(Springfield, MO) -- Governor Jay Nixon is restoring $40 million in public college and university funding.
On Tuesday, the governor submitted an amendment to his budget for fiscal year 2013.
Attorney General Chris Koster's office says the state will get more than $140 million through a settlement with the nation's five largest banks. They're settling over fraudulent foreclosure practices.
The governor wants $40 million of that money to go to colleges and universities.
News Release from the Attorney General
As announced earlier today by Attorney General Chris Koster, Missouri is expected to receive a total of more than $140 million in benefits under a proposed settlement by states' attorneys general with the nation's five largest mortgage banks over flawed and fraudulent foreclosure practices that led to the housing crisis. Of that total amount, the Governor's budget amendment directs $40 million to Missouri's public colleges and universities from the state's General Revenue fund.
"This has been a lengthy and extremely complex settlement process, and I commend Attorney General Koster for his dedicated and persistent leadership at every stage of the negotiations," Gov. Nixon said. "This settlement with America's largest mortgage banks will help the states and individual consumers continue their economic recovery."
Gov. Nixon will meet with the presidents and chancellors of Missouri's two- and four-year colleges and universities in his office on Thursday to brief them on these developments and the amendment to his recommended budget. The Governor's recommended budget already includes stable funding for Missouri's student scholarship programs, including A+, Bright Flight and Access Missouri.
"While these negotiations have been ongoing for many months, these additional resources were not certain as we prepared our initial recommended budget for Fiscal Year 2013," Gov. Nixon said. "Now that we have additional information about the settlement, I am immediately amending my recommended budget to restore $40 million in funding for Missouri's colleges and universities. My administration remains committed to working with our colleges and universities to make higher education more affordable and accessible for Missouri families."