MOREnet Budget Update
In his recently announced FY11 budget, Gov. Nixon recommended a 33 percent core reduction to MOREnet's appropriation in House Bill 3. This equates to a $4.2 million reduction from the original FY10 appropriation.
In recent months, MOREnet has modeled several FY11 budget reduction scenarios. We will continue to explore specific approaches and will be working with the MOREnet Council to discuss network connectivity growth issues, restructuring participation fees and identifying additional cost savings opportunities.
We were also notified that we will receive an additional 15 percent withholding ($1.9 million) for FY10. We are currently analyzing options and evaluating various strategies, but a reduction of this magnitude this late in the fiscal year will be very challenging to accommodate.
On a personal note, while I am new to MOREnet, this isn’t the first time I have encountered this type of funding challenge. I am optimistic and confident that we will weather this storm together. Should you have any questions, please do not hesitate to contact your program manager or me.