Missouri State University plans to modify some work being done on Glass Hall as a result of state funding restrictions.
Gov. Jay Nixon last week announced $57.2 million in cuts from the state budget after lawmakers overrode his vetoes of two bills. The tax breaks in these items were not accounted for, according to Nixon.
Senate Bill 641 creates a tax deduction for agricultural natural disaster losses "for all tax years beginning on or after January 1, 2014." Senate Bill 1025 exempts instructional classes, including yoga and dance, from the state sales tax.
More than $6 million of the funding restrictions affects higher education capital projects throughout the state. MSU is taking a $1.875 million hit for the Glass Hall project. According to the school, the $33.8 million project is being funded by revenue bonds, gifts to the Missouri State University Foundation, university reserves and capital appropriations.
In his weekly blog, President Clif Smart said, “We will deal with this $1.875 million restriction by modifying the work to be completed and minimizing construction deviations. This is unfortunate, but responsible stewardship requires that we respond appropriately.”
Nixon has said it is unlikely the restricted funds will be released this fiscal year. MSU says it will work with the current governor and governor-elect in November to advocate for the release of those dollars.
“In the event the funds are not released, university reserves and foundation gifts will make up any shortfall after modifications to the project have been made.”