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Parson predicts improved economic results for Missouri, following state government reorganization

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Officials say the largest state government reorganization in decades will allow the Missouri Department of Economic Development (DED) to focus exclusively on its core mission, which is economic development.

The 2019 Missouri state government reorganization, courtesy of DED

Missouri’s governor is predicting improved economic results.

The restructuring plan took effect on August 28, and Governor Mike Parson (R) and Cabinet directors from four agencies briefed Capitol reporters last week about its significance and impact.

DED Director Rob Dixon tells reporters DED is now focusing on helping Missouri prosper and helping communities grow.

“For the Department of Economic Development, what that means is we’re going to go from an agency of about 900 employees, 865 or so, down to 177 employees,” Dixon says. “We’re going to be lazer-focused and streamlined.”

When Parson announced the plan in April, DED’s 865 employees were more than any of its Midwest competitors, and Missouri ranked eighth among Midwest peer states in wage growth.

The restructuring included moving the Division of Energy from DED to the state Department of Natural Resources (DNR), and also involved moving the Public Service Commission (PSC) and the Office of Public Counsel from DED to the newly-named Department of Commerce and Insurance.

The restructuring also moved DED’s Division of Workforce Development to the Department of Higher Education.

Governor Parson tells reporters the reorganization highlights his commitment for greater efficiency while improving customer service.

“During my State of the State (Address) in January, I committed to the General Assembly and all Missourians that my administration would fundamentally restructure state government,” says Parson.

The governor says the reorganization was needed, especially for DED to improve its performance.

“Today is a combined effort involved with achieving this historical reorganization, something that hasn’t happened in decades but was needed to better serve Missourians,” Parson says.

Parson tells Missourinet he’s confident the restructuring will lead to better economic results.

Copyright © 2019 · Missourinet

Number of students filing for financial aid spikes

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The number of Missourians applying for student loans is showing a significant increase.

Anyone applying for help paying college tuition must fill out a FASFA form — free application for federal student aid.

Leroy Wade with the Department of Higher Education says when comparing the first quarter of this year to last year, Missouri has seen an overall increase of about 17.4 percent.

That percentage includes all students. But in breaking down the numbers further, the report shows that for independent students (those not under the financial support of their parents), which is it appears the economic situation to hit the hardest, the increase is about 23.1 percent.

Nationwide, the numbers increase. Missouri lags behind the national average, which shows a 20.8 percent increase in total FAFSAs filed and a 27.3 percent increase in filing by independent students.

Wade says the increase could indicate that more current students are seeking financial aid, that education officials’ efforts to make the application process easier are paying off, or that economic factors are increasing enrollment. Institutions are reporting higher enrollment rates, Wade says, and some of those enrolling for college are the same people who have lost their jobs due to lay-offs.

The U.S. Department of Education issued the following numbers for the first  quarter of the 2009-10 academic year:

Missouri: 72,614 Dependent Students; 58,177 Independent Students (130,791 Total)

Nationally: 3,723,086 Dependent Students; 2,862,921 Independent (6,586,007 Total)

First quarter 2008-09 academic year –

Missouri: 64,127 Dependent Students; 47,250 Independent Students (111,377 Total)

Nationally: 3,201,306 Dependent; 2,248,468 Independent (5,449,774 Total)


Jessica Machetta reports [Download/listen MP3]

Scholarship program favors private over public colleges

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A plan to change Missouri’s primary scholarship program so that public college students can get the same amount of money as private college students has stalled in the legislature.

At present, Access Missouri provides a maximum scholarship of $2,150 a year if the student attends a public college. That maximum jumps to $4,600 if the student attends a private college.

Rep. Gayle Kingery (R-Poplar Bluff) sponsors HB 792 which would make the maximum scholarship from Access Missouri $2,850, no matter where the student attends.

"We do think they should be equitable," Kingery says, "and that’s what this bill tries to achieve."

Kingery’s bill, though, has yet to be assigned to committee, a necessary step before the legislature can even consider it. The best Kingery has been able to get is an informational hearing before a House committee to discuss the concept, but not to take any action.

