Cut of 7 percent ‘good news’ for University

In the wake of Gov. Jay Nixon's recommendation that higher education take a 7 percent cut next school year, Truman administrators are feeling some relief while preparing for at least a $3 million loss in state appropriations.

Although the proposed 7 percent cut to Truman's state funding is smaller than University President Troy Paino originally predicted, students probably will face tuition increases, although more modest than predicted. Nixon's proposal, which needs to be approved by the Missouri General Assembly, would take effect July 1, 2011.

The recommended cut, which Paino called "good news" for the University, is significantly lower than the 10 to 15 percent cut  predicted earlier this year. As a result of predicted cuts, Paino originally predicted in the fall that tuition rates would increase for the 2011-12 school year by 3 to 7 percent.

"If the governor's budget holds, I think you can expect that any tuition increase would be on the lower end of that range," Paino said.

 Budget Director Dave Rector said deciding tuition costs for the next school year, which probably will not be finalized until April, will be a balancing act between making tuition affordable and covering costs. "The 7 percent cut was good news," Rector said. "It's ironic that we'd be happy to be at 7 percent, which is roughly $3 million, but since we were prepared for worse, it sounded pretty good at the time."

A 5 percent cut in state funding for the 2010-11 school year and a possible 7 percent cut for the 2011-12 year would mean a 12 percent funding cut in 2 years. Rector said he estimates Truman state appropriations in fiscal year 2012 will drop to less than $40 million, the lowest they have been since 1999.

This reflects a policy shift across the U.S., which is to focus the weight of paying for college on the students and their families. Paino said the University probably will never again have the large amount of appropriations it received in the early to mid 90s.

The General Assembly will have appropriations hearings to debate the potential effects of funding losses on higher education. Paino will testify Feb. 2 in Jefferson City about how a 10 or 15 percent cut would affect the University. Because Nixon's 7 percent is only a recommendation, the General Assembly still has to pass legislation in support or opposition of that number.

"We are hopeful that 7 percent will stick," Paino said. "For planning purposes we still are going to plan for somewhere between 7 and 10 percent."

This also means the University might have less to cut than originally estimated. All administrative divisions have set budget reduction goals. The goal of academics, the largest division, is to cut $2 million from the budget, Rector said. Most divisions are close to their goals.

Nixon is emphasizing that tuition should remain low because of the lower-than-anticipated cuts. Paino said he would support Nixon's fight for higher education and try to keep tuition increases modest. Rates will be discussed at the Feb. 5 Board of Governors meeting but probably will not be finalized until late spring.

Students also will travel to the capital to show support for Nixon's proposed cuts. Student Senate President Isaac Robinson said the senate will devote the annual "Truman at the Capitol" campaign to lobbying in favor of the 7 percent cut — unless Robinson said, legislators have a smaller cut in mind.  He said Student Senate was happy with the proposed cuts but thought strong input from student leaders would be necessary in both making cuts and debating the tuition increase.

Paino said he now wants to look to the future and begin planning how Truman will adapt to changes in funding and how Truman will look in the next five, 10 and 15 years.

"It's crazy to say ‘7 percent — yay' but when you've been bracing for anywhere between 10 to as bad as 20 percent scenarios, 7 percent sounds pretty good right now," Paino said.