IDev TV

Archive for January, 2012

Luck

When: Premieres Sunday, 6 pm

Where: HBO Canada

In a previous life, David Milch graduated summa cum laude from Yale University, and later worked at Yale as a writing teacher and lecturer. Milch won the Humanitas Prize and a pair of Writers Guild Awards for penning early-season scripts for Hill Street Blues, and was instrumental in the creation of NYPD Blue, together with Steven Bochco.

What he really wanted to do, though, was race horses. He hung out by the race track; he learned the ins and outs of The Daily Racing Form, est. 1894; and he played the numbers. He had a bit of luck – or skill, if you prefer – and, 10 years ago, a thoroughbred he owned, Val Royal, won the Breeders Cup.

Call it luck, call it skill, call it what you will, but Milchs background in the Sport of Kings, coupled with three Emmy Awards for writing, led to Luck, the new horse racing drama featuring Dustin Hoffman, Dennis Farina, Nick Nolte and Edmonton native Jill Hennessy. Luck bows Sunday, Jan. 29, on HBO Canada, the same day and date it makes its US debut.

Feature filmmaker Michael Mann, the maker of Manhunter, Thief, Col-lateral, Public Enemies and Last of the Mohicans, among others, directed the premiere episode; other feature filmmakers were pencilled in to direct the first seasons remaining eight.

Luck was filmed virtually in its entirety at Southern Californias famous Santa Anita race track, a working race track and home to Winnipeg-born, Toronto-raised Chantal Sutherland, a jockey whos been dubbed the Danica Patrick of horse racing, and who appears in Lucks opening hour.

Santa Anita is serious horse racing country, but the track operators opened their gates to a sprawling TV production – in part, Mann quipped to reporters in Los Angeles earlier his month, because Milch had blown so much money there over the years that it seemed only fair to repay the favour, at least in part. The result is a drama that lives, breathes and revels in the tiniest details of horse racing lore.

Milch admitted that, while he was lucky to gain unfettered access to Santa Anita, bringing the scene alive on the small screen wasnt as easy as simply setting up a camera and let-ting it roll. Milch wanted to reflect the hard grit of gambling, desperation and getting down-n-dirty in the mud, but he also wanted to capture some of the grace and poetry of Santa Anitas storied past.

Theres a particular duality at work there, Milch said. Its kind of a Santa Anita of the mind. Youre not literally using the lived history of Santa Anita, but its such a beautiful atmosphere, youd be crazy not to honour it, shot for shot. We didnt mean it to be worshipful, but at the same time, I would hope that the people who operate the track feel theyve been well served. And because I had so little to do with the visual execution of the project, I can brag on it, without feeling I have a conflict of interest. I think it looks great.

Hoffman plays Chester Ace Bern-stein in the series, a wealthy gambler and self-contained, self-taught racing expert in his late 60s, newly released from prison. He returns to the race track where he made his reputation, to settle old scores, and to make a killing by backing the right horse. Farina plays Bernsteins driver, confidant and consigliere, Gus Demitriou. Nolte plays an aging one-time trainer-turned-owner, Walter Smith, aka., The Old Man, who has old-school values and an old-school way of looking at things. Character actor John Ortiz plays Turo Escalante, a self-made horse trainer originally from Peru who jumped to the head of the training pack despite an unsavoury past and a reputation for playing fast and loose with the rules. Hennessy plays Jo, a strong-willed track veterinarian who works for Escalante but sees through her bosss ploys.

CHINCOTEAGUE — Artist Kevin McBride has a reputation for capturing horses and ponies on canvas. For almost three decades he has created the Pony Swim Poster, a print of his original creation on canvas.

It was only natural that he became the owner of a handsome Chincoteague stallion and go on to create paintings of his horse. And only natural that after 23 years McBride mourns the loss of Cezanne, his beautiful stallion.

Cezanne passed away two weeks ago and McBride feels he has lost his best friend.

Cezanne was one of the great loves of my life, said McBride. He brought such joy to me and everyone who came in contact with him. He was special and he knew it.

You cant enter McBrides Osprey Nest shop without encountering Cezanne in paintings and prints. And if you want to see pictures of the stallion, McBride has pictures by the hundreds.

It all started in 1989. Early in the year McBride was looking for a subject for his Pony Swim poster. He began going to Assateague Island and followed the wild ponies as they roamed the Chincoteague National Wildlife Refuge.

In my mind I knew what I was looking for, said McBride. But after looking for a few weeks, he thought he might not find what he sought.

