Community Colleges Get A Cut & Freeze As Well

Missouri community colleges have agreed to the same deal that Missouri's 4-year public institutions signed off on earlier this week -- a tuition freeze in exchange for a 5 percent cut to their budget.

The 5.2 percent reduction amounts to an $8 million dollar budget cut.

If approved by the state legislature, for the second year in a row, in-state students and their families won’t see tuition or academic fees rise by a penny.

Prior to last year’s freeze, tuition at Missouri’s public four-year colleges and universities increased by an average of 7.5 percent a year over the past decade.

Rupp Rips Nixon Higher Ed Deal

"Dog & Pony Show"

SLAMS DEAL AS 'UNWISE and PREMATURE"

Sen. Scott Rupp blasted Gov. Jay Nixon's plan to freeze tuition at colleges and universities as a "dog and pony show" that's already enshrined in state law.

"It does nothing but re-affirm the tuition cap the legislature passed two years ago," Sen. Rupp said in a statement Wednesday, referring to Senate Bill 389. "A bill he was opposed to becoming law at the time," he added.

"If we were to base next year’s tuition limits off the Consumer Price Index defined in state for the last 12 months, we would find that the CPI has been -.2 percent. Although we won’t know the final CPI for this year until January, based on this current CPI number for the last 12 months, higher education couldn’t raise tuition unless they remit 5 percent of their state appropriations," Rupp said.

"I am disappointed that the governor has negotiated an agreement prematurely that has the potential to tie the hands of the Legislature and keep them from doing what is in the best interest of the taxpayers. This is especially alarming when economic indicators suggest that the CPI will probably be negative if not flat for the next year. If that is the case, then publicly funded higher education institutions could not raise tuition anyway under state law - unless they pay back 5 percent of their appropriations to the state. I hope this unwise and premature side deal will not force massive cuts on the mentally challenged and children with developmental delays, as it gains nothing in return other than a reinforcement of state law that the Legislature passed two years ago," he added.

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Gov. Nixon's office did not immediately respond with a comment.

More on Nixon's proposed agreement HERE.

A Freeze For A Cut

A tuition freeze coupled with a 5 percent cut -- That's the deal that's been hammered out between Governor Jay Nixon and 4-year public colleges and universities in Missouri.

WATCH THE KY3 NEWS @ 10 REPORT HERE

It would be the second straight year students and parents see no tuition or fee increase.

The Governor also said he'll have to cut higher education spending by about 5 percent, or $42 million dollars, for the 2011 fiscal year.

Gov. Nixon made the announcements in St. Louis and Springfield Tuesday.

"Over the past ten years, tuition in Missouri increased by an average of 7.5 percent a year. We have worked to buck that trend. And together we're making it happen," Nixon said.

OTHER REACTION:

MSU President Michael Nietzel: "This is really great that students in Missouri will be able to say they have not faced a tuition increase for a second year. I doubt whether there's any other state that's going to be able to say that."

MSU Senior Mindy Dilley: "Me, personally, my family helps me pay for it and I always feel like I'm kind of a burden on them, so this is amazing."

MSU Professor George Connor: "The costs at the university aren't going down and they're not staying flat, so ultimately the university is losing money."

House Speaker Ron Richard: "We appreciate the Governor’s tuition proposal and will put it through the normal process, along with any other budget recommendations from the Governor."

House Budget Chair Allen Icet to KBIA: "We really don't know the 2011 budget picture that well. Although I would say most people would anticipate, and I would be one of those, that the revenue picture for 2011 will be worse than what it is in 2010." But Icet told the Kansas City Star, "the legislature is apt to accept it."

***

PLUS: THE VID

Asked If He Expects To Continue Deals Throughout His Term:

"We're Doing These One At A Time"

AND: Could Better Economy Lead To Tuition Hike?

*WATCH IT*

MSU President Nietzel To Step Down

"I want and need a change . . ."

Missouri State University president Michael Nietzel is resigning.

He won't depart until December 2010, but the announcement surprised the school's Board of Governors and faculty. It comes at a time when Missouri State is struggling with a bleak budget picture and is considering furloughs and early retirements.

WATCH THE KY3 NEWS @ 10 REPORT HERE.

