May 23, 2012

Nixon Administration puts brakes on MoHELA projects

Five public universities have been told by the Nixon Administration that planned capital improvements on their campuses likely will be scuttled.

Letters were sent by Commissioner of Administration, Kelvin Simmons, to the University of Missouri-Columbia, Missouri State University in Springfield, The University of Central Missouri in Warrensburg, Southeast Missouri State University in Cape Girardeau and Truman State University in Kirksville. Each letter informs the various campuses that expected funding from the sale of Missouri Higher Education Loan Authority (MoHELA) assets might not be forthcoming.  The letters state that MoHELA has not been able to make its scheduled payments into the Lewis and Clark Discovery Initiative Fund, through which the capital improvements were to be paid.

The Office of Administration sent the letters via overnight mail and hand-delivered copies to state representatives and senators with affected campuses in their districts.

Sen. David Pearce (R-Warrensburg) received a letter at mid-morning. He says the action comes as a surprise.

"This is the same governor that last Thursday said, ‘I won’t cut higher education. I won’t do any withholds.’ And yet, to me, this is a real disservice to higher education across the state," Pearce tells the Missourinet.

Pearce says the action will have a drastic impact on the University of Central Missouri, putting the skids on a project that now totals $20 million. Pearce says UCM was to receive $10 million in Lewis and had raised $2 million in private funding. Also, the university students had approved a fee increase to raise another $8 million to renovate the Morrow and Garrison buildings, turning the aging buildings into a health science center. Pearce says the project is well underway and that the buildings have already been gutted.

A letter sent to University of Missouri Vice President of Finance and Administration, Nikki Krawitz, informs Krawitz that a $31 million appropriation for the Ellis Fischel Cancer Center in Columbia has been suspended indefinitely. Simmons writes that the project, and others, "will not be reinstated to active consideration unless and until you receive further written notice from my office."

Similar wording is used for separate letters to officials at the other campuses. The letters also warn the campuses that no expenditures will be reimbursed unless authorized in writing by the Office of Administration.

The Lewis and Clark Initiative was a pet project of former Governor Matt Blunt. Governor Nixon has been a harsh critic of the program from the beginning. He attempted to stop the sale of MoHELA assets as Attorney General and claimed Blunt was diverting MoHELA assets from their intended purpose:  financing low-interest college loans. Throughout the gubernatorial campaign, Nixon avoided directly answering what he would do with the MoHELA projects authorized during the Blunt Administration.

Legislative leaders question whether Nixon can fulfill pledge

Governor Nixon has promised not to cut funding for state colleges and universities in exchange for a promise that they won’t raise tuition, but leading lawmakers question whether Nixon has made a promise he can’t keep.

House Higher Education Committee Chairman, Gayle Kingery (R-Poplar Bluff), has no doubt the governor made a promise he can’t keep.

"I think so. I think he did," Kingery told reporters, explaining that the state doesn’t know yet what revenue might come in.

House Budget Committee Chairman, Allen Icet (R-Wildwood), says he doesn’t believe it’s wise to place any aspect of state government off limits to budget cuts.

"What he has in fact done, to some extent, is to handcuff himself in proposing a balanced budget to us," Icet says.

Icet says he was surprised by the announcement. He points out that the General Revenue budget totals $8 billion. Funding for public schools totals $3 billion. Medicaid requires a bit more than $2 billion, with higher education funding totaling $1 billion. Icet says keeping those off-limits for budget cuts, leaves little left in the General Revenue budget to cut.

Senate Appropriations Committee Chairman Gary Nodler (R-Joplin) would like to be able to fulfill Nixon’s promise.

"So, I like the idea," says Nodler, "It’s consistent with my own priorities and I would hope that we can find the resources in the budget to do it."

That, though, remains to be seen.

 

Download/listen Brent Martin reports (1:10 MP3)

Final budget work begins with fiscal picture gloomy

Final budget work is underway in the House, with a cloud hanging over the state’s finances.

Members of the House have begun budget debate after hearing sobering news about revenue growth. The Office of Administration reports state revenue has grown only 2.2% percent, short of the 3.4% growth on which the budget for the next fiscal year was based.

House Minority Leader Paul LeVota (D-Independence) pointed out during House floor debate that corporate income and franchise tax receipts dropped by more than 11% in April. He said that should sound an alarm. House Budget Committee Chairman Allen Icet (R-Wildwood) agreed that the numbers worried him. Icet did say part of the drop in income from businesses could be, at least in part, attributable to the state giving counties affected by the flooding more time to file.

The House has until Friday at six o’clock to complete work on the $22.5 billion state budget that begins July first. It has cleared two major hurdles with approval of HB 2002 which fund public schools and HB 2003 which funds public colleges.

The education budget totals $5.3 billion and sets aside nearly three billion dollars for public schools. Democrats criticize Republicans for not pouring more money into the classroom. They point out that the new school funding formula hasn’t been completely funded.

Republicans rebut the charge. They note that the education budget increases funding for public schools by nearly $120 million and add that the increase provides schools with the largest budget in state history.

Republicans and Democrats also clash on the amount of money devoted to higher education. The higher education budget totals $1.2 billion, with $900 million allocated to the state’s public universities. Democrats complain that Republicans diverted money from public colleges to fund the Access Missouri scholarship program, which is $76.5 million in the budget. Democrats say the Republicans fixation on scholarships has robbed public institutions of money that could keep tuition from rising. Republicans counter that the scholarship program directly benefits the student.

Ten budget bills remain for the House to approve.

Download/listen Brent Martin reports (1:15 MP3)

Another Deadly Shooting Prompts Another Review

Another college campus has experienced another deadly shooting and prompted another round of review and preparation for what no longer is the unthinkable.

Thirty-two were killed at Virginia Tech; five dead at Northern Illinois.

State Higher Education Commissioner Robert Stein says Missouri college campuses are again assessing security measures, "One cannot stand and say we will prevent any loss of life under all conditions."

Stein says the exercise for college campuses is to prepare as much as possible to prevent loss of life during emergencies. Stein says such preparations must include all emergencies, not just shootings.

No one in this state has to look beyond Kirkwood to understand the danger posed by an armed man intent on murder and the difficulty of stopping him, according to State Public Safety Director Mark James.

"There’s a situation where you actually had armed police officers in the room," says James.

Still, Charles Thornton stormed the Kirkwood City Council meeting and began shooting. He killed two police officers and three city officials before police shot and killed him. Kirkwood Mayor Mike Swoboda remains in critical condition at St. John’s Mercy Medical Center, where he is being treated for two gunshot wounds to the head. A reporter injured in the shooting was treated and released from the hospital earlier.

Governor Blunt formed the Campus Security Task Force in wake of the Virginia Tech shootings in April of last year. College campuses throughout Missouri reviewed security measures. Stein says the effectiveness of those reviews was put to the test in Maryville when a gunman fired shots in October. Stein says Northwest officials put their emergency procedures in effect immediately, notifying the campus about the shooting and conducting a building by building search. No one was injured.

James says college campuses must remember what all public safety officials live by: create a plan, practice the plan and improve the plan.

Download/listen Brent Martin reports (:75 MP3)

Kirksville College President on Medical Leave

The President of A-T Still University in Kirksville has gone on medical leave after his second drunk driving arrest in three years. The school is not saying if the leave given James McGovern is linked to the arrest. The former president of Truman State University, Jack Magruder, will become acting president while McGovern is gone.  Magruder had to resign from the Still University board to take the appointment.  A-T Still University offers degrees in osteopathic medicine.