Search Results for: bond proposal

House subcommittee approves $1.2 billion bond proposal

March 13, 2013 By Mike Lear

A House budget subcommittee has passed a proposal to have the state issue $1.2 billion in general obligation bonds to pay for projects at colleges and universities, state parks and buildings and other infrastructure needs.

Representatives Chris Kelly (foreground) and Lincoln Hough are the chairman and co-chairman of the House Appropriations Committee on Infrastructure and Job Creation.

The measure next goes to the full House Budget Committee. If it clears the legislature it would require voter approval.

The Committee has not yet debated a list of projects that could receive proceeds from the bond issuance. A resolution has been drawn up containing that list, but it will not be discussed until lawmakers return from next week’s Spring Break.

See the proposed resolution with the list of projects the bond proceeds could support.

Some committee members say Governor Jay Nixon wants the legislature to pass a proposal that would use revenue bonds. Committee chairman Chris Kelly (D-Columbia) opposes that avenue.

He believes under the state Constitution, such bonds are not meant to be issued for projects that do not generate revenue. Since the project list includes things that do not generate revenue, he doesn’t think revenue bonds would be acceptable.

Kelly acknowledges the state has used revenue bonds for non-revenue bearing projects before, and he knows there are lawyers that disagree with his assessment.

“I think these are the same lawyers who would say, ‘You may bond on the premise that you can mine green cheese on the Moon and sell it. So, I do not give much credibility to lawyers who say the State of Missouri can issue revenue bonds for non-revenue projects. Including the Governor.”

The proposal was amended to add a revolving fund of between $40 million and $60 million dollars for public schools to tap into for maintenance projects, and to require a cost-share from colleges and universities.

It also would create a “Taxpayer Protection Commission” of five members appointed by the Governor, the Senate President Pro-Tem and the Speaker of the House, to oversee management of the bond proceeds.

Former governor Bond on bond proposals being debated in legislature

January 28, 2013 By Mike Lear

The man who was governor the last time Missouri passed a large bond proposal says lawmakers must focus on identifying needs and how they will be met, if they want to get one passed now.

Kit Bond was the Governor when Missouri passed its last major bond proposal in 1982.

Kit Bond says when a bond package was passed under his administration, the state was in a tight fiscal situation.

“There was a deficit in the budget and the federal revenue sharing with the states had been cut off, and we badly needed upgrades to our prison system and to comply with the handicap accessibility, so the bond issue was the only way to get it.”

Lawmakers are debating whether to include transportation in a bonding proposal, or to perhaps have a separate bond proposal just for transportation. Bond says it’s not likely a bond proposal could be enough to support transportation.

“I think you’re going to have to have probably some revenue immediately and some revenue to be paying off the transportation part of the bonds, so I think you’re going to need bonds and revenue to support transportation.”

He notes he has advocated for passage of a transportation tax.

“The most direct would be gas tax increase … we’re one of the lowest around … or there are other taxes since there are some automobiles that don’t burn gas that are on the highway … or they have talked about some kind of sales tax, but if we don’t get some additional revenues in pretty soon, I-70’s not only going to be a parking lot it’s going to be a parking lot that looks like a gravel road.”

Bond says while there could be local projects that merit state money, particularly if they have a statewide impact, if the proposal becomes loaded down with local projects it could make it overly complicated for voters.

“I think you have to have it rather straightforward and you can’t put a whole bunch of individual projects or put out a laundry list because if voters don’t understand it they’re not going to be willing to support it. You have to have not only the consent of the voters but the understanding of the voters when you ask them to vote for it.”

Governor Jay Nixon has yet to take a position on a bonding proposal. Bond’s advice to him?

“Do what’s best for the state. I’m sure he will.”

Missouri House launches effort to create bond proposal

January 24, 2013 By Mike Lear

The effort to create a bonding proposal in the House is afoot.