It appears House leadership feels bound by a deal struck during the Blunt Administration that paved the way for the MoHELA college capital improvement program. In exchange for House support of the MoHELA plan, then-Governor Blunt promised to support creation of Access Missouri. The disparity between scholarships awarded to public and private students apparently was part of the deal.

Kingery says the current Access Missouri policy encourages students to go to private colleges. He says the state is pushing students toward private colleges when it offers more than twice the scholarship for private school as for public.

"We’re actually influencing part of their decision when we do that," Kingery says.

Westminster College sophomore Raghela Scavuzzo of Harrisonville receives the full $4,600 scholarship to attend the private college in Fulton.

"I still have two years left on my education," Scavuzzo says, "If they’re going to cut me by a lot, I can’t afford to take out more loans and my Mom can’t afford to pay that either. I’m gonna have to probably transfer."

Kingery’s proposal will be discussed in a House committee meeting today. A similar senate bill, SB 390 , has a hearing scheduled for tomorrow. It is sponsored by Sen. Kurt Schaeffer (R-Columbia). 

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

Nixon says public education must expand to meet new economy

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Governor Nixon told and education groups that he’s fully committed to public education and committed to re-shaping Missouri’s educational system into one that prepares young people for a changing economy.

Nixon reiterated his pledge to fully fund public schools in the coming budget, saying that’s non-negotiable. He told the Missouri School Boards’ Association the concept of public school must expand.

"I also think we need to have greater investment in early childhood education; Parents as Teachers, First Steps and many other programs of that nature, making sure that kids are ready to learn when they get to school that first time," Nixon told the group gathered at the Capital Plaza Hotel in Jefferson City.

Nixon said he supports expanding the alternative school system to remove disruptive students from the regular classroom.

The group applauded when Nixon stated that fully funding the Foundation Formula, the state’s system for funding public schools, was non-negotiable, but probably applauded the loudest when Nixon stated that he would fight any form of school voucher system.

Then, the governor raised the stakes. He said the concept of vouchers had been introduced in state funding of college scholarships. Nixon claimed that Access Missouri provided more money for students attending private colleges than those attending public colleges. He pledges to equalize the distribution of scholarship funds through Access Missouri.

The state has been moving to make a stronger connection among the various levels of education. Nixon says that the connection from Kindergarten through college must be strengthened, because the changing global economy now demands more than a high school diploma.

"In the new economy, a high school degree or a GED is not going to be enough to compete for some of the newer jobs we’re going to see out there," Nixon stated. "So, I think that as part of the public education continuum, supporting opportunities beyond high school are very, very important."

And, with a nod to the association, Nixon said what will keep public schools strong is not what happens in the legislature, but by the tools provided school boards to truly exercise local control.

Download/listen Brent Martin reports (:60 MP3)
Download/listen Gov. Nixon addresses Missouri School Boards’ Association (18:30 MP3)

Some MoHELA projects once suspended back on track

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Many college capital improvement projects put on hold have been given the go ahead by the Nixon Administration to move forward.

Five public universities were told by the Nixon Administration that planned capital improvements on their campuses had to be put on hold. Now, the governor’s office has given the green light to several of them.

"We would love to be able to say that we have the money in the MoHELA fund to complete projects. But unfortunately that’s not the case," says Scott Holste, a spokesman for the governor.

The Nixon Administration has completed a review of the MoHELA projects, formally known as the Lewis and Clark Initiative. Money from the sale of MoHELA assets has fallen more than $107 million short of expectations. Projects at Missouri State University in Springfield, the University of Central Missouri in Warrensburg and Truman State University in Kirksville that had been suspended will now resume.

Other projects, most notably the proposed $31 million expansion of the Ellis Fischel Cancer Center on the University of Missouri-Columbia campus, remain suspended.

Governor Nixon, as Attorney General, vocally opposed former Governor Blunt’s MoHELA program. Nixon stated the program diverted money away from MoHELA’s primary mission, providing low-interest student loans, and was based on uncertain funding. Still, as governor, Nixon is committed to seeing the Lewis and Clark Initiative projects through, according to Holste.