Board of Governors member Gordon Elliot said Nietzel assured the board he wasn't leaving to pursue another University post.

Board of Governors member Mary Sheid tells Ky3 News Nietzel's wife is battling throat cancer and that she's "completed treatment."

"She's had extensive treatment and I don't think all her problems are completely resolved at this point," Sheid said. "I just think the culmination of trying to balance everything did take its toll."

Why Nietzel's departing now & What It Means . . .

On Ky3 News @ 10

Kinder Concerned About Funding for College Training Program

Says he's "heard" some universities may be feeling "intimidated" into Gov. Nixon's program

MSU: "We're full steam ahead. We think it's a great idea."

School Says It Plans to Stretch Out Money Over At Least 2 Years

Lieutenant Governor Peter Kinder strongly suggested Monday that some colleges and universities feel like they are being "forced" and "intimidated" into implementing a program that would help higher education institutions train Missouri students to fill the shortage of healthcare workers in the state.

At issue is Governor Jay Nixon's Caring for Missourians initiative -- a $40 million dollar pot of money that will go schools to educate and train an additional 916 healthcare graduates. More than 80 percent of the state is designated as having a shortage of healthcare professionals.

In a conference call with statewide reporters Monday, Kinder said he is not against the concept of the program, but wants universities to be "keenly aware" that "funds may not be available next year."

"The issue is how this program will be funded today and going forward," Kinder said, adding that he's worried Nixon's plan might "only create a new financial burden on universities."

Kinder suggested that slagging general revenue could force universities to cut back in other areas such as scholarships and staff in order to keep the healthcare initiative afloat beyond the first year.

House Budget Chairman Allen Icet joined Kinder on the call to deliver the gloomy financial forecast. "2010 is going to be a bad year," Icet said. "It is not a good time to create a new program. It's time to batten down the hatchets now," he added.

Kinder did not specifically name any colleges or universities that have expressed concern about the financial solvency of the program's future, but said the goal of his call was to "heighten the profile of the issue and discussion."

He said he did not want to "have anyone forced into and intimidated into this program," and has heard unconfirmed "third-party" chatter that those concerns are out there.

When asked why he didn't reach out to colleges and universities before holding the call, Kinder said: "Because I didn't see it as part of my due diligence. I'm not going to make 15 calls and run it down."

He said that was the job of reporters.

Missouri State University Chief of Staff Paul Kincaid told The Notebook that the university has always been supportive of the healthcare training initiative. Under the program Missouri State will receive $2.2 million; Ozarks Technical Community College is slated to get $471,224.

"It's full steam ahead for us," Kincaid said. "We think it's a great idea. We understand that it's one-time money. But we think we may have some ways to phase it in and make it work beyond the first year," he explained. "We're planning to stretch it out maybe to 2 years."

Asked if the university felt pressured to accept the one-time funding, Kincaid responded, "absolutely not." "We felt this was a great idea from the beginning," he said.

Kincaid did not rule out the option of shifting funding from other programs to keep the expansion of healthcare training in place. "It's too early to tell," Kincaid said. He said he would hope lawmakers would see the merits of the program and provide more extensive funding in the future.

Spokesperson Scott Holste of Gov. Nixon's office said that "anyone who understands the critical need for healthcare professionals in Missouri supports this measure."

"The Governor and officials from the state’s public universities have been working since January to craft this measure," Holste said. "The universities recognize that there is a demand for health care professionals that they are not able to meet, so that’s why they have been working cooperatively with the Governor on this for several months," he said.

Senate Grants First Round Approval to Nixon's Scholarship Expansion

The Missouri Senate has voted to expand the A+ Scholarship program to allow all high schools to participate at a cost of $ 7 million dollars.

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Right now, students must attend an A + school "designated" school to qualify. The measure would provide scholarships for a third and fourth year of college to qualified students who first complete a two-year degree and maintain a B average. But the Associated Press reports that Senators rejected an amendment that would have equalized the size of scholarships from the need-based Access Missouri program to students attending public and private colleges.

***

GOV. NIXON'S STATEMENT:

"I am very pleased that the Missouri Senate has given initial approval to the Missouri Promise, my plan to create a pathway to a debt-free, four-year degree for middle-class families. And I thank Sen. Mayer for providing bipartisan leadership on this important bill."

