Budget challenges ahead

All UM System schools will face budget challenges for the 2010-2011 fiscal school year, according to Gary Forsee, the president of the University of Missouri System.

On Oct. 28, Governor Jay Nixon revealed significant cuts in this year’s Missouri state government budget. The university’s core budget has always been protected through an agreement with the state to keep tuition rates flat, but because state revenue is down, it will be necessary to make cuts to programs outside of the core budget in order to meet budget restrictions.

“Our university’s four campuses and health system must respond, anticipate and be innovative in finding solutions to the unprecedented level of change affecting higher education,” a letter distributed by Forsee to statewide leaders, said.
Forsee acknowledged that these budget restrictions were to be expected due to the dwindling U.S economy.

“We have to deal with these budget issues directly, and do it in a way that makes sense for all of our constituents, and engage in our university community as we do,” Forsee, in an Oct. 23 speech, said.
Right now, the state revenue is down by 10 percent compared to last year. The budget cuts will be at about 5 percent, which translates into about $3 million.
The UM System schools are currently 45th in per capita spending for the operating budget, near last in funding for per capita funding, and near the bottom in faculty salaries compared to other university institutions, the speech said.
There will be a number of “transformative measures aligned with our commitment to innovation and being part of the state’s solution to addressing its socioeconomic challenges,” Forsee said.

These transformative measures include convening regional forums to discuss new capital funding and revenue sources, working with the state to increase graduates in math, science, technology, and engineering, improving student-faculty engagement, and increasing college affordability.

These measures are designed to increase funding for UM System schools, increase state revenue growth by employing graduates educated in math and science, and make college a financially possible option for Missouri residents.

The 2011 fiscal year, which begins on July 1, 2010, will be the start of the new budget restrictions for the entire UM System, including the University of Missouri-St. Louis. The university is ready to do its part by taking on some transformative measures, such as filling less faculty positions, making class sizes larger, eliminating some administrative positions and potentially merging some departments.

“We’re just going to do business differently,” Thomas George, the chancellor for UM-St. Louis, said. “Perhaps [there will] be some units—I’m not saying necessarily academic—but some units and activities eliminated. We have areas in facilities, we have areas in student affairs, and we have to work through a process, so I can’t say now because we’re working through the process.”

Campus activities will be the hardest hit with the new budget restrictions, but the student activity fee will remain the same for all UM System campuses.

“The governor would like to see student tuition and fees held flat, so the fee that applies to all students would not change,” George said. “Now, having said that, there are individual fees—you know, certain courses, lab fees ... the College of Business Administration has certain fees for its courses. Its conceivable those could change, but we don’t know that for sure. The fees that apply to all students across the board will be held flat.”
Forsee will hold a town hall meeting at UM-St. Louis on Tuesday to address budget restrictions.