Missouri House Passes Sale of MOHELA’s Assets

MAY 7, 2007, JEFFERSON CITY, MO – On Monday, May 7, 2007, the Missouri House of Representatives passed SB 389 which approved the sale of $350 million in assets of the Missouri Higher Education Loan Authority (MOHELA). The bill, sponsored by Sen. Gary Nodler (R-Joplin), will use the funds from the sale for construction projects on Missouri college and university campuses and to fund the Missouri Technology Corporation (MTC) for various economic development projects. The bill passed the House by a vote of 91-64 and now goes to Governor Matt Blunt for his consideration. However, it is expected that Gov. Blunt will sign the bill, which was one of his 2007 legislative priorities.

The Missouri Catholic Conference (MCC) has opposed the sale of MOHELA’s assets since the plan was first announced. Current political polling indicates that more than 70 percent of Missourians are against the sale of MOHELA’s assets.

The MCC and pro-life groups are concerned that this funding will go towards human cloning and embryonic stem cell experiments because of the passage of Amendment 2 to Missouri’s constitution. Amendment 2 granted a constitutional right in Missouri for researchers to conduct human cloning and embryonic stem cell experiments. The amendment prohibits the legislature from distinguishing between funding ethical and unethical life science research. Amendment 2 also provides that once life sciences research is funded, the legislature cannot later reduce or withhold funds.

Despite claims by supporters of SB 389 that the new plan removes funding for the construction of life science labs which could engage in unethical human cloning and embryonic stem cell experiments, the plan retains $15 million in funding for the MTC. The MTC is a private corporation. Governor Matt Blunt has previously vetoed direct appropriations to it and other private corporations, and lawmakers have no control over how a private corporation expends those funds. The MTC’s Board of Directors is headed by Donn Rubin, who also is the chairman and a chief spokesman of the Missouri Coalition for Lifesaving Cures that spent over $30 million to enact Amendment 2. The MTC's executive director, Rob Monsees, was also a supporter of Amendment 2. Many of the board members of the MTC as well as its affiliated organizations were heavily involved in support of Amendment 2. The MTC's affiliated organization, the Research Alliance of Missouri (RAM), includes as a member the Stowers Institute for Medical Research in Kansas City, whose founders, James and Virginia Stowers, were major supporters and financiers of Amendment 2. 

In addition to concerns regarding funding unethical life sciences the MCC has concerns regarding MOHELA’s continuing ability to provide affordable low-interest loans to college students. The sale of MOHELA’s assets for purposes other than subsidizing college tuition hinders the ability of MOHELA to fulfill its historical statutory mission.

A long-term MOHELA board member testified before the Senate Education Committee that MOHELA’s ability to continue to provide low interest loans and provide loan forgiveness will in fact be reduced by SB 389. Recent developments at the federal level, including efforts by Congress to reduce interest rates on student loans and a recent budget proposal by the president to cut the federal subsidies payable to student loan entities like MOHELA, further diminish the financial outlook for MOHELA.

MOHELA’s assets have been built up by the families it serves – college students paying off loans for attendance at both public and private universities like St. Louis University and Rockhurst University. In fact, a disproportionate amount of the loans extended by MOHELA are to students at Missouri’s Catholic colleges and universities. The private universities that helped to build the wealth of MOHELA will receive no benefits from the MOHELA sale, and in fact will be harmed because MOHELA’s ability to make student loans will decrease as a result of the sale of its assets.

During the House debate representatives opposing the bill referred to the bill as “Matt Blunt’s folly,” “MO-DEALA,” and “MO-STEALA.” House opposition to the bill was based on a variety of ideological viewpoints. Some representatives criticized SB 389 because it retained funding for human cloning and embryonic stem cell experiments under the guise of economic development. Other representatives opposed the bill because the sale of MOHELA’s asset would bankrupt the organization. Several representatives simply called the bill bad public policy.

“The MCC has opposed  this  devious use of state resources by those who seek to conduct human cloning experiments and research that destroys human life. We are deeply disappointed that the General Assembly allowed the sale of MOHELA’s assets to subsidize life science interests,” said Deacon Larry Weber, Executive Director of the Missouri Catholic Conference.

