A proposal has been scrapped by Governor Jay Nixon (D) to borrow money from Missouri’s state universities to help balance the state’s budget.
The idea was floated last month, in which $106 million in reserve funds from five of Missouri’s largest universities would be used to shore up the Department of Higher Education’s budget for the next fiscal year, which begins in July. That sparked an outcry from both university officials and lawmakers.
Halfway through Missouri's budget year, state revenues are sluggish.
The state budget office reported Thursday that Missouri's revenue increased 1.2 percent through the first six months of the 2012 fiscal year. Revenues need to grow at about 2.7 percent to meet the mark set by the budget.
Budget Director Linda Luebbering says the revenue report was "concerning." But she noted that the revenue could improve in the second half of the budget year. Missouri budgets take effect July 1.
The 2012 Missouri legislative session is underway, and much of the first-day talk revolved around the challenges facing the state’s public schools.
In addition to Missouri’s K-12 schools not being fully funded, suburban school districts near St. Louis and Kansas City may be forced to accept thousands of transfer students from the inner cities, thanks to the State Supreme Court’s ruling in Turner v. Clayton. House Speaker Steven Tilley (R, Perryville) says any solutions to those problems should include tuition tax credits for kids in unaccredited areas, and statewide expansion of charter schools.