After three weeks of searching McBride had nearly given up hope. Then it happened.

As I stepped around a bush, I came upon a beautiful foal in a clearing, said McBride. The mother was close by, but I knew in an instant, that was the subject for my painting. As soon as I saw him I said, Where have you been? After that I just had to have him.

McBride kept an eye on the young pony over the ensuing months. Then, he had a dream.

In my dream I bought the pony at the auction, said McBride. And I named him Cezanne.

So when the annual Pony Penning took place that year, McBride was an active participant. He attended the auction with his then-wife, Lisa.

Another couple was also interested in the young pony. McBride told the other couple, Dont even go there. Hes coming home with me.

At first McBride didnt place a bid as the auctioneer went from $600 to $700. It went to $1,000 and McBride had yet to bid. McBride started bidding and the price went up to $1,200, then $1,500. The bidding reached $2,000.

Thats when Lisa gave me an elbow in the ribs, said McBride.

The bidding climbed higher. It reached $2,200, $2,300 and $2,400. Then, it reached $2,500.

The other couple backed off, said McBride. Sold, said the auctioneer. I just jumped. I think I broke the high jump record that year.

At first Cezanne was kept on a farm owned by McBrides in-laws.

He took to a leadline the first time, said McBride. He knew he was special. He was just so gentle.

Cezanne went on to father several of the Misty family ponies at the Chincoteague Pony Centre.

He had the best life in the world, said McBride. He pulled a sulky and made everyone feel good.

As McBride talks about Cezanne, the tears fill his eyes. But only for an instant, as he thinks about the legacy his horse has.

I think the best thing is I got to share him with so many people, said McBride. Through my paintings and pictures, its like hes still there.

Last summer, during the annual Pony Penning celebration, Cezanne visited the Osprey Nest Art Gallery.

I put my arms around him and hugged him, McBride recalled. Im so glad he came here last year.

As news about Cezannes passing began to circulate, McBride received a phone call from Maureen Beebe Hursh.

It was so nice of Maureen to be so concerned, said McBride. She said she remembered seeing Cezanne when he was just a foal over on Assateague. The foal was standing beside a freshwater pond, but was not drinking the water. Cezanne was looking at his reflection.

Next year, McBride will create his 30th annual Pony Swim poster, although I dont know just how, I want to pay tribute to Cezannes life, said McBride. He had a great life.

And that life is continuing to evolve.

Right now there are about six mares pregnant with Cezannes foals, said McBride. Cezanne is going to live on with his legacy. Thats a great thing.

McBride said he intends to keep an eye on Cezannes foals.

If any look like him, I just might have to buy another horse, said McBride. Ive always loved paints.

McBride said he has heard from many who met and saw Cezanne during the stallions life.

I love hearing from people who saw him or knew him, said McBride. Cezanne loved people and they loved him back. I think he knew he was famous.

Anyone who would like to share memories of Cezanne with McBride can contact him by email at kmcbride@shore.intercom.net.

Hampshire business leaders have hailed the rejection of a pound;5.3m offer to make Liverpools cruise terminal a turnaround facility. Hampshire Chamber of Commerce chief executive Captain Jimmy Chestnutt told Insider that the Liverpool terminal should pay back all of its public funding if it wants to compete with other UK ports.

His comments come after shipping minister Mike Penning said that Liverpools council must repay more of the European funding it received to build the terminal.

Penning said that there are persuasive arguments that the councils offer of pound;5.3m over the next 15 years would be insufficient to reflect the adverse impact on competition with other ports.

He added that the government will now seek advice on a more appropriate figure.

Liverpools cruise terminal was opened in October 2007 and built with the help of grants from the Northwest Regional Development Agency and the European Regional Development Fund.

As there was deemed to be potential for unfair competition with other UK ports, including Portsmouth and Southampton, operations at the terminal were restricted to cruises calling at the city as part of a longer trip and currently do not allow for cruises to start and end in the city.

Liverpool City Council put forward proposals for a partial repayment of this public subsidy in return for a lifting of these restrictions, but the move angered other UK ports which said jobs would be under threat.

Chestnutt, who is also chairman of the UK Cruise Port Alliance, told Insider that any subsidy is a subsidy too far in the ongoing battle.

Protesters from cruise ports across the country, including Hampshire Chamber of Commerce representing Southampton and Portsmouth, will be delighted to hear the government now agrees that the proposal as it stands is unfair and damaging to the cruise industry, he said.

