MOHELA snafu

The failure of a plan to sell some of a Missouri agency's student loans to raise money for a variety of projects, mostly related to higher education, across the state was one of the big disappointments of the recently concluded legislative session in Jefferson City.

When Gov. Matt Blunt announced his Lewis and Clark Discovery Initiative earlier this year, it took a while for details of the plan to sink in, but the concept quickly gained wide bipartisan support. In short, the Missouri Higher Education Loan Authority -- known as MOHELA -- would raise more than $450 million by selling a portion of its student-loan portfolio. The Lewis and Clark plan earmarked most of that for construction projects at state-funded colleges and universities plus grants to stimulate innovative life-sciences projects.

Southeast Missouri State University hoped it would get the rest of promised state funding for its River Campus for the arts, which is under construction. Without the additional state funding, the university faces the prospect of having to raise tuition.

Contentious face-off

After a face-off -- between university officials and two key legislators, House Speaker Rod Jetton of Marble Hill and state Sen. Jason Crowell of Cape Girardeau -- over a bond sale was resolved, it appeared the MOHELA plan would generate the money needed for the River Campus.

While most legislators were positive about access to a $450 million-plus spending opportunity, there were some differences about how the money should be used. Some legislators wanted more emphasis on scholarships, since MOHELA was set up to help students get state-guaranteed loans.

In the end, legislative wrangling over the MOHELA plan resulted in its demise. Governor Blunt said he would look into a direct transfer of the funds from MOHELA to universities for his spending priorities. The legality of such a transfer remains unclear.

There were several factors that led to the failure of the MOHELA legislative plan. One is the fact that the Republican leadership of both legislative chambers have been at odds with the governor. Preventing the passage of this package, which was one of Blunt's key objectives for the legislative session, was one way of showing some political muscle, even if the end result was the failure of a good plan.

Breakdown in the process

The legislative process is supposed to arrive, through give and take, at acceptable solutions to thorny situations. The governor and some legislative leaders thought they had a MOHELA compromise to spend $332 million on construction projects, $80 million for health care, $50 million to pay down state debt for higher education and $15 million for the development of technology businesses near college campuses.

The failure of the MOHELA plan indicates a breakdown in the process, one that is particularly unusual because all of the principal players are Republicans.

Still unknown is whether Blunt's plan to transfer MOHELA funds directly without legislative appropriations will face legal challenges. Attorney General Jay Nixon, a Democratic candidate for governor, has used lawsuits to stymie other plans backed by Blunt. Some legislators believe Nixon will act if the governor attempts such a move.

Meanwhile, colleges, universities and other important projects are in limbo waiting to see if anything comes of the MOHELA plan. If personal agendas are disrupting good plans, the losers are Missourians who have higher expectations for their elected officials.