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PrintJEFFERSON CITY — Senators have unveiled another plan to spend an expected $450 million in proceeds from the proposed sale of some Missouri Higher Education Loan Authority loans.
The Senate plan, introduced Thursday, puts money toward capital improvements at state colleges and universities, while earmarking more funds for students going into the health care field.
Similar proposals have been offered by House leadership and Gov. Matt Blunt after the governor proposed selling some of the MOHELA loans earlier this year.
“Anytime you throw $450 million on the grill, it’s going to draw some attention,” said Senate President Pro Tem Michael Gibbons, R-Kirkwood.
Blunt’s plan would have used money from the sale to pay for higher education capital improvements and endowments for student scholarships, professors and business recruitment.
House leaders introduced their own plan shortly thereafter to spend more on scholarships, less on buildings, pay off $75 million of the state’s $2.5 billion debt and give $18 million to community colleges for maintenance needs.
House Speaker Rod Jetton said Senate leaders told him that debt payments would not be a big priority for them, but a whole new proposal “caught me a little bit flat-footed.”
The Senate’s plan calls for spending less on scholarships, deletes all the money set aside to pay state debt and splits $148 million between health care and scholarships dedicated for students going into the health care field.
MOHELA’s board of directors already has endorsed the governor’s version, but Raymond Bayer, the authority’s interim executive director, said there has been no indication that the board would not sell the loans if a different plan is adopted.
Blunt spokeswoman Jessica Robinson said the governor is pleased lawmakers have kept intact funding for capital improvements. She said Blunt would be working with both chambers to finalize a plan if the MOHELA board ultimately votes to sell some of its assets.
The Senate plan would use a total of $448 million divided among capital improvements, the Primary Care Resource Initiative scholarship program for students who are willing to work in parts of the state that are underserved and other general health care programs.
It also would:
- Add $65.9 million for Federally Qualified Health Centers, which largely serve Medicare and Medicaid individuals.
- Cut $2 million from the $87.5 million MU was slotted to receive for a health sciences research center.
- Add $2.6 million to be divided among every school district for wellness programs.
Senate Appropriations Committee Chairman Chuck Gross said improving health care access and quality has been a big priority.
“We think health care is an important issue that we need to address,” said Gross, R-St. Charles. “We started addressing it last year, we’re going to continue addressing it this year, and this is a great opportunity for us to take this one-time source of money and continue that effort.”
But the House’s version for spending the MOHELA money already has been adopted into the state budget that was approved by the House earlier this month and is being reviewed by the Senate Appropriations Committee.
Jetton, R-Marble Hill, said his body’s version has broad-based scholarships that more students would be able to use. The Senate’s plan would increase funding for PRIMO scholarships from $1 million to $3.6 million and create a $55 million fund for the program.
“It’s putting this thing headlong into a conference committee battle, or maybe I should say showdown,” Jetton said.
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