BILL WITH BUSINESS SCHOOL FUNDING DIED IN FINAL DAYS

JEFFERSON CITY - A bill that could have provided a source of funding for a new College of Business Building at Southeast Missouri State University, died in the Missouri Senate Friday when the sponsor declined to take the amendment and bring the bill up for consideration.

The building, considered the most urgent capital project at the university for several years, was not included in the governor's budget this year, with state finances tight.

But House Budget Chairman Chris Kelly, D-Columbia, proposed a bill earlier in the session to put a sales tax on long distance telephone calls within the state to pay off bonds for several capital projects, including the business building.

Kelly's bill passed the House but eventually died in the Senate. On Friday morning, during a conference committee on capital improvement budget bills, Senate Appropriations Chairman Norman Merrell, D-Monticello, said he remained opposed to using revenue bonds to pay for new buildings.

As a result of the impasse, all funding for higher education capital projects was removed from the budget, which eliminated any such projects this year.

But last week, Kelly attempted to revive his funding plan by successfully adding it as an amendment in the House to one of Merrell's priority bills, SB-4, which authorized the issuance of additional water pollution control and storm water control bonds.

For Merrell to get his water bonds authorized, he would have to take Kelly's long distance phone tax.

Kelly talked several times with Merrell about accepting the bill and held out hope as late as noon Friday that Merrell would accept the bill and offer it on the Senate floor for approval. But Merrell did not, and the plan died.

Had the phone tax passed, there would have been a source of revenue, but nothing appropriated for that revenue. But Kelly said he would have offered several capital projects next January for a supplemental appropriations bill, which would have included the business building.

Kelly has been a staunch supporter of the business building project, and was particularly impressed that $2.8 million had been raised locally to help attract state funding.

On Wednesday, Kelly said if his phone tax made it through he would promise funding in January for the building.

Said Kelly: "I am committed to doing it, and will stay committed to doing it."

Roy Temple, deputy chief of staff to Gov. Mel Carnahan, said Friday the governor was aware of the building's importance to Southeast and the amount of local money that had been raised.

"I think the governor will be taking a close look at that building next year," said Temple.