University prepares for possible state cuts

Possible cuts in state funding for Missouri Southern could create a headache when two new buildings open on campus.

University President Bruce Speck has been informed of grim economic predictions at the state level and said the Coordinating Board for Higher Education has asked Southern to provide scenarios in which the school cuts 15, 20 and 25 percent of its state appropriations.

Meanwhile, the Beimdiek Stu-dent Recreation Center is set to open next fall and a health sciences building is slated to open sometime in 2010. The buildings come with a combined price tag of more than $30 million, which donations, increased student fees and MOHELA funds will cover. After the construction crews leave, however, Southern is on its own.

“Obviously we’re going to have to hire at the bare minimum a couple of custodians, and depending on where we’re at that point, possibly some maintenance staff,” said Physical Plant Director Bob Harrington. “You’re going to have operating expenses and utilities.”

Speck said he is more worried about the overall economic picture at Southern than operating expenses and added staff for the new buildings.

“That’s not my major concern,” Speck said. “We have some very serious economic concerns to face; that would be a small part of it.”

The school must provide the scenarios by Dec. 18.

“Scenarios in the past have been more like 5, 10 or 15 percent,” Speck said. “Five is pretty steep. For every percent we cut about a quarter-million dollars.”

Already facing a budget crisis on campus and the possible decrease in appropriations, how can Southern afford to operate the new buildings?

“When the construction is finished, that’s all,” Speck said. “The state doesn’t give us any more money. What we have to do at that point is take our operating budget, I often compare it to a rubber band, and say okay now we have to supply custodial facilities and maintenance on the outside so if the state doesn’t give us any more then we have to stretch that rubber band. The other choice is we cut some place, we don’t stretch it.”

Reserves aren’t the answer, according to Speck. He said the University has spent them down quickly in the last two years and quickly in the last two years and reserves could be gone after next year at the current rate.

NO YEAR THREE?

Missouri Southern has been receiving an additional 3 percent from the state to make up for historical under funding of the University. The increase is part of a 3-year program instituted to return Missouri institutions to their previous high water marks.

As a result, Southern received a 7.3 percent increase for fiscal year 2009 while most other schools in the state received a 4.4 percent increase.