The Mississippi Board of Trustees for the Institutions of Higher Learning approved a $6.69 billion operating budget for the upcoming fiscal year. The total reflects a 14% increase from the previous year, officials said during Thursday’s meeting.
All eight public universities under IHL will receive increased funding. The University of Mississippi will see the largest rise at 6.9%, or $39.8 million, according to Senior Associate Commissioner for Finance John Pearce.
Funding for the University of Mississippi Medical Center will account for the largest portion of the budget, with a total of $2.58 billion. Of that, $224.7 million comes from appropriations, and the rest is self-generated revenue. The medical center’s budget includes $7.6 million in American Rescue Plan Act funds for its nursing school, although Pearce noted these funds are decreasing as they are spent.
Pearce explained that the largest segments of the budget are UMMC, followed by education and general budgets for the eight universities, and federal restricted research funds. The overall operating budget increased by $87 million from the previous year, with the state contributing $16 million, primarily for faculty raises of $2,000 each.
All eight universities received funding increases, with the University of Southern Mississippi seeing the smallest at 2.23%, or $5.3 million. The Mississippi University for Women received a total increase of $1.3 million. Tuition revenue has become a major factor in funding growth, with increases at Mississippi State and Ole Miss largely driven by higher tuition collections.
Data shows that tuition now makes up 68% of the universities’ budgets, up from 32% in 2000, when appropriations comprised 56%. Pearce said the next budget cycle will focus on increasing tuition and fees, faculty and staff pay, and other priorities. He noted Mississippi’s average tuition of $9,000 for residential students is lower than neighboring states, but faculty pay still lags behind regional averages.
The IHL discussed adopting a performance-based funding model, which would include metrics for excellence, improvement, and efficiency. Under this plan, some universities, such as Alcorn State, Mississippi State, and Ole Miss, would receive funding adjustments to address gaps. The proposed funding increase for fiscal 2028 is $129 million over 2027, pending approval.
Jon Ross Myers is the executive editor and publisher of the Mississippi News Network, Mississippi's largest digital only media company. He can be reached at editor@tippahnews.com
