Tuition increases hang in the balance as Missouri colleges decide how to deal with lost funding.

Gov. Bob Holden decided Feb. 27 to cut $82 million from the state’s public schools and colleges, leaving higher education with $21 million less in funding for the FY 2003, which ends June 30.

Holden has threatened lawmakers with the budget ax and said he would be forced to cut education if legislators did not pass legislation to allow for the selling of tobacco bonds. The money from the bonds would be used to cover the $400 million budget shortfall expected for the current fiscal year.

Instead, legislators passed a plan for the state to sell revenue bonds, allowing only a limited amount of proceeds to be used for the FY 2003 budget problem. The legislation, although covering a majority of the shortfall, fell $82 million short. To make up for the gap, Holden followed through with his warning and cut funding for public and higher education. The money will be withheld from the institutions during the next four months.

“The cuts that are made now are his choice not ours,” said Rep. Marilyn Ruestman (R-Joplin). “We feel like we’ve made a real compromise with the governor.”

She said the legislators can make suggestions on what the governor should cut, but the final decision is his.

Now, mid-fiscal year, colleges and universities across the state are dealing with the realization that part of the funding they counted on won’t be arriving. Higher education already succumbed to a 10 percent budget cut during FY 2002.

“Within a rather dismal picture, it’s looking a little better,” said College President Julio León.

He said Missouri Southern’s $447,000 in withholdings will be more “manageable” than the projected $2 million.

“It’s the least bad in a set of bad choices,” said Sen. Gary Nodler (R-Joplin).

While lawmakers have had to make decisions on the current budget, they also have the task of aiding the governor in balancing the FY 2004 budget.

The remaining money left over from the revenue bonds will go toward filling the hole in the budget. To some, despite the added money from revenue bonds, the 2004 budget is still looking grim. Cuts are likely to happen, the question is who gets it and how much?

“The fact of the matter is they’re going to have to cut a lot,” León said.

He said Southern is lobbying at the Capitol now, not only for a name change, but also for more money.

“Just like all schools, we’re working very hard along with the commissioner for higher education, Quentin Wilson, to encourage the governor and the legislators to support higher education as strongly as they possibly can,” León said. “There is a strong link between higher education and the economic growth of the state, and we’re trying to do everything we can to push this message.”

Southern’s overall objective is to make sure the College receives as much funding as it possibly can under the budget circumstances, he said.

The effect the budget problems will have on tuition for the upcoming semesters will be decided in March or April. León said the College normally makes tuition decisions in January or February, but because of extenuating budget circumstances he thought it would be better to hold off.

“Because of all the financial difficulties, we have to wait and wait and wait to get a feel of what is likely to happen,” he said.

The deadline for the final decision on the FY 2004 budget isn’t until May. Southern’s tuition will be based on decisions lawmakers will “most likely” make, León said.

“I think by then we will have a pretty good idea of what is likely to happen,” he said.