JEFFERSON CITY, Mo. -- Gov. Jay Nixon wants to soften his proposed budget cut to colleges and universities by tapping money from a possible settlement with mortgage lenders. The governor's office announced the change on Tuesday afternoon.
Nixon's budget proposal last month called for a $106 million cut to higher education. Now he proposes adding $40 million by using funds from the possible mortgage settlement. That would reduce the budget cut for two-year and four-year institutions from 12.5 percent to 7.8 percent.
State attorneys general and the federal government have been negotiating with the five largest mortgage lenders over accusations of flawed and fraudulent practices. Missouri Attorney General Chris Koster said Tuesday that he has given preliminary support for a settlement. Koster says the settlement could net the state $40 million, with an additional $100 million to help Missouri homeowners.
Nixon's budget proposal last month called for a $106 million cut to higher education. Now he proposes adding $40 million by using funds from the possible mortgage settlement. That would reduce the budget cut for two-year and four-year institutions from 12.5 percent to 7.8 percent.
State attorneys general and the federal government have been negotiating with the five largest mortgage lenders over accusations of flawed and fraudulent practices. Missouri Attorney General Chris Koster said Tuesday that he has given preliminary support for a settlement. Koster says the settlement could net the state $40 million, with an additional $100 million to help Missouri homeowners.
