MSU president: Unexpected costs costing us millions

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Reporter - Robert Bradfield
Photojournalist - Mike Spissinger

MURRAY, Ky. - It's a bright, calm day on Murray State's campus.  Interim President Dr. Tim Millers shares those feelings about next year's budget.

"We're certainly not panicked about the budget situation," he said.

Even still, Miller has to close a $2.5 million shortfall for the 2014-2015 school year.  He said the state's unfunded pension problem will cost the university about $1.7 million.  That's money MSU is mandated to pay.

"The state has said you guys are going to pay for that and we're not being allocated any money.  So, we're going to have to come up with the $1.7 million," Dr. Tim Miller said.

Insurance costs are going up, too.  MSU has its own insurance policy and after a re-bid for insurance, the lowest bid came in $700,000 more than in previous years.  Miller blames some of the extra costs on the Affordable Care Act.

"That's about $2.4 million that we have not planned on," he said.

"This is going to be the new normal," said Dr. Kevin Binfield

As the Faculty Senate president, Binfield doesn't favor cuts to education.  He wants to see athletics take a hit, but Miller isn't open to cutting sports. 

"These next round of cuts are going to cut bone and I think we have to be really selective for what bones we're going to cut into," Binfield said

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