By ADAM ATON
Associated Press

(JEFFERSON CITY, Mo., AP) — A Senate panel on Tuesday began considering changes to the House’s version of the state budget, but many of the most contentious issues — including how to deal with soaring Medicaid costs and how much to fund higher education — remain unresolved.

The House’s budget passed earlier this month would provide colleges and universities a core funding increase of about $9.4 million. Gov. Jay Nixon has said it would take an increase of about $55.8 million, for administrators to freeze tuition.

Senate Appropriations Chairman Kurt Schaefer said he wants to ensure tuition stays low across the state. Although public universities’ tuition increases are capped at the rate of inflation, he said, some institutions — such as the University of Missouri — could dispute that they are included in that limit.

The House also cut about $7.6 million from the University of Missouri System’s administration as well as $1 million from the Columbia campus.

Schaefer, a Republican from Columbia, said he plans to address the University of Missouri’s funding in the next few days. He has also proposed creating a commission to review the university system’s policies and administrative structure, which was endorsed Tuesday by a different Senate panel.

Lawmakers have expressed frustration with university leaders following protests in the fall, when students protested what they saw as administrators’ indifference to racism on campus. The protests culminated in the resignation of the system president and chancellor of the Columbia campus.

Sen. Mike Parson said the Legislature should be careful about punishing universities through budget cuts, because that could harm students.

Senators have already added more than $7 million for specific programs in the university system.

Schaefer said the growth in Medicaid spending — which the state is legally obligated to pay for — is crowding out other worthwhile items.

“Everyone on this committee has given me projects for their districts, things they want — and that’s your prerogative, that’s your job, to get things done for your district,” he said. “Everyone needs to keep in mind that, if we go along with (the Medicaid spending plan) as-is, there is no money for anything else and to have a balanced budget.”

Republican leaders have ruled out raising taxes to pay for Medicaid growth. Schaefer has said he’s looking at how the state could negotiate better prices for medicine, which is the biggest factor driving the program’s growth.

Sen. Jamilah Nasheed, a Democrat from St. Louis, raised concerns about cutting Medicaid spending without impacting low-income people’s health care.

The budget still needs to pass the appropriations committee before heading to the Senate floor. Majority Leader Mike Kehoe said he expects to begin debate on the budget after next week.

Lawmakers will work out any funding differences in a conference committee.