Morehead State and the 2010-12 Budget
Briefing No. 6 by President Wayne D. Andrews
TO: Regents, Faculty, Staff, Students, Parents, Alumni, and Citizens
DATE: August 16, 2010
With the fall semester set to open in a few days, it is important that members of our academic community understand the University’s budget situation as we move into a new fiscal year and academic school year.
This is the sixth of a series of budget briefings I am providing via e-mail and postings on the University’s Web site at the following link: www2.moreheadstate.edu/budgetcrunch
As you are aware, Gov. Steve Beshear called the General Assembly back to Frankfort in May to enact a biennial budget and that effort was successful. State government did not have to suspend normal operations on July 1. However, the 2010-12 state budget included a cut of 1.5 percent in our state appropriation and we did not receive funding for maintenance and operating (M&O) costs of new facilities. For MSU, the decision to not fund M&O equates to an additional budget reduction of $2.1 million as we will be forced to reallocate from the existing operating budget to cover these expenses. Also, each institution and its employees are now paying higher contribution rates to the KERS and KTRS retirement systems.
The Council on Postsecondary Education (CPE) approved a maximum raise in tuition for public regional universities of five percent but that increase, coupled with our loss of state general funds and maintenance and operating support, still left us with a budget gap of more than $2 million between projected income and expenses. We held some funds in reserve in anticipation of this year’s financial challenge but this year’s budget is the most delicately balanced in the five-plus years I have been your president. READ MORE