UM Curators approve $3.9 billion budget, move forward with addition to research reactor

The University of Missouri Board of Curators on Thursday unanimously approved a $3.9 billion operating budget for the 2023 fiscal year.

Operating revenues for MU rose slightly to $1.63 billion in the new budget. The flagship campus and MU Health Care ($1.37 billion) account for over 70% of the total budget.

The expected operating margin for all four system universities combined in the budget is 2.7%, slightly above target, Ryan Rapp, UM chief financial officer, said before the board vote. The operating margin at MU this coming year is budgeted at 1%.

System-wide expenses budgeted for 2023 are comprised of salary and wages (47%), benefits (14%), depreciation (6%), interest expense (2%) and other expenses (31%).

The budget takes into account factors including the continued growth of state appropriations as well as a market and performance salary pool, Rapp said.

The curators in May approved a tuition increase for this fall semester, voting to increase tuition at all four campuses by 4.5% for Missouri resident undergraduate students.

More: Mizzou tuition will increase in fall, with a new structure for 2023-24

"As we work through the budget this year, we've talked about the impacts of inflation," Rapp said. "One of the important things to remember is the federal stimulus that helped us through COVID is expiring as we look forward to next year, and we would expect our financial performance to return to levels similar to those we saw during the pre-pandemic period."

The system's five-year financial plans will be refreshed this fall, Rapp said.

"Some of the focus as we think about what we need to be working on over the next couple of years will be our capital investment plans and how we do a better job of integrating that into our strategic planning and our financial plans," he said.

The board authorized UM System President Mun Choi to submit the system's $494 million state appropriations core funding request for 2024.

In addition, Choi was approved to submit a state appropriations capital funding request that includes $56 million for MU's ongoing Facilities Needs and Operations Reduction Project and funding for renovation initiatives at the other campuses.

More: Mun Choi commits to $500 million in University of Missouri faculty salary increases

Curators approve addition to reactor

An approximately 40,000-square-foot west addition to the MU Research Reactor will move forward after the curators approved the project Thursday.

The $20 million project is part of the state's American Rescue Plan Act funding the university expects to receive as well as other federal appropriations, Rapp said.

The estimated completion date is fall 2024.

"This will provide additional capacity for the work they've been doing," Rapp said. "We'll have additional research space on several of the floors along with additional production capacity as move forward with this building."

Some of the curators toured the facility Wednesday.

"I think we were all wowed," curator Michael Williams said. "That place is amazing. Just the research they're doing at the reactor. They definitely need this space, and I'm very excited that we're moving forward with this."

"They operate this nuclear reactor six and a half days a week," curator Keith Holloway said. "They're only down for 12 hours for maintenance and then they go back in. They're the only reactor on the university level that has that kind of schedule, and that's important for our customers, which are medical providers for cancer isotopes and various things that only (this) reactor can produce."

A lot of people don't understand the impact the reactor has every day on saving lives, curator Greg Hoberock said.

"We are in the lead lap in the entire world with this reactor, and I think we need to commit to it and continue to stay at the front of the pack," curator Todd Graves said.

More: CPS teachers, administrators learn about career opportunities for students upon graduation

Other projects move forward

As part of the effort to move the Women's and Children's Hospital onto the main MU campus, the board approved an $8.5 million renovation of Lottes Health Sciences Library as well as a $10.8 million project to renovate Pershing Commons and relocate the Student Health Center from the University Physicians Medical Building.

The curators also approved fitting out the fourth floor of the Roy Blunt NextGen Precision Health Building at MU with 18,200 square feet of additional research laboratory space. The university had been awaiting further funding before putting the area to use. The $16.5 million project will be funded by a combination of state and federal appropriations, Rapp said.

A new $25.7 million welcome center was approved to be built on the Missouri University of Science and Technology campus in Rolla.

This article originally appeared on Columbia Daily Tribune: UM Curators approve $3.9 billion budget, addition to research reactor