MSU Won't Raise Tuition

FROM THE A.P . . . Missouri State University will not increase tuition in the coming school year.

The Board of Governors voted Friday to keep tuition flat for 2009-10, citing an agreement between the state's four-year colleges and universities and Gov. Jay Nixon.

The governor recommended to the state legislature that the institutions receive the same state appropriations in fiscal 2010 as they did in fiscal 2009.

In return, the colleges and universities agreed not to raise tuition and fees.

Undergraduate fees will remain at $186 per credit hour for in-state students and $362 per credit hour for out-of-state students.

Previously, the board voted to increase room and board costs by 4.2 percent to 4.7 percent, depending on the type of residence.

Access Missouri Funding Pits Private Versus Public

WATCH THE KY3 NEWS @ 10 REPORT HERE

***WATCH EXTRA CLIPS ABOVE***
Drury President Todd Parnell and Rep. Sara Lampe debate the merits of Governor Nixon's plan to shift some scholarship funding from private colleges to public institutions.

SPRINGFIELD -- A plan to cut state scholarships at private schools has students worried about their future.

Governor Jay Nixon is proposing to cut Access Missouri Scholarships at private colleges and independent universities in order to shift that money to public institutions.

Access Missouri is a $95 million dollar program that provides scholarships to tens of thousands of students at both public and private universities. Private schools complain that Nixon's plan is unfair.

Laura Gaska is a student working her way through the architecture program at Drury University, with the help of a $4600 Access Missouri Scholarship. That's the maximum amount a student can receive.

"It would really be a financial burden to have to go and get a private loan to subsidize what that isn't taking care of," Gaska said.

Nixon's plan would cut Gaska's private scholarship money. It would take the take the $4,600 dollar maximum scholarship for private school students down to $2,850 a year, and use the extra money to boost public scholarships to the same level.

Continue reading here . . .

Gov. Nixon Ok's Local MOHELA Projects

Gov. Jay Nixon has decided to ok money for some university construction projects that had been on hold.

It was unclear if Nixon would go through with many of the projects, because the funding source -- the Missouri Higher Education Loan Authority -- has experienced financial troubles.

Included in the approved $107 million dollar project list is $2.6 million dollars for Missouri State University's Jordan Valley Incubator and $7 million dollar for MSU's Siceluff Hall.

The student loan agency is to give $350 million to the state over several years under a 2007 state law.

Private Schools "Disheartened" About Scholarship Cuts

Independent Colleges and Universities say they are disheartened about Governor Jay Nixon's budget proposal that would cut scholarships to their schools.

In a statement released Friday, Central Methodist University president Marianne Inman said Nixon's budget would reduce Access Missouri scholarships to independent institutions by 38%.

Right now the maximum award for students at private schools is $4,600.

Nixon wants to change that to $2,850.

Under Nixon's plan, public school students using scholarships would see a 25% bump from $2,150 to $2,850.

"This is the equivalent of a tax increase for some lower-income families in our state," says Inman.

***

Inman says the average family income of Access Missouri recipients at 4-year private schools is about $1400 less than those at public schools. She also says private school students are more likely to complete their schooling in four years.

"If Gov. Nixon and the General Assembly are truly committed to helping working families, then they must protect Access Missouri as it currently exists so that Missouri students with demonstrated financial need have access to a college education in our state," says Inman.

Independent College and Universities of Missouri local members include College of the Ozarks and Southwest Baptist University.

Nixon Tiptoes Around Big Budget Questions

WAIT TIL' TUESDAY

READ BETWEEN THE WORDS

There were essentially four big questions posed to Governor Jay Nixon regarding Missouri's budget Friday. Nixon purposefully and even admittedly danced around answering them, but the way he responded may give us some clues to where he could be heading when he unveils the 2010 budget Tuesday. (You can watch Nixon's answers to the big four in the clip above.)

1) Since Higher Ed is safe from cuts, does that mean elementary and secondary education is vulnerable? Nixon left that on the table, but unclear. His answer: "I think Tuesday we'll present the full budget and we'll lay down what are some difficult choices in other areas." It would be hard to see Nixon pitting school levels against each other and forcing K through 12 schools to take the full hit, but he kept his cards close to the vest there.

