Friday, Feb. 3, 2006
Contact: Spence Jackson, 573-751-0290
State Positioned to Receive Donation from MOHELA
JEFFERSON CITY–Gov. Matt Blunt’s spokesman Spence Jackson reiterated today that Missouri may receive funds from private individuals or entities, including MOHELA, and pointed out MOHELA already gives the state money.
"There is absolutely nothing in state law that prohibits MOHELA from conveying property to the state," Jackson said. "It is unfortunate that the enemies of higher education will stop at nothing to use smear tactics to try to thwart what is obviously a great opportunity for students, for universities and for our state’s economy."
State statute protects both the state and MOHELA by providing the proceeds of MOHELA’s bonds and indebtedness and all fees and revenues generated by MOHELA are not a part of total state revenues. This law protects the state to make sure that none of MOHELA’s debt or liability is imputed to the state. Likewise, the law also protects MOHELA so that its money is kept separate from state revenue.
"The bottom line is -- it’s MOHELA’s money. They believe the Lewis & Clark Discovery Initiative is beneficial to students and furthers their mission," Jackson said. "If naysayers would stop looking for ways to deny students, universities and our state the benefits of the governor’s Lewis & Clark Discovery Initiative they’d know MOHELA has in fact already given hundreds of thousands of dollars to the state."
For many years, MOHELA has given the state $50,000 annually so that the General Assembly could receive and appropriate it for the Gallagher scholarship and grant program. They also funded a one time shortfall in 2004 for the Gallagher fund with a donation of $295,670. Once MOHELA makes a gift or donation to the State, the funds are no longer MOHELA’s and become a part of state funds, deposited in the state treasury and subject to appropriations by the General Assembly.
Private entities and individuals have long been able to donate to the state. In fact, legislation passed in 2003 and signed by then Gov. Bob Holden, allows Missouri individuals and corporations to donate their tax refunds to the state’s General Revenue fund with a check-off box on the Missouri income tax forms. The check-off encourages them to donate their refund in full, in part or even send a check with an additional contribution.
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