Jasinski, Northwest preparing for cuts
John Jasinski
Northwest Missouri State will once again be put in a position to make difficult decisions due to state budget issues.
Last week, Missouri Gov. Eric Greitens announced his proposed budget and the recently-elected Republican called for a reduction in state funding for higher education between 9 and 10 percent — which breaks down to about $3 million for Northwest.
Those cuts will go in effect on July 1, the start of the fiscal year for the school. This move comes after a 2.3 percent cut that Greitens announced last month for this fiscal year, which ends June 30.
“There is no question cuts of this sort are very difficult,” Northwest president John Jasinski said. “They will hurt and we will cut across programs and operations. The larger thing for all of us is to really understand the importance at all levels of education and the importance of higher education. It’s an economic engine and driver in our region.”
A third-party study by Economic Modeling Specialist International in 2015 showed the university has a regional economic impact of $617.5 million in income, jobs and taxpayer benefits.
Greitens reduced spending by $146 million for this fiscal year to keep the budget balanced. The budget for the next fiscal year saw a growth of 1.2 percent and checks in at $27.6 billion — which incidentally includes the state paying $12 million for the debt payment for the Dome at America’s Center that has been vacated by the Los Angeles Rams.
Public schools K-12 will see $3.3 billion in basic aid to elementary and secondary schools, an increase of $3 million. However, school busing funds will decrease from $105 million to $69 million.
Higher education could potentially see nearly $90 million less in core funding than expected for fiscal year 2018.
“We all know that the state has to produce a balanced budget much like our institution and in our home life,” Jasinski said “We need to make sure we understand what’s proposed in the budget and the process going forward. I think we could do some work and talk with our colleagues that represent us and understand the severity of the cuts.
“We understand a balanced budget but we will work to at least decrease some of the appropriation cuts during the legislative sessions. We all have to come together and embrace the importance of education”
The GOP-led House legislature has until May 5 to pass its own version of the budget and deliver to Greitens.
Jasinski addressed recent cuts during the January board of regents meeting, which saw the school make cuts to travel, personnel, expense management and hospitality services.
Many job openings won’t be filled, while travel to conferences for professional development has been cut. Daily operation travel is still allowed, for instance in terms of recruiting for athletic programs.
“This is not just a spring 2017 exercise for Northwest,” Jasinski said. “We are looking long term, not just spring 2017 to balance.”
The Associated Press broached the subject of tuition increase across the state. Northwest didn’t raise tuition last year and at the time Northwest Vice President of Finance Stacy Carrick told the board of regents that the school has the lowest tuition increase across the nation over the past six years.
That may change given the new climate of the state.
“We are so focused on our strategy of access, affordability and quality, but we will have to look at everything,” Jasinski said. “Everything is on the table, not just expenditure decreases and resource reallocation, and revenue enhancement. We are taking a long-term look at investing in our institution.”
There are teams in place going over scenarios for possible cuts across the program for the 2018 fiscal year, but until a budget is finalized, the school is in a wait-and-see mode.
“I respect that we have to balance a budget, I understand it, I do,” Jasinski said. “I think it is pretty difficult when one sector takes a disproportionate hit. It isn’t over and I think there is work to be done. I’m confident in Northwest Missouri State and what we do, where we have been and where we are headed. We have such momentum at Northwest. We have remained accessible and affordable, and we provide a high-quality education.”