May 23, 2013

House Committee to consider parameters, list of targets for bonding proposal

The state House Committee preparing a more than $1 billion bond proposal will consider the first on-the-record list of projects that might support, next week.

Representative Chris Kelly (D-Columbia, left) and Representative Lincoln Hough (R-Springfield) are the chair and co-chair, respectively, of the House Appropriations Committee on Infrastructure and Job Creation.

Representative Chris Kelly (D-Columbia, left) and Representative Lincoln Hough (R-Springfield) are the chair and co-chair, respectively, of the House Appropriations Committee on Infrastructure and Job Creation.

In its hearing today it was announced that Representative Lincoln Hough (R-Springfield) will offer that list.

“The resolution would essentially be a framework of priority projects across the state to allow the citizens and the voters the opportunity to actually see the economic benefit that will be coming to their community if this moves through the process.”

Some projects that have been discussed are replacement of much of Fulton State Mental Hospital, renovations and repairs at the State Capitol and state parks, numerous improvements or new facilities at colleges and universities and some rural water upgrades.

The authorization for a bond issuance would have to come from voters, and some committee members raised concerns that Kansas City and St. Louis voters won’t support the proposal if it doesn’t include enough projects in those areas. Hough thinks there will be enough for everyone.

“I think we can bridge the gap between any sort of rural and urban issues that one area may think we need a little more or someone else wants a little more, but people need to look at this as a whole … what’s good for the state economic impact overall?”

The Committee will also consider what the price tag on that proposal will be. The resolutions introduced in the House and the Senate both propose a $950 million dollar plan, but lawmakers have speculated that figure could change. The Committee’s Chairman, Representative Chris Kelly (D-Columbia), will offer a proposal to set a target of $1.2 billion dollars, and members will debate whether to raise or lower that amount.

See our earlier stories on a state bonding proposal.

Representative Kevin Engler (R-Farmington) and Representative Dave Schatz (R-Sullivan) will work on an amendment that would add a cost-share component to have colleges and local governments cover part of the cost of their projects, either through cash or in-kind work.

Engler says he knows that idea has gotten the attention of higher education representatives.

“They’re not usually interested in putting up their own money, and in reality they only way we’re going to make this stretch to all the projects that have been proposed is to have some local cost-share match. They have to have some skin in the game. They have to have some incentive locally so that they can get money from the state.”

Schatz says a cost-share would make sure bond proceeds are used responsibly and would make colleges be more careful in selecting projects.

“If there’s a participation mechanism in there I think they will define those projects more on a need basis as opposed to on a wants basis.”

Amendments will also be considered to make energy efficiency a consideration of a bonding-backed project, and to create a “watchdog group” to oversee the use of the bond money.

State lawmakers consider higher education funding formula proposal

A state legislative panel has gotten its first look at a proposal for a funding formula for the state’s colleges and universities.

The Joint Education Committee took testimony on a formula for higher education funding in hearings this summer and fall around the state.

Under the plan laid out for the Joint Committee on Education, the state would provide 35 percent of an institution’s operating costs. 90 percent of that would be automatic and 10 percent would be tied to whether it meets performance goals.

Committee staff executive director Stacey Preis says each of the state’s institution would have five measures to meet.

“The community colleges agree to sector goals such as three-year completion rate for first-time, full-time students. This includes degree or certificate completion or transfer to a four-year institution. Linn State Technical College includes things like job placement and improvements on professional and occupational licensure tests. The four-year institutions have opted shared goals that included freshman to sophomore retention or the successful completion of 24 credit hours in the first year for first time, full-time students.”

See the proposal for a foundation formula for higher education (pdf).

Committee chairman, Senator David Pearce (R-Warrensburg) says this formula will be different from the one in place for elementary and secondary education.

“Obviously when you have a formula for K-12 you’re looking at local support, those communities that have some local support, those that have none. So for public education what you’re trying to do for our K-12 institutions are to make them equitable so they can have the same education no matter where they are. For higher education we have different missions, we have different selectivity, we have different locations … so it’s a totally different thing.”

Pearce says it’s time to put a formula in place.

“Quite honestly we’ve just kind of limped along year after year after year when it comes to funding with no thought for performance, and so what this is, is a way to institute some performance standards of what we want to evaluate our colleges for.”

Pearce has asked higher education officials and others to comment on the formula proposal through the end of the month.

The committee must develop a formula by the end of 2013 that can be implemented in time for fiscal year 2015 appropriations.

