State's budget woes could affect River Campus

JEFFERSON CITY, Mo. -- While River Campus proponents await the end of the nearly four-year legal battle that has delayed the project, a court victory won't eliminate the final funding obstacle.

With the state facing an increasingly bleak financial situation, a large component of the funding package to transform the former St. Vincent's Seminary in Cape Girardeau into a fine arts center for Southeast Missouri State University probably won't be available for some time.

The Missouri General Assembly has approved $16.55 million in state revenue for the River Campus, which is expected to cost a total of $36 million. However, while $4.6 million in state money would be immediately available if the legal issues are resolved in a manner favorable to River Campus supporters, another $11.95 million will still be indefinitely withheld.

That portion has been withheld since July 1 because of budget uncertainties.

State budget director Brian Long said the university shouldn't expect the money -- part of $140.7 million earmarked for capital improvement projects around the state -- during this fiscal year, which ends June 30.

"Given the current outlook, there is no reason to be optimistic it will be released this year," Long said.

The governor will likely ask lawmakers to reauthorize the project for the fiscal year 2003 budget, Long said, adding that there might not be sufficient money next year either.

"It's too early to tell, but I'm not confident we will have capital spending in fiscal '03," Long said.

If that worst-case assessment proves true, the earliest the money would be available is July 2003.

Legal holdup

Though the money has been withheld for nearly 18 months, it hasn't been a major issue for River Campus supporters because the state's share is contingent on the city of Cape Girardeau's contribution, which is tied up in court.

Businessman James L. Drury sued the city in April 1999, claiming the 1-cent hike in the city's hotel/motel/ restaurant tax approved by voters in November 1998 was invalid because the city ordinance placing the issue on the ballot was faulty. The tax is expected to cover the city's $9 million share of the project.

Lower courts sided with Drury, prompting the city to appeal to the Missouri Supreme Court, which will hear the case on Jan. 8. A ruling is expected in March.

If Drury again prevails, the city would have to hold another election or develop other options for providing its share of funding.

However, if the city wins, the availability of state funding becomes a more pressing issue.

Dr. Kenneth Dobbins, Southeast's president, said the money that would be on hand from the state, city and private donations raised by the university would be sufficient to begin preliminary work, which would take about a year.

The River Campus project is among the top priorities of the Department of Higher Education, which makes funding requests for public universities to the Legislature. Because of that, Dobbins said he is confident the project will hold its place in line once the state releases the money budgeted for capital projects.

"It's just a matter of when the economy turns around the money will be there," Dobbins said.

mpowers@semissourian.com

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