1 / 19

The Missouri budget AND IMPLICATIONS FOR HIGHER EDUCATION

The Missouri budget AND IMPLICATIONS FOR HIGHER EDUCATION. Paul Wagner, Deputy Commissioner. Overview of Missouri’s state budget Nature of the federal stimulus package The state’s current balance sheet The outlook for higher education budgets Challenges for Southeast Missouri State.

wallace-rohan
Download Presentation

The Missouri budget AND IMPLICATIONS FOR HIGHER EDUCATION

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Missouri budgetAND IMPLICATIONS FOR HIGHER EDUCATION Paul Wagner, Deputy Commissioner

  2. Overview of Missouri’s state budget • Nature of the federal stimulus package • The state’s current balance sheet • The outlook for higher education budgets • Challenges for Southeast Missouri State

  3. Don’t we have $23 billion dollars? Yes, but . . . $7.8 billion are federal funds for dedicated purposes (Medicaid, K-12, public safety). $7.5 billion are “other funds” for dedicated purposes, such as the conservation sales tax, gas taxes, gaming proceeds. So that leaves us with about $7.8 billion of general revenue – discretionary dollars.

  4. Where does the $7.8 billion go?

  5. The Current Situation • The State finished FY 2009 about $550 million below FY 2008. • FY 2010 collections are expected to be down another 6.5%, $480m below FY 2009. • So if it weren’t for the stimulus money, we would be around $1 billion in the hole. • The projected growth for FY 2011 (3.6%) will still leave the State $775 million behind FY 2008.

  6. What about federal stimulus funds? Stimulus v. Stabilization Stimulus – direct grants and competitive opportunities Stabilization – “free money” for states to preserve programs and services (and FMAP)

  7. How reliant are we on stabilization money? • There is currently about $1.2 billion in the FY 2010 operating budget. • About $775 million is in the regular operating budget – mostly supporting on-going programs/services like higher education. • The remainder is primarily in the capital improvements budget – one-time expenditures.

  8. FY 2010 Spending of “Education” Stabilization Funds Reduce State Funding to FY 2006 level, then backfill to FY 2009 level with stabilization funds: $104,786,639 Higher Education Institutions $479,413,871 K-12 Foundation Formula $584,200,510TOTAL $188,971,825FY 2011 Remaining FBS Funds

  9. But really, what kind of shape is the state budget in now?

  10. What are the implications for higher education funding?

  11. FY 2011 Potential Scenario $961,515,803 FY 2010 Higher Education - base funding -$104,786,639 less FBS funding used in FY 2010 $856,729,164 Base GR funding for FY 2011 (FY 06 level - cannot go below) $35,680,807 plus Higher Education's proportion of remaining FBS money (18.5%) $892,409,971 equals FY 2011 "no increase" base for Higher Education Institutions -$69,105,832 shortfall from FY 2010 level (-7.2% )

  12. What about FY 2012 and beyond? • Without some other intervention – we’ll finally be forced to live within our means. • Any withholdings or FY 2011 cuts will have to become permanent, and other major reductions will have to take place. • The business of state government will have to fundamentally change.

  13. How to approach the problem? • Hancock II • Missouri’s political culture • The Governor’s approach • Letters from the Budget Director • The Governor’s actions

  14. Challenges for Southeast Missouri State • Unfunded FTE growth • Existing demographics • Emerging demographics • Regional relationships – cooperation or competition

  15. Advantages for Southeast Missouri State • Entrepreneurial focus • Flexibility and responsiveness • Broad mission • ________________________

  16. QUESTIONS 3515 Amazonas Drive Jefferson City, MO 65109 Phone: (573) 751-2361 Fax: (573) 751-6635 Info. Center: (800) 473-6757 info@dhe.mo.gov www.dhe.mo.gov

More Related