Amid a projected $3.2 million deficit, Southwest Minnesota State University faces budget cuts to correct the situation. A proposal, not yet finalized, has been drafted and is current as of March 26.

Over the next fiscal year, SMSU plans to save $3,231,259. A balanced budget plan is required to be submitted each spring. Final decisions for the budget will be discussed on May 1.
“We are obligated to prepare a balanced budget and everyone will work hard to help us meet that budget,” said Vice President for Advancement and Foundation Executive Director Bill Mulso.

Money saving proposals includes a graduate tuition rate increase of 2.5 percent which is expected to generate $70,000, and a reduction in fixed expenses which is also expected to save $70,000.

In addition, the equivalent of one full time worker is planned to be reduced from the Accounting, Art, Culinology/Hospitality, Education, Finance, and French departments. The elimination of one full time equivalent administrator and safety officer is also planned.

With regard to the department cuts, students can expect the removal of the B.S. in Chemistry (though students seeking a B.A. in Chemistry will be fine), both the Spanish major and minor, and minors in French and Geology.

The B.S. in Chemistry is the less popular science major, and the geology minor has been in the process of being phased out. 100 and 200 level courses will continue to be offered in French and Spanish.

“We have always tried to preserve as many programs as possible,” said Mulso. “We must exam every area of the university for savings and efficiencies making sure to honor bargaining units, timelines, requirements, and input.”

Amid budget cuts, scholarships for continuing students will increase due to an increase in funds raised by the SMSU Foundation.

SMSU is facing the deficit for a number of factors. National trends of shifting demographics and the overall decline in college enrollment have led to money loss. State appropriations have also been less than anticipated.

Financial issues and deficits aren’t new, with a similar issue occurring in 2010 where the school saw a reported deficit of $2.8 million. School staff is dedicated to the existing budget plan and are prepared for a brighter outlook in the coming years.

“This University has been through difficult budgetary times in the past,” said Mulso. “We must address our budget situation in a way that allows us to survive today and prepare us to thrive tomorrow.”