Mo. House passes construction bond

The prospective projects would include some previously dropped at MU.

By Krissy Tripp

Published April 16, 2009

The Missouri House of Representatives approved a bill authorizing the sale of $700 million in bonds to fund construction projects at state universities.

Rep. Chris Kelly, D-Columbia, said he proposed the bill to provide funding for capital improvement on universities and create jobs. He said the bill could provide new buildings on every college campus in the state, including those put on hold indefinitely after budget problems with Missouri Higher Education Loan Authority.

The bill passed by a margin of about 100 votes Thursday with no changes after the House's preliminary approval Tuesday.

The bill will now go to the Senate for approval, and then on to the Missouri ballot for citizen approval.

"If it passes the Senate the people of Missouri will have to approve it in an election," Kelly said.

The bonds may be issued over time by the Board of Fund Commissioners and will mature within 25 years from the date of issuance.

Gov. Nixon spokesman Scott Holste said the General Assembly has been looking at other sources to fund capital projects since MOHELA stopped being able to make payments due to budget problems.

Many MOHELA assets were sold in 2007 to fund building projects, but began delaying quarterly payments after its initial $230 million payment toward former Gov. Matt Blunt's plan in Sept. 2007. Blunt planned to use $350 million from MOHELA to fund campus construction projects.

"Building projects on campus are an important part of continuing to have first class universities in Missouri," Holste said.

Holste said Nixon supports bills that create jobs and first class universities in Missouri.

The UM system Board of Curators and UM system President Gary Foresee are all in favor of passing the bill, said Tony Luetkemeyer, student representative to the board.

"Everyone thought it was good legislation," Luetkemeyer said. "It was the board's wish that it would pass."

UM system spokeswoman Jennifer Hollingshead said the UM system is in need of the resources.

"The University of Missouri has significant capital needs across its four campuses. We are pleased the legislation continues to move forward," she said in an e-mail.

MU will receive $81,572,000 in funding if the bill passes through the Senate and Missouri ballot as is.

MU will receive funding for Laferre Hall and Ellis Fischel Cancer Center, which were originally supposed to be funded by the sale of MOHELA assets.