2) Are the Access Missouri scholarships that benefit private school students likely to be cut or scaled back? Of the three big questions, Nixon revealed the most on this one. The scholarships, which were established in 2006, have been a point of contention for many Democrats and leaders of state colleges, who complain that public money shouldn't be prioritized for private students, especially if their families are wealthy. Many in the education world believe this is where Nixon is most likely to make a change, possibly scaling back the available pool for private school students. "There may be some areas in Access Missouri that we look at," Nixon said. "It would not be beyond thought that there are some work done, not in the level of commitment, but just in how that commitment is spent," he said. Possible meaning: Shifting more scholarship money to public institutions and away from private schools. Look for conservative Republicans to fight this.

3) Will Nixon withhold any higher education money from the current fiscal year to help balance the projected $261 million dollar deficit? The Springfield News Leader's Chad Livengood, (who makes a cameo appearance in the video above), posed the "withhold" question, and Nixon acknowledged he wasn't offering a clear answer. Watch the latter part of the above clip for his full answer. The short version: Nixon said it's certainly a priority to release 2009 funds as planned, but he can't tell students and faculty "never, never, never." He clearly can't rule withholds out.

4) Is Nixon banking on the federal economic stimulus package to help? Possibly in 2010, but not likely this year, he said. The focus for now is fiscal year 2009 because it's obviously much more imminent. Nixon said he doesn't expect to depend on money from Congress to help sure the state by June. "We will be watching very carefully what happens in the coming months because I think anything that would happen in D.C. would carry on out. It's not going to be of immediate assistance to us here," Nixon said.

Memo: Federal Stimulus May Require Tuition Restrictions

A memo distributed to state lawmakers Friday suggests that colleges and universities that receive particular money from a possible federal stimulus package would be required to use it to help keep tuition costs down.

The memo, obtained by The Ky3 Political Notebook, was presented to state lawmakers in Columbia today during a meeting with University of Missouri leaders.

The 16-page document outlines the draft bill of the federal stimulus package, and the restrictions that would be involved. Under the education section, it lists $79 billion dollars for "state fiscal stabilization." It reads: "A public institution of higher education that receives funds under this title shall use the funds for education and general expenditures, and in such a way as to mitigate the need to raise tuition and fees for in-State students. An institution of higher education may not use funds received under this title for construction, renovation, or facility repair."

The Republican source from Jefferson City who provided the document said that "we've been told through channels that the House version would specifically speak to tuition increases as part of education funding."

Wording is key in all of this, and it's likely to change easily as Congress begins to piece it together.

But when I asked Governor Jay Nixon today if he had any knowledge that a tuition freeze would be a requirement for states to use economic stimulus money, he said, "no."

Nixon Announces His 2-Year Plan At MSU

Governor Jay Nixon made official his tuition agreement with 2-year colleges Friday, two days after Ozarks Technical Community College confirmed the deal to KY3.

***

Curiously, Nixon made his "new" announcement at Missouri State University, a 4-year institution. A Nixon spokesperson explained that MSU President Michael Nietzel was instrumental in nailing the event down for his school. Nixon also had to meet with Nietzel to discuss other issues.

There are also indications that some leaders at community colleges weren't given a heads up that the official announcement about their agreement would be coming this morning. It's fair to say the way the announcement was handled has irked some officials in the 2-year community.

The deal for the 2-year and community colleges will freeze their state funding for the next fiscal year in exchange for a pledge not to hike tuition. Hundreds packed into a room in Plaster Student Union to hear the Governor and President Nietzel praise the agreements.

Nixon Back For Another Friday Springfield Stop

TGIF

Governor Jay Nixon will hold a 2:30 p.m. news conference at Missouri State University to offer more details about his higher education funding agreement.

He's also expected to detail a second component of the agreement, focusing on "job training and workforce development."

The news conference is slated to be held at Plaster Student Union.

ALSO: NIXON'S 2nd WEEK GRADE

DEVELOPING . . .

Fuzzy Math

CLIMBING OUT OF THE RED?

Governor Jay Nixon's higher education funding deal to keep funding flat raises new questions about the size of Missouri's budget deficit and what could be on the chopping block.

