Missouri State University's FY 2027 Operating Budget Priorities

Operating budget

Missouri State University is grateful for the funding increases supported by the General Assembly and governor in the last several years, which have helped address rising costs in operations.

These include MOSERS retirement contribution increases mandated by the MOSERS board, utilities, technology and supplies.

These appropriation increases have been historic and helped mitigate negative impacts on university operations and offerings for students.

However, inflation and MOSERS employer contribution rate requirements have continued to drive financial pressure on institutions across the state — and Missouri State is not immune.

For FY 2027, the MOSERS board of directors has established a minimum employer contribution rate of 32%. This is an increase from the prior minimum rate of 30.25%. The cost of the state’s new policy to the Missouri State University system is an increase of approximately $2,201,999 over last year’s contribution rate.

Of note, last year’s contribution rate also increased, resulting in an increase to the university of $1.9 million, which the 1.5% increase to the university’s operating core provided approximately $1.5 million.

In response to these financial pressures, Missouri State instituted a hiring freeze mid-FY 2025 and subsequently cut the affected positions, mitigated more than $37 million in expenses and eliminated more than 100 other positions in the past 10 years. Without an increase in state funding for FY 2027, university leaders will have to make further cuts and consider a reduction in services to fund mandatory cost increases.

Accordingly, Missouri State University requests $2,201,999 to address the mandatory retirement contribution increase. We also support the Coordinating Board for Higher Education’s FY 2027 budget recommendation for a 4% inflationary increase for all higher education institutions.