State universities face dual woes

Decrease in funding, rise in operational costs

A Lincoln University student crosses the bridge from Page Library on Lincoln's campus on April 30, 2016.
A Lincoln University student crosses the bridge from Page Library on Lincoln's campus on April 30, 2016.

Public universities in Missouri are bracing for impact as they face a 6.5 percent cut in state funding.

The 2018 budget that reduces higher education funding currently awaits a signature from Gov. Eric Greitens and would have wide-ranging implications for administrators, faculty and students, including layoffs and tuition hikes.

Lincoln University curators voted in May to raise tuition, room and board, and other fees that amounted to a $355-per student cost increase. LU also announced plans last Monday to cut nearly 50 jobs and reduce staff salaries. The plan would need approval from curators in June.

The University of Missouri System Board of Curators took the same approach, approving a 2.1 percent tuition increase last week. The University of Missouri-Columbia plans to cut more than 300 jobs - 147 vacant positions and 181 filled positions - according to a memo from MU provost Garnett Stokes last week.

Four universities in central and southern Missouri - Missouri Southern State University, University of Central Missouri, Southeastern Missouri State University and Missouri State University - took similar approaches to the reduced funding, using both tuition hikes and job cuts. The only one of those schools that has not made job cuts is UCM.

The schools also reviewed several academic programs and activities to find places to save money. Operational costs also rose at the schools, including an increase to the Missouri State Employees Retirement System contribution rate.

Missouri Southern State University in Joplin stands to lose $2.2 million next fiscal year, and the Board of Governors voted to raise tuition in March for both in-state and out-of-state students.

In-state students and students within the university's Lion Pride area - states that border Missouri as well as Texas - will pay $6.34 per credit hour more for the 2017-18 school year. Out-of-state students will pay $9.52 per credit hour more next year.

MSSU spokesman Scott Meeker said the university also cut 13 full-time positions - some were layoffs and others were vacancies that will go unfilled. The university discontinued several programs, including a legislative internship program, dance team, a student-produced arts publication, paralegal certificate program, fire academy, and dental hygiene satellite programs in Sikeston and Rolla.

While the university doesn't have an estimate for fall 2017 enrollment, Meeker said the numbers are looking positive.

"I think we'll be happy with where we're at come fall," Meeker said. The university had a record enrollment of 6,229 students in fall 2016.

Meeker said the board has approved an $800,000 deficit budget for the 2018 fiscal year.

Southeast Missouri State University in Cape Girardeau is modeling its budget on the assumption it could lose as much as 8.5 percent of state funding, President Carlos Vargas said.

That amounts to $4.1 million, and Vargas said other rising operational costs bring that total to $6.1 million. There will be no layoffs for faculty and staff, but 13 vacant positions will remain unfilled.

The Board of Regents voted in May to raise tuition by $6.50 per credit hour, and a final budget will be approved in June. Vargas said administration is also conducting a comprehensive review of all programs and activities and will make decisions based on performance. A final budget will be recommended to the board in June.

"We've tried to protect what I would call the classroom environment," Vargas said. "We are trying to avoid having a negative impact on faculty and students and our programs."

Enrollment at SEMO has remained fairly steady over the past five years, hovering around 12,000 students. Enrollment in the past 10 years was highest in 2014, when the university had 12,087 students.

Enrollment numbers for fall 2017 are still coming in, but Vargas said he expects the numbers to remain about the same.

"We're working very hard to attract first-time freshmen," Vargas said. "I'm pleased with what we have been doing, and I envision this incoming class to remain relatively similar to last year's."

Vargas began his position as president in July 2015 with the goal of improving and sustaining academic success and making SEMO an innovative campus. However, funding cuts to higher education make that more difficult.

"Our ability to provide the kind of support that students need to be successful is one that may be hindered by our appropriations being reduced," Vargas said. "We are very fortunate, though, to have a very committed faculty and staff who do and will continue to work hard to ensure our students' success."

The University of Central Missouri's budget will be reduced by about $3.8 million as a result of the state funding cuts, and the university also faces additional cost increases, UCM spokesman Jeff Murphy said.

The UCM Board of Governors voted to raise undergraduate tuition by 2.09 percent, or $4.52 per credit hour. That's in addition to a mid-year increase of $1.63 per credit hour increase, amounting to a $6.15-per-credit-hour increase students will pay next year.

UCM's in-state graduate tuition was increased by 4.99 percent. Murphy said the tuition increases will bring in about $1.6 million in revenue next year.

Murphy said UCM is projecting a decline in fall enrollment because of a decline in international students, but numbers haven't been finalized yet.

UCM has not made any decisions on staff or faculty cuts yet, but that could change before a final budget is presented to the board in June.

"Our goal is to do everything possible to preserve faculty and staff positions, but there is a possibility that we may need to make some reductions as we continue through the budget process," Murphy said.

A hiring freeze has been initiated on open positions, and the university has also offered a voluntary retirement incentive benefit to 280 retirement-eligible employees.

Missouri State University is heading into the next fiscal year assuming about a 9 percent decrease in state funds, which means it has to make $7.4 million in cuts at its Springfield campus.

Enrollment growth and a 2.1 percent undergraduate tuition hike will help create $3.4 million in revenue next year, President Clif Smart said. Graduate and out-of-state tuition will increase by about 4 percent next year.

The university has seen its enrollment grow by more than 14 percent since 2012, and Smart said freshman applications for next year are up by about 4 percent. He attributes the enrollment growth to MSU being a value option for students.

"We believe the experience you get here is as good or better than any other undergraduate experience in Missouri for significantly less money," Smart said.

Even with the revenue from enrollment, that still leaves $4 million to be cut from the budget. Smart said $2 million of that will come from payroll reductions - about 25 vacant positions will go unfilled and eight people were laid off - and the other $2 million will come from reductions in various campus events and activities as well as operational reductions.

A final budget will be approved by the Board of Governors at its meeting in late June.

As the university prepares to tighten its belt, Smart said he will continue to work with the Greitens administration to advocate for the continued support of higher education.

"I think we just need to make our case that college is important for the individual but also for the state and for our society," Smart said.

"Ultimately, supporting state schools to help more people get through college is important if our economy is going to improve."