Sale of MOHELA’s Assets Moves Forward Despite Opposition

April 24, 2007, JEFFERSON CITY, MO – In the early morning hours just after midnight on Wednesday, April 19, 2007, the Senate used the extraordinary parliamentary procedure of moving the previous question to end debate and preliminarily pass SB 389, sponsored by Sen. Gary Nodler (R-Joplin), which allows the sale of $350 million in assets of the Missouri Higher Education Loan Authority (MOHELA). The Senate then similarly passed HB 16, an appropriations bill that lists all the projects to be funded by the MOHELA sale.

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.

HB 16 includes $15 million in funding for the Missouri Technology Corporation (MTC) to attract and retain high-tech companies and commercialize research conducted at universities. The MTC is chaired by Donn Rubin, who was the official coalition chairman of the Missouri Coalition for Lifesaving Cures, which spent over $30 million to pass constitutional Amendment 2 in 2006.  Many of the board members of the MTC, as well as their affiliated organizations were heavily involved in support of Amendment 2.  Also, 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, Jim 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.

Senate opposition to the bill was based on a variety of ideological viewpoints. Some senators opposing SB 389 support human cloning and embryonic stem cell research and opposed removal of provisions that allowed funding of unethical life science experiments. Other senators criticized SB 389 because it retained funding for human cloning and embryonic stem cell experiments under the guise of economic development. Some senators opposed the bill because the sale of MOHELA’s asset would bankrupt the organization. Several senators simply called the bill bad public policy.

“The MCC opposes  this  devious use of state resources by those who seek to conduct human cloning experiments and research that destroys human life, and calls on the General Assembly to defeat the MOHELA deal and all state funding for unethical human experimentation,” said Deacon Larry Weber, Executive Director of the Missouri Catholic Conference.

SB 389 is expected to come up for third reading and final passage in the Senate this week and go to the House of Representatives where it is expected to pass.

The following Senators voted in favor of SB 389:

Sen. Victor Callahan (D-Independence), Sen. Norma Champion (R-Springfield), Sen. Dan Clemens (R-Marshfield), Sen. Jason Crowell (R-Cape Girardeau), Sen. Kevin Engler (R-Farmington), Sen. Michael Gibbons (R-Kirkwood), Sen. Jack Goodman (R-Mt. Vernon), Sen. John Griesheimer (R-Washington), Sen. Charles Gross (R-St. Charles), Sen. Chris Koster (R-Harrisonville), Sen. Brad Lager (R-Maryville), Sen. John Loudon (R-Ballwin), Sen. Robert Mayer (R-Dexter), Sen. Gary Nodler (R-Joplin), Sen. Chuck Purgason (R-Caulfield), Sen. Luann Ridgeway (R-Smithville), Sen. Scott Rupp (R-Wentzville), Sen. Delbert Scott (R-Lowry City), Sen. Charles Shields (R-St. Joseph), Sen. Bill Stouffer (R-Napton), Sen. Carl Vogel (R-Jefferson City).

The following Senators voted against SB 389:

Sen. Frank Barnitz (D-Lake Spring), Sen. Matt Bartle (R-Lee's Summit), Sen. Joan Bray (D-St. Louis City), Sen. Maida Coleman (D-St. Louis City), Sen. Chuck Graham (D-Columbia), Sen. Tim Green (D-Florissant), Sen. Jolie Justus (D-Kansas City), Sen. Harry Kennedy (D-St. Louis), Sen. Ryan McKenna (D-Crystal City), Sen. Wes Shoemyer (D-Clarence), Sen. Jeff Smith, (D-St. Louis City), Sen. Yvonne Wilson, (D-Kansas City).

The following Senators voted in favor of HB 16:

Sen. Norma Champion (R-Springfield), Sen. Dan Clemens (R-Marshfield), Sen. Jason Crowell (R-Cape Girardeau), Sen. Kevin Engler (R-Farmington), Sen. Michael Gibbons (R-Kirkwood), Sen. Jack Goodman (R-Mt. Vernon), Sen. John Griesheimer (R-Washington), Sen. Charles Gross (R-St. Charles), Sen. Chris Koster (R-Harrisonville), Sen. Brad Lager (R-Maryville), Sen. John Loudon (R-Ballwin), Sen. Robert Mayer (R-Dexter), Sen. Gary Nodler (R-Joplin), Sen. Chuck Purgason (R-Caulfield), Sen. Luann Ridgeway (R-Smithville), Sen. Scott Rupp (R-Wentzville), Sen. Delbert Scott (R-Lowry City), Sen. Charles Shields (R-St. Joseph), Sen. Bill Stouffer (R-Napton), Sen. Carl Vogel (R-Jefferson City).

The following Senators voted against HB 16:

Sen. Frank Barnitz (D-Lake Spring), Sen. Matt Bartle (R-Lee's Summit), Sen. Joan Bray (D-St. Louis City), Sen. Victor Callahan (D-Independence), Sen. Maida Coleman (D-St. Louis City), Sen. Chuck Graham (D-Columbia), Sen. Tim Green (D-Florissant), Sen. Jolie Justus (D-Kansas City), Sen. Harry Kennedy (D-St. Louis), Sen. Ryan McKenna (D-Crystal City), Sen. Wes Shoemyer (D-Clarence), Sen. Jeff Smith, (D-St. Louis City), Sen. Yvonne Wilson, (D-Kansas City).

Sen. Rita Heard Days (D-St. Louis County) was Absent with Leave on both votes.