Lincoln University faces 'devastating' $1.4 million in cuts

Walkways on the campus of Lincoln University in Jefferson City appear vacant after the school closed Wednesday, March 25, 2020, in response to the spread of the COVID-19 coronavirus in Mid-Missouri.
Walkways on the campus of Lincoln University in Jefferson City appear vacant after the school closed Wednesday, March 25, 2020, in response to the spread of the COVID-19 coronavirus in Mid-Missouri.

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Lincoln University and State Technical College of Missouri are expected to have significant funding restrictions for their budgets, following Missouri Gov. Mike Parson's announcement last week of a $180 million set of state spending restrictions due to the COVID-19 pandemic.

It was clear shortly after Parson and the state's budget director announced the spending restrictions last Wednesday that State Tech in Linn would have more than $487,000 restricted. LU also faces a more than $1.4 million spending restriction, according to additional information provided Friday by the Missouri Department of Higher Education and Workforce Development.

"The university was already dealing with being underfunded this fiscal year. Now, as higher education is projecting an enrollment decrease nationwide, this cut is devastating," LU spokeswoman Misty Young said.

"It is still too early to determine how the university will deal with this substantial cut," Young added.

"We've been kind of thinking this would happen," State Tech spokesman Brandon McElwain said of the expected cut.

McElwain said the $487,000 restricted from State Tech is from the college's general fund, which includes support of departmental expenses.

McElwain added, "We're prepared for a variety of situations."

State Tech does not anticipate any losses of programs or jobs, and the restriction would not affect the campus construction projects underway that had ground broken earlier this year, he said.

McElwain also shared a statement from State Tech's President Shawn Strong: "Almost a month ago, we put a freeze on new spending as the reality of what was unfolding appeared to have the potential to impact our budget. We can get through the next three months with just a bit of belt tightening.

"A few short weeks ago, the House budget subcommittee recognized our incredible growth and recommended an additional $2 million in funding for State Tech in fiscal year 2021. Realistically, we are now looking at even more students with a presumed downturn in the economy and a lot of unknowns in the budget."

Parson and Missouri's budget director, Dan Haug, said last Wednesday the economic disruptions caused by the COVID-19 pandemic and the need to have money up front to pay for millions of dollars in medical gear and equipment have left the state facing an approximately $500 million shortfall in its budget for the remainder of the current fiscal year, which ends June 30.

Though he was hopeful to tap $315 million in federal funding, Parson announced a $180 million spending freeze that will affect several state departments. The state's colleges and universities will take the biggest hit.

"Higher education restrictions totaled $76.3 million, including a 1/12 reduction for all public colleges and universities," said Jessica Duren, higher education department spokeswoman.

Four-year higher education institutions in the state are planned to have more than $61.3 million frozen. Community colleges would lose more than $11.6 million.

Other restrictions in the department include $2.4 million for the University of Missouri's Precision Medicine Initiative and more than $288,000 for the State Historical Society.

Among four-year institutions, the University of Missouri System stands to have the most restricted in its budget for the 2020 fiscal year - more than $33.6 million, not including the precision medicine program and hundreds of thousands of dollars in other restrictions.

Missouri State University will have almost $7.6 million restricted; the University of Central Missouri, more than $4.4 million; Southeast Missouri State University, more than $3.7 million; and to round out the top five, Truman State University, more than $3.3 million.

The other four-year schools besides LU and the previously listed that are slated to have funds restricted this year are Northwest Missouri State University, more than $2.5 million; Missouri Southern State University, more than $1.9 million; Missouri Western State University, almost $1.8 million; and Harris-Stowe State University, more than $845,000.

Among 12 community colleges in the state facing cuts, St. Louis Community College is to have the most restricted with more than $3.5 million, followed by Metropolitan Community College with more than $2.5 million, and Ozarks Technical Community College with more than $1.1 million.

State Fair Community College in Sedalia faces a cut of more than $501,000, and Moberly Area Community College, more than $508,000.

The full list of the governor's announced spending restrictions across multiple state departments is available at oa.mo.gov/sites/default/files/FY_2020_Expenditure_Restrictions_April_1_2020.pdf.