MU’s FY2020 budget continues focus on student affordability, research productivity, faculty and staff support

Reallocations result in reductions averaging less than 5%

April 19th, 2019

COLUMBIA, Mo. – University of Missouri Chancellor Alexander N. Cartwright and Vice Chancellor for Finance Rhonda Gibler announced budget decisions for the university’s Fiscal Year 2020 (July 1, 2019 – June 30, 2020) saying that the university was committed to student affordability, supporting research, and recognizing faculty and staff for their continued dedication to MU.

“Last year, I commented about how the future was bright for MU,” Cartwright said. “This year we saw tremendous achievements – a Nobel prize, record-breaking grants, new facilities, and sizable freshman enrollment growth. Our strategies and priorities have to drive our budget in order to keep that momentum going. For the upcoming year, we will continue to make changes to our budget that focus on supporting our priorities of affordability, research success and employee recognition.”

This year, more than 80 percent of students experienced a net decrease in the cost of a Mizzou education. Costs related to housing, dining and books were reduced while additional money was invested in scholarships and other financial aid. Several schools and colleges experienced increases in research productivity, and a merit-raise pool was provided to recognize faculty and staff, the first such universitywide raise pool in several years.

For FY2020, reallocations of approximately $25 million will be administered across the university. Of the $25 million, $9.6 million will be targeted for scholarships, $10.5 million will be used for employee performance and promotion raises, and $4.6 million will be invested in research support, which includes new centers of excellence, faculty retention and support for the Artist-in-Residence program.

The reallocations will result in budget reductions to university divisions by an average of less than 5%. The highest reductions equal a little more than 10% and will be absorbed by the Chancellor’s Office and the Office of Advancement. Additionally, the Office of the Provost will absorb a 9.9% reduction, and the Office of Finance will absorb a 7.6% reduction.

“We must lead by example, and we’re always looking for ways to make our administrative offices more efficient so we can focus our resources on academics, research and supporting our faculty and staff,” Gibler said. “The university is strong financially. We are making these decisions to refocus our priorities, ensure operations continue in a financially responsible manner, and make sure we continue to address the needs of the state and our students.”

Most reallocations will be absorbed through attrition, not filling empty positions or other department actions. University officials continue to watch how challenges with the state’s fiscal health could impact the future budget.