Missourians will be called upon to make a crucial decision on August 2 regarding two important issues: fighting crime and improving our economic prospects for the 21st century. On that date, a $250 million dollar general obligation bond package will be on the ballot.

The bond package does NOT include or require a tax increase. Due to low interest rates and Missouri's AAA bond rating, no new taxes are needed.

Passage of the bond package will enable us to 1) build needed prison space for violent adult and juvenile criminals, and 2) enhance Missouri's economic vitality by improving our system of higher education. Both will be accomplished within existing revenue streams.

I urge you to vote "yes" on this vital proposal, which will be on the ballot as Amendment No. 4.

Locking up violent criminals

Crime has reached epidemic proportions in Missouri and throughout our nation. Violent crime rates have soared over recent years. I am committed to doing everything I can to help Missouri fight this insidious disease. Recently, I signed into law a bill that will require violent and dangerous criminals to serve at least 85 percent of their sentences, far more than they are serving now. In order to make certain that we can continue to enforce this measure well into the future, we must make certain that prison space is available for dangerous and violent criminals -- juveniles and adults alike.

About half the bond package is devoted to this needed prison space. If adopted, the package will enable us to build (or procure) a new prison for violent adult male offenders, seven juvenile centers for violent youth, and a new women's prison to replace the Renz Correctional Center destroyed in last year's flood.

Your vote for this bond package will help assure that we have the prison space to keep criminals behind bars and out of our neighborhoods.

Improving higher education

Missouri has a critical need for new construction and renovations at our college and university campuses. Higher education has a major impact on our economic vitality. This is because quality higher education facilities allow us to attract and retain the quality students, faculty, and work force that Missouri is counting on. Without the solid technical research and the skilled work force that an outstanding college and university system can produce, Missouri will be unable to compete effectively in the global economy.

To help improve our system of higher education and to help enhance Missouri's future economic prospects, this bond package will enable us to renovate and construct critical facilities including new science, engineering and technology facilities, libraries, and desperately needed new classrooms.

Why a bond package?

Bonds are a useful economic tool for taxpayers in the same way that a home mortgage is a useful tool to most home buyers. This is, bonds enable us to distribute the cost of a capital project over the project's useful life. This makes good economic sense. And in fact, ALL of the projects in the proposed bond issue have a useful life that EXCEEDS the term of the proposed bonds.

General obligation bonds offer the best means available to finance new prison and higher education construction and renovation. Because they are backed by the state's AAA credit rating and the full faith and credit of the state, general obligation bonds are the cheapest form of debt for Missouri. Interest rates on bonds have been at historically low levels over the past year. Furthermore, even with the issuance of the new bonds, the state's general obligation bond debt service will remain below 2 percent of our annual general revenue collections. Compared to other states, this percentage is very low.

By way of comparison, consider the following: A rule of thumb used by financial planners is that an individual's mortgage payment should not exceed 25 percent of his or her gross income. Missouri can be appropriately compared to an individual whose mortgage payment is below 2 percent of gross income.

As a result of our low debt and excellent debt management, Missouri continues to receive the highest possible credit rating from all three major rating organizations. Only four other states can also make that claim.

Of course, another benefit of the bond package is that the projects financed by the bonds will create thousands of new construction jobs over the next few years.

Missouri must continue to move forward, meeting our challenges head on. Given the current economic conditions and the economic stability of our state, the bond package provides the best available approach to expanding prison capacity and making long-awaited capital improvements at our campuses. Low interest rates and other economic conditions are in our favor NOW. This is the right time to act. If we wait, we may lose our chance to make these improvements as inexpensively as we can do it now.

Please vote yes on August 2.

Mel Carnahan is governor of Missouri.