Legislators oppose MOHELA; Columbia left out of sale
June 6, 2007
When Gov. Matt Blunt made his "state-wide" signing tour for his higher-education funding bill, he steered clear of the MU campus, which lost more than $90 million throughout the course of the debate.
On May 23, Blunt traveled to UM-St. Louis to sign the bill, which includes language on tuition restraints, scholarships and the divisive issue of selling the assets of the Missouri Higher Education Loan Authority. He also signed the bill in St. Joseph, Maryville, Jefferson City, Kirksville, Warrensburg, Rolla, Cape Girardeau, Springfield and Joplin. A majority of these locations lay claim to money funded by the MOHELA sale.
Blunt spokeswoman Jessica Robinson said the locations for signing were chosen for places where Blunt had not traveled in a while or places that would have local impact from the bill.
The bill, which took nearly two full legislative sessions to pass, experienced much debate and many changes from its conception.
Sen. Chuck Graham, D-Columbia, dropped his support for the bill because of provisions banning stem-cell research and the list of capital funding projects.
Rep. Jeff Harris, D-Columbia, withdrew his support in a letter to Blunt in March because the MOHELA advisory firm, Liscarnan Solutions, LLC, advised against the sale because it could possibly hurt the ability of MOHELA to provide low-interest student loans.
The deconstruction of MOHELA became the centerpiece for debate, with funding projects and tuition restraints adding fuel to the fire.
Senate Republicans eventually stripped MU and UM-Kansas City of all funding projects because Graham and Sen. Jolie Justus, D-Kansas City, were the main opponents of the bill and threatened to filibuster it.
"The governor shouldn't sell MOHELA assets when their own financial advisers tell him not to," Harris said. "He's running a very real risk of bankrupting MOHELA and making low-interest loans less available to students."
Even Rep. Ed Robb, R-Columbia, who once said he was more of a supporter of the bill than Blunt, voted against the plan.
Earlier this week, Attorney General Jay Nixon, who will run for governor as the Democratic candidate against Blunt in 2008, wrote a letter to Blunt urging him to use his veto power on the bill.
Nixon stated the sale would "seriously damage" Missouri's familiarity with accessing low-cost loans.
"The only thing certain to happen if you sign (the bill) is that hundreds of millions of dollars that should have been used to provide low-cost access to higher education for qualified Missouri students will be taken forever," Nixon stated in the letter.
Other legislators in Jefferson City are questioning the legality of the sale and hope to let voters decide the fate of MOHELA.
Rep. Clint Zweifel, D-Florissant, said he would try to organize opponents of the sale to sign a petition by Aug. 28, which could suspend the law and potentially let voters decide its fate in the November 2008 general election.
Zweifel could not be reached for comment.
Others, including Nixon, predict the possibility of a lawsuit against the bill.
"It looks to me like the legislature should not have given MOHELA the authority to sell those assets," Harris said. "It's entirely possible that (a lawsuit) is going to be brought."
If a lawsuit is presented, Nixon would have to defend MOHELA's legality in a case against the state because he is Attorney General, despite his opposition to the sale.
"When I was an attorney, I took an oath to defend things to the best of my ability, and I have every confidence that his office will appropriately defend that lawsuit," Harris said.
Robinson said the governor's office would have to wait to react if and when a suit was filed.
"Any lawsuit would be political in nature, and we'd have to address it if it arises," she said.
At the bill-signing, Blunt tried to focus on the positive aspects of the bill to deter any possible critics.
"This legislation will put higher education in reach for more Missouri students and families than ever before," Blunt stated in a news release. "Significant improvements such as increased funding for Missouri's colleges and universities, tuition stabilization and added scholarships will open the door to higher education for thousands of students and families in St. Louis and across the state."
Despite the flurry of debate that has already occurred and the potential attempt to suspend the law, Sen. Gary Nodler, R-Joplin, remains confident in the bill he sponsored.
"I believe this is one, if not the most important higher-education bill in our state's history," Nodler stated.
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