UNIVERSITY RENOVATION NOT INCLUDED IN BUDGET

Southeast Missouri State University's $12.5 million renovation of Academic Hall will have to wait.

So, too, its plans to construct a $5.5 million technology center.

Gov. Mel Carnahan Wednesday proposed a $14.3 billion state budget for the next fiscal year. But there is no money included for Southeast's capital projects.

Higher education, in general, was shut out of the budget in terms of capital money.

"It was almost a complete zero statewide for higher education," said state Sen. Peter Kinder, R-Cape Girardeau.

But Carnahan wants to increase state spending by $35.3 million for the operation of Missouri's four-year colleges and universities. In addition, he wants to put more money into information technology on the college campuses.

Southeast wants to renovate Academic Hall as part of a $30 million plan to remodel campus buildings and construct a technology center.

Southeast's president, Dr. Dale Nitzschke, said any delay in renovating Academic Hall will push back the timetable for renovating other buildings on the campus.

Nitzschke was in Jefferson City Wednesday for the governor's State of the State address. In that address, Carnahan outlined his budget priorities for fiscal 1998. The new fiscal year begins July 1.

Nitzschke said he was disappointed the Academic Hall project hadn't been included in the budget. He said the renovation project remains the school's top capital project.

He said the university will lobby lawmakers in an effort to get construction funding for the Academic Hall project as well as money to design a new technology center.

"We are not giving up," he said.

But area lawmakers predicted such funding isn't likely since Southeast's projects weren't included in the governor's budget.

State Rep. Larry Thomason, D-Kennett, pointed out Southeast recently opened a new business school building that was funded largely by the state.

"Just realistically, they will probably have to wait a year or two until it is their turn again," Thomason said.

"Last year we put a record amount in college capital improvements," Thomason said. "So it all balances out."

Nitzschke said he and other college administrators were surprised at the lack of capital funding for the state's campuses. He said he and other college presidents took it for granted the governor would include some capital money for higher education.

Nitzschke and area lawmakers voiced support for Carnahan's proposal to allow up to $1,500 a year in tax credits for college students for their first two years of school. The plan would be phased in over three years.

"I think tax credits are an incentive for people to help themselves," said state Rep. Mary Kasten, R-Cape Girardeau.

"It will make it possible for a lot of students, particularly in our area of the state, to go to college," said Nitzschke.

Lawmakers from both parties agreed with Carnahan that the state should eliminate a 3-cents-on-the-dollar sales tax on food to reduce state revenues by $230 million.

But Republicans argued for even broader tax cuts.

"We can afford to make bigger tax cuts that would benefit all the people," Kasten said.

Thomason predicted the sales tax cut would win easy passage in the Missouri General Assembly.

State Rep. Joe Heckemeyer, D-Sikeston, agreed. But he expressed concern about the proposed cut. He said there isn't any guarantee grocery stores won't keep prices at the current level and pocket the money that previously went to taxes.

Heckemeyer said any tax cut should result in actual cost savings for Missourians. He said it might be better for the state to keep the tax and refund the excess revenue to taxpayers to meet state-revenue limits.

Kinder said Wednesday's speech to the legislature was the best ever by Carnahan. "This was a good day for the governor," he said.