Continued reductions in state funds to higher education will likely start cutting into programming at public universities. Economic development folks are questioning the impact on a viable work force.
Gov. Jay Nixon’s budget, which he released last week, calls for a 12.5 percent cut (nearly $90 million total) in appropriations to higher education as the state faces a $500 million revenue shortfall. Funding levels are now below what was appropriated to higher education in 1997.
The worry is that university administrators will have to consider reducing the programs they offer, which could affect the quality of Missouri’s work force. Dr. Gary Clapp, CEO of the Western Institute at Missouri Western State University, said the high-tech industry, including agribusiness and animal health and nutrition industries that have settled in the region, rely on an educated work force.
“What sort of message does this send, that we’re not investing to that level?” Dr. Clapp said of the industries that call St. Joseph home. “Everybody benefits when the education attainment goes up.”
Economic development leaders are faced with the challenge of guiding potential workers into developing the skill sets that are applicable to the jobs available. More and more frequently, people are told that the jobs of the future are those that require a higher level of education. The lack of a financial commitment to state higher education institutions concerns Ted Allison, president and CEO of the St. Joseph Area Chamber of Commerce.
“How are we going to grow our university, and have a continued flow of graduates from that university that will satisfy the needs of local industry, when the funds keep being cut?” he asked. “I question that priority.”
Mr. Allison said that in the typical economic development opportunity, as companies go through a site selection process, taxation, transportation and education can make or break a state’s ability to attract new industry.
“My concern is we’re going to be eliminated from a lot of projects because we appear to not highly value investment in higher education,” he said. State Sen. Brad Lager, R-Savannah, doesn’t believe the quality of education is improved by throwing money at it. But the governor’s budget, which he believes is still up to $300 million out of balance, takes a step toward decimating higher education. He said the solution to the budget problem is not to “reduce education while increasing entitlements in other areas of government.”“Businesses make decisions on where to go because of a capable, reliable work force,” he said. “It matters in a very significant way. That’s why you have to be careful, and you can’t just take an ax to the budget of education.”
He said the cuts may not be felt in six or 12 months, but “the impact will definitely be felt.”According to a 2010 report from the state higher education executive officers, from 2005 to 2010 Missouri had the second largest total cuts in state appropriations in the U.S. That year, Missouri appropriated $6,074 per student (nearly 190,000 students were enrolled that year).
Universities have continued to see record enrollments over the last two years, while appropriations have been cut (8.2 percent last year and possibly 12.5 percent in the coming year). Kansas and Iowa, according to the report, had lower per-student appropriations, while Nebraska, Arkansas and Illinois appropriated up to $2,000 more per student.