MOHELA to lead debate this session
MU would receive $94 million if Blunt's plan passes.
Published Nov. 28, 2006
The Missouri General Assembly will reconvene in the cold of January with a hot issue on their hands.
When the 2007 session begins, state legislators will debate the future of the Lewis and Clark Discovery Initiative, a plan proposed by Gov. Matt Blunt to give Missouri colleges $350 million from a $1 billion sale of assets by the Missouri Higher Education Loan Authority.
If passed, MU would receive $94 million from the initiative.
Brian Hauswirth, spokesman for Blunt, said other than Blunt's proposed revamping of the state's Medicaid program, the MOHELA sale might be Jefferson City's most important debate.
"We expect that this will be one of the biggest issues of the 2007 session, if not the big issue," Hauswirth said.
In addition to the proposed $350 million from the MOHELA sale, $25 million would be provided by the state to Missouri's higher learning institutions for scholarship funding and $60 million to fund Federal Qualified Health Centers.
Funds given to MU will be used for capital improvement projects and a $10,000 scholarship fund. The planned capital improvement projects are a new Health Sciences Research Center, a Plant Sciences Research Center and a Life Sciences Incubator.
Rep. David Pearce, R-Warrensburg, who serves on the House Higher Education Committee, said certain colleges in Missouri are in desperate need of funds for capital improvement.
"We haven't had money in higher education for ... seven years now for major capital improvement," Pearce said. "If you don't keep up infrastructure ... buildings rapidly decline and, in the long run, it really hurts education."
Some Missouri lawmakers have expressed concerns that the MOHELA sale could have negative effects for low-income students who depend on the loan authority to fund their education.
Rep. Juanita Head Walton, D-St. Louis, who also serves on the Higher Education Committee, said she thinks the sale of MOHELA's assets could cause difficulties for students who need financial aid.
"I think less students will be able to get loans," Walton said. "It only makes sense. You're going to take millions of dollars out."
Sen. Frank Barnitz, D-Lake Spring, said that he is also concerned for low-income students if the MOHELA sale is finalized.
"I was personally apprehensive about the sale," Barnitz said. "The sale is not beneficial to every student."
Barnitz, who serves on the Missouri Senate Interim Committee on the Cost of a College Education, said that neglecting the needs of low-income students might cause a reduction in students who attend college.
Hauswirth said the sale would not have any effect on the interest rates or availability of student loans provided through MOHELA.
"Students shouldn't worry," Hauswirth said. "We think this is a win-win."