The Joplin Globe, Joplin, MO

Joplin Metro

Discussion

January 15, 2010

Missouri official: Budget outlook bleak for higher education

By Greg Grisolano

ggrisolano@joplinglobe.com

Funding for colleges and universities in Missouri could be approaching a tipping point in the coming years, once federal stimulus dollars are no longer available to make up for shortfalls in the current budget.

That was the message carried to members of Missouri Southern State University’s Board of Governors by Paul Wagner, the deputy chairman of the state’s Coordinating Board for Higher Education.

“We simply cannot continue to trim around the edges,” he said. “This will be a resetting of our budget. The business of state government will fundamentally change.”

Wagner addressed the board during the open portion of the group’s regular meeting on Friday.

The board ratified a proposal by Gov. Jay Nixon that would keep tuition rates flat for fiscal 2011 in return for a cut of only 5.2 percent in state appropriations, or roughly $50 million. The cuts translate to about $1.2 million less for MSSU.

“There’s going to be some hard choices,” board President Rod Anderson said after the meeting. “We just hope the worst doesn’t happen.”

Beginning in the spring and summer semesters of 2008, the board directed MSSU President Bruce Speck to cut over time more than $1.3 million from the university’s operating budget.

The board also created a new administrative post of vice president for development to oversee the university’s efforts to raise private funds to offset declining state revenues.

But Wagner cautioned the board to plan for as much as a 7 percent cut from fiscal 2011, if state tax collections continue to fall. The shortfall to make up could be as much as $20 million. State collections were down $550 million in fiscal 2009, and the collections for fiscal 2010 were another 6.5 percent below those numbers.

“What the governor and the (Missouri) General Assembly are trying to do is save back some money, but the fact that collections are coming in lower really threatens that plan,” he said. “My fear is it’s going to be really difficult for the General Assembly to leave that money on the table. I think it’s likely we’ll end up with a $70 million (total) cut.”

Those cuts may also become a permanent part of future budgets, Wagner said.

Higher education budget cuts have been less steep than other state agencies because of funding provided by the American Re-Investment and Recovery act signed by President Barack Obama. Wagner said the state has used stabilization funds to soften the blow to higher education, but that money will no longer be available in 2012.

“When we get to fiscal year 2012, other areas of state government have already been cut severely,” he said. “People will look at a higher education budget that’s only down 5 or 10 percent. Barring some other remedy, the higher education budgets will be the tool to balance the budget.”

Text Only
Joplin Metro