MSU prepares for budget cuts in case state funding drops

by David Catanese, KY3 News

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By Gene Hartley

SPRINGFIELD -- Missouri State University is planning for the worst when it comes to dealing with a souring economy over the next few years. The university has a contingency plan if the state cuts its higher education funding.

President Mike Nietzel is not proposing any reductions yet but he is asking department heads to plan for a 5-percent cut in their spending.

Nietzel is also asking deans to prioritize hiring vacancies into three tiers, in an order of importance. Finally, he wants them to design stiffer guidelines for class enrollments, meaning they won't offer certain classes if a certain number of students aren't enrolled.

This is all based on an expected revenue shortage heading into fiscal year 2010, which starts next June 1.

“I'm asking for plans that would be put in place were there a reduction. I'm not planning for a 5 percent reduction or a 10, but we need to be prepared, if there is one, to address it,” Nietzel said on Wednesday.

This is an exercise that Nietzel has done before but it has heightened importance this year because of the rough economy and the expected drop in state revenues. The state's budget picture will be a little clearer when the next forecast comes out in early December.

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