It’s that time of the year when we dig in on the budget planning process.

We actually start to think about the upcoming fiscal year budget in November and December.  We review inflation rates, enrollment, what discussion other institutions are having about pay raises, special projects, etc.

As a reminder, the university’s fiscal year (FY) runs July 1-June 30. We’re currently in FY2023.

Salaries and inflation

The Executive Budget Committee met for the first time two weeks ago. This committee is made up of faculty, staff, students and administrators. It will meet throughout the coming months.

Inflation has been the number one topic throughout the university budget discussions for FY2024. It’s not just about salary increases that will provide some relief for our faculty and staff. It’s also about increased operational expenses also being driven by inflation – utilities, insurance, cost of food (for dining halls), etc.

For comparison on the impact of inflation, below are inflation rates for the last 10 years. Clearly the last two years have been challenging.

• 2013 – 1.5%
• 2014 – 0.8%
• 2015 – 0.7%
• 2016 – 2.1%
• 2017 – 2.1%
• 2018 – 1.9%
• 2019 – 2.3%
• 2020 – 1.4%
• 2021 – 7.0%
• 2022 – 6.5%

Looking forward

In the February meeting, the board made it clear that faculty and staff compensation will continue to be a priority for the coming year.

Last year, they approved a 4% across-the-board raise that went into effect July 1, 2022. The board is considering another across-the-board increase that would go into effect July 1, 2023, with the possibility of reserves for additional merit increases.

We will discuss the budget with the board again in May and bring them a final budget for approval in June. The timing aligns with the final state budget presented to the governor by the legislators at the end of May.

Thanks for all you do for Missouri State.

Clif