While Missouri's public colleges and universities wrestle with managing the Legislature's 6.58 percent cut to their core funding, the state's Higher Education department also is looking at a $1.2 million cut in its funding for the new budget year that begins July 1.
But it's a cut that, officials have told the Coordinating Board for Higher Education, could have drastic effects on the department operations and programs if not restored in the future.
Still, spokeswoman Liz Coleman told the News Tribune, "We have no plans to request a supplemental appropriation in 2018."
The "cut" is the removal of general revenue funding for the Missouri Student Loan Program.
"The student loan guaranty program generates revenue that supports functions throughout the department," DHE staff told the CBHE in a memo for the board's April meeting.
Under the state's budget approved by lawmakers this year, the department staff explained to the CBHE, "The Student Loan Program, which has not guaranteed new loans since the passage of the Healthcare and Education Affordability Reconciliation Act in 2010, (will) be unable to meet its guaranty agency obligations sooner than anticipated.
"Dissolution of the guaranty agency function would create an annual hole in the department's budget of approximately $1.2 million, which includes both personal service and expense and equipment expenditures."
Coleman reminded a reporter: "Pulling additional money from the operating fund for programs that are usually funded by general revenue - such as the state financial aid programs - reduces the operating fund balance" and, ultimately, will damage the department's ability to do the work required by state law.
The department staff told the CBHE in April: "This is especially true given the trend of assigning significant new responsibilities to the department without corresponding general revenue funding.
"In addition to reducing revenue available to support department staff, specific programs would be eliminated, substantially impacting tens of thousands of Missouri students and families."
Programs endangered by the budget changes "include the department's Journey to College program, which includes FAFSA Frenzy, College Application Day and College Decision Day," the staff told the CBHE. "This suite of programs provides no-cost assistance with preparing for and transitioning to postsecondary education targeted at first-generation and underrepresented populations of students."
Coleman acknowledged previous generations made college choices and decisions without those programs, but: "The cross section of students who attend college is much broader than it once was and includes students whose families often have limited experience with accessing higher education," she told the News Tribune.
"In addition, Missouri is working to increase the percentage of students earning a college degree or certificate in order to meet the state's workforce needs.
"The Journey to College initiative focuses on helping more students - especially low-income students and those who would be the first in their families to attend college - access higher education."
That's the initiative that includes the Apply Missouri, FAFSA Frenzy and Decision Day programs, which assist students with planning for higher education, submitting college applications and applying for financial aid, Coleman explained.
In its April memo to the CBHE, the department staff said the loss of the Student Loan Program funds to department operations also would mean the state's Higher Education department no longer could administer the Student Loan Default Prevention Grant program, "which is considered a model by other states (and) provides funding to assist postsecondary education institutions in helping students avoid excessive borrowing and loan default."
Coleman reminded a reporter the Default Prevention Grant Program "focuses on helping students improve their money management skills and make informed decisions about borrowing money to pay for college. The program's goal is to reduce student loan debt and prevent students from defaulting on their student loans and negatively impacting their personal finances."
But the problems don't surface immediately, in the new budget year, Coleman said: "The Department of Higher Education will be able to maintain its current level of operations during Fiscal Year 2018.
"However, if funds from the Missouri Student Loan Program continue to be used for programs that traditionally have been funded with general revenue, the services the department can provide to Missourians will gradually be reduced."
And winning outside grants likely won't change that, she said: "The department can and does seek grant funding - but it often must be used for specific programs or purposes and generally cannot be used to fund many of the department's statutory responsibilities, such as administering state financial aid programs and approving degree programs."