Last week the Executive Budget Committee had its first meeting of the year. The committee will work in the coming months to develop budget recommendations for the Board of Governors.
Performance funding measures
The Executive Budget Committee discussed Missouri State’s results under the new performance funding model. The Springfield campus met all six of its measures. The West Plains campus met four of its six measures. These results formed a part of the governor’s budget recommendations for fiscal year 2019.
As you know, the governor recommended a 10 percent across-the-board cut to core operating appropriations for all public universities and community colleges. The governor also recommended additional cuts for institutions that did not meet all of their performance funding measures.
The result is that the West Plains campus would receive a cut of more than 13 percent to its operating appropriation under the governor’s recommendations. I have joined the presidents from the other public universities to advocate against the governor’s proposal to reduce appropriations for institutions that did not meet all of their performance funding measures.
Staying true to the strategic plan
The Executive Budget Committee looked at the guiding principles we created a year ago. Those principles will continue to guide us as we develop our budget this year. We remain committed to protecting the core mission and strategic plan of the university. Expense reductions will be strategic, and we will continue to prioritize enrollment growth, affordability and transparency as we make financial decisions.
Filling the $8 million gap
The Executive Budget Committee also evaluated projected revenues and expenses for fiscal year 2019.
This year we must fill an $8 million funding gap on the Springfield campus. This gap consists of:
- A $5.9 million reduction in state appropriations under the governor’s budget recommendations
- $1 million in lost enrollment revenue because the mix of our student body changed this year (i.e., we enrolled fewer international students and more domestic students)
- $1.4 million in cost increases for items such as required pension plan contributions, faculty promotions and utility costs
- An offset for $300,000 in new revenue from procurement card incentives and additional interest income
We have identified $4 million in new revenue and expenditure reductions to help fill this gap. The first $2.5 million will be generated by increasing in-state undergraduate tuition by 2.1 percent (which is the amount of CPI) and increasing out-of-state and graduate tuition by 4.2 percent. We have also identified $1.5 million in administrative expenses that we can eliminate before the next fiscal year begins.
This leaves a remaining gap of $4 million. The Executive Budget Committee evaluated several strategies to generate additional revenue to address the remaining funding gap. We will continue to work in the coming months to close the gap and develop a stable fiscal year 2019 budget. We will also continue to aggressively advocate that the legislature restore the appropriation cuts recommended by the governor.
Diving into Missouri’s economy
The Missouri Budget Project is a public policy analysis organization that researches and analyzes state budget, tax and economic issues. Amy Blouin, the executive director of the Missouri Budget Project, will be on campus to present and discuss issues related to Missouri’s budget, taxes and economy on Feb. 26 at 7 p.m. in the Welcome Center. Please join me in participating in this conversation.
Thanks for all you do for Missouri State!