Full repayment of all the public money, including the pound;9m match funding from Europe, should be a mandatory condition if the Liverpool terminal wants to compete with private investment for the turnaround cruise business.

The issue has always been about ensuring a level playing field and safeguarding businesses and jobs in Southampton, Portsmouth and other ports around the country.

Chestnutt added that the chamber believes the industry should be run on a commercial basis.

There is no place for public subsidy of any kind. So we are concerned that this simple principle has still not been accepted, he said.

We are not against competition but we are against unfair competition and the use of public money to subsidise competition.

Liverpool City Council leader Joe Anderson said that he believed that the pound;5.3m repayment offered by the city was fair and reasonable and he welcomed the independent review proposed by the government.

In the meantime, we await governments response to our request for information regarding what other port based investments have been made over the past ten years in the UK, he added.

• The Tuesday editorial that endorsed a ban on fox penning provoked a robust response. The Editorial Pages welcome discussion and encourage critics to express themselves. The section is eager to receive and publish letters from those who disagree with the editorial. Opponents of the ban should feel free to write us.

• Transportation can mean destiny. Throughout history development has followed river transit, roads, rails and air routes. Virginia would be different indeed if I-64 had crossed the James west of Richmond, ran along the rivers southern bank and fed into south Hampton Roads. Short Pump likely would more closely resemble the Short Pump of legend than the virtual city it has become. Petersburgs decline would not have been so severe. RIC might have been compelled to move. A proposed US 460 toll road has the potential to generate transformation.

• News of the road, which would connect Petersburg and Hampton Roads, appeared in Wednesdays Business section for a reason. The economic implications are huge. The route would ease inland movement from port facilities. Industrial parks surely would rise along its path. Roadside businesses would open. The stakes for ocean commerce may be the most important. Americas ports compete. The advantage goes not only to ports with efficient seaside terminals but also to ports that offer speedy access to the overall transportation network. The US 460 corridor would enhance Hampton Roads reputation as a global presence.

• Chesterfields teachers learned the good news that pay raises may be on the way. The raises would restore cuts made in recent years. Superintendent Marcus Newsome said the package makes everyone whole again. This is good.

• The Sports pages cover more than the Super Bowl, college basketball and high school competition. Baseball buffs follow retirements and the signing of free agents. Spring training looms. Slugger Prince Fielder just signed a $214 million contract to join the Tigers. Fans of Goochlands Justin Verlander hope that Fielder contributes to a World Series win for Detroit in 2012. They also wonder whether the deal for the human Himalaya includes a dietary clause.

• Central Virginias fans join the Flying Squirrels in wondering whether the team will be playing in a new stadium or in another city. The metro area has been pondering a ballpark seemingly since the Chicago Cubs last won the World Series.

• The General Assembly is considering legislation to eliminate Standard of Learning tests in history and science for third-graders. Although the teaching of history and science should occur in the third grade, the emphasis should fall on reading and math. Youngsters who are not reading at grade level by the third grade will have difficulty catching up. Poor reading skills will have profound implications for other subjects. We also would point out that history teaches reading as well. It is not taught through osmosis. There is no reason to spike history tests at the early grades.

• Sportswriter Paul Woodys Wednesday column regarding Joe Paternos what if? legacy said it well. On the Waterfronts Terry Malloy could have been a contender. Paterno could have been more than a great football coach. In many respects he was, but bad judgment and other factors stain his record. Through the sex abuse scandal, Paterno seemed a man in shock.

• We confess to a double standard regarding college athletics. Although we deplore the excesses of big-time sports, we want our favorite teams to win bowl games and qualify for March Madness.

January 26, 2012

RICHMOND, Va. – The practice of fox penning, where wild foxes are trapped, brought to enclosures and used to train hounds for hunting, is drawing the ire of some in the state. State lawmakers are considering two bills which would ban the practice.

Animal-rights activists claim the practice is cruel and unfair because the trapped wild foxes have no way to defend themselves from the dogs. Laura Donahue, state director for the Humane Society of the United States, says Virginia has about 40 licensed fox pens, also referred to as foxhound training preserves.

In these pens, participants stage competitions to judge how long the dogs will pursue the captive wildlife. The dogs often harm and kill the fenced foxes, which fuels the constant and often illegal interstate demands to stock these enclosures with more foxes.

Donahue says fox penning is not to be confused with fox hunting, considered by many to be a traditional sport. She calls fox penning a blood sport contrary to the hunting credo.

