Tight budget has big impact on higher ed

Missouri Gov. Jay Nixon presented his proposed budget last week in Jefferson City. With the state facing a revenue shortfall approaching $350 million, there will have to be some hard choices as the budget makes its way through the legislative process.

State-funded agencies and institutions across the board were asked to put together possible spending cutbacks even before Nixon took office.

Higher education took its hits in that process. For example, Southeast Missouri State University faced $6.7 million to $11.1 million less state funding in the new budget, which would have had considerable impact on operations.

But in late January the state-funded colleges and universities reached an agreement with Nixon: No cuts in state funding in exchange for no increases in tuition. The pact was just for one year -- and it would require legislative approval. Leaders in the Republican-controlled Missouri Legislature said they weren't sure higher education could remain unscathed as spending is trimmed.

The funding-tuition agreement was reached just days before Nixon announced he was suspending $150 million of construction projects at state colleges and universities that were to be funded from the state's student loan authority. Southeast, for example, had a groundbreaking Jan. 23 for the Autism Center for Diagnosis and Treatment. Plans for a new business center at the university also were put on hold by the governor's decision.

Funding for college and university operations and for construction projects at those institutions are major considerations for Missouri's economic viability. At the same time, the U.S. recession is making it difficult to close the gap between state revenue and proposed spending. The legislature and the governor have a tough task ahead of them before the final touches are put on a new budget.