Legislators debate future of MOHELA, Fischel center

One project was already on hold.

By Eva Dou

Published Feb. 5, 2009

Debate has reignited over the use of funds from the sale of Missouri Higher Education Loan Authority assets.

The fund was supposed to support 31 construction projects at 14 state colleges and universities, but the account came up $100 million short. Last Thursday, Gov. Jay Nixon halted plans for the building of the new Ellis Fischel Cancer Center at MU, among other projects, to channel remaining funds toward projects that have already begun construction.

Dissent on the use of the remaining $119 million in the Lewis and Clark Discovery Initiative Fund has come from both sides of the political aisle in Jefferson City.

Legislators have called for both increases and decreases in funding for the projects. The suggestions range from using some of the MOHELA funds to create a tuition reduction fund, to channeling more money to the projects through federal stimulus dollars.

On his visit to MU Tuesday, Republican Lt. Gov. Peter Kinder called for Nixon, a Democrat, to reconsider his decision.

"The state is backing out," he said. "This is not a good precedent."

Kinder wants construction to continue with the help of about $100 million of the $800 million Missouri is expected to receive from the federal stimulus package being debated in the U.S. Senate.

Senate Minority Leader Victor Callahan, D-Independence, has a different idea for the funds.

Callahan is sponsoring a bill that would only continue funding projects started before on or before Jan. 1. The remaining MOHELA funds would go toward a proposed Missouri Higher Education Tuition Reduction fund.

Although Callahan announced his bill the day after Nixon suspended several of the projects, he told the Columbia Missourian the bill is not related to Nixon's decision, and rather a long-term concept he had about how the funds should be used.

In a resolution similar to the lieutenant governor's, Sen. Wes Shoemyer, D-Clarence, proposed to complete the projects with federal stimulus dollars.

Shoemyer says he diverges from Kinder in that he originally opposed the sale of MOHELA assets, but he feels the government should honor its commitments now that they have been made.

"If we make a promise, the worst thing we can do is not fulfill the promise," he said.

Although a resolution is non-binding, it would send a strong suggestion to the governor, Shoemyer said.

Both Shoemyer and Kinder emphasized the 5,000 jobs the 31 projects would create. The state is facing the highest unemployment rate in 25 years.

"At this time, we should be focused on keeping people employed as much as possible," Kinder spokesman Gary McElyea said. "There is still $220 million in the account. Why not work until the money goes dry?"

Chancellor Brady Deaton said MU was concerned by the suspension of funding for the cancer center.

Deaton said he would try to find other ways to fund the center, the only hospital in the state devoted solely to the research and treatment of cancer. One option may be pulling money from the $1.3 billion raised through the For All We Call Mizzou fundraising campaign.

"We will stay on board," Deaton said. "We believe this is a vital project for the university and a vital project for the state."