Blunt defers money to universities

JEFFERSON CITY, Mo. -- Gov. Matt Blunt will delay $100 million in state payments due to public universities until June in order to free up cash to cover income tax refunds owed to Missourians in the spring.

Southeast Missouri State University will temporarily lose more than $6.7 million. Like the other affected institutions, that amounts to a 69.9 percent reduction in what Southeast was expecting to receive in combined monthly state payments over March, April and May.

The governor plans to repay the deferred funds in full in June, the last month of the 2005 fiscal year.

Southeast president Dr. Ken Dobbins said monthly higher education payments have been delayed in the past when the state encountered cash-flow problems and that the current action shouldn't cause a hardship.

"We have enough of a float that we can do this for the state for a three-month period," Dobbins said.

While Southeast won't have to redeem any of its investments to maintain its own adequate cash flow, it will postpone pursuing some new investments, Dobbins said.

The four-campus University of Missouri system, along with Central Missouri State in Warrensburg, Southwest Missouri State in Springfield, Truman State in Kirksville and Northwest Missouri State in Maryville, will also be targets of the temporary budget withholding.

Blunt spokesman Paul Sloca called the governor's action a "fiscally responsible move" to meet of the state's financial obligations. Sloca said Blunt informed the presidents of the affected universities of his decision Thursday night.

"This will have no impact on the operations of any universities," Sloca said. "The universities will not be forced to borrow money because of the deferment."

Sloca said financial estimates show the state's cash-flow situation is expected to improve by June and that the deferment will "absolutely not" become a permanent cut. Sloca couldn't say why four of Missouri's smaller four-year institutions were spared the temporary withholding.

Blunt has repeatedly pledged not to withhold state money from K-12 school districts, as his Democratic predecessor Bob Holden did twice when faced with budget shortfalls. Sloca said that promise didn't extend to higher education.

Missouri Democratic Party spokesman Jack Cardetti, however, accused Blunt of breaking a commitment.

"It's unbelievable that the first and only place the governor chose to withhold money is from education," Cardetti said. "Governor Blunt is clearly playing politics with our education system even after promising never to withhold money from education."

Blunt's budget proposal for the fiscal year beginning July 1 recommends maintaining overall higher education appropriations at the current level of about $1 billion.

mpowers@semissourian.com

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