$800 million university bond plan falters in Missouri Senate

An $800 million bond issue aimed mostly at public university construction projects could stall after meeting opposition from Missouri senators, including Sen. Jason Crowell, R-Cape Girardeau.

The plan, which passed with bipartisan support in the Missouri House of Representatives, would still need voter approval. House Majority Leader Steven Tilley, R-Perryville, who co-sponsored the plan, said lawmakers blocked the measure before a final vote Tuesday in the Senate.

"They just feel like it's the wrong time to borrow money," he said.

Crowell said the plan was tabled after 42 minutes of debate in the Senate, without discussing the plan's details.

"We haven't even begun to debate this bill," he said.

While Crowell said there is too much opposition in the Senate to bring the measure to a vote before the legislative session ends next week, Tilley said the plan could be revisited.

"I think it has enough votes to pass, but in the Senate you have to get it to a vote, and that's what we're hoping will happen next week," Tilley said.

The plan takes advantage of measures in the federal stimulus package that create an opportunity to fund statewide construction with a bond package, Crowell said. However, he said, the plan does not offer advantageous interest rates.

"My concerns are that in tough economic times we do not need to issue a new credit card and immediately max out that credit card," he said.

He also said the plan would not stimulate the economy as intended.

"I think it's clear that there's a philosophical divide between those liberal senators that want to tax and spend and borrow and spend their way to prosperity," he said.

Southeast Missouri State University planned to use $37 million to build and renovate science facilities if the measure passed, said University president Dr. Ken Dobbins.

"Those projects, not only are they needed for our institution but that money would go into the economy" and create work for local companies, he said.

Dobbins said he also wanted to use the bond proposal to start work on a $4.5 million business incubator, which was shelved when Gov. Jay Nixon suspended construction projects funded by payments from the Missouri Higher Education Loan Authority in January.

If passed, the measure would go on the ballot for voter approval in November 2010 unless Nixon calls a special election.

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