UCM Board Adopts Budget Proposal that Includes Changes in Employee Compensation

By Jeff Murphy, April 26, 2019

WARRENSBURG, MO – Although the University of Central Missouri’s Fiscal Year 2020 budget will not be finalized until June 2019, the forecast for revenue and anticipated expenditures includes a plan to increase compensation for UCM employees. The university’s Board of Governors on April 26 approved the proposed preliminary FY 2020 budget, pending final legislative approval of state funding for UCM.

Staff members will receive a salary increase of $1,040 per annum or 1 percent, whichever is greater. For hourly employees, $1,040 equates to 50 cents per hour. Faculty members who were approved for promotion in rank will receive a change in salary as prescribed by the Faculty Salary Model, unless an exception is otherwise noted. Faculty members who are not promoted in rank and whose current salary falls below the FY 2020 respective minimum in the Faculty Salary Model will receive the greater of the following: the increase required to achieve the FY 2020 respective minimum; $1,040, or 1 percent of their nine-month salary. All other faculty will receive the greater of $1,040 per annum or 1 percent of their nine-month salary. Individual exceptions may apply to these salary changes. Additionally, UCM’s minimum wage for all current and newly hired full-time employees will be reset to $10.50 per hour effective July 1.

“We appreciate the Board of Governors’ diligence and oversight of our budget planning process. Addressing compensation for our faculty and staff has been a priority during this process, and the preliminary budget approved today will allow us to make a small adjustment in salary despite challenging financial conditions,” said UCM President Roger Best.

In board discussion about the budget, it was noted that the total unrestricted revenue projection for FY 2020 is $145.8 million, an estimate reflecting Enrollment Management’s student credit hour forecast, the FY 2020 board-approved rates for tuition and fees, and an assumption that core appropriations will remain at the fiscal year level of $54.3 million. Revenue projections also include House of Representatives’ recommendations for designated one-time funds of $1 million for deferred maintenance and $674,500 for the MO Excels Workforce Initiative. Because Missouri’s Governor traditionally withholds 3 percent of appropriations to higher education, UCM expects to actually receive approximately $52.7 million in state appropriations, if the state funding projections hold true.

The budget proposal considered by the board includes a $1.2 million allocation in the FY 2020 operating budget for changes in compensation not covered under the faculty salary model.