Missouri State University Operating Budget Priorities

Priority — Increase MSU's operating appropriation

Operating Budget

Last year, the General Assembly increased operating appropriations for public universities by 3%. Missouri State University appreciates this investment, which helped address rising costs including utilities, technology and
employee compensation.

MSU has reallocated $33 million in expenses and eliminated more than 70 positions in the past 10 years. Without the increase in state funding received last year, university leaders would have had to make further cuts and reduce services to students to fund mandatory cost increases.

Looking ahead to FY 2026, the university continues to experience increased costs in key areas such as labor, vendor contracts, construction and facility maintenance. In addition, health insurance claims increased by about $2.5 million in FY 2024. The university will also need to budget for $1.9 million in additional MOSERS costs. Moreover, MSU, like all employers, faces a challenging labor market with significant wage pressures.

The Coordinating Board for Higher Education has recommended a core increase of 3% for FY 2026. The CBHE’s recommendation is based on changes in the Consumer Price Index, which is a common measure of general inflation.

While Missouri State University appreciates this request, it will only allow the university to address basic inflationary costs. Public universities that participate in MOSERS will need additional funds to cover mandatory cost increases associated with our retirement plan.

For Missouri State, this would require anadditional 1.7% increase in core funding, for a total of 4.7%.

Deferred Maintenance

Missouri State University takes deferred maintenance seriously. Major capital projects consistently reduce the university’s deferred maintenance backlog by taking old space offline or renovating existing space. A portion of the university’s annual operating budget is dedicated to maintaining and repairing campus facilities, and one-time funds are used to address major projects as the budget allows. In addition, the university increases budgets for maintenance and repair of new facilities, as funding allows.

Even with these efforts, the university has $178 million in deferred maintenance needs. The annual amount dedicated to maintenance and repair is generally $1.2 million — less than 1% of the total needed.

The Coordinating Board for Higher Education’s FY 2026 budget recommendations include a $27 million request that would be allocated among public colleges and universities to address deferred maintenance. Missouri State
University supports this request.

Fair Funding

Missouri State supports efforts to fund public colleges and universities fairly. MSU consistently receives less funding on a per-student basis than other universities in the state. This reduces our ability to develop high-cost programs that meet state and regional workforce needs, provide student services and maintain our facilities. Fair funding will allow Missouri State to achieve the potential associated with its statewide mission.

Economic Development

Missouri State University’s IDEA Commons includes the Roy Blunt Jordan Valley Innovation Center (JVIC) and the efactory. JVIC is a state-of-the-art hub for innovative research and development, including work for the U.S. Department of Defense. The efactory provides support for small businesses and entrepreneurs. JVIC and the efactory receive state grants that support their work. Missouri State advocates for the continuation of those grants.

Priority 2 - One-time MoExcels funding to address workforce needs

Missouri State University’s FY 2026 MoExcels proposal will allow the university to meet workforce needs for professionals in data science. It will increase our capacity to educate students in computer science, software development, math and data science. MoExcels funding will allow the university to increase the number of students who will graduate from those programs by 40% between 2024–25 and 2027–28.

The MoExcels proposal will also enhance students’ educational experience by creating interdisciplinary training space. It will include state-of-the-art teaching labs for computer science, mathematics and data science; expanded opportunities and spaces for research project work in data science; and active learning classrooms.

The proposal includes funds to renovate and equip existing space in MSU’s Cheek Hall. The university respectfully requests $3.5 million in one-time funding to support the project. The university will provide $3.5 million in matching funds.