Dobbins: Arts school may not get state funds in '06

~ The university president is optimistic the legislature will come through with its share of funding by July 2007.

Lawmakers may turn down Southeast Missouri State University's request for $17.2 million in funding to help pay off bonds for the River Campus arts school project next year because of a tight state budget, university president Dr. Ken Dobbins said Thursday.

"Right now, they just don't have the money," he said. "You can't blame the legislature."

Dobbins remains optimistic that the state will come through with its share of funding for the project by July 2007. With bond proceeds drawing interest, the university can meet bond payments until then without the state money, he said.

But the university will look at raising student fees if the state funding hasn't occurred by then, Dobbins told the River Campus Board of Managers.

Board member Dennis Vollink suggested the university might be able to secure historic preservation tax credits now that the former Catholic seminary on the River Campus site has been added to the National Register of Historic Places.

While the university couldn't directly secure those tax credits, it might be able to do so through a third party, Vollink said.

Dobbins said the university might explore that option.

At this point, the university continues to seek funding from the state for the project that was first planned seven years ago.

The funding problem hasn't delayed construction of the River Campus. The work should be completed by fall 2007, school officials said.

Past lawsuits by businessman Jim Drury and previous state funding woes have all contributed to delays in state funding for the project.

The university's board of regents moved ahead with the project in 2002, authorizing the issuance of about $36 million in bonds to provide the money needed to begin construction. Coupled with some federal funding and money already raised by the university foundation, Dobbins said that should be enough to pay for the $50 million project.

Construction costs alone are estimated at about $38 million, he said.

The costs would have been higher if the university hadn't initiated construction this spring, Dobbins said. Since Hurricane Katrina, the cost of concrete and other construction materials has escalated, he said.

Southeast intends to pay off the bonds with $8.9 million in city motel and restaurant taxes and more than $10 million in university donations plus state funding.

The project remains a top funding priority of the Missouri Coordinating Board for Higher Education, Dobbins said.

mbliss@semissourian.com

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