Most hunters embrace conservation ethics. They embrace the ethics of fair chase, and this really goes against the grain clearly of that, when you have these fenced pens where the foxes cant escape. The foxes are always the losers in this competition.

Fox pens are regulated by the Virginia Department of Game and Inland Fisheries.

Those in favor of keeping fox penning legal say the fenced foxes have plenty of escape routes, and foxes are rarely killed. Donahue disagrees, claiming the pens reportedly have restocked more than 3,600 foxes in the past three years. Florida banned fox penning two years ago.

The two bills being considered in committee are HB 695 and SB 202.

Monique Coppola, Public News Service – VA

STEUBENVILLE – E. David Mathieu Jr., vice president of marketing for the the Health Plan insurance provider, was guest speaker for the city Rotary Clubs Friday luncheon meeting at the city YWCA.

Mathieu discussed upcoming changes in health insurance coverage due to the federal overhaul of the health care system. He also said the coming changes would drastically affect health care coverage, including the associated costs.

The reality is they should have named it health care insurance reform (bill), said Mathieu, adding the five largest health insurance companies made profits of $11.7 billion in 2010. Thats an average of about 3.2 percent (annual profit).

Mathieu also said all the good stuff (in federal health care reform) is up front – the bad and the ugly stuff is coming later.

Mathieu said the good stuff that goes into effect in 2012 includes formation of a high-risk pool somewhat subsidized by government funds. He added there will no longer be lifetime limits placed by insurance companies on individuals with chronic health problems. Also, children would no longer be excluded from health insurance coverage because of pre-existing conditions. Federal health care reform also enables children to be covered under their parents health insurance up to age 26 (Ohio extends that to 28), as well as requiring qualified health plans to provide first dollar coverage for certain preventive services and immunization, said Mathieu.

The medical loss ratio portion of federal health care reform also prevents health insurance companies from gouging consumers, he added.

It keeps everyone responsible, said Mathieu.

The federal reform would have helped reduce health care costs if it stopped there, said Mathieu, but other aspects of the reform, set to kick in Jan. 1, 2014, will result in higher costs for the industry, which will in turn be passed onto to those purchasing health insurance.

The coming reforms include limiting insurance companies to refuse adults for pre-existing conditions or consider risk factors, such as minimum employer and employee contributions to health care premiums, gender ratings and group sizes. Age, geographic and smoking factors still will be allowed to be considered by insurance companies, but Mathieu said the changes wont allow insurance companies to properly assess their risks and charge customers accordingly.

You kind of have to guess at what the costs will be, he said, adding the changes will result in younger customers subsidizing older customers premiums. As insurance companies, we would like to be able to assess the risk.

Mathieu also said hidden fees, taxes and penalties in the federal law will result in higher costs for health care insurance.

The insurance carrier will pass that (increased cost) along to (consumers), he said, adding smaller businesses also could be fined for any employee entering a health exchange rather than staying with a group plan.

The federal penalty for smaller businesses of between 50 to 100 employees choosing not to carry health insurance for its employees could be less than the cost of health insurance, making it attractive for smaller businesses to drop employee coverage, said Mathieu.

Massachusetts has the highest (health insurance) premiums in the US, said Mathieu, adding there also is a physician shortage in the state due to its health care reforms.

Mathieu said the next presidential election or the Supreme Court will eventually decide the future fate of health care reform and associated insurance costs.

I look forward to some interesting times, he said.

There is no question that insurance fraud costs Americans billions of dollars annually. According to the Coalition Against Insurance Fraud (CAIF), the business of fraud costs the industry an estimated $80 to $120 billion each year. Of course, this translates to increased insurance premiums, which has a negative impact on not only the consumer, but also on the economy in general.

According to most sources, the problem is only getting worse. For instance, the Insurance Information Institute (III.) studies show that staged accidents increased 52 percent in the state of Florida from 2009 to 2010. CBS Evening News just ran a special report exposing not only the fraud, but just how easy it is to pull off.

During a recent presentation of non-industry professionals, I shared statistics related to fraud, such as Florida drivers paying $549 in additional premium specifically as the result of staged accidents. As industry veterans, many of us have become so attuned to the problem that we do not realize that most outside the world of claims are unaware of its existence. My audience, for example, was shocked to learn that 32 percent of all billings for auto accident-related injuries in the state of Florida are for services never even rendered.

Staged accidents, swoop and squats, run downs, cappers, and pill mills are foreign to the average vernacular, but are nevertheless part of a significant problem that needs to be addressed.

