SEMO Board of Governors approves FY25 budget

Southeast Missouri State University's Board of Governors approved the proposed fiscal year 2025 budget of $156.3 million Tuesday, June 25.

Southeast Missourian file

The Southeast Missouri State University Board of Governors approved a proposed operating budget for fiscal year 2025, which begins Monday, July 1, at its meeting Tuesday, June 25.

The budget totals $156,310,091 in total estimated income for FY25, an increase of $3,444,458 (2%) from FY24 which includes a $154.7 base budget and a $1.6 million reserve fund.

“SEMO’s Board of Governors took action today to approve a balanced fiscal year 2025 university operating budget, reflecting our commitment to financial responsibility,” SEMO president Dr. Carlos Vargas said. “This balanced budget helps us to continue delivering exceptional value to our students, alumni and community.”

The university anticipates its education and general budget, which supports academic instruction, athletics and general operations to total $120,619,877. SEMO’s auxiliary units total $28,765,951 and are generated by areas such as the Student Recreation Center, Show Me Center and Residence Life to account for their expenses, and its designated funds, used for specific purposes or services, which total just under $7 million.

According to a news release from the university, the approved budget includes a projected $2.5 million cost increase on items such as property insurance, utilities, contractual obligations and projected inflation, along with a 2% merit pay increase for employees and a 1.49% increase on retirement benefit rates through the Missouri State Employees Retirement System.

Board minutes show that SEMO is estimated to receive $53,608,108 in state appropriations, $57,598,091 in tuition and student fees and $45,103,893 in “other income” that includes funding from the university’s return on investments, state grants and athletics. Because of the passage of House Bill 03 during the Missouri General Assembly, SEMO will receive a 3% increase in appropriations.

“We are appreciative of the governor’s recommendation of a 3% increase in our state appropriations, which will help offset increases in operating costs, and we are appreciative of the legislature’s endorsement of this recommendation,” Vargas said. “We look forward to the governor taking final action on FY25 budget bills in the days ahead.”

SEMO’s total estimated expenditures are estimated at $143,677,180, which is a $3,900,644 (3%) increase from last year. Estimated expenses include $97,687,526 for personnel, $45,989,654 for equipment and operations and $12,399,102 for mandatory debt payments.