House Speaker Tim Jones (at podium) announces the filing of his bonding proposal along with (from left) Budget Chairman Rick Stream, Representative Chris Kelly and Representative Lincoln Hough. (Photo courtesy; Tim Bommel, Missouri House Communications)

A bipartisan effort has been announced to create what proponents bill as potentially the biggest jobs package in state history. House Speaker Tim Jones (R-Eureka) says what it would support and other details must be worked out by a committee he has created.

“The bonds, if they’re approved, would of course have to be submitted to the voters for final approval but our suggestion would be at the outset we would look at financing construction at college campuses, repairs at state mental health institutions and office buildings and as I mentioned, perhaps even this could be one of the components for our transportation needs.”

Jones says a bonding proposal would be a jobs package.

“We can actually put people to work almost immediately because, as I mentioned, these projects are on the books. All the institutions I mentioned simply revamp their project wish list every year and they’re ready to go as soon as the General Assembly puts something on the ballot which would hopefully be supported by a majority of Missourians.

78 representatives have signed on as co-sponsors of the proposal with both Republicans and Democrats among that number.

Read the plan that’s been filed, HJR 14.

At the top of the co-sponsor list is Representative Chris Kelly (D-Columbia) who Jones appointed to head the committee that will hammer out the House’s proposal.

Kelly says it will begin with the same 950 million dollar plan that has been filed in the Senate.

“Where it goes is going to be an organic process that our committee, the budget committee and ultimately the floor will work on. The Speaker has instructed us to find a way to deal with the transportation issues … we don’t have all the answers for him yet but working with the committee members, we’re going to try to find the answers and try to fit these two things together appropriately.”

The Fulton state hospital is likely to be a target for part of the proceeds. Representative Jeanie Riddle (R-Mokane) says rather than try to update what’s there, a new facility is needed.

“Building a new hospital will change the dynamics of what it’s costing the state right now in utility costs because it’s a very old building, in staffing costs because we have the long hallways and the dynamics of the building would be vastly different now with today’s policies, and with workmen’s injuries … the employees and the injuries that they are incurring there.”

The cost of a new, modern mental health facility to replace the Fulton hospital is estimated at $211 million.

Jones says he doesn’t want to rush the process, adding he hopes to see a compromise reached with the Senate by the end of the 2014 session.

Lawmakers will debate including transportation in a bond proposal

December 18, 2012 By Mike Lear

More than one bond proposal will be debated in the state legislature in the session that begins in three weeks. The list of projects those would fund has not been determined, and some supporters want it to include some highway and bridge work.

Senator Mike Kehoe (R-Jefferson City). Photo courtesy, Missouri State Senate Communications.

Senator Mike Kehoe (R-Jefferson City) is the vice-chairman of the Senate Transportation Committee. He says the costs of transportation are too high to include in those proposals, that would ask Missourians to approve the sale of $950 million in bonds.

“The resources contained within the bond dollar amounts … that they’ve filed could be more appropriate and a better value if we concentrated that more on structures.”

Kehoe says other ideas are being floated that could benefit the state’s highway system.

“Senator (John) Lamping has filed a tax reform package and part of that package is going to include language in it that would potentially look at some type of sales tax increase with an offsetting taxpayer refund, so that would keep it cost-neutral to the citizens. There is an independent group, Missouri Transportation Alliance, who have worked very hard in the state for the last several years that are proposing a couple of the other different options for Missourians to look at as far as funding or resources for transportation.”

Kehoe says now is a good time for passage of a new funding plan for roads, bridges and railways for the same reason bonding issue proponents say the time is right to approve those: interest rates on money are at an all-time low.

He wants to see a plan approved that will provide stable, long-term funding and hold the Department of Transportation accountable.

“I would prefer a plan that has something that meets the needs of the transportation system that has some type of sunset mechanism so that citizens can feel like there’s an opportunity to check in every so often and make sure that the dollars that they devote to transportation and infrastructure are being spent wisely, and that the projects are being done according to the time and budget needs of the various communities.”

Kehoe adds, Missouri could soon have to put up more money to keep getting its current level of federal money.

