Missouri Senate panel boosts higher education funding

JEFFERSON CITY, Mo. -- Senate budget writers agreed Tuesday to boost Missouri's overall higher education funding, but some of the most contentious spending issues -- including how to deal with soaring Medicaid costs and whether to cut the budget for the University of Missouri -- remain unresolved.

The nearly $55.8 million increase for colleges and universities would represent a 6 percent hike in funding -- an increase large enough that universities have agreed to freeze tuition next year if they receive it, Gov. Jay Nixon has said. The House version of the budget passed earlier this month would provide colleges and universities about $9 million, about a 2 percent increase.

The House also cut about $7.6 million from the University of Missouri System's administration as well as $1 million from the Columbia campus.

Senate Appropriations chairman Kurt Schaefer said he wants to ensure tuition stays low across the state. Although public universities' tuition increases are capped at the rate of inflation, he said, some institutions -- such as the University of Missouri -- could dispute they are included in that limit.

Schaefer, a Republican from Columbia, also said he plans to address the University of Missouri cuts in the next few days. He also has proposed creating a commission to review the university system's policies and administrative structure, which was endorsed Tuesday by a different Senate panel.

Lawmakers have expressed frustration with university leaders after protests in the fall, when students protested what they saw as administrators' indifference to racism on campus. The protests culminated in the resignation of the system president and chancellor of the Columbia campus.

Sen. Mike Parson said the Legislature should be careful about punishing universities through budget cuts, because that could harm students.

Senators already have added more than $7 million for specific programs in the university system.

Schaefer said the growth in Medicaid spending -- which the state is legally obligated to pay for -- is crowding out other worthwhile items.

"Everyone on this committee has given me projects for their districts, things they want -- and that's your prerogative, that's your job, to get things done for your district," he said. "Everyone needs to keep in mind that, if we go along with (the Medicaid spending plan) as-is, there is no money for anything else and to have a balanced budget."

Republican leaders have ruled out raising taxes to pay for Medicaid growth. Schaefer has said he's looking at how the state could negotiate better prices for medicine, which is the biggest factor driving the program's growth.

Sen. Jamilah Nasheed, a Democrat from St. Louis, raised concerns about cutting Medicaid spending without affecting low-income people's health care.

The budget still needs to pass the appropriations committee before heading to the Senate floor. Majority Leader Mike Kehoe said he expects to begin debate on the budget after next week.

Lawmakers will work out any funding differences in a conference committee.