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The Case for MO Bonding

The Bond Initiative: Capital Improvements

“Kit Bonds”

The last successful bonding effort in Missouri occurred in 1982. Governor Christopher “Kit” Bond issued $600 million in bonds, with a portion of the money going towards higher education used by the UM -System for the building and repairing of roads, parks and buildings on the UM campuses.

“Kit” bonds were issued in a time of economic recession and the issuing was considered to be a major factor in job production and inflation control.

2013 Bond Initiative SJR3

According to CBS St. Louis, Representative Chris Kelly and Senator Kurt Schaefer are spearheading a movement for the state government to approve the issuing of approximately $950 million worth of state bonds. If approved by the state legislature, the bonding issue will be placed before voters in the next election.
Representative Kelly and Kurt Schaefer want roughly $500 million of the total amount raised to go to higher education.
Since Missouri currently has almost no bond repayment debt, a AAA credit rating and will be able to take advantage of interest rates as low as 3%, most experts feel as though this is the year for a major bond issuing.
SJR3 is currently being referred to the Senate Appropriations Committee, chaired by one of the bill’s sponsors, Kurt Schaefer (Columbia, MO)
 As stated earlier, the 30-year “Kit” bond debt is almost completely paid back with approximately 10% remaining to be paid .

Projects Benefited 

Benton & Stadler Hall renovation/addition, St. Louis.
The $60 million project would upgrade labs and classrooms to meet current codes and standards.

Lafferre Hall renovation/addition, Columbia
The $68.4 million expansion would enhance engineering programs.
School of Medicine renovation/Health Sciences Building, Kansas City
The $83.1 million project has commitments of $27.3 million in matching funds ready to use.
Chemistry/Biological Sciences renovation, Rolla
The $27.9 million project would increase laboratory and teaching space available at the Missouri University of Science and Technology.

Questions about bonding or SJR3? Ask them here!

0 0 2305 29 January, 2013 Uncategorized January 29, 2013

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