HIGHER ED CHAIR SEES "NO WITHHOLDS"; ICET NOT SURE

2-YEARS ALSO INCLUDED IN DEAL; NOT YET SAYS NIXON'S OFFICE

HIGDON: $340 M DEFICIT NO LONGER CORRECT

WATCH THE KY3 NEWS @ 10 REPORT HERE

A deal between Missouri's new Governor and higher education institutions could possibly save schools from any cut in funding next year. In early December, Jay Nixon's top budget adviser projected a $340 million dollar deficit by June.

But the rollout of this agreement coupled with comments from Missouri lawmakers and higher education officials seem to indicate that Missouri's financial picture might not be as bleak as originally thought.

On the other hand, maybe not.

And that raises the question of, if not higher education, then what?

Nixon's agreement received cautiously optimistic praise from some key House Republicans Wednesday. House Higher Education Chair Gayle Kingery said he's hearing good feedback from schools. "I like the concept, it's a good trade-off in these tough economic times," Kingery said.

Kingery seemed bullish on the budget picture that Missouri faces, doubting that the state would have to "do withholds," meaning holding back some funding during the current fiscal year. "I think we can come out even, on target," Kingery said. "I don't anticipate any big withholds. The last numbers I saw showed we're about even."

Kingery said he expects a negative third quarter, but thinks by June, "we're going to be doing all right." He credits "good fiscal management" over the past three years by former Governor Matt Blunt and the G.O.P. legislature. "We're in better shape than anybody surrounding us. You've got to realize, when Governor Nixon took office, he inherited a $300 million dollar reserve, Blunt inherited a billion dollar deficit," he said.

House Budget Chair Allen Icet said he was a bit surprised by Nixon's announcement, but "liked the part about not passing the bill onto parents." Still, Icet has questions. He said he wants to know if Access Scholarships are included under Nixon's higher education umbrella. Those scholarships are controversial among some Democrats because they provide money to private colleges.

"Is this truly feasible for 2010," wondered Icet in an interview, noting that he's still unclear if Nixon's decision is based on potential withholds for 2009. "The devil's in the details."

While Nixon did not come to Springfield Wednesday, Missouri State University president Michael Nietzel held a media availability and acknowledged current year withholdings could be a possibility. "It's conceivable that at some point, the state may say, we're going to have to take a little back this year to make it work. If that occurs, we'll deal with it," Nietzel said.

Another question that arose was whether 2-year and community colleges were included in this no cuts for no hikes deal. Ozarks Technical Community College president Hal Higdon told KY3 that his school has the "same agreement as the 4-year institutions."

Higdon, who spoke to us after a day of lobbying lawmakers in Jefferson City, said, "anything that is not a cut is a good thing."

Nixon spokesperson Scott Holste would not confirm that a 2-year agreement had yet been reached, but said the Nixon administration was working on it.

But Higdon also indicated that he believes the $340 million dollar deficit projected last month is no longer a relevant number.

"The projections are looking much better. I don't believe it's anywhere near that. I think if there is a withholding, it'll be much less than that," Higdon said.

The caveat? Revenue over the next few months. "We're only in January," Higdon cautioned. "The devil's in the details."

Yes, and right now the details on Missouri's budget projection seems fuzzy.

"Devil's In The Details"

House Budget Chair Rep. Allen Icet says Governor Jay Nixon's higher education deal for no 2010 cuts in exchange for no tuition hikes came as "a bit of a surprise."

Says he heard about it through a call while the Governor was making the announcement

Rep. Icet tells The Notebook he likes the part about "not passing a bill on to parents," but wonders, "Is this truly feasible for 2010?"

Adds he still isn't sure if this is part of a higher ed withholding for FY2009.

"The Devil's in the details," says Icet.

In a separate interview, Ozarks Technical Community College President Hal Higdon thanks Nixon for his efforts, but uses the exact same language to describe the budget picture: "The devil's in the details."

ALSO: House Higher Education Chair Gayle Kingery seems bullish on the plan.

DEVELOPING . . .

FOR KY3 NEWS @ 10

No Hikes, No Cuts

FREEZE

Governor Jay Nixon has reached an agreement with Missouri's 4-year colleges and universities that would keep funding flat for 2010 in exchange for a pledge not to raise tuition.