The following representatives voted in favor of SB 369:

Rep. Jim Avery (R-Crestwood), Rep. Brian Baker (R-Belton), Rep. Carl Bearden (R-St. Charles), Rep. Walt Bivins (R-St. Louis), Rep. Ellen Brandom (R-Sikeston), Rep. Jason Brown (R-Platte City), Rep. Mark Bruns (R-Jefferson City), Rep. Shannon Cooper (R-Clinton), Rep. Robert Wayne Cooper (R-Camdenton), Rep. Nathan Cooper (R-Cape Girardeau), Rep. Stanley Cox (R-Sedalia), Rep. Jane Cunningham (R-Chesterfield), Rep. Mike Cunningham (R-Marshfield), Rep. David Day (R-Dixon), Rep. Bill Deeken (R-Jefferson City), Rep. Tom Dempsey (R-St. Charles), Rep. Charlie Denison (R-Springfield), Rep. Mike Dethrow (R-Alton), Rep. Bob Dixon (R-Springfield), Rep. Curt Dougherty (D-Independence), Rep. Gary Dusenberg (R-Blue Springs), Rep. Edgar Emery (R-Lamar), Rep. Doug Ervin (R-Holt), Rep. Sally Faith (R-St. Charles), Rep. Kathlyn Fares (R-St. Louis), Rep. Barney Fisher (R-Richards), Rep. Tim Flook (R-Liberty), Rep. Ward Franz (R-West Plains), Rep. Jeff Grisamore (R-Lee's Summit), Rep. Jim Guest (R-King City), Rep. Steve Hobbs (R-Mexico), Rep. Theodore Hoskins (D-Berkeley), Rep. Rodney Hubbard (D-St. Louis), Rep. Steve Hunter (R-Joplin), Rep. Allen Icet (R-Wildwood), Rep. Timothy Jones (R-Eureka), Rep. Kenny Jones (R-Clarksburg), Rep. Van Kelly (R-Norwood), Rep. Gayle Kingery (R-Poplar Bluff), Rep. Jim Lembke (R-St. Louis), Rep. Scott Lipke (R-Jackson), Rep. Tom Loehner (R-Koeltztown), Rep. B.J. Marsh (R-Springfield), Rep. Bob May (R-Rolla), Rep. Mike McGhee (R-Odessa), Rep. Danielle Moore (R-Fulton), Rep. Brian Munzlinger (R-Williamstown), Rep. Bob Nance (R-Excelsior Springs), Rep. Brian Nieves (R-Washington), Rep. Jerry Nolte (R-Gladstone). Rep. Bob Onder (R-Lake St. Louis), Rep. Mike Parson (R-Bolivar), Rep. David Pearce (R-Warrensburg), Rep. Darrell Pollock (R-Lebanon), Rep. Charles Portwood (R-Ballwin), Rep. Bryan Pratt (R-Blue Springs), Rep. John Quinn (R-Chillicothe), Rep. Ron Richard (R-Joplin), Rep. Martin Rucker (D-St. Joseph), Rep. Marilyn Ruestman (R-Joplin), Rep. Don Ruzicka (R-Mount Vernon), Rep. David Sater (R-Cassville), Rep. Robert Schaaf (R-St. Joseph), Rep. Rodney Schad (R-Versailles), Rep. Dwight Scharnhorst (R-Valley Park), Rep. Charles Schlottach (R-Owensville), Rep. Vicki Schneider (R-O'Fallon), Rep. Shane Schoeller (R-Willard), Rep. Tom Self (R-Cole Camp), Rep. Ryan Silvey (R-Kansas City), Rep. Joe Smith (R-St. Charles), Rep. Jason Smith (R-Salem), Rep. Bryan Stevenson (R-Joplin), Rep. Neal St. Onge (R-Ellisville), Rep. Rick Stream (R-Kirkwood), Rep. Mike Sutherland (R-Warrenton), Rep. Mike Thomson (R-Maryville), Rep. Kevin Threlkeld (R-Washington), Rep. Steven Tilley (R-Perryville), Rep. Jim Viebrock (R-Republic), Rep. Maynard Wallace (R-Thornfield), Rep. Jay Wasson (R-Nixa), Rep. Don Wells (R-Cabool), Rep. Ray Weter (R-Nixa), Rep. James Whorton (D-Trenton), Rep. Larry Wilson (R-Flemington), Rep. Kevin Wilson (R-Neosho), Rep. Dennis Wood (R-Kimberling City), Rep. Billy Pat Wright (R-Dexter), Rep. Brian Yates (R-Lee's Summit), Rep. Rod Jetton (R-Marble Hill)

