STATE CUTS HIT UCM STAFF

July 17--WARRENSBURG -- More than 100 people will take early retirement and programs are changing at the University of Central Missouri to address a 9 percent reduction in state funds and an enrollment loss.

UCM President Charles Ambrose in January warned about the "perfect storm" of state budget cuts and declining international enrollment in January. With the fall semester about to start, those cuts are being felt.

While UCM struggles with losing more than $5 million since 2017's original appropriation, Missouri Auditor Nicole Galloway issued a report showing lawmakers granted $5.4 billion in tax breaks over the past decade and the state is on the hook for another $3 billion.

Most in Jefferson City reject tax increases that could address issues in education, health care and roads. The situation limits options to answer higher education needs, Ambrose said.

"Specific to higher ed, tax policy in Missouri has been very favorable to individuals and companies. ... Certainly the appropriations per student in Missouri are significantly less than even neighboring states, so it's not as if there's an over-burden (in taxes) that's being reduced," Ambrose said.

Missouri spends from about 30 percent to more than 45 percent less per student than seven surrounding states. The National Information Center for Higher Education Policymaking and Analysis provided the amount each of the eight state spends per student: Missouri, $160; Iowa, $248; Illinois, $249; Tennessee, $259; Kansas, $263; Oklahoma, $276; Kentucky, $280; Arkansas, $307; and Nebraska, $355.

Compared to the previous year's original allocation, UCM feels the effect of neglect.

"It's over a 9 percent reduction," Ambrose said.

The state allocated $57,921,106 to UCM in 2017, but delivered $53,770,433, a $4.15 million drop UCM spokesman Jeff Murphy stated. Funding for the new fiscal year that started July 1 is well below the nearly $58 million expected after the original 2017 appropriation.

"The appropriation schedule from Department of Higher Education for FY2018 shows UCM receiving a total net appropriation of $52,708,206," Murphy stated.

Losing state funds is one financial blow and another is declining enrollment. UCM expects fewer students from India and other countries due to economic and international political issues, including U.S. anti-immigration policy. Final numbers will not be available until after the September census.

"We expect it will be a significant loss," he said.

To help offset the financial slam, tuition will increase by less than 3 percent, Ambrose said. The increase, expected to generate $1.6 million, will not offset the overall financial toll on UCM. With the twin horns of less money and fewer students gouging the budget, UCM is eliminating jobs voluntarily, Ambrose said.

The 8.4 percent loss in personnel will come from 1,316 faculty and staff.

"Many if not most of those (jobs) will not be refilled," Ambrose said.

Openings are based on employees taking incentivized early retirement.

"Our intent was to use those retirement incentives to reduce staffing by some degree of self-selection rather than having to eliminate 110 jobs with people in them," Ambrose said.

Retirements are expected to help UCM get past fiscal 2018 in a stable position for fiscal 2019.

"Savings produced as we start FY18 is fairly nominal compared to what it will be as we're going into '19, and that's part of the 'reset,'" Ambrose said.

The alternative would have forced UCM leaders to pick jobs to eliminate.

"That's a choice we had to make and we made it. Yes, it's disruptive and, yes, there are some pretty important jobs. That's part of this FY18 reset -- to really reformulate the way in which offices and staffing are structured because we didn't select the people that decided to take retirement."

Retirement does not account for all vacancies, with about 50 already open jobs not being filled.

"In effect, we're in a hiring freeze," Ambrose said.

Dozens of graduate assistantships open to students also will not be filled, including at the campus newspaper, The Muleskinner. Managing Editor Jacque Flanagan said Monday she hopes to continue her job on a scholarship.

Despite staff reductions, outright layoffs are not planned, Ambrose said, but if the state again cuts higher education funds, then layoffs could follow.

"It just all depends on how much revenue we can grow and what our state investment's going to be," he said.

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