“The newest (federal) reauthorization bill has some trigger mechanisms in it where the State of Missouri’s match to get some of the federal dollars is going to continue to go up a little bit, so three and four years from now, just our match to get to the dollars that we get from the feds today is going to become significantly higher.”

The session begins January 9.

AUDIO: Mike Lear interviews Mike Kehoe, 9:10

Bond proposals likely part of U.S. Senate compromise on dealing with housing crisis

April 1, 2008 By admin

Over the next few days the U.S. Senate will be working on legislation designed to help families suffering through the current housing crisis. And several parts of a plan put forward by Senator Kit Bond (R-MO) are expected to be included in the final package.

Bond’s proposals include an authorization for the State Housing Financing Agencies to issue up to $10-billion in tax exempt bonds and use the proceeds to refinance subprime mortgages … and expedited delivery of $180-million in loan counseling funds – a provision approved in December as part of the 2008 federal spending bill.

Bond also would like to see a $15,000 tax credit provided for the purchase of a home in or approaching foreclosure, provided the home purchase occurs within one year. Bond is also calling for increased consumer awareness of loan details and extended protection for returning war veterans to avoid foreclosure.

Download/Listen: Steve Walsh report (:60 MP3)

Talent Tours Missouri To Promote Transportation Bond Proposal

May 28, 2003 By admin

Missouri and other states could get some federal help to fund roads, public transit, and other transportation initiatives if Congress goes along with Senator Jim Talent’s proposal to sell bonds to pay for these transportation ideas. Talent says his Build America Bonds bill would provide $50-Billion in new transportation infrastructure funding empowering Missouri and other states to complete projects across all modes of transportation, including roads, rail, and aviation. Talent is spending several days, this week, criss-crossing the state to promote the initiative.

Missouri House Prepares To Mull Over Governor’s Tobacco Bond Proposal

January 31, 2003 By admin

It could be the middle of next week before we know whether the Missouri House will take up Governor Holden’s tobacco bond proposal. House Speaker Catherine Hanaway still wants clarification on the type of bonds would be issued and the risk the state faces. And, Hanaway doesn’t think much of Holden’s challenge that Republicans should come up with an alternative if they don’t like his plan. She says he made the same challenge last session when Republicans blocked use of the Rainy Day Fund and she says not only did they give Holden alternatives, state revenue came in better than expected. Holden has challenged legislators: either support turning national tobacco settlement funds into bonds to fill a $350-Million shortfall or he will cut deeply into education. Hanaway says Republicans have suggested using only a portion of the $350-Million this fiscal year and holding some in reserve for next year – an alternative that she says the Governor has refused to consider.

Missouri House gives initial approval to veterans home bonding proposal

February 9, 2016 By Mike Lear

The state House is close to proposing that voters be asked to support the construction of a new state veterans home.

Representative Lindell Shumake (photo; Tim Bommel, Missouri House Communications)

The House has given initial approval to asking voters to approve the sale of $50-million dollars of bonds. The issue would go on the ballot in November unless Governor Jay Nixon (D) sets a special election date.

Another favorable vote will send the resolution to the Senate.

Representative Pat Conway (D-St. Joseph) said many of the veterans waiting to get into homes are like him; a Vietnam veteran.

“Some came voluntarily, some came somewhat involuntarily, but they all waited in line to do their duty and the call of their country. Now we have a line that’s full on the outside of these veterans homes,” said Conway.

The state Veterans Commission says more than 1900 veterans are on a waiting list to get into a home. Conway said many of those who fought in the Vietnam War or Korean War were not welcomed home when they returned, “and now many of those have problems not only with drugs and alcohol, but being able to determine and get healthcare that’s affordable.”

The measure is sponsored by Representative Lindell Shumake (R-Hannibal).

Where the new home would go must be determined by the state Veterans Commission. Last year only three House members voted against it.

Bonding proposal for new Missouri veterans home to be back in ’16

May 25, 2015 By Mike Lear

A proposal that would have asked voters to allow the sale of bonds to pay for one more veterans home in Missouri fell short in the legislative session that just ended, but its sponsor tells Missourinet he won’t lose anything by getting it passed in 2016 instead.

