Funds delayed to colleges by governor to be restored

JEFFERSON CITY, Mo. -- Gov. Matt Blunt will release the $100 million he withheld earlier this year from public universities no later than June 27, his spokesman confirmed Thursday.

On Feb. 24, Blunt announced that 70 percent of money due to nine four-year institutions, including Southeast Missouri State University, for the months of March, April and May would be delayed until June, the last month of the 2005 fiscal year. The move was to ensure the state had sufficient cash available to cover income tax refunds due to Missouri residents.

Spence Jackson, the governor's chief spokesman, said presidents of the affected universities have already been informed that the funding will be restored as promised. Making the withholding a permanent cut was never an option, Jackson said.

"The governor made a commitment to these schools that they would receive this money," Jackson said. "This was necessary because of the cash-flow situation in state government. The governor wanted to make sure those who were owed tax refunds received them on time."

Southeast's share of the withholding is $6.7 million -- about 15 percent of its total state appropriation for the fiscal year ending June 30.

Art Wallhausen, associate to Southeast president Dr. Ken Dobbins, said the university was able to absorb the temporary funding delay without hardship.

"I haven't heard any rumbling that we were in trouble," Wallhausen said. "Our cash flow was such that we were able to handle it."

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, were also targets of the budget withholding.

Jackson said the affected universities might receive their back payments in advance of the administration's June 27 target.

The $1 billion higher education budget that the legislature approved last month for the coming fiscal year holds funding flat for Missouri's 13 four-year institutions. Southeast's state appropriation for fiscal year 2006 remains unchanged from this year at $43.8 million.

mpowers@semissourian.com

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