HJR 14 – The Fifth State Building Fund

We in the Missouri House strive to be good stewards of the public interest and the people’s money. When times got tough several years ago, we tightened our belts and made difficult and often painful cuts. Today, an opportunity has arisen to invest in Missouri’s future through rebuilding the infrastructure of our state facilities.

The House recently perfected House Joint Resolution (HJR) 14, which will create the Fifth State Building Fund. This is the hour for such a resolution. Last October, we made our final payment on the 30-year, $600 million Third State Building Bond. That bond was approved by the people of Missouri in 1982, when interest rates were between eight and nine percent.

Today, the need for a public works program is great. So is the opportunity for implementing this program at the lowest possible rates. Interest rates are historically low. At 3.3%, they are one-third of what they were in 1982. In fact, these are the best rates this country has seen since the mid-1800s.

We have the chance to make an exceptional deal. We have the AAA credit rating to obtain the bond with the low interest rates. We have workers across the state ready to immediately begin work on massive construction projects. We strive to run this state like a business, and any business would say this is a no-brainer.

Upon voter approval, HJR 14 would allow Missouri to raise up to $1.2 billion to be used for various construction, renovation, and rebuilding projects at state facilities. Up to $600 million would be invested in our higher education facilities. It would allow community colleges and universities to acquire new land on which to build facilities, such as medical training clinics and energy research centers, areas where we anticipate growth in the coming years.

At least $40 million will go toward preserving and maintaining our 85 state parks. New funds will help the parks system build new public facilities, upgraded campgrounds, and boardwalks, which will in turn bring about new and increased tourism. Up to $100 million will be reserved for improvements to the Missouri State Capitol. This building is not only the workplace of the Missouri Legislature—it is a state treasure, a museum of magnificent art and architecture, and an inspiration to the thousands of schoolchildren who come here each year.

The building bond will also provide up to $20 million for renovating the public elementary and secondary schools our children attend every day. Two-hundred million dollars will be set aside for a new mental health facility in Callaway County. The current Fulton State Hospital facility is dilapidated, an unsafe place to work, and an impossible place to heal. HJR 14 would finally provide the funds for not just improvements, but a whole new building at which to treat the criminally mentally ill individuals in our state.

The remaining portion of the $1.2 billion bond will go toward various building and infrastructure projects, from other state buildings to rural water districts. To give an idea of the many projects that can be aided by a new building fund, we look at the 1982 bond. It provided money for soil and water conservation projects, group homes in Jackson County, storm water control grants, and the construction of the Western Missouri Correction Center, along with the myriad improvements and expansion to higher education facilities.

This is the largest jobs-creation bill of this session, even of the decade. It will move to the Senate along with the 2014 budget. If the Senate takes this opportunity, the people of Missouri will be able to make the final decision through their votes on the long-term growth for our state.

The Great Seal of the State of Missouri depicts a crescent moon. When the seal was designed in 1822, the crescent moon symbolized the hope that our state – small at the time, but with a wealth of natural resources – would continue to grow. Today we have an opportunity to fulfill our forebears’ hopes. The Fifth State Building Fund will create jobs, invest in education and health, and move to preserve and grow Missouri.

Bonding Issue, Continued...

Recently, I wrote to you about a bond proposal that will help the state repair its infrastructure.  Whether transportation, higher-education, or state facility related, our infrastructure provides the necessary framework for a stable, prosperous economy.  The condition of our infrastructure demands action – today.  In response, I have proposed a bipartisan solution: House Joint Resolution 14.  This Resolution, labeled “Funding for Higher Education, Improvements, Construction, and Transportation Infrastructure”, will provide the funding necessary to accomplish the task we have at hand.

Because of the magnitude of this undertaking, I formed the Appropriations Committee on Infrastructure and Job Creation chaired by Representative Chris Kelly; a strong advocate for bonding and a senior member of the democrat party in the House of Representatives.  In short, the responsibility of the 17 member committee will be oversight of all use of funding generated through the bond issue. 

