BUSINESS BUILDING INCLUDED IN GOVERNOR'S BUDGET

Southeast Missouri State University President Kala Stroup isn't ready to turn the shovel on construction of a new business building, but at least the shovel's in sight.

Stroup told reporters Wednesday afternoon that she was delighted that Gov. Mel Carnahan included $12.68 million in funding for the new College of Business Administration building in his 1995 fiscal year budget. But she cautioned that the money is not yet in the bank.

The governor's budget was unveiled earlier in the day in Jefferson City.

John Mehner, president of the Cape Girardeau Chamber of Commerce, and Donald Harrison, president of the university's Board of Regents, in separate telephone interviews also expressed pleasure with the governor's action on the business building project.

"I think it is fantastic," said Mehner, who believes it will benefit the entire business community.

"It indicates there is movement in the right direction. It is positive in every respect," said Harrison.

"We are very appreciative of the leadership the governor has taken in making higher education a priority," Stroup said during an informal press conference in her Academic Hall office.

But she pointed out there are still some questions to be answered regarding the funding of the business building and other capital improvements projects.

The governor has proposed a $250 million statewide, general obligation bond issue, which would require voter approval. The money would be used to fund a number of capital projects, including Southeast's business building.

"It isn't so bad to borrow against the future when you are talking about education," said Stroup.

In all, the governor's budget includes $16.28 million in capital improvements funding for Southeast, including the business building.

About $4 million would be earmarked for major renovation projects, including improvements to the Magill Hall of Science and the third floor of Academic Hall.

But Stroup said much of the renovation funding, as proposed by the governor, would come from anticipated riverboat gambling revenue in fiscal year 1995. "And we do not have a riverboat authorized yet, so that may not all materialize."

Still, Stroup said the university's renovation projects are now on the priority list. "If you are not mentioned at all, then you have to fight to get on the list. We are at least on the list."

Construction of the business building has been the top priority of the university for the past several years, but so far the school's been unable to secure state funding.

This marks the first year that construction funding for the project has been included in the governor's budget. Plans call for the building to be constructed near the corner of New Madrid and Henderson on the northwest side of the campus.

Stroup said some legislators have suggested funding capital improvements, such as the business building, with a revenue bond issue instead of general obligation bonds. But a revenue bond issue requires the state to have a specific source of revenue to pay off the bonds, and such a source has yet to be identified, she noted.

Any bond package would have to be approved by the legislature.

"We still have several steps that we must go through before we can even start thinking about putting the shovel in the ground," she said of the business building project.

"The revenue sources are not there yet," Stroup said of the renovation and business building projects. "I don't spent my money until I get it."

Stroup also said she was pleased that the governor's budget includes an almost $1 million increase in funding for the school's general operations, as well as separate funding for the Bootheel Education Center in Malden.