MSU-West Plains faces budget deficit of $900K, staff cuts expected

The Missouri State University-West Plains campus is planning to cut spending, which will include a loss of an unspecified number of jobs, to offset an expected budget deficit of up to $900,000 in the current fiscal year.

Chancellor Zora Mulligan said the exact size of the deficit and the mix of cuts are still being finalized.

“They’re all really hard decisions for the West Plains campus,” Mulligan said in an interview with Springfield Business Journal.

“Trying to think about the way that we can continue to serve students effectively and meet community needs while also addressing the deficit is a challenge.”

Mulligan, who had been executive vice president of the Springfield campus, moved to the MSU-West Plains chancellor role July 1, 2025, after the retirement of Dennis Lancaster.

Her tenure started with an inherited deficit of $675,053 from fiscal year 2025, which wiped out a primary reserve fund on campus.

In a late October town hall, and a recent interview with SBJ, Mulligan provided an overview of the financial situation, what steps have been taken and what tough decisions remain.

“My approach has been to provide as much information as can ethically be provided at any given time, being very upfront about the significant magnitude of the challenge,” she said.

Mulligan’s team was able to whittle down part of the inherited deficit during the first half of fiscal year 2026, but lower-than-expected enrollment, budgeted amounts that veered from historic spending levels, and inaccurate revenue projections are expected to drive the deficit higher this spring.

“We’re working on the assumption that it’s in the ballpark of $900,000 with the anticipation that it could be a little better than that,” she said.

The FY26 budget was based on enrolling 983 degree-seeking students in West Plains, but the actual number was 934, which meant fall tuition and fees were $440,000 less than budgeted for, with another drop expected for spring.

A budget approved by the MSU Board of Governors in June 2025 projected $13.1 million in total operating expenses for the campus this fiscal year.

Mulligan said the campus must address the deficit through spending cuts to develop a balanced, or no-deficit, budget for next year.

“We have identified savings that are intended to close that gap to as close to zero as we can get by the end of fiscal year,” she said.

Mulligan started by restructuring her administrative council, cutting two of her seven direct reports. The eliminated positions include associate vice chancellor of business support services Crockett Oaks III, and associate vice chancellor of administrative services David Young.

MSU-West Plains reduced funding for travel, services and supplies and took other steps aimed at avoiding deeper cuts to frontline and mid-level positions, Mulligan said.

“We have been able, in some cases, to pay for some positions using grant funding or other designated funds,” she said. “It does address the budget deficit. but in the long term, we’ll have to identify other funding sources for those positions and programs.”

Mulligan said cuts to faculty and staff positions appear unavoidable, but the scope is not yet final. Her team will first look at cutting through attrition – not filling positions left vacant after resignations and retirements – but she said layoffs are likely.

Current personnel includes 135 full-time faculty and staff positions, along with 43 adjunct faculty and 71 part-time staff, not including student workers.

“You’re talking about people,” she said. “It’s important to respect confidentiality and try to approach all of this decision-making in a way that is as respectful as possible to the individuals who may be affected.”

Mulligan said final staffing decisions are expected in April and May.

As work to fix the deficit continues, MSU-West Plains is developing a FY27 budget, which has its own challenges.

Mulligan said the campus expects flat state funding, the sunsetting of several grants, and higher costs including a larger required contribution to the Missouri State Employees’ Retirement System, also called MOSERS.

Simultaneously, the campus is retooling strategies to recruit and retain students. A series of initiatives are expected to be identified in the coming weeks.

“Although it’s been a daunting first year, I am very confident about the progress that we’ve made,” she said.