The Associated Press reported today that Gov. Jay Nixon
spent most of his appearance at Mizzou defending his decision to suspend
several capital improvement projects funded by the partial asset sale of the
Missouri Higher Education Loan Authority.
Perhaps the most notable allocation suspended was a $31.2
allotment to build the Ellis Fischel Cancer Center on MU’s campus. While over
$240 million has been sent out, the agency is having a tough time making
quarterly payments.
From the AP:
The college building program - started by former Republican
Gov. Matt Blunt - depends on the receipt of $350 million over several years
from the Missouri Higher Education Loan Authority. The loan agency has paid
$242 million to the state since fall 2007, but has delayed several quarterly
payments because of financial troubles caused by the credit market crunch and
changes in federal student loan laws.
Nixon expressed doubt that the loan authority could pay the
rest of the money due the state.
"That's $100 million that's not in the bank,"
Nixon told an audience of students, faculty, administrators and Columbia campus
Chancellor Brady Deaton at a Sinclair School of Nursing news conference.
"MOHELA did not make its payments anywhere near the numbers they said they
would.
"I'm not going to stand in front of the people of
Missouri and promise something from a bank account that doesn't have something
in it. That money doesn't exist," the Democratic governor said.
Two lawmakers representing portions of Boone County possess different perspectives on the development.
“Ultimately, [Nixon] might have to find that money somewhere
else,” said Sen. Kurt Schaefer, R-Columbia. “The other thing too is had there
not been the filibuster… that money would have been committed by now. Frankly,
that project would have been farther along… Because of the filibuster, that
project was pulled, put back on the next year and put on the bottom level of
projects – which arguably made it easier for the governor to cut it.”
Schaefer was referring to a filibuster by then-Sen. Chuck Graham, D-Columbia, of legislation authorizing the MOHELA plan.
State Rep. Chris Kelly, D-Columbia, called the decision the
“death knell of the whole MOHELA scam.”
“It was so ill-advised both legally and governmentally from
the very beginning, and now it’s collapsed under its own weight,” Kelly said.
I asked Kelly if there is any other way to fund the Ellis
Fischel project. He said that he didn’t know the answer.
“But that assumes that it was ever going to happen under
MOHELA thing in the first place,” Kelly said. “And the expectations were built
simply for political millage. And the whole fight, the whole thing was
ridiculous from the get-go.”
You can read the AP story here.