State distributes funds to Truman

The state of Missouri distributed more than $7.1 million to 20 state colleges and universities last Friday as part of the Lewis and Clark Discovery Initiative.

According to a press release from Gov. Blunt's office, Truman received $51,364 from the Initiative for the Pershing renovation project. This is the 14th distribution of the $335 million secured by the initiative for constructions and capital projects. Gov. Blunt stated in the release that this investment will ensure students the resources they need to be properly prepared to enter the workforce and be competitive in the world's economy.

Gov. Blunt's Lewis and Clark Discovery Initiative is a coalition between the Missouri Higher Education Loan Authority and the state. Authorized through legislation, the coalition reinvests state assets to generate $335 million for Missouri's colleges and universities. The Department of Higher Education and the Office of Administration work with universities and colleges to process the funding.

The money distributed by the initiative reimburses schools for expenditures and is determined by information provided by the institutions monthly, according to the release. Dave Rector, director of institutional research and budgets, said Truman pays the bills first and then supplies the billing information to the state.

"The way it works is [Truman] presents a bill to the state and is then reimbursed," Rector said. "So what [Truman] is getting reimbursed for right now is the architectural, engineering and design phase of the [Pershing project]."

Governor-elect Jay Nixon has been an opponent of the Lewis and Clark Discovery Initiative since it was first introduced in the State Senate in 2007. According to a Columbia Daily Tribune political blog dated May 22, 2007, then Attorney General Nixon urged Gov. Matt Blunt to veto Senate Bill 389, which authorized the use of sold loan assets for capital improvement projects.

Also in May 2007 in a letter to The Star, Nixon said, "Every penny MoHELA has is from students, and every penny should be used to benefit students in the form of low-cost loans."

Three months after Gov. Blunt signed the bill, the Lewis and Clark Initiative came under legal fire when two former MoHELA borrowers filed a suit questioning the legality of the plan. The suit was voluntarily dismissed Nov. 19, 2007. However, John Lichtenegger, the attorney who represented the plaintiffs, told the Index a year ago that future legal action was probable [see the Nov. 29, 2007 issue of the Index]. Lichtenegger could not be reached for comment.

Rector said future funding for the Pershing project is dependent on the state. Because MoHELA has not been able to make payments to the fund, the state is worried about the cash flow projections in place, he said. As of right now, the money would run out next summer.

"We're really waiting for the new administration to take over in Jefferson City to see what happens next," Rector said. Campus Planner Mark Schultz said that if the Lewis and Clark Discovery Initiative is disbanded, funding for the Pershing project would become an issue.

"If the MoHELA money falls through and we don't get it, then we'll have to find a new funding source because a majority of the money for the Pershing project is coming from the MoHELA funds," Schultz said.