Senate approves MOHELA assets sale, scholarship funding

Senate Bill 389 combines the state’s current Gallagher and Guarantee scholarships to create the Access Missouri Financial Assistance Program. Funding for need-based scholarships will grow through that program, while another $25 million included in SB389’s companion budget bill, House of Represenatives Bill 16, would also go to scholarships. House Bill 3, which is expected to pass, would add $25 million to the pool.

Annual need-based scholarships would be available to community college students for between $300 and $1,000; public university students for between $1,000 and $2,150; and for private college students for between $2,000 and $4,600.

SB389 also authorizes Gov. Matt Blunt’s Lewis and Clark Discovery Initiative, which would provide nearly $260 million to fund 28 facilities projects at colleges and universities. An additional $30 million would go to community colleges, and $15 million will go to business research hubs affiliated with universities.

Funds for the initiative would come from the partial sale of MOHELA assets.

A third component of the bill would give the Missouri Coordinating Board for Higher Education more oversight of tuition increases. Beginning with the 2008-2009 school year, if a university increases its tuition at a rate greater than inflation, the board could fine the school up to 5 percent of its state appropriation. That fine would be deposited into the state’s general revenue fund.

Universities would be allowed to seek waivers for exceptional circumstances.

SB389 must receive a second Senate approval before moving to the Missouri House. HB16 will return to the House for review.[[In-content Ad]]