Pay raises absent from MSU’s proposed FY27 budget

Missouri State University employees are unlikely to see an across-the-board pay increase at the start of the 2026-27 academic year.

Top officials cited flat state funding, higher expenses and the possibility of stagnant or lower enrollment in recommending against a general increase as part of a May 7 operating budget update to the MSU Board of Governors.

Matt Morris, vice president for administrative services, urged the board – which will be asked to approve a final fiscal year 2027 budget in June – to take another look at the issue of a pay increase later this calendar year.

“As we get into the fall, things become more known. We know what is coming from the state for real. We know what enrollment is for real,” he said. “If enrollment comes in better than projected, then certainly we could revisit compensation.”

At the start of the current fiscal year, MSU said there were 1,465 full-time staff and 825 full-time faculty positions for a total of 2,290. The total compensation amount was listed as $149 million.

The across-the-board pay raise for FY26 was $600.

In a meeting with the board, Morris discussed employee pay as part of an overview of the proposed FY27 budget. Financial cuts during the current year and a plan to generate more revenue through higher tuition this year were key.

In the past year, to offset a shortfall in tuition and fees, MSU cut 47 positions, mostly through attrition, and other expenses to save $6.6 million. Morris noted the positions are not being added back this year, so that is an ongoing savings.

The board recently voted to increase tuition and fees by 5%, which translates to $15 more per credit hour for in-state undergraduate students and $20 more per credit hour for in-state graduate students.

Morris said while no across-the-board raises are proposed, the university plans to spend an additional $1.1 million this year to cover rate hikes for health insurance and retirement benefits.

The amount also includes $439,370 for faculty promotions. For example, pay for faculty members goes up if they move from the rank of associate professor to professor.

“They have to do certain things to be promoted in rank, but those are all funded salary range adjustments,” Morris said.

Board Vice Chair Travis Freeman, a certified financial planner from St. Louis, asked Morris how employees have reacted to the lack of an across-the-board pay increase.

Morris said employees want higher pay, and they’ve made that known in staff surveys and meetings. He acknowledged that they are not happy with the lack of a general pay increase.

“I also feel like our people understand if you present the data and they see where enrollment is at, if they see the state is not giving us [more] appropriations. We have good people, and they understand what we’re up against,” Morris said. “I can’t do a Pollyanna answer of ‘Everybody is so excited,’ it’s not that, but they understand.”