The following representatives voted against SB 369:

Rep. Joe Aull (D-Marshall), Rep. Judy Baker (D-Columbia), Rep. Rachel Bringer (D-Palmyra), Rep. Michael Brown (D-Kansas City), Rep. John Burnett (D-Kansas City), Rep. Ron Casey (D-Crystal City), Rep. Maria Chappelle-Nadal (D-University City), Rep. Michael Corcoran (D-St. Ann), Rep. Bruce (David) Darrough (D-Florissant), Rep. Michael Daus (D-St. Louis), Rep. Cynthia Davis (R-O'Fallon), Rep. Margaret Donnelly (D-St. Louis), Rep. Joseph Fallert, Jr. (D-Ste. Genevieve), Rep. Michael Frame (D-Eureka), Rep. Tony George (D-St. Louis), Rep. Jason Grill (D-Parkville), Rep. Jeff Harris (D-Columbia), Rep. Belinda Harris (D-Hillsboro), Rep. Esther Haywood (D-St. Louis), Rep. Steve Hodges (D-East Prarie), Rep. Jason Holsman (D-Kansas City), Rep. Leonard Hughes IV (D-Kansas City), Rep. Connie "LaJoyce" Johnson (D-St. Louis), Rep. Sam Komo (D-House Springs), Rep. Will Kraus (R-Raytown), Rep. J.C. Kuessner (D-Eminence), Rep. Sara Lampe (D-Springfield), Rep. Paul LeVota (D-Independence), Rep. Albert Liese (D-Maryland Heights), Rep. Beth Low (D-Kansas City), Rep. Jenee' Lowe (D-Kansas City), Rep. Rebecca McClanahan (D-Kirksville), Rep. Tim Meadows (D-Imperial), Rep. Kate Meiners (D-Kansas City), Rep. T. Scott Muschany (R-St. Louis), Rep. Jamilah Nasheed (D-St. Louis), Rep. Charlie Norr (D-Springfield), Rep. Sam Page (D-Creve Coeur), Rep. Jeanette Oxford (D-St. Louis), Rep. Paul Quinn (D-Monroe City), Rep. Ed Robb (R-Columbia), Rep. Brad Robinson (D-Bonne Terre), Rep. Jeff Roorda (D-Barnhart), Rep. Ray Salva (D-Sugar Creek), Rep. Therese Sander (R- Moberly), Rep. Luke Scavuzzo (D-Harrisonville), Rep. Ed Schieffer (D-Troy), Rep. Sue Schoemehl (D-St. Louis), Rep. Tom Shively (D-Shelbyville), Rep. Trent Skaggs (D-North Kansas City), Rep. Michael Spreng (D-Florissant), Rep. Rachel Storch (D-St. Louis), Rep. Terry Swinger (D-Caruthersville), Rep. Mike Talboy (D-Kansas City), Rep. Thomas Todd (D-Campbell), Rep. Thomas Villa (D-St. Louis), Rep. Michael Vogt (D-St. Louis), Rep. Gina Walsh (D-St. Louis), Rep. Juanita Walton (D-Florissant), Rep. Terry Witte (D-Vandalia), Rep. Patricia Yaeger (D-St. Louis), Rep. Terry Young (D-Kansas City), Rep. Jake Zimmerman (D-Olivette), Rep. Clint Zweifel (D-Florissant)

The following representatives voted absent SB 369:

Rep. Craig Bland (D-Kansas City), Rep. John Bowman (D-St. Louis), Rep. Shalonn Curls (D-Kansas City), Rep. Talibdin El-Amin (D-St. Louis City), Rep. Doug Funderburk (R-St. Peters), Rep. Fred Kratky (D-St. Louis), Rep. Edward Wildberger (D-St. Joseph), Rep. Robin Wright-Jones (D-St. Louis).