Serine
The University of Missouri Board of Curators has officially approved the FY26 budget, totaling $5.3 billion, which includes $40 million in cuts aimed at addressing fiscal challenges.
The newly approved funding will be allocated across the university’s campuses in Columbia, Kansas City, St. Louis, and Missouri S&T.
Federal Grant Decline Spurs Budget Adjustments
Executive Vice President of Finance and Operations Ryan Rapp explained that the budget reflects a nationwide reduction in federal research and development grants, contributing to an expected $7–$8 million shortfall in grant and contract revenues.
“We’re not anticipating federal funding growth like we’ve seen in previous years,” said Rapp, highlighting the shrinking grant support as a primary concern.
Employee Raises and Strategic Reallocations Planned
To maintain competitive compensation, the university will establish a performance-based raise pool, offering average raises of 2–2.5% for eligible faculty and staff.
However, these increases will be tied to individual employee performance evaluations.
To fund these adjustments, the university is making targeted reductions and reallocations across multiple departments, aiming to optimize resources without disrupting core functions.
Moderate Enrollment Growth Anticipated
The FY26 budget also factors in a 1% increase in student enrollment, indicating cautious optimism despite broader financial tightening.
Budget Controls: A Shift Toward Caution
Although there are no strict hiring freezes, Rapp emphasized the implementation of hiring restrictions and purchasing controls to help manage expenditures more prudently.
“We’ve moved from a green-light environment to yellow,” Rapp noted. “It’s about slowing down and being strategic.”
The 2026 fiscal year officially begins on July 1, 2025.
The University of Missouri is navigating fiscal headwinds with a pragmatic and forward-thinking approach.
By balancing budget cuts, reallocation of resources, and a performance-based raise structure, the institution aims to safeguard academic excellence and operational efficiency.
With federal funding tightening, these decisions reflect a proactive strategy for long-term financial sustainability.