Legislative panel considers higher education funding formula

The Joint Committee on Education has one meeting left to discuss what should go into a funding formula for higher education. The Committee’s second hearing featured discussion of how to measure performance of the state’s universities.

Senator David Pearce (Courtesy, Missouri Senate)

Chairman, Senator David Pearce, says the Coordinating Board for Higher Education recommends institutions not be rewarded for performance with existing funds. “So, we’re not going to be taking money away from existing institutions. Rather, it would be new funding that we would have for higher education. Now, that’s (the Coordinating Board’s) recommendation. I’m not saying that will be the recommendation of the Committee.”

Pearce says about 12 states are now basing higher education funding on performance. “Some, it’s just a very, very small percentage of their budget. In the state of Tennessee it’s nearly 100 percent of the budgets for the universities are based on performance.

“In these times of tough budgets and very tight dollars, we’ve got to make sure that our dollars are spent wisely and that those universities that are doing a good job are rewarded … and to show those universities that might not be doing well that they need to improve.”

Pearce says the formula will have to weigh the differences between institutions, which he says is challenging. “For example, you have some schools … there’s three universities … that are open enrollment. So, that means they take everyone that comes through their doors. Yet then you have some universities that are moderately selective and then those that are highly selective like the University of Missouri or Truman State.

“So, how do you compare all of those together? The answer is, you probably don’t. You have to come up with some standards to compare against themselves, or maybe find like institution in different states and compare them that way. Our community colleges, for example, are open enrollment. They might have to do a lot of remediation, but on the other hand they’re serving a very, very good public interest.”

The Committee must submit a recommendation by the end of next year, but Pearce says it is being proactive. “My thought is we will have an initial recommendation hopefully by the first of the year … that there might be some things that we can put in the legislature next session, but then we have to have it done a year from this December.”

The Committee meets one more time, November 14 at the Haverner Center at Missouri University of Science and Technology in Rolla.

Parents reminded of MOST college savings program

Saving for college is on the minds of a lot of parents as their children head back to school. State Treasurer Clint Zweifel wants Missourians to remember the MOST 529 program can help them do that.

Click on the link to be taken to the MOST 529 website.

529 plans are usually sponsored by a state and help families save for higher education and can pay for tuition, books and room and board fees. They can be started for as little as $25.

Zweifel this time of year, college savings are on the minds of a lot of parents. “Back to school is an important time. It’s an important time also as we get toward the end of the year and December as people begin thinking about financial planning for the coming year.”

Zweifel says paying for college can be a shock to those who haven’t dealt with it for a while, but even moreso for those who have never done it before.

“Think about the experience that many Missourians have, which is what I had, I was the first person in my family to walk onto a college campus and attend college. So, think about the challenges for those families that don’t understand the network that exists, don’t understand all the tolls that exist. If it’s hard for the families that have experience with college, it’s even harder for those that haven’t.”

Even in recent years that have been marked by a tight economy, Zweifel says Missourians have continued to build on their MOST accounts. “We now have about $1.8 billion in assets. 135,000 Missourians are saving for college using MOST.”

Find more information on the Treasurer’s website.

Governor Nixon announces $9 million in Innovation Campus grants

Governor Jay Nixon has announced $9 million in community development block grant money that will go to nine so-called “Innovation Campuses” around the state. He says the program will “partner colleges and universities with public schools and private businesses to train workers for very specific workforce demands.”

Missouri Governor Jay Nixon announces $9 million in Missouri Innovation Campus grants at Lincoln University in Jefferson City.

Nixon says the idea is simple. “Missouri’s public colleges and universities will work with local nonprofit and government groups, business partners, school districts and other organizations to prepare students for careers in high-demand fields, while cutting the time it takes to earn a degree, thus reducing student debt.”

He made the announcement at three stops. The first was at Lincoln University in Jefferson City, which will be the hub of the Central Missouri Innovation Campus that will work to meet information technology needs in Central Missouri.

“During high school, innovation campus students will be directed toward courses and programs specifically designed to prepare them for careers in information technology and to cut the time needed to earn a degree. Through increased opportunities for dual-credit courses at Lincoln University and Linn State Technical Center, students will have the opportunity to earn college credit hours will still in high school. The program will accelerate degree completion, reduce the cost of education, provide applied learning experiences, graduate students with reduced or no student loan debt and increase employment opportunities.”

Also announced today are innovation campuses in Green County, St. Louis, St. Charles County, St. Joseph, Joplin, Johnson County, Cape Girardeau and Rolla. See more about those programs here.