"While students in many other states are likely to face double-digit tuition increases next year, Missouri students can rest assured that their tuition rates will stay the same. It will take more of these innovative, collaborative agreements to get our economy moving in the right direction," said Governor Nixon in a statement Wednesday.

"This agreement is a real investment in Missouri’s economy and our future. I commend Gov. Nixon for bringing everyone to the table to develop a solution that puts Missouri’s students first." said Missouri State University President Michael Nietzel.

Lawmakers will have the final say when they craft the budget.

Nixon is touring the state today, but won't be in Springfield, to tout the agreement.

Nietzel held a media availability Wednesday afternoon.

DEVELOPING . . .

Rollback

WITHDRAWALS, REVIEWS & CUTS

MORE EVIDENCE A NEW GOVERNOR IS IN TOWN:

• Missouri State University's student paper reports Governor Nixon has withdrawn an appointment to the school's Board of Governors made by former Gov. Matt Blunt.
• Kansas City fee offices are the next ones going up for competitive bid.
• The Governor has also halted a public safety radio plan, designed to spend tens of millions of dollars to improve the radio system used by emergency. The contract, worth more than $80 million dollars, had been awarded to Motorola, but Nixon's team says it's part of their review of all state contracts.

FROM THE GOVERNOR'S OFFICE:

"Gov. Jay Nixon today directed the Office of Administration to review all existing long-term contracts and those long-term contracts now in the bidding process as part of his plan to increase efficiency in state government. The review may result in the cancellation or delay of contracts deemed either to be unnecessary at this time or not economically beneficial to taxpayers."

ALSO: NIXON TO TALK HIGHER ED WEDNESDAY

A release from the Governor's office says Nixon will hold events at universities in Columbia, St. Louis and Kansas City to announce a "major policy agreement to keep higher education affordable and accessible for Missouri students during these difficult economic times."

Higher Ed Cuts Could Mean More Than 100 MSU Layoffs

Missouri State University President Michael Nietzel will address the media Thursday afternoon to discuss the school's "statement of impact" should appropriations be reduced by 15, 20 or 25 percent.

WATCH THE KY3 NEWS @ 10 REPORT HERE

The Impact Statement is already available on the University's website HERE.

"Reductions at any of these three levels are without precedent and would have an enormous negative impact on the university," writes Nietzel.

SOME HIGHLIGHTS FROM NIETZEL'S REPORT:

• A cut of 25% would would exceed the total amount of scholarships and financial aid provided by the university to its students.
• No budget reduction of this magnitude could be accomplished without layoffs of staff and reductions in faculty.
• Faculty reductions could involve more than 100 full-time employees to accomplish the 20% and 25% budget cuts.
• Maintenance, Coaching personnel, health care coverage and travel budgets could also be slashed.
• Implications of cuts could result in a possible cap on student enrollment and an increase in tuition.
• If Missouri State sought to offset a 15% cut by an increase in tuition, the school would need to raise the resident rate by 13%, or $24 per credit hour.

"Budget cuts of any of these magnitudes would cause substantial pain and losses beyond the university . . . the economic adversity would spread in a number of negative directions," writes Nietzel.

The availability is scheduled from 3:30-4 p.m. in Carrington Hall.

DEVELOPING . . .

Higdon Expecting 3 to 5% Mid-Year Higher Ed Cut

The President of Ozarks Technical Community College tells the KY3 Political Notebook he is expecting Missouri higher education to experience a mid-year budgetary cut of between 3 and 5 percent.

***

"I believe we will be hit with a midyear cut," said OTC President Hal Higdon. "We are hearing it will be between 3 and 5%. We have looked a scenarios of cuts of 15, 20 and 25% next year. Those cuts could cause drastic increases to tuition, closing of high cost programs, loss of jobs, delayed maintenance, delayed equipment costs and will cause programs such as nursing to forgo much needed expansion," Higdon added.

***

Higdon said he hopes he's wrong, but said if higher education is cut at a rate of 15 to 25 percent, "the long-term economic health of our state will be drastically affected."

"When you are 47th in higher education funding, there is not much space left before you are last," Higdon said.

Compared to other community colleges in the state, OTC receives about fifty cents on the dollar.

***EARLIER: Missouri State University plans to address higher ed funding in a media availability Thursday.