Wrangling over next year’s budget may be starting, but 2012 is already on some university officials’ minds.
It’s because federal Stimulus funds will no longer be available to shore up budget holes.
“We know that as we look ahead to 2012, absent a recovery in state revenues, another $24 million of federal Stimulus money in our core budget today may be at risk,” said University of Missouri System President Gary Forsee, during his State of the University address.
Last year, legislators needed approximately $50 million to fund the System at its 2008 levels. A similar method could be used this year to fulfill Gov. Jay Nixon’s promise of 95 percent of last year’s state appropriations.
The cost of appropriation losses is already being felt by students. Room and board expenses were increased by the Board of Curators last week.
And unlike last year, only undergraduate Missouri residents would be exempt next year from tuition increases. Other students’ tuition could potentially be raised, a possibility Forsee conceded during a town hall meeting at Missouri S&T last semester.
“I think there is a possibility there will be an increase for non-undergraduate, non-residential students,” said Forsee.
Looking to 2012, Forsee used the address to tout measures taken by the System to cut finances and make the case for increased funding in higher education.
In 2009, the System made several cuts to account for no tuition or appropriation increases. Frozen salaries, positions left open, operating costs reduced by $65 million — a tuition increase alone could have accounted for $70 million over five years, according to Forsee.
“The outcome thus far is perhaps not as draconian as the actions of others around the country, but I accept that that may be in the ‘eye of the beholder,’” said Forsee.
Forsee called on the state to address different financial issues. The Access Missouri Scholarship program, which according to Forsee averaged about $1,500 in aid for public university students and $3,150 for private students, and the state’s usage of the System’s research to leverage for economic development and federal grants, are two areas the state needs to examine, he said.
He even took exception with past tax policy.
“The facts are, that since 1997, thanks to a series of a la carte tax policy changes, state revenues have been reduced by $800 billion,” Forsee said, rhetorically asking whether the diverted taxes could have gone to several programs.
From 2002, the System’s tuition increased by 73 percent, higher than the national average of 63 percent, according to the National Institute of Education Statistics. But in contrast to other states, most Missouri students could have flat tuition for a second-straight year.
