The SEMO Board of Governors unveiled a $160.6 million budget for the 2026-2027 academic year that responds to a potential 10% cut in state revenue and a new “Fearlessly Forward” action plan that emphasizes community workforce and requires student internships for more programs across campus, among other important decisions at their June 23, 2026 meeting.
SEMO 2026-2027 Budget
According to a news release issued by the university, the financial plan is in part responding to “an estimated $1.5-2 billion shortfall in general revenue for the fiscal year after next” in Missouri. While these cuts won’t appear for at least a year, leadership in the Missouri General Assembly advised universities to prepare for at least a 10% ($5 million for SEMO) cut in state appropriations for the 2027-2028 fiscal year.
The financial plan, which will last through July 1, 2026, through June 30, 2027, anticipates an increase of $4 million in revenue, mostly from tuition and fees and room and board income, for the upcoming academic year. SEMO has previously announced that tuition and fees will increase by 3.6% next semester.
However, the university will see a $10.5 million increase in costs for faculty and staff retirement, as well as higher utility, property insurance, and contract expenses. Because of these factors, there is a projected $6.5 million fiscal year 2027 budget deficit.
Because of this, the university budget equated to $12.9 million, which was “identified through a collaborative budget development process involving faculty, staff, and administration working since October 2025 to develop the FY27 budget.” As a result of these cuts, 20 positions were eliminated among SEMO's 900 full-time employees.
The budget also allocated $6.6 million for investment opportunities aimed at increasing enrollment and stakeholder engagement. Some of these investments include: “a 2% cost of living increase for current employees, implementing a recently completed compensation study, funding for deferred maintenance projects, regional marketing initiatives, campus visit experience improvements, enhancements to campus safety, and enhanced protocols to mitigate fraud and cybersecurity attempts by external parties.”
“Fearlessly Forward” Action Plan
Interim Provost Dr. Doug Koch, who chaired the task force for the “Fearlessly Forward” action plan, said the plan will help connect students with internships and workforce experience in the eastern Missouri community.
“Things that you'll see are more industry engagement, more engagement with businesses and various entities in the community. So we will be focusing heavily on placing the students out there in those roles, doing co-ops and or internships,” Koch said. “We've always been very good and very strong at those things, but we're going to raise the bar.”
According to SEMO’s website, the main goals of 'Fearlessly Forward' are to “Strengthen Workforce Relevance, Magnify SEMO's Impact and Accelerate Upward Mobility.”
Koch said the university has engaged with several companies and major employers across the region to expand internship opportunities for all SEMO programs.
Koch said while there will be funds allocated specifically for the program, the cost to the university has not yet been identified.
The plan would be implemented as a part of the curriculum for programs across campus. Koch said it would operate similarly to the required internships many departments already have.
“Very similar [to the required internships certain programs currently offer], the format of it might be different. We hope to engage faculty more and learn more about some of those industries and the internship opportunities, so they can ensure that students are well prepared for those,” Koch said. “Some faculty are obviously already doing a great deal of that, but again, we want to increase that interaction, we want to increase the knowledge, we want to make sure that our programs are very focused on those peer-to-base skills for the students to do their grants.”
Koch said “Fearlessly Forward” will increase the number of programs required to have internships for students to graduate; however, some programs will not have enough opportunities in the area for all students in the program.
“We'll see a growth in the number of those that are required, but there will likely be a few too that have to be somewhat optional or very flexible because of the nature of the participants,” Koch said.
The internships can be worth anywhere from one to 12 credit hours, depending on the program, and several are paid; some at minimum wage, others more.
Other decisions from the Board of Governors
According to the press release, the board also voted to establish new degrees in Forensic Science and Construction Management & Design, which were previously options, but not standalone degrees.
The Board also reduced the credit-hour requirement from 120 to 90 for the Chemistry and Communication programs, similar to the change to the Criminal Justice degree last semester.
The program changes are waiting for approval from the Coordinating Board for Higher Education.
Additionally, the Board voted to negotiate and execute a contract with OSPORTS for design criteria consultant services for phase II of the Houck Stadium renovation.
“The consultant will assist in the development of the project criteria, requests for proposals, evaluation of proposals, and evaluation of the construction under a design-build contract. OSPORTS would not submit a proposal or furnish design or construction services for the design-build contract itself, but would deliver a Design Criteria Package (DCP), a performance-oriented program, scope, and specifications for the design-build project. The DCP is expected to be completed by December 2026. OSPORTS is recognized as a Top 20 Sports Architecture Firm, providing design and engineering services for sports, recreation, and training facilities across the nation”, the press release states.
Finally, the board unanimously voted to extend SEMO president Brad Hodson’s contract for another five years, through June 30, 2030.