SEMO: HOUSE KEEPS SPENDING FOR BUSINESS BUILDING IN BUDGET

Funding for a new building for the College of Business long considered the major capital priority for Southeast Missouri State University is included in the capital improvements budget approved by the Missouri House of Representatives this week.

But final funding for the $13 million project is still a long way from reality.

The project must survive scrutiny by the Missouri Senate, and a tax proposal to pay for the capital projects faces a tough battle in that chamber.

The fact that the building was not included in Gov. Mel Carnahan's budget, and that the state is in a tight financial condition, made prospects for funding in Fiscal 1994 bleak.

But a bill sponsored by House Budget Chairman Chris Kelly, D-Columbia, could hold the key to the building's future.

The governor had originally put $85 million for eight of capital improvement projects statewide in his budget, but he provided no method for funding them except through general revenue.

Kelly balked at increasing the state's indebtedness, and instead offered a bill to impose a 4.255 percent sales tax, plus a local sales tax on long distance phone calls to other states. There is already a tax on long distance calls made within the state.

The tax will generate enough money to allow bonds to be issued for other projects, including the building at Southeast. The tax measure passed the House several weeks ago and was voted out of the Senate Ways and Means Committee on Wednesday,

"I was thrilled that we were able to get it in the budget," said Rep. Mary Kasten, R-Cape Girardeau, a member of the House Budget Committee. "It has been a long hassle getting it into the budget. I'm happy we got it through the House and the tax on intrastate calls, but I don't know what will happen in the Senate."

Kasten and Sen. Peter Kinder, R-Cape Girardeau, agreed this is a top priority for the university and have pledged to work hard for funding.

Kinder said he has reservations about the tax on long distance calls, but added: "I will reluctantly support it if the result is we will get our business building.

"I have no higher priority than working on that business building and getting it through the Senate, now that it has passed the House. I am lobbying my colleagues and explaining and re-explaining its importance."

Kinder said he is in almost daily contact with Marvin Proffer, who is a lobbyist for the university, and talks often with Southeast President Kala Stroup about the project.

"Now, we have a realistic hope of getting it this session," said Kinder. "But it is going to be tough getting it passed on the Senate floor."

The capital improvements bill has $8.765 million earmarked for the business building, and Southeast has already raised $2.8 million locally for the project.

That strong support from the local level is what caught the attention of the House budget chairman, said Rep. Larry Thomason, D-Kennett, the House majority whip.

"The business building is a solid project. I wish we didn't have to depend on bonds to pay for it," said Thomason.

"The university has done more than its share on this project in fundraising and planning, and no one is more deserving of funding than they are. They have gone a long way in demonstrating their commitment to the project."

Thomason noted that even before the long distance telephone tax idea surfaced, "in talking with Rep. Kelly about the project, he on his own mentioned that he was pleased with what the university had done and it was time to fund the project.

"The question all along has been where the money would come from. When we had an opportunity to find additional funds, there was not a lot of doubt that this project would be in there."

Thomason said he agrees with Kelly's belief that when revenue bonds are going to be used for anything, the funding source needs to be clear.

"It is just sound fiscal policy to know where the money is going to come from to pay these bonds off," said Thomason.

Current plans for the business building call for the construction of a 100,000-square-foot structure near the corner of Henderson and New Madrid streets.

The university's College of Business holds classes in several campus buildings now, and there are about 1,200 declared business majors at Southeast.

Two years ago, the state budget provided $100,000 in initial planning money, but last year Gov. John Ashcroft vetoed additional planning funds from the budget.