Vargas discusses budget cuts at brown bag lunch

A brown bag lunch and discussion was held on March 9 in the Academic Hall Auditorium by the Office of the President.

This event was held in light of the $3.3 million budget cuts for the 2017 fiscal year and the possible $4.3 million cut if voted in by the Missouri House of Representatives and Senate for the 2018 fiscal year.

Southeast student Grace Bastien was one of the students who attended the meeting.

"I am interested to see if they say anything about raising tuition," Bastien said.

Bastien is a fashion merchandising major and said she had not heard anything about cuts in her department.

Southeast President Carlos Vargas began the discussion with a short presentation of the budget cuts and a few options to lower the blow on cuts.

Vargas told the group nothing has been decided.

These options included an increase in tuition at three different levels and/or creating an increase in the insurance premiums for faculty and staff. He also mentioned holding off on hiring new faculty and staff hiring for four months.

Vargas went on to explain that all ideas would be presented at the Board of Regents meeting in April to be voted upon.

According to the presentation, the state will withhold $3.4 million, around 6.4 percent of Southeast's current budget, for the 2017 fiscal year. Vargas said a delay in hiring new faculty and staff by up to four months could save the university up to $700,000.

Other cuts include debilitating existing funds and balancing the faculty and staff saving pool, among other cuts, which could save the university $3.4 million.

Vargas told the group that student labor or personal development days will not be affected.

For the 2018 fiscal year the governor has planned to reduce Southeast's budget by another $4.3 million, which is around 9 percent of the annual budget. To accommodate these cuts, Southeast plans to increase faculty and staff medical insurance premiums by 11 percent, also increasing the cost of MOSERS benefit plans by 2.5 percent.

Vargas then presented the idea of increasing tuition by three different levels: 2.1 percent per credit hour (PCR), 2.8 percent PCR or 6.65 percent PCR. According to the presentation, if the Board of Regents decided to raise tuition by 6.5 percent PCR all general fees would be waived.

Universities can have this law waived and increase tuition in situations like these, but according to Vargas, this is something the university is not looking into. Also the housing scholarships will be adjusted.

For the full story, visit SoutheastArrow.com.