Improving faculty and staff salaries is the university's top budget priority for next year despite the state's tenuous economic condition, President Malcolm Portera said at the fall general faculty meeting on Sept. 27.

The university will look to state appropriations, reallocation of existing resources and external funds as possible resources for increasing salaries.

Universities have faced two consecutive years of budget cuts and Mississippi's weakened industrial base, decreasing farm income, and a low per-capita income will create more economic pressure for the state, Portera said.

At Mississippi State, the current year's general funds budget is down by more than $13 million as a result of reduced state funding. About 35 percent of the university's total revenue currently comes from state appropriations, but even that level of support may be hard to maintain in the future, Portera said.

At the same time, enrollment is at another record high, even though a recruitment and enrollment policy in effect for the past year may have encouraged some marginally prepared students to seek other alternatives to Mississippi State.

The university will consider a proposal to cap the fall 2002 freshman enrollment at 1,600, or about 175 students fewer than this year's freshman class, Portera said.

MSU already has adopted a May 1 deadline for applications for admission as a freshman for fall 2002. The earlier deadline may help contain enrollment and is expected to contribute to a further increase in the average freshman ACT score, which rose to 23.5 this fall, up from 23.1.

On other matters, Portera noted that:

--Planned state support linked to the Nissan plant under construction near Canton is taking shape, with funding for three endowed chairs received in September; proposals for architects issued for a two new buildings-a Center for Advanced Vehicular Systems at the Engineering Research Center and an Engineering Extension Center near the plant site; and an operating expenses contract in place with the Mississippi Development Authority.

--Association of Research Libraries President Shirley Baker visited the campus in September and heard the university's case for membership in the organization. MSU is seeking a formal ARL review.

--A decision is due in mid-October on whether to proceed with a new capital campaign. A feasibility study will be done by then. The outlook for the stock market could affect the decision, Portera said. Last year, gifts and pledges reached a record high of $55.8 million.

--Federal funding for research may be slowed as national resources are directed to the military build-up to fight terrorism. Last year's research expenditures reached another high, topping $150 million, while research contracts and grants grew to a record $112 million.

--Two-thirds of the new construction and major renovations currently under way on campus are funded by private gifts, federal sources, and auxiliary operations such as housing, while the remaining third is funded by state revenue bonds for capital improvements issued over the past three to four years, Portera said.

--A first draft of the institutional self-study report is to be completed by the end of next spring semester. Portera urged assistance and cooperation with the self-study process.

--Recruitment efforts are under way to fill 55 faculty positions.

Portera also outlined a plan that could reduce electricity costs by more than $1 million a year while reducing susceptibility to power outages. MSU has the option to sign a contract this fall to convert to TVA's interruptible rate schedule, which would reduce costs immediately by about $1.4 million annually in exchange for giving TVA the ability to interrupt the campus power supply during periods when demand is extremely high. No such interruptions have occurred in our area over the past two years, and declining industrial demand makes such interruptions less likely for the next year or two, Portera said.

In conjunction with changing to the lower, interruptible rate, the university could build its own generating plant fueled by gas turbines to be used during short periods when TVA rates are peaking or during TVA curtailments or disruptions in the local off-campus power supply.

The $17 million generating plant, which would take a year to build and become operational, would be paid for over 20 years from electricity costs savings, while the university continued to realize cost reductions of more than $1 million annually.

"I want to thank you for your patience and understanding as we work through the tough challenges that we face," Portera said in closing remarks. "Despite the disappointing performance of the economy in recent months and the cloud of uncertainty that accompanies the national build-up to fight terrorism, I am confident that brighter times are ahead.

"Our national economy and our university remain fundamentally strong. Our progress may be temporarily hindered by external influences beyond our control, but our goals are clear and our people are creative and resilient. The recent achievements that I have outlined today would suggest that you have not lost your optimism or your determination. Thank you for your perseverance. It is appreciated, and I am confident that it will be rewarded."

Online video recordings of general faculty meetings are archived on the Faculty Senate web site at http://www.msstate.edu/org/fs/faculty_senate.html.