News
C&D key to Metro funding
Millions could be cut if ballot measures fail
By Brad Riggin
rigginb@mscd.edu
Metro’s board of trustees discussed the possible ramifications of the failure of Referendums C and D passing in November and gave adjunct faculty a 21 percent pay raise Wednesday at the Tivoli.
Natalie Lutes, Metro interim vice president for administration and finance, presented the board with scenarios of 10 percent, 25 percent and 50 percent reductions in funding resulting from the failure of the referendums passing.
In the worst-case scenario, Metro would lose just over $18 million in funding, which would force the board to either make drastic cuts to programs and personnel or raise tuition dramatically.
If a tuition increase were used to make up for the shortfall, students would pay around 51 percent more for tuition in 2007, Lutes said.
Metro President Stephen Jordan said he wanted to make it clear that the numbers being discussed were estimates and were for discussion purposes only.
“ I want to let everyone here know that this board and myself are not suggesting a 50 percent increase in tuition; we are just going through scenarios,” Jordan said.
Another scenario would cut over $12.5 million in programs and the equivalent of 227 nine-month faculty appointments.
This, combined with a 15 percent tuition increase, would cover the $18 million in lost funding, Lutes said.
In addition to lost state funding, Metro would also realize a decrease in tuition revenue.
Metro would lose around $270,000 in tuition for every 1 percent reduction in state funding, Lutes said.
The board would need to make additional cuts to cover the lost tuition revenue.
If passed, Referendum C would eliminate the spending limits on state government for five years. This would allow the legislature to spend $3.7 billion that would normally be refunded to taxpayers.
Referendum D would earmark money for urgent road and school construction by borrowing against the $2.1 billion provided through Referendum C.
If the referendums fail to pass, the legislature will be forced to cut an estimated $400 million from the budget.