"But, the fact of the matter is, the previous administration had committed and proposed spending funds that just do not exist," says Holste.

 

Below is the news release from the governor’s office outlining the projects affected.

 JEFFERSON CITY, Mo. – Gov. Jay Nixon announced today that his administration’s review of the MOHELA project list is complete. The review was needed because MOHELA has failed to make its payments to the state. The remaining balance on the MOHELA list proposed by the previous administration is $107,109,486 more than is currently in the MOHELA fund.

The projects which will be funded right away and the remaining balance on those projects are:

· Harris – Stowe State University – Child & Parent Education Center $9,252,803

· Linn State Technical College – Heavy Equipment Technology Building $4,393,526

· Lincoln University – Jason Hall $983,406

· Missouri Southern State University – Health Sciences Building $14,301,775

· Missouri State University – Jordon Valley Incubator $2,686,579

· Missouri Western State University – Agenstein Science & Math Halls, $25,112,770

· Northwest Missouri State University – Plant Biologics Center, $12,896,195

· Missouri University of Science & Technology – Engineering Building $1,138,249

· University of Missouri-Kansas City – Dental Equipment $249,075

· University of Missouri-Kansas City – Pharmacy and Nursing Building $9,487,485

· Community College Maintenance & Repair $790,171

· Missouri State University – Siceluff Hall $7,170,597

· University of Central Missouri – Morrow & Garrison Building $12,081,895

· Southeast Missouri State University – Autism Center $2,427,856

· University of Missouri-Hundley-Whaley Center $184,721

· University of Missouri – South Farms $2,395,651

· University of Missouri-Plant Science Building, Mexico (partial funding) $2,500,000

· Truman State University – Pershing Hall (partial funding) $10,000,000

The fund currently has a balance of $118,319,642 and is estimated to have a balance of $266,888 after the above projects are completed.

The projects that will be suspended until MOHELA makes additional payments or additional funding sources can be identified include:

· Southeast Missouri State University-Incubator · University of Missouri-St. Louis -Benton & Stadler Halls

 

· University of Missouri – Delta Research Center

· University of Missouri – Southwest Education & Outreach Center

· University of Missouri – Graves-Chapple Facility

· University of Missouri – Horticulture & Agroforestry Center

· University of Missouri – Wurdack Farm

· University of Missouri – Thompson Farm

· University of Missouri – Greenley Learning & Discovery Park

· University of Missouri – McCredie, Midwest Clayplan

· University of Missouri-Columbia- Ellis Fischel · Missouri State University – FREUP Phase 1

Download/listen Brent Martin interviews Scott Holste (10 min. MP3)

Nixon defends suspension of MoHELA projects

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Governor Nixon has defended his decision to cut off funding for capital improvement projects planned by five universities.

Nixon made the defense during a news conference in Columbia, which took a big hit with the suspension of a $31 million expansion of the Ellis Fischel Cancer Center. The Office of Administration outlined a total of 13 projects within the University of Missouri system that have been suspended and are under review. Projects have also been suspended at 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.

Nixon told reporters that the projects were suspended, because the sale of Missouri Higher Education Loan Authority (MoHELA) assets hasn’t generated the money expected. Nixon said the money simply isn’t there to go through with the projects at this time. He said his administration attempted to target projects that weren’t under construction or, at least, were not that far along.

The decision caught state lawmakers off guard. Legislators with projects in their district were hand-delivered letters detailing the decision Wednesday morning.

It was well-known that Nixon didn’t favor the Lewis and Clark Discovery Initiative devised by former Governor Matt Blunt. The initiative relied on money generated by the sale of MoHELA assets. Nixon claimed the program hampered the ability of MoHELA to fulfill its primary role: providing low-interest loans to college students.

The letters sent to the five institutions warn them not to proceed with the capital improvement projects unless they receive written authorization to do so.

(Matt LaCasse of KFRU provided the audio from the Columbia news conference.)

Download/listen Gov Nixon defends MoHELA project suspension (:30 MP3)

Nixon Administration puts brakes on MoHELA projects

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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

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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

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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

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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)