The Regents approved the plan to compensate for an anticipated additional five to 10 percent withholding of state appropriations. The Board approved the plan due to shortfalls in Missouri's state revenue and the possibility of further withholding from higher education budgets. University officials say the governor has not yet identified the magnitude of additional reductions.

Under the plan, the University would cover the first $1 million of additional appropriation withholdings with one-time funds that were planned for during budgetary forums, restructuring and reallocations earlier this fall. The next $750,000 would be funded by net enrollment growth.

The balance would be funded by reductions in fiscal 2003 budgets, the University's replenished Rainy Day Fund and an incidental fee surcharge for spring and summer semesters in 2003, with each of these areas to account for one-third of this component. The total to be recouped from these areas is dependent upon the amount of additional appropriation withholdings.

An additional five percent reduction in appropriation withholdings for the University translates into a $2.03 million cut. An additional 10 percent reduction in appropriation withholdings translates into a $4.06 million cut.

University officials say that every $1 per credit hour increase in incidental fees would generate $100,000. If Holden were to announce an additional five percent withholding from Southeast's state appropriation, a $1 per credit hour surcharge would be enacted. An additional 10 percent withholding would call for an $8 per credit hour surcharge. Under the plan approved today by the Board, a surcharge above $8 per credit hour would require further Board action.

Dr. Ivy Locke, vice president for business and finance, said students were notified in their December billing statements of a possible additional surcharge and that if it became necessary, the surcharge would appear on their January 2003 statements. She added that delayed due dates for the surcharges will be identified.

In June, the Board of Regents approved a proposal to balance the fiscal 2003 budget. In August and September, campuswide forums were held to identify budget reductions. In October, the Regents approved a balanced budget, which reflected position eliminations and departmental consolidations. The plan currently is being implemented, and the projections appear to be in line, Locke said.

She added that in order to allow the University to continue to provide planned programming for spring 2003, the Budget Review Committee unanimously recommended that a plan be proposed to compensate for anticipated additional state withholding.