JEFFERSON CITY, Mo. -- Gov. Bob Holden is not asking lawmakers to renew the bulk of the state's financial commitment to the River Campus project.

"Quite simply, we don't have the money to afford it," said Linda Luebbering, the state budget director.

An $11.95 million appropriation for the Southeast Missouri State University's fine arts campus approved by the General Assembly in 2000 will expire June 30. Because of the state's financial problems, that money has never actually been available.

Southeast president Ken Dobbins said the administration's action had been anticipated, and shouldn't pose an immediate problem, so long as the money is made available within a few years.

"They believe this is a really good project that has economic development written all over it," Dobbins said.

The capital improvements appropriations recommendation Holden sent to the House of Representatives last week includes funding only for vital maintenance and repair to state facilities and projects, primarily improvements to National Guard armories, that are almost entirely paid for with federal money, Luebbering said. Its total price tag over two years is about $300 million, only $5 million of which would come from general revenue.

Area lawmakers had expected the appropriation would be renewed this year to keep the project near the front of the line for funding when the state's finances improve. However, Luebbering said there is little point is requesting money that doesn't exist.

"We don't see that as a good place to be," Luebbering said. "Putting it in there and withholding it again doesn't make sense."

However, Holden is recommending that another $4.6 million set aside for the campus in 1999 be re-appropriated for the next two years. Southeast has always been able to access that money but hasn't done so because of lawsuits that have prevented the project from moving forward.

So long as that portion is re-appropriated, Dobbins said he isn't worried about the larger allocation. Once a project is started, Dobbins said the state usually finds the money to complete it.

The university will move forward with plans to sell bonds this summer to provide up-front money and begin construction.

The River Campus remains among the top capital improvements priorities of the Coordinating Board for Higher Education, which makes spending recommendations for public universities, said associate commissioner Joseph Martin. However, it could be several years before the state can provide funding for construction projects.

"There is so much uncertainty, and it is all contingent on state revenue," Martin said. "Hopefully, there will be sufficient state revenue to do some of these things in the future."

The total cost of the project, which would be built on the site of the former St. Vincent's Seminary, was tabbed at $36 million.

mpowers@semissourian.com

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