HIGHER EDUCATION HARD HIT BY GAMBLING VOTE

JEFFERSON CITY -- Education could be the big loser in Missouri in light of action voters' rejection Tuesday of a constitutional amendment legalizing games of chance on gambling boats.

In his budget for Fiscal 1995, Gov. Mel Carnahan earmarked for higher education $61 million of his $69 million gambling revenue allocation. With that money now in doubt, funding for those programs is uncertain.

Among Southeast Missouri State University project in jeopardy are renovations to Academic Hall, Magill Hall and Houck Field House. Also in jeopardy is more than $700,000 Southeast would have received for library technology upgrades and acquisitions and computer networking.

There is some feeling that legislators will give voters another opportunity to approve the constitutional amendment defeated Tuesday, and that if presented in a general or primary election, it would be approved.

But by the time the election is held and boat operators get developments ready to open, the one-time funds might no longer be available.

That's because beginning in Fiscal Year 1996, a large part of anticipated riverboat gambling revenues are earmarked for the new school foundation formula as outlined in Senate bill 380, Carnahan's education reform plan approved last year.

Sen. Jerry Howard, D-Dexter, a member of the Senate Appropriations Committee, and Rep. Mary Kasten, R-Cape Girardeau, a member of the House Budget Committee, said both panels planned to meet Thursday to deal with the projected loss of gambling revenue in FY 1995.

"From what I have been told, we will be lucky to have $15 million to spend for those projects," said Kasten. "Some of the projects will be on hold, including some of those at Southeast.

"But hopefully we can cut some other parts of the budget to fund some of those projects."

Howard agreed the one-time funding projects for Southeast are in jeopardy.

"In fact, anything dealing with gaming money is in jeopardy at this point," he said.

Howard also fears that it may be difficult to fund the new school foundation formula without riverboat gambling money. "Everything is jeopardized right now. It is all intertwined. It is one of those situations where everything seems to be relative."

Chris Sifford, communications director for Carnahan, said the governor would be meeting with the appropriations committees this week. He agreed that many of the one time projects would have to be cut, though he did not rule out cutting other parts of the budget to generate revenue for some projects.

"We are starting the process now of prioritizing the projects," said Sifford. "We limited the recommendations for gambling money to one-time projects because of its uncertainty.

"The governor approaches the whole issue of gambling money cautiously and conservative for budgeting purposes."