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Will the governor’s higher education budget restrictions affect tuition at Missouri colleges?

January 16, 2017 By Alisa Nelson

Governor Eric Greitens’ $146 million in budget restrictions announced Monday include $80 million in higher education. The budget withholdings could affect tuition at Missouri’s colleges and universities. House Minority Leader Gail McCann Beatty (D-Kansas City) hopes the pain won’t reach that far.

Minority Leader Gail McCann Beatty

“I haven’t had a chance to talk to anyone at the universities, but that’s very much possible, which is then putting yet another burden on our students that are already struggling to get through school,” says Beatty.

About $56 million in Greitens’ budget withholds are in core funding for Missouri’s two-year and four-year colleges and universities. Other funding cuts targeted included the A+ Schools Program and certain college programs.

In a statement from Greitens, he says Missouri’s budget is suffering from reduced revenue due to poor economic growth. He says that revenue is being drained by special interest tax credits and the faster-than-projected growth in healthcare expenditures, driven in part by the national impact of Obamacare.

Greitens says during the next 18 months, more than $700 million in budget cuts will be necessary just to make the budget balance and retain Missouri’s AAA credit rating.

Gov. Eric Greitens (Photo courtesy of Bill Greenblatt/UPI)

“The fact is, that more hard choices lie ahead. But as Missourians, I believe we must come together, tighten our belts, be smart and wise with our tax dollars, and work our way out of this hole by bringing more jobs with higher pay to the people of Missouri,” says Greitens.

Additional details on the spending restrictions are linked here.

Governor Greitens will hold Tuesday his first State of the State address. The speech is traditionally when the Governor releases the state budget proposal, but Greitens plans to wait until February to unveil his budget requests.

Listen to live coverage of Governor Greitens’ State of the State address on Tuesday on Missourinet.com and ABC 17. Joey Parker of ABC 17 and Missourinet’s Brian Hauswirth begin their preview at 6:45 p.m.

Continue to follow our coverage on Wednesday, as we bring you the response of legislators from around the state.

Filed Under: Education, Legislature, News Tagged With: budget, economy, Gail McCann Beatty, higher education, Missouri state budget

House Committee recommends $100-million increase for K-12 education

February 19, 2014 By Mike Lear

The House Appropriations Committee on Education has proposed less than half of the $278-million for the foundation formula for K-12 education that Governor Jay Nixon (D) recommended in his budget proposal.

Representative Mike Lair (photo courtesy; Tim Bommel, Missouri House Communications)

Representative Mike Lair (photo courtesy; Tim Bommel, Missouri House Communications)

The Chairman of that Committee, Representative Mike Lair (R-Chillicothe), says the reason is simple.

“Because the Governor’s $278-million was smoke and mirrors. It didn’t exist,” says Lair.

Nixon’s budget proposal was based on a budget estimate that is higher than that agreed to by House and Senate budget leaders, and based on that higher estimate Nixon budgeted the $278-million figure as part of an overall proposed $489-million increase for education overall.

Lair says after being a teacher for 40 years, he is willing to put in the budget for K-12 education what he thinks is available and would include more if he could.

“I just can’t in good conscience spend money I don’t have,” says Lair.

What he thinks is available is $100-million, which is what the committee has included in its recommendation.

“It’s a step in the right direction,” Lair says of that amount of an increase.

The committee also recommends $43-million dollars for a 5-percent performance-based increase for 2-year and 4-year higher education institutions. Governor Nixon had proposed $42-million for performance-based increases of 5-percent for 4-year colleges and 4-percent for 2-year colleges.

The budget bills the committee has advanced are HB 2002 and HB 2003.

Filed Under: Education, Legislature, News Tagged With: Education, foundation formula, higher education, Jay Nixon, Mike Lair

Nixon discusses higher education priorities, calls for increase in funding

October 22, 2013 By Mike Lear

Governor Jay Nixon has told the state’s higher education leaders he will propose a “substantial” increase in higher education funding in his budget plan for fiscal year 2015.

Governor Jay Nixon (D) addresses higher education leaders at a meeting on the Governor's Public Agenda for Higher Education.

Governor Jay Nixon (D) addresses higher education leaders at a meeting on the Governor’s Public Agenda for Higher Education.

Nixon could not offer an amount for that increase, saying his staff will watch how the economy develops.’

“We’re going to be watching the September, October and November numbers and then look at the projections for next year, but we want to be aggressive with that funding this year.”

Nixon also says too many gaps remain between what Missouri students are studying and what is needed in the workforce. He wants to launch a new initiative in an attempt to answer that problem in the field of mental health. He says 72 of Missouri’s 114 counties have no licensed psychiatrist and 90 have no licensed behavioral analyst.

