HIGHWAY BOND PROPOSAL CONTAINS POTENTIAL PROBLEM, SAY LAWMAKERS

JEFFERSON CITY -- After an hour of debate, legislation to provide upfront money for state highway projects failed to make any headway in the Missouri Senate Monday. However, the discussion raised a new concern about the proposal.

The bill calls for the Missouri Department of Transportation to sell $2.25 billion in bonds over six years to accelerate construction or repair of some state roads and bridges. The compromise plan has already cleared the House of Representatives and needs Senate approval before it can go to the governor to be signed into law.

The bill contains an emergency clause that would allow MoDOT to issue $250 million worth of bonds this summer. No more than $500 million in bonds could be issued in any one fiscal year.

It was noted during the debate that the way the bill is written the state could break that cap during the first year of the plan.

Except for the first round, MoDOT would submit a list of projects to be funded through bond revenue each January for approval by the General Assembly. Lawmakers could vote for or against the list as a whole but could not add or delete individual projects.

Lawmakers would not be able to sign off on the first round of projects because they adjourn for the year Friday.

Sen. Jim Mathewson, the bill's Senate handler, said the initial money will give MoDOT a chance to show it can be trusted. The department has had a credibility problem since 1998 when it abandoned its 1992 highway plan as the financial blueprint for new road construction in the state. That plan, used to sell a fuel-tax hike, promised extensive road upgrades throughout the state.

The current plan, Mathewson, D-Sedalia, said, would allow MoDOT to prove to lawmakers that it can spend the first $250 million wisely. If lawmakers are satisfied, they would then authorize an additional $500 million in bonds in January.

"If they blow it all on one project ... this General Assembly will not authorize another dime in bond revenue," Mathewson said.

During the debate, one of the senators who negotiated the compromise with the House said he later noticed a potential problem with the bill.

Sen. John Russell, R-Lebanon, said that the initial $250 million plus an additional $500 million in January would mean $750 million in bond revenue for fiscal year 2001 $250 million over the annual cap included in the bill.

Mathewson didn't think that was the case but said if it was, lawmakers could fix the legislation next year.

If the Senate makes changes to address Russell's concern, the bill would go back to the House for further debate. With a Friday deadline for action looming, the bill's supporters are adverse to adding any more steps to the legislative process.

In addition to Russell's concern, several senators also wanted information from MoDOT on what projects would be funded with the first $250 million. Mathewson said department officials have told him they can't have a list of projects ready before adjournment.

"Time just doesn't allow for that because they've got a jillion projects" from which to choose, Mathewson said.

Marc Powers may be contacted in Jefferson City at (573) 635-4608 or by e-mail at mppowers@socket.net.