As discussed in Re-Adjusted: 20 Essential Rules To Take Your Claims Organization From Ordinary to Extraordinary, it is incumbent upon adjusters to dig, and dig deeper. A large part of the solution to identifying and preventing fraud is better trained, highly motivated staff with an insatiable curiosity for the truth.

I began my adjusting career a number of years ago in south central Los Angeles, Calif. At the time, the area was the nations epicenter for insurance fraud and staged accident rings. The Los Angeles County District Attorney opined then that as many as 50 percent of local auto claims contained elements of fraud.

NEW YORK, Jan. 25, 2012 /PRNewswire via COMTEX/ –
Financial extranets are playing a critical role in today’s trading environment, enabling market participants to capitalize on the opportunities created by market automation, globalization and fragmentation, according to a new research report released this week by TABB Group. The report, which IPC Systems, Inc., a leading provider of voice and electronic trading communications solutions, has arranged for distribution rights, examines the role that extranets play in providing capital market participants with access to trade lifecycle services.

The TABB report, “Financial Services Extranets: Connecting a Fragmented Trading World,” is available at
http://bit.ly/ytvqLj .

“TABB’s research report confirms that extranets represent the ultimate form of scalable, on-demand connectivity resources,” said Michael Speranza, senior vice president, Global Product Management and Marketing, IPC. “With the globalization of institutional capital markets and the additional complexity that comes with automated trading, extranets will continue to provide unrivaled value when it comes to connecting individual market participants to the community as a whole.”

TABB estimates global sell-side spend on extranet connectivity was $2.34 billion in 2011, representing 45 percent of that market’s $5.2 billion total global spend on communications overall.

“It is no longer feasible for most firms to manage their own networks of direct connections to the increasingly fragmented trading world,” said Alex Tabb, a partner at TABB Group and author of the report. “Extranets provide firms with a scalable mechanism that allows them to manage their communications infrastructure as needed, without having to invest massive amounts of up-front resources into proprietary communications hubs. At the same time, extranets allow market participants to connect to a global network of market participants, exchanges and independent service vendors (ISVs) within a tailored infrastructure.”

The report covers six essential qualities that capital market participants look for in a financial extranet provider: a global community; secure, reliable, high-performance networks; access to value-added services; superior customer service; cost competitiveness and an exclusive focus on the capital markets on the part of the provider.

“We believe extranets will continue to see positive growth over the next few years, as new frontiers are incorporated into their networks,” Alex Tabb said. “But in the end, what will separate the individual extranet service providers from each other will be their own individual offerings. These offerings will continue to focus on the six elements of the value chain that will remain a constant concern for all parties interested in connecting to the FS community.”

IPC’s financial extranet service, Connexus, is part of the IPC Financial Markets Network service portfolio which also includes private extranet and Direct Connect data services, as well as Trader Voice and Enhanced Voice Services. IPC’s Financial Markets Network interconnects global financial centers and allows access to more than 4,000-market participant locations in over 700 cities in nearly 60 countries. Connexus leverages a highly scalable, reliable and secure Multiprotocol Label Switching (MPLS) platform which adheres to financial industry standards such as the FIX protocol.

About TABB Group

TABB Group is the financial industry’s only strategic advisory and research firm focused solely on capital markets, based on the proven interview-based research methodology of “first-person knowledge” developed by founder Larry Tabb. For more information, visit
www.tabbgroup.com . In January 2010, TABB launched TabbFORUM, the online capital markets community for thought leadership focusing on issues covering current industry-wide topics.

About IPC

IPC Systems offers high and low touch trading communications solutions to the global financial trading community including the top investment banks, hedge funds and investment managers in established and emerging markets. With 100% focus on this sector and nearly 40 years of expertise and an unrivaled record of innovation, IPC provides customers with unified solutions that support collaborative voice trading and real-time electronic trading and market data connectivity. IPC’s market-leading offerings include the first unified communications/application platform, award-winning hard and soft turrets, electronic connectivity services including enhanced voice services, business continuity solutions, and follow-the-sun service and support. IPC’s global reach extends to more than 58 countries – including a Financial Extranet of 4,000 on-net locations in over 700 cities and more than 115,000 turrets deployed worldwide. Headquartered in Jersey City, New Jersey, IPC has approximately 1,000 employees located throughout the Americas and the EMEA and Asia-Pacific regions. For more information, visit
www.ipc.com .

