No decision yet on delaying higher education funding

JEFFERSON CITY, Mo. -- Contrary to word from a state higher education official, the state has made no decision yet on whether to delay monthly payments to public colleges and universities, officials said Monday.

The confusion arose after Gov. Bob Holden said last week that the state was facing an expected shortfall of more than $200 million in the next two months because of lower-than-projected income tax revenues.

On Friday, Associate Commissioner of Higher Education Joe Martin sent an e-mail to the presidents of all public colleges and universities stating that their May monthly funding would be delayed because of the state's cash-flow problems.

On Monday, other officials in Holden's administration said Martin's e-mail was wrong.

The Office of Administration, which oversees state budget matters, "has not made a decision to withhold or delay May and June payments to two- and four-year state higher education institutions," office commissioner Jackie White said in a statement.

But a delay in higher education funding is still a possibility, said Brian Long, director of the office's budget and planning division.

"At this point we don't know if it will be necessary or not," Long said.

Officials have time to decide because community colleges receive their monthly payments on the 15th, the University of Missouri systems gets its money sometime in mid-month and other universities receive funding on the final working day of the month, said Jim Carder, the director of the office's accounting division.

"Right now, we're processing business as usual, but we are monitoring the cash position daily," Carder said. Delaying the monthly appropriations "is something you've got to consider when cash flow's tight."

Reason for delay unclear

The circumstances that led to the miscommunication about a funding delay are a bit unclear.

Long said an employee in his office told Martin that a college funding delay was possible -- not definite. Martin said he was told a decision had been made.

Martin said Monday that he probably would send school presidents another e-mail clarifying that no decision had been made on the May funding.

The state's May payment to public colleges and universities is $65 million, of which $37 million would go to the University of Missouri system. The University of Missouri has enough cash available to pay its employees and bills if there were a delay in its May funding, said Nikki Krawitz, the university's vice president for finance and administration.