Editor’s Note: During his Jan. 17, 2012, State of the State address, Missouri Governor Jay Nixon recommended a 12.5 percent reduction in state higher education appropriations for fiscal year 2013. On Feb. 7, he amended his proposal, indicating that $40 million from the $140 million Missouri received in a settlement between the states’ attorneys general and the nation’s five largest mortgage banks would be restored to the state’s higher education budget, bringing the appropriation cut to 7.8 percent. We sat down with Missouri Western President Robert Vartabedian to discuss this proposed reduction.
Western Magazine: How dire is Missouri’s higher education funding situation?
Dr. V: Well, it’s no secret that the state is undergoing extraordinarily difficult economic times, but these persistent budget cuts to higher education are taking their toll on Missouri’s universities. We’re looking at a 20 percent reduction over the last three years alone. According to the Center for the Study of Education Policy, Missouri ranks 44th nationally in state appropriations for higher education per $1,000 of personal income. This is the lowest it’s been since the early 1960s. Missouri also ranks 44th in the country in per capita funding for higher education.
WM: Where does Missouri Western fall on the state appropriation scale?
Dr. V: Missouri Western has the unfortunate distinction of receiving less state appropriations per full-time-equivalent student than any other public university in the state. Unlike Missouri’s elementary and secondary sector, the state doesn’t have a funding formula for higher education. Apart from a few exceptions, in those years institutions receive additional state funding it is provided in the form of an across-the-board percentage increase to a base appropriation for each institution. In theory, that makes sense. In reality, it continuously widens the gap between those institutions with large base appropriations and those, such as Western, with smaller bases. We are trying to work with Missouri’s legislators to find a solution to the unintentional problems inherent in the current funding process.
WM: On average, how do we compare with other schools?
Dr. V: Over the past three decades, the current higher education appropriation process has unintentionally caused a compounded disparity in funding for Missouri Western, as well as for several other state institutions. For example, in fiscal year 2007, Missouri Western’s appropriation per full-time-equivalent student was $1,132, or 17.6 percent, below the state average. Now, five years later, the university’s appropriation per FTE is $1,558, or 26.8 percent, below the state average.
WM: Can Missouri Western raise tuition to cover the loss in state appropriations?
Dr. V: Historically, we have held tuition below the state average, because one of our main priorities is to provide high-quality education at an affordable price. That being said, a provision of the state’s Higher Education Student Funding Act limits tuition increases to the percentage of change in the consumer price index over the previous year, unless a waiver is granted. This year, that rate is approximately three percent. Of course, if a university has a higher tuition rate than ours, it will generate more revenue per student from its three percent increase than we will from our lower tuition rate. This, too, creates a fiscal disparity among the institutions. Five years ago, Missouri Western’s tuition and required fees were $415, or 7.4 percent, under the state average for a full-time, in-state undergraduate student. This year, they are $685, or 10.2 percent, below the state average. Again, there is an unintentional problem with the process, but it will take legislation to solve it.
WM: Have you received any indication that the Missouri General Assembly may find additional funding for higher education as the appropriation bill works its way through the legislative process?
Dr. V: Both the House and the Senate have voiced strong support for higher education this year, and they are trying to find additional funding. Unfortunately, if they give it to us, they have to take it from somewhere else. The House amended the higher education appropriations bill, and reinstated the governor’s $66 million cut. Unfortunately, Gov. Nixon has publicly stated that he doesn’t believe the funding is sustainable, and won’t support it. The Senate also favors restoration of appropriations to this year’s levels. So we’ll have to see if the Senate can identify other avenues of funding that the governor is willing to support.
WM: Missouri Western has been forced to contend with declining state support throughout the past decade; what are you doing to prepare for these most recent budget reductions?
Dr. V: We’ve already taken many steps to control and reduce costs and implement efficiencies across campus. All phases of the university were evaluated, including instructional and non-instructional programs and services, current policies, and business practices. Here are just a few examples: eliminating several executive positions; decreasing operating budgets across campus by 40 percent; not giving salary increases for three – going on four – years; increasing class sizes, in most cases to room capacity; adding few new full-time faculty members, despite a 13.75 percent growth in student enrollment over the past four years; and postponing routine maintenance and repair, unfortunately increasing our deferred maintenance needs.
WM: Are there other sources of revenue that the university can pursue?
Dr. V: Our students are incredibly astute, and have recognized that additional funding is crucial to ensuring continued high-quality education at Western. Just recently, our Student Government Association’s senators voted by an overwhelming margin to implement a student fee that will help fund support services within our student affairs division. Full-time students will pay an additional $75 per semester, part-time students $50, and summer students $25. Unless something happens to the contrary, we plan to implement the fee this fall.
WM: What are the plans for the future?
Dr. V: When University of Wisconsin-Stevens Point Chancellor Bernie Patterson ’73, gave his Missouri Western Distinguished Alumni Award acceptance speech last fall, he referred to our university when he said, “You gave me a chance to succeed … You gave me a chance to learn when others were not inclined to do so.” I remember those words as clearly today as when they were spoken. Our plans are to keep doing what we have done for close to 100 years. We will continue to give students a chance to learn, to grow, and to succeed, regardless of our budgetary circumstances.
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