Robert Thibault Matt Pennacchio
IPC Systems, Inc. Finn Partners for IPC
201-253-2162 212-715-1613
robert.thibault@ipc.com matt@finnpartners.com

SOURCE IPC Systems

Copyright (C) 2012 PR Newswire. All rights reserved

Texas regulators will not be allowed to phase in a new rule designed to penalize health insurance companies that spend more than 20 percent of premiums on overhead, federal officials said Friday.

The US Department of Health and Human Services said Texas failed to convincingly back up claims that the new rule, part of President Barack Obamas health care overhaul, will force a significant number of companies to stop offering policies to Texans who directly purchase health insurance instead of receiving it through their employers.

Under the rule, insurers that devote more than 20 percent of premiums to overhead costs will have to refund the difference to customers. The first round of rebates, for policies purchased in 2011, must be paid by Aug. 1.

This determination will ensure consumers receive a better value for their premium dollar, the agency said Friday.

But officials with the Texas Department of Insurance, who had asked that the rule be phased in over four years, said the decision places an undue burden on insurers, particularly small and midsize firms that may have to write fewer policies or leave the individual market altogether.

A reasonable, responsible, phased-in approach would still have afforded rebates to Texas consumers without risking disruption, dislocation and withdrawal of carriers in the individual market, the state agency said.

Consumer groups praised the federal ruling, saying an estimated $160 million will have to be repaid this summer.

Texas request put insurers profits over consumers pocketbooks and would have set up the state to miss a critical opportunity to slow rising insurance premiums, said Blake Hutson with Consumers Union .

About 725,000 Texans purchase their own health insurance, and almost two-thirds would have qualified for rebates if the standard had been in place in 2010, state figures show.

Figures for 2011 have not yet been compiled, the Texas Department of Insurance said Friday.

The medical loss rule, part of the Patient Protection and Affordable Care Act of 2010, is designed to ensure that at least 80 percent of premiums from individually purchased health plans are devoted to health care and disease prevention.

The Texas Department of Insurance sought to phase in the new rule, triggering rebates if less than 71 percent of premiums were devoted to health care in 2011.

The trigger level would have risen by 3 percentage points a year before settling at 80 percent in 2014.

Without the stepped approach, the agency said, carriers would be forced to make dramatic cuts to expenses something smaller firms, without economies of scale, would be hard-pressed to accomplish.

In its application for slower implementation, the Texas agency said rebates would have totaled $158 million in 2010 wiping out 99.7 percent of underwriting profits for the entire individual-policy market. A survey of 26 firms affected by the rule found that 11, serving 47,000 Texans, might have to stop offering the policies in Texas, the agency said.

However, federal health officials said the states fears appeared overblown.

Almost all Texas insurers either already meet the 80 percent standard, have said they will not leave the Texas market or are profitable enough to afford rebate payments, the federal agency said.

In general, Texass application shows that the state has a competitive individual health insurance market, which should ensure that consumers continue to receive adequate coverage, the agency said.

Texas was among 17 states seeking to slow implementation of the 80 percent standard. Six were granted, nine were denied, and two remain pending.

clindell@statesman.com; 912-2569

Some lawmakers expressed concerns Monday about the impact on institutions of higher education if there is another year of major funding cuts and no tuition increases.

Last week, Gov. Jay Nixon urged university and college officials not to use large tuition increases to offset a proposed reduction of $106 million in state funding. If the latest proposal is included, higher education aid will have been cut by 25 percent over the last three years.

“That is really not something we desire,” said Linda Luebbering, the state budget director. “It is due to lack of revenue.”

The state budget is facing a $500 million budget shortfall, which will be made up through a variety of cuts. Higher education will be taking one of the larger hits under Nixon’s proposed cut.

The funding level would be equal to what higher education received in 1997. Several members of the Senate Appropriations Committee Monday said they will likely find ways to make the cuts less severe.

But they also worried the governor’s statements meant colleges would be forced to use a cuts-only approach to absorbing the impact, instead of finding new money to soften the blow.

“Obviously, I think you are hearing a lot of dissatisfaction in the General Assembly on a 12.5 percent cut, and you’re probably going to see a lot of things done to see if we can minimize that. I would like to know what the governor’s response to that is going to be,” said Appropriations Chairman Kurt Schaefer, D-Columbia.

State law prevents any tuition hike from exceeding the increase in the Consumer Price Index, which is about 3 percent for this year.

Any college or university seeking a rate hike above that would have to get permission from the state Higher Education Commissioner.

Last year, the University of Missouri system and Missouri Western State University attempted to raise tuition more than the CPI.