The state veterans home at St. James (courtesy; Missouri Veterans Commission)

The proposal offered by Representative Lindell Shumake (R-Hannibal) would have asked voters to approve $50-million in bonding.

Daniel Bell with the Missouri Veterans Commissions says there is a need for more skilled nursing care for veterans.

“We currently have seven veterans home in the state with a total of 1,350 beds. On our waiting list altogether, we have about 1,900 veterans waiting to get into our homes,” Bell told Missourinet.

A new home would provide 150 beds.

Shumake said he will offer the proposal again in 2016, and said nothing would be lost by passing it then instead of in the past session.

“It would not have been able to get onto the ballot before 2016 anyway,” said Shumake. “If we can pass it through both houses next year and it would be qualified to go onto a general election ballot, then timewise we would be in the same timeframe.”

The resolution made it out of the House this year but was one of the issues that never came to a vote in the Senate, during the filibuster that followed a vote on “right to work.”

During House debate of the proposal, Representative Glen Kolkmeyer (R-Odessa) said he experienced for himself the need for more beds for Missouri’s veterans when the health of his father, a Korean War veteran, turned in January.

“I got my dad on the list and they told me it was a 14-month waiting list to get my dad into Warrensburg,” said Kolkmeyer. “Ladies and gentlemen, we need to do better.”

Kolkmeyer’s father died in April.

House Committee to consider parameters, list of targets for bonding proposal

March 5, 2013 By Mike Lear

The state House Committee preparing a more than $1 billion bond proposal will consider the first on-the-record list of projects that might support, next week.

Representative Chris Kelly (D-Columbia, left) and Representative Lincoln Hough (R-Springfield) are the chair and co-chair, respectively, of the House Appropriations Committee on Infrastructure and Job Creation.

In its hearing today it was announced that Representative Lincoln Hough (R-Springfield) will offer that list.

“The resolution would essentially be a framework of priority projects across the state to allow the citizens and the voters the opportunity to actually see the economic benefit that will be coming to their community if this moves through the process.”

Some projects that have been discussed are replacement of much of Fulton State Mental Hospital, renovations and repairs at the State Capitol and state parks, numerous improvements or new facilities at colleges and universities and some rural water upgrades.

The authorization for a bond issuance would have to come from voters, and some committee members raised concerns that Kansas City and St. Louis voters won’t support the proposal if it doesn’t include enough projects in those areas. Hough thinks there will be enough for everyone.

“I think we can bridge the gap between any sort of rural and urban issues that one area may think we need a little more or someone else wants a little more, but people need to look at this as a whole … what’s good for the state economic impact overall?”

The Committee will also consider what the price tag on that proposal will be. The resolutions introduced in the House and the Senate both propose a $950 million dollar plan, but lawmakers have speculated that figure could change. The Committee’s Chairman, Representative Chris Kelly (D-Columbia), will offer a proposal to set a target of $1.2 billion dollars, and members will debate whether to raise or lower that amount.

See our earlier stories on a state bonding proposal.

Representative Kevin Engler (R-Farmington) and Representative Dave Schatz (R-Sullivan) will work on an amendment that would add a cost-share component to have colleges and local governments cover part of the cost of their projects, either through cash or in-kind work.

Engler says he knows that idea has gotten the attention of higher education representatives.

“They’re not usually interested in putting up their own money, and in reality they only way we’re going to make this stretch to all the projects that have been proposed is to have some local cost-share match. They have to have some skin in the game. They have to have some incentive locally so that they can get money from the state.”

Schatz says a cost-share would make sure bond proceeds are used responsibly and would make colleges be more careful in selecting projects.

“If there’s a participation mechanism in there I think they will define those projects more on a need basis as opposed to on a wants basis.”

Amendments will also be considered to make energy efficiency a consideration of a bonding-backed project, and to create a “watchdog group” to oversee the use of the bond money.