“When tragedies across the nation continue to highlight the importance of timely, coordinated mental health treatment, here in Missouri we have a shortage of mental health care professionals.”

He says the new initiative would train Missourians in mental health professions including psychiatry, psychology, specialty nursing and applied behavioral analysis.

Nixon also said he is developing a proposal to enhance the state’s Bright Flight scholarship to encourage graduates to remain in Missouri after college.

Filed Under: Education, News Tagged With: higher education, Jay Nixon

Higher education leaders discuss concerns, priorities at second forum (AUDIO)

June 12, 2013 By Mike Lear

Board members, presidents and chancellors from Missouri’s colleges and universities have met in Jefferson City to talk about the issues facing higher education in the state in the second annual Governing Board Forum.

Higher Education Commissioner David Russell, Ph.D.

Higher Education Commissioner David Russell, Ph.D.

Higher Education Commissioner David Russell says one of the top concerns for higher education is funding for state financial aid programs – Access Missouri, Bright Flight and A-Plus. He says funding for those is not keeping up with demand.

“The one significant thing we could do to enable more people to take advantage of all these opportunities is to put more money into those financial aid programs so that we can actually give them awards that look somewhat like the tuition bill they’re receiving.”

Another worry is that too many high school graduates are spending much of their time in college in catch-up courses. Russell says implementing common core standards could improve that.

“If you look at elementary and secondary education, certainly you need the common core state standards so that everybody – the teachers, the students, the parents – know what the expectations are. These are the things that they need to know by the time they leave high school, and particularly if they plan on going on to post-secondary education.”

Governor Jay Nixon asked participants at the forum to talk to the lawmakers that represent their institutions in support of his veto of HB 253 that would cut Missouri’s corporate and individual income taxes. Russell considers how that message was received.

“Of course we try not to be political about these things so we kind of leave that debate about legislation to the legislators, however we can’t help but be concerned that bill might conceivably lead to a shortfall of $700 million to $800 million dollars in the state’s budget, and that would be a significant hit to higher education and several other agencies of state government.”

Russell says higher education leaders will be watching how that issue develops and meeting with lawmakers to discuss it.

AUDIO:  Hear the interview with David Russell, 12:19

Filed Under: Education, News Tagged With: higher education, Jay Nixon

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

March 5, 2013 By Mike Lear

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.

Filed Under: Legislature, News Tagged With: bond issuance, Chris Kelly, Dave Schatz, Fulton State Mental Hospital, higher education, Kevin Engler, Lincoln Hough, Missouri State Capitol

State lawmakers consider higher education funding formula proposal

December 11, 2012 By Mike Lear

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.

Filed Under: Education, Legislature, News Tagged With: David Pearce, funding formula, higher education, Missouri House of Representatives, Missouri State Senate

Legislative panel considers higher education funding formula

October 25, 2012 By Mike Lear

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.

Filed Under: Education, Legislature, News Tagged With: foundation formula, higher education, Joint Committee on Education

Parents reminded of MOST college savings program

August 16, 2012 By Mike Lear

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.

Filed Under: Education, News Tagged With: Clint Zweifel, college, higher education

Governor Nixon announces $9 million in Innovation Campus grants

August 1, 2012 By Mike Lear

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.

Filed Under: Education, News Tagged With: Governor Jay Nixon, higher education

For third straight year, Nixon cuts higher education

June 25, 2012 By Mike Lear

For the third year, Governor Jay Nixon is restricting money from higher education.

Governor Jay Nixon

The Governor announced on Friday $15 million in cuts that he called a first step in righting a budget he says is more than $50 million out of balance. The largest single item in that is a one percent across-the-board reduction for the state’s colleges and universities, equaling nearly $9 million.

When asked why higher education is again the target for restrictions, Nixon points to other places where higher education is benefitting, including adding $40 million dollars to higher education through a governor’s amendment.

“The bottom line is that I appreciate the fine work that our universities are doing,” he says. “A one percent restriction when you compare that to what we’ve seen around the country … it’s what we can do in the constraints of the budget we have.”

The cut to higher education equals about $4 million to the University of Missouri System.

See our earlier story on the budget withholds, including a video of the announcement.

The Governor says the cuts are needed because the legislature is banking too much on lottery revenues increasing by $35 million, because lawmakers cut $11 million from disaster relief funds when the state still owes money for cleanup after last year’s disasters and because three pieces of legislature that haven’t yet been acted on could reduce state revenue by $12.5 million.

He says he hopes an economic turnaround will mean that no more withholds will be necessary.

Filed Under: Education, Legislature, News, Politics / Govt Tagged With: budget, fiscal year 2013, higher education, Jay Nixon, University of Missouri

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