(Update) Murray State Predicting $4.5M Decline in FY17 Tuition & Fees Ahead of FY18 Budget
Update/Clarification: Murray State officials said Monday the university is predicting a decline in net tuition and fees this fiscal year, which the university plans to mitigate in the next fiscal year budget. The story has been updated to reflect this detail.
Murray State University is predicting a $4.5 million decline in net tuition and fees in fiscal year 2017, which officials hope to mitigate in the next budget.
The estimated deficit this fiscal year was presented during a financial report to the Board of Regents in a meeting on Friday.
The amount is based on current numbers and could change with summer enrollment and tuition revenue.
Vice President of University Advancement Adrienne King told WKMS, "There will not be a budget shortfall in the FY18 budget." President Bob Davies said budget discussion is underway and much of the $4.5 million could be offset by the general fund and a potential tuition increase.
Board Chair Stephen Williams says the Council on Postsecondary Education has issued guidance for a tuition cap of three percent.
He says that is one factor that will be taken into consideration as the university develops the next budget.
“We are very, very sensitive to any increases in tuition and want to minimize that while at the same time being financially responsible for the university both in the short term and the long term," Williams said.
Williams called for a special meeting in April to address tuition. He says performance funding, pension liabilities and other federal and state level actions will also determine the next budget.
The board will present and approve the budget for fiscal year 2017-18 in June.
Murray State had a $9.1 million deficit in 2016, ahead of the 2017 budget. This was largely due to the 4.5% reduction in state appropriation. The Board of Regents then approved a 4.5% tuition increase.
This story has been updated.