Jefferson City

Missouri Higher Ed Faces New Cuts

A $102 million Missouri state revenue shortfall through the first quarter of the 2003 fiscal year is seen by many as a sign of impending budget cuts to Missouri higher education--the UM system is already reeling from a 37 percent cut and a $48 million cut from UM-Columbia in May. Missouri allots a large portion of the budget to public K-12. The state will avoid cutting this year's six percent increase.

St. Louis Gets Stadium Funds

St. Louis received state funds to help construct a new ballpark from the governor's administration, something neither it nor Kansas City got from the legislature.

The Missouri Development Finance Board, which does not require legislative approval, approved $28.5 million for a stadium project in business-tax exemptions. The money has to be paid back to the state in 29 years, without interest, or the state will take part ownership.

An earlier bill linking St. Louis and Kansas City stadiums would have netted $294 million for KC with around $9.8 million going annually to the Truman Sports Complex for 30 years.

Topeka

Kansas Faces Significant Cuts

Kansas Gov. Bill Graves has recommended drastic cuts to fill the state's gaping budget hole of over $300 million. The cuts proposed would net some $255 million and would include a 3.9 percent cut on nearly all state agencies, but would leave public schools K-12 untouched.

However, $27.4 million will come from the Board of Regents, including a $4 million cut from KU Med, a $5.3 million cut from the University of Kansas, and a $4.1 million cut from Kansas State University.

The largest item under the budget knife is a $94.6 million loan from the Kansas State Dept. of Transportation, which the State of Kansas was to repay by June 30, 2003. If Graves' proposal gets legislative backing the loan would not be repaid, meaning many highway projects would be cancelled.

County and city governments will lose nearly $48 million from revenue sharing, money used in projects from potholes to police services.

Dobbs Visits Youth Day

CNN's Lou Dobbs discussed corporate responsibility and the new economy on Nov. 20 at the Hyatt Regency Crown Center. His visit was part of the Celebrating Children and Youth Day held by Partner-ship for Children, a nonprofit children's advocacy group for greater Kansas City.

Mara Liasson, White House NPR correspondent also spoke on the new Congress and its impact on children and families.

The Ups and Downs of Aquila

Aquila, recently downgraded by S&P to junk status, sold 308,500 more Quanta Services Inc. common shares, following a sale of 437,600. This reduces its holdings to 12,075,479 shares. In October, First Reserve Corp. committed to invest $135 million in Quanta Services.

On Nov. 28 Britain granted Aquila permission to build an 860-megawatt power station near Southampton on England's southern coast. The $600 million project will move forward despite dramatically low UK wholesale power prices.

Art Awards for three in KC

Two Individuals and one business selected. Kansas City can paint the state blue-- blue ribbon that is. Three of the five Missouri Arts Awards winners to receive awards on February 5 in Jefferson City, are Kansas Citians.

American Century Investments won the award for philanthropy; David Anstaett received the award for arts education; and Jay McShann received the award for individual artist.

The Missouri Arts Council started the program in 1983.

New plant for lawrence

Serological Corp. based in Atlanta is going to build a $28 million plant of 45,000 square feet in the East Hills Business Park. The University of Kansas will offer a $2000 scholarship in the com-pany's name. The plant is expected to create around 40 new jobs in FY 2004.

hmo purchase approved

Missouri Department of Insurance director Scott B. Lakin approved Coventry Health Care Inc.'s purchase of Mid-America Health Care Plans Inc. The acquisition turns Coventry into the largest HMO operation in greater Kansas City.

Lakin required Coventry to meet several requirements to protect consumers and health care providers during the transition before approval. He also asked that Coventry find options for thousands of seniors who will lose their Medicare HMO coverage after the transaction is complete.

KC Unemployment Stabilizes

Kansas City unemployment remained unchanged since August, stabilizing at five percent. The rate is .6 percent higher than last year, but under the high for 2002 of 5.3 percent in July. That remains below the national rate of 5.7 percent.

Health Midwest files Lawsuit

Health Midwest filed a lawsuit against Missouri Attorney General J. Nixon for exceeding "his authority by attempting to exercise control over the disposition of proceeds after the sale” of Health Midwest to Nashville-based HCA, Inc. for $1.25 billion.

Health Midwest states in the suit that it will face $75 million in operating losses by 2004.

Stipulations of the deal included keeping all Health Midwest facilities open and all current programs operational for a period of at least three years, including Medicare and Medicaid programs, as well as making a $450 million capital investment over the next five years.

The HCA agreement to buy Health Midwest expires on March 31, 2003.

Central Kansas Lab Bought

Lab One Inc. purchased Central Plains Laboratories of Hays, Kan. for $12.1 million. The purchase will cause some of the lab's 120 jobs to be cut at the lab, but Lab One has no figures yet. Hays Medical Center has entered a long-term agreement with Lab One.

P&L hearing on hold till jan.

Tax increment financing hearings for the Power & Light Building have been postponed to Jan. 8.

The final cost of the project stands at $96.5 million, TIF would pay back $15 million. Originally the hearings were scheduled for Dec. 11, but budget numbers have not been stable enough to allow that timetable.