Benefits

This investment in our state will contribute to more advanced education in our higher learning centers around the state.  It is imperative we are able to educate our students to meet the technological demands placed upon them now, and in the future.  An educated workforce attracts investment in our state and spurs economic growth.  As the economy in Missouri improves, revenue to the state increases.  This means more funds will be available to fund other critical state service, which keeps taxes low.  

As the Third State Building Bond did in the years following its approval, voter approval for the Fifth State Building Fund will provide the necessary funding for our infrastructure needs, help to insure an educated workforce, and spur economic growth and opportunity in Missouri.  The 1982 bond issuance was responsible for creating an estimated 40,000 plus jobs.  This is clearly a win-win situation.

Whether the bond issuance directly pays for repairs to our transportation infrastructure or frees up state funds for the repairs, we desperately need to make the necessary repairs and improvements to our highways and bridges.  It is estimated the average driver will pay around $540 in auto repairs every year due to poor conditions of our roads and bridges.  Interstate 70 is a prime example of our infrastructure needs.  Designed to support 18,000 vehicles per day, the least travelled sections now experience 31,000 vehicles daily; nearly twice the number it was designed to carry.  These numbers will continue to increase as our population continues to grow.  A clogged highway system - in desperate need of repair - creates unsafe driving conditions for you and your family. 

Poor transportation infrastructure also negatively impacts trade.  Nationally, we stand to lose $72 billion annually in foreign trade alone due to these deficiencies.  The economic impact is staggering to think about.  We must take the initiative now to right this ship and prepare our transportation infrastructure to accept the demands being placed upon it now, and for the foreseeable future.  We cannot, in good conscience, continue to deny funding for the critical repairs and improvements to our roads and bridges. 

This is the right thing to do for your safety, the safety of your family, and makes good economic sense.  This bond issue is a clear example of how responsible borrowing to fund capital improvements can truly better a society – we will not adopt the “Washington Model” of “over-borrow to force tax increases.”  We will live within our means and we will balance the budget.  Always.  

 

For a complete description of my HJR 14 and the Joint Committee on Capital Improvements and Leases Oversight, please visit www.house.mo.gov.

Bonding

By now I am sure you are well aware of our intent here in the Missouri House of Representatives to promote a bonding issue to fund renovations to our state’s infrastructure.  As a strong fiscal conservative, with a crystal clear record of promoting the principle of living within your means, my decision to back the idea of bond issuance deserves a thorough explanation.

In 1982, then Governor Kit Bond was successful in his efforts to convince the Missouri Legislature and a majority of Missouri voters to agree to a bond issuance of $600 million in order to fund building and repair projects across the State of Missouri.  The resounding success of this initiative can be seen all across our great state.  The list of projects completed with this money is vast and includes, but is not limited to, the construction of the Western Missouri Correction Center, the Science Building at UMSL, the Mineral Engineering and Management Building at Missouri S&T, the Business Building at MSU, the Law School Building at UM-Columbia, the Business and Public Administration Building at UMKC, the Recreation Facility at MSU, the Agriculture Engineering Building at UM-Columbia, five group homes in Jackson County for the Department of Mental Health, the Multipurpose Recreational Facility at UMKC, the Major Events Facility at MSU, and the Health Sciences Library at UM-Columbia.  As if this were not enough, this bond also paid for numerous additions, renovations, expansions, and maintenance/repair projects to existing facilities across the state.  Furthermore, it provided funding necessary for soil and water conservation projects, storm water control grants, rural sewer and water system grants, and major park facility improvements.  Having just completed the final payment on this bond and reflecting on what was accomplished; it is crystal clear that it is a success story worth repeating.

After reviewing all the aspects of this issue ranging from its positive economic impact, to the desperately needed improvements to outdated and failing infrastructure, to the historically low interest rates we enjoy as a state with a AAA credit rating, it is clear to me that this is the correct path for our state.

In next week’s report I will address how a bond issuance would directly, and positively, impact you and your family in the years to come.