SMSU Seeking Ways to Reduce Deficit
March 31, 2016
Southwest Minnesota State University faces a deficit between $700,000 and $800,000. Ways to reduce the budget are being looked into, but no decisions have been made as of March 14.
Vice President for Finance and Administration Deb Kerkaert admits that it has become more difficult to make budget cuts, because cuts made in previous years remain in effect.
“Over the last [several years] our funding really hasn’t kept up with our expenses,” Kerkaert said, “so we haven’t been able to add back some of those things that we cut in prior years.”
This makes it more difficult for SMSU to reduce expenses each time it has to. In 2014, operating budgets for all the departments on campus were reduced by 10 percent, and they continue to operate with those reductions.
“Now to cut $700,000-$800,000 more in expenses is harder,” Kerkaert said, “because we have to do that on top of the cuts we’ve made in prior years.”
It is likely that operating expenses will be reduced again, but Kerkaert said that other methods are being looked into.
“We’re [asking], are there positions that don’t need to be filled?” Kerkaert said, “Are there some adjunct, or overload type faculty positions?”
Overload is when a full-time faculty member works more than their 24 credits. Adjunct are faculty who are hired to cover additional classes, but they are not fulltime employees.
“Part of it with our budget decisions, is not only do we need to reduce our expenses, but are there ways that we can increase our revenue?”
Fortunately for students, tuition rates will not go up.
“The funding from the state comes in a two-year package,” Keraert said, “and part of that package this past year was that we could raise tuition this current year, but we can’t raise tuition next year, so by state legislative action we can’t do that.”
Community colleges will have to reduce their tuition by one percent, but state universities will be allowed to keep their tuition rates the same.
Although state universities are not allowed to increase tuition, they are allowed increase fees.
“Parking is going to increase by twelve cents a credit,” Kerkaert said.
There will likely be increases in residence hall expenses as well, but Kerkaert says that is a separate budget.