropriation will be the same in the coming fiscal year as it was this year and enrollment will decline by approximately 400 students during the 2019-20 academic year.

In order to balance the university's budget for the upcoming fiscal year, school officials said it was necessary to come up with a combination of revenue increases and cost reductions equal to about $4.3 million.

According to budget documents, the university has identified $3.28 million in net revenue increases including more than $2.4 million from higher tuition, $41,300 from auxiliary operations, $564,650 from adjustments to high-cost-program fees and $268,620 from changes to web-course fees and certain administrative fees.

On the revenue reduction side of the equation, the university anticipates savings of just more than $1 million by reducing utility expenses ($150,000) replacing existing and future vacant faculty and staff positions with entry-level personnel ($589,108) and savings realized through prior reorganizations in academic affairs and previously identified reductions in athletics ($264,796).

Student fees account for 59.6% of the university's anticipated revenue for the coming fiscal year, while state appropriations are expected to account for 35.3% of the school's revenue. The balance of Southeast's fiscal year income is expected to come from "other sources."

As for expenses, the university expects to spend 45.2% of its budget on salaries, 37.4% on equipment and operations, 16.1% on benefits and 1.3% of its budget on student employment. The regents are meeting today and Friday as part of their annual retreat.

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