Southeast Missouri State University almost halfway to cutting $20 million

It has not come without pain, and there promises to be more hurt ahead, but Southeast Missouri State University has identified nearly half of the cuts in its drive to slice $20 million out of the university's operating budget over the next five years.

But at least one faculty member decries the process as less than collegial and detrimental to education.

Southeast administrators, through the assistance of employees on the budget review committee, have identified $8.73 million in budget cuts. The line item reductions include operating budget cuts in all of the university's divisions, restructuring of fees, restructuring of nonmerit scholarships and a incidental fee increase for fiscal year 2012.

Over the past year, Southeast's departments have identified an additional 5 percent in reductions, expected to save the university nearly $4 million, according to Kathy Mangels, vice president for finance and administration. The plan also calls for trimming about $625,000 in nonmerit scholarships. And the university posted savings through a change in faculty pay scale for summer school, tying enrollment figures to compensation.

"As a result of this new system the university was able to offer courses which have a small number of students as opposed to simply canceling courses which do not meet enrollment standards," stated a memo to Southeast's board of regents. An increase in summer school course offerings and the acceptance of federal Pell Grant funds for the first time in summer session boosted revenue by $540,000.

Perhaps the most controversial of the savings comes with a change in health insurance benefits. A contract with a new provider, which goes into effect Jan. 1, will save Southeast more than $1.1 million, but it comes at a cost to employees. While administrators say the plan will provide "comparable medical and leave benefits," the network does not include Saint Francis Medical Center, specialists and other health care providers found in the current plan.

"Personally I think it's a joke," Philip Finney, Southeast professor of psychology, said of the health plan changes. "Basically they've taken money from faculty and other staff and freed it up for their own use. That's a nasty thing to say, but that's what they've done."

While Mangels and others praise the teamwork of employees and administrators in working out the deal, Finney charges the process was much less collegial.

Finney, a Southeast employee of 35 years and former member of the budget review committee, said there have been rumors about the effect of the budget cuts on staffing.

In January, the university eliminated 24 positions, including 5.5 vacant spots. Southeast president Dr. Ken Dobbins has said there is the possibility of more personnel cuts as the review process continues. There also appears to be the possibility of a faculty pay increase, despite a projected $700 million state budget shortfall and the threat of rising tuition. Faculty wages, at present, are frozen.

Finney acknowledges the challenge his employer faces. Missouri universities are looking at state budget cuts of between 15 and 20 percent, amounting to as much as $9 million for Southeast Missouri State University. The state currently funds about 47 percent of the general operating budget of its universities, with tuition accounting for about 49 percent. Students have picked up an increasing portion of the higher education bill since the late 1980s, when the state funded universities at about 70 percent, Mangels said.

"We think it will be up to the institution itself to have more responsibility and ownership of the budget, and we don't see a substantial change in funding by the state," she said.

As Southeast trims about 15 percent from an operating budget once at $110 million, the university plans to borrow $58 million for an extensive campuswide renovation and maintenance plan. Mangels said she understands the confusion over how the institution is able to tackle the proposed project as it deals with budget constraints, but she said the funding comes from two pots. Finney argues the dollars all trickle down.

"We go into a new year and we've got $3 million defined [in annual loan payments] before we start thinking about enhancing programs or boosting salaries, and we're not talking about any of that," he said.

mkittle@semissourian.com

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