OUR VOICE: Time to start over on MOHELA
Every time it looks like Gov. Matt Blunt's plan to sell assets from the Missouri Higher Education Loan Authority is about to speed through, another bump knocks the plan off the road.
When the MOHELA board finally completed a financial analysis that indicates the sale of about $350 million in assets to fund higher education capital projects was feasible -- a key element to gain legislative approval of the deal -- more bad news hit.
The St. Louis Business Journal reported that former MOHELA executive director Michael Cummins was given a more than $800,000 golden parachute when he was forced out because of his opposition to Blunt's plan. That's a lot of money for a state board to be spending to keep critics quiet.
Now new State Auditor-elect Susan Montee has said she plans an audit of MOHELA as one of her first actions. Frankly, it's a good idea.
But that doesn't help the exasperated university administrators who have been begging for capital money so their university campuses don't crumble away. Ask Missouri State University President Mike Nietzel about how much he believes the MOHELA funding is needed, and his frustration is clear. Politics is getting in the way of doing the right thing.
It's not unreasonable for the MOHELA plan to continue on its merry way, even while Montee performs an audit and Attorney General Jay Nixon continues his open meetings violation lawsuit, but it sure doesn't seem like good business. The reason the MOHELA plan has stalled at every turn is because it's been rushed and pushed without regard for the sort of public discussion that is a hallmark of all good government. And when critics asked questions, Blunt simply replaces them on the board with folks who would vote the way he wants.
With the state facing a budget surplus of well over $500 million as it starts the legislative session, we suggest a new path to MOHELA success. Put the MOHELA plan on hold. Let Montee do her audit and wait for Nixon's legal action to run its course. Make sure the financial analysis ordered by the board is truly objective and gives the asset sale a clean bill of health. Let legislators debate the proposal to give MOHELA direct loan authority. Do all of this without any rush.
In the meantime, pass a quick bill to fund the projects already agreed to by legislators, the governor and university presidents, by selling state bonds and using at least a portion of the budget surplus to guarantee repayment. If the governor is right and the MOHELA plan makes sense, then once that agency has been given a clean bill of health, the proceeds from its sale can pay back the surplus money used to finance the deal. If not, the state will have to make other commitments to pay back the bonds.
Funding capital improvements to universities is part of the state's function. It's good for education. It's good for economic development. Lawmakers should find a way to do it without politics standing in the way.