Higher ed is added to budget veto list

JEFFERSON CITY, Mo. -- Saying that students can no longer absorb the rising tuition costs brought on by continuing cuts in public funding to state universities, Gov. Bob Holden on Tuesday vowed to veto the $1 billion appropriations bill for higher education.

The state budget approved by the Republican-led Missouri Legislature for the upcoming fiscal year would reduce higher education spending by $83.3 million, or 7.6 percent, from current levels.

As a result, most public institutions, including Southeast Missouri State University, are likely to again increase tuition for the fall semester. The University of Missouri system is considering a nearly 20 percent increase.

"This in many respects is a tax increase on the students and working families of this state, and I think it is wrong," Holden said.

Since 2001, when the state's ongoing financial problems started, higher education spending has been cut 12.2 percent.

Holden will call lawmakers into a special legislative session to redo several key portions of the nearly $19 billion state budget lawmakers adopted before the regular legislative session ended Friday. Holden considers the spending plan out of balance and underfunded and wants lawmakers to put a tax package on the ballot for voter approval.

On Monday, Holden announced his intention to veto the spending bill for the departments of health and mental health. He will announce additional vetoes throughout the week.

Pointless session

Republican legislative leaders have firmly maintained that a special session on the budget is pointless as they will likely pass the same plan, with perhaps additional cuts to address a budget imbalance they most recently estimated at $12 million, plus the $100,000 per week cost of an extra session.

Senate President Pro Tem Peter Kinder, R-Cape Girardeau, said deeper cuts are a risk of a special session, though lawmakers hope to avoid them.

"He is not going to get taxes out of the majorities in the House and Senate," Kinder said. "It is to me a fruitless and pointless exercise."

Holden claims the legislature's budget is $367 million in the red, plus he wants $354 million in cuts restored.

The governor hasn't said when the extra session would begin, but it would have to be soon as the July 1 start of the fiscal year is looming.

Southeast would get hit with a 6.7 percent, or $3 million, reduction in its state appropriation, which would drop to $42.3 million under the legislature's budget.

Don Dickerson, president of the Southeast board of regents, said he isn't sure what the legislature would do to the school's funding level in a special session.

"I don't think they are going to take anything away from us, but I don't know if they will do anything better for us," Dickerson said.

Dickerson said the regents will consider a tuition increase in June but couldn't say by how much until the state budget situation is resolved. He said in-state tuition currently costs $4,035 a year.

Dipping into reserves

Southeast has seen its state appropriation drop 16 percent since 2001. Dickerson said the school has weathered the storm to date by dipping into its reserves, reducing expenses and making earlier tuition increases. However, he said those actions won't keep the problem at bay much longer.

"I hope when the legislature gets back up there, they will take their time and reflect on what they will be doing to higher education in the long term," Dickerson said.

Three Rivers Community College in Poplar Bluff is looking at a $160,498 drop in state funding from a state appropriation of almost $4.1 million for the coming fiscal year.

Dr. John Cooper, the school's president, said a tuition increase of $4 per credit hour has already been approved for the fall. Tuition next year will be $54 per hour for residents of the four counties that provide local tax support and $86 per hour for other students.

Like other public colleges, Three Rivers is struggling financially because of the state cutbacks. Cooper said he is worried a special legislative session could lead to larger higher education cuts.

"Everybody has that fear," Cooper said. "The longer it goes on, the more uncertain the situation becomes."

mpowers@semissourian.com

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