Nixon deal would avoid MU funding cut

University presidents agreed not to raise tuition this year.

By Andrew Denney

Published Jan. 21, 2009

Gov. Jay Nixon unveiled his plan for higher education funding in next year's budget at a news conference today at Reynolds Alumni Center.

Speaking with a group of MU students behind him, Nixon said he met with university leaders during the last few weeks to review budgets and, in return for maintaining the current level of funding, university presidents would not raise tuition and academic fees for 2010. He could not say whether money allocated to higher education for this year would be withheld to cope with looming deficits.

"We know that a highly trained work force is vital if we're going to turn this economy around, and we share the common priority of providing a high quality, affordable education for students throughout Missouri," Nixon said.

UM system President Gary Forsee, who stood next to Nixon at the conference, said tuition increases "are the opposite of what we need" in the face of economic hardship, and the economy should be stimulated with high-quality jobs and education.

"We're going to take many actions to make sure we are going to be most prepared for these economic times," Forsee said. "Those actions need to stay in place and they need to continue to be sure we are certainly in a position for the challenges and opportunities ahead of us."

After the announcement, Forsee said the UM system hiring freeze and several cuts to the UM budget would stay in place for the foreseeable future. In a release issued after the conference, Forsee said the system would continue to review how to deliver a quality product.

Nixon also made the announcement today at UM-Kansas City and Harris-Stowe State University in St. Louis.

He said it is premature to identify which state programs, if any, would take cuts to support his proposal. He will present his funding recommendations for state programs and any possible withholdings for this year’s budget Jan. 27 during his State of the State Address.

“The budget I present next week will be a balanced budget,” Nixon said. “But I’m not going to do so on the back of higher education.”

According to the Missouri Constitution, state budgets must be balanced. Last year, higher education was approved for an allocation of more than $1.2 billion, $451 million of which the UM system received. At MU, tuition costs and fees are $8,500 per year. Tuition costs at MU rose 4.55 percent from last year and has steadily risen by more than 4 percent each year since 2005.

In a release, Senate President Pro Tem Charlie Shields, R-St. Joseph, said Nixon's plan is premature.

"I support higher education, but without knowing the Consensus Revenue Estimate or the amount of money we project to have in the state's bank account for the coming fiscal year, I do not believe it is responsible to promise any sector of state government that they will be immune from budget cuts," Shields said.

Sen. Kurt Schaefer, R-Columbia, was in attendance at the conference and said he supports the promise of Nixon’s proposal.

“I think he’s got an obligation to deliver that in a constitutionally balanced budget, which he’s got to do,” Schaefer said.

Rep. Chris Kelly, D-Columbia, who was appointed to the House Budget Committee last week, said he was "cautiously optimistic" that Nixon's plan would pass the committee.

"I'm hopeful that if the Alumni Association works with members of the legislature we'll be able to make a step in the right direction," Kelly said.

House Budget Chairman Allen Icet, R-Wildwood, said with a predicted budget shortfall of more than $300 million in a state budget of more than $8 billion, it would be difficult to maintain appropriations levels into the next fiscal year for any state program.

The Budget Committee will hold its first hearing Jan. 28.