Tuesday, Jan. 31, 2006
Contact: Spence Jackson, 573-751-0290
Blunt and MOHELA Agree on Public-Private Partnership Proposal
Higher Ed Capital Projects, Scholarships Preserved; Loan Options for Students Remain
JEFFERSON CITY–The Missouri Higher Education Loan Authority (MOHELA) board endorsed a plan today in response to Gov. Matt Blunt’s Lewis and Clark Discovery Initiative that would provide $450 million, for capital improvement projects, new scholarships and endowed professorships at universities throughout the state.
"I commend the MOHELA board for responding to my call for action to provide a public-private partnership that benefits students, colleges and universities, and our state’s future economic growth," Blunt said. "This proposal eliminates all objections voiced towards our proposal and I look forward to working with the General Assembly in the weeks ahead to provide this needed assistance to our college students, their universities and our state’s economy."
"MOHELA is pleased to be a partner with the state in fulfilling the governor’s vision for higher education," said Karen Luebbert, chair of the MOHELA board. "MOHELA will continue to benefit Missouri’s students and families by providing low cost interest rates and lending borrower benefits while funding Gov. Blunt’s Lewis and Clark Discovery Initiative."
The MOHELA board announced its intentions to put select assets up for sale on the open market excluding loans it backs for Missouri college students. This action will provide $450 million in funding for the following projects: $300 million for capital improvement projects, $100 million for student scholarships, $30 million to enhance growth and development of technology businesses near college campuses and $20 million for endowed professorships at universities throughout the state. The board will follow Missouri’s open bid laws to ensure openness in the transactions.
This will eliminate the need for the special board called for in Blunt’s Lewis and Clark Discovery Initiative. The Missouri General Assembly and Gov. Blunt will still decide how funds are allocated to colleges and universities. All of the economic benefits outlined in Blunt’s initiative remain with this public-private partnership proposal.
As governor, Blunt has made education his number one priority. Last year Blunt signed a budget that directed more money to Missouri’s two and four-year public colleges and universities than any budget of the prior administration. This year he is calling for a $17.1 million increase for higher education. The new funding will provide our state institutions resources they need to hold back any significant tuition increases and to continue to improve the quality of education they offer.
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