Harris announces MOHELA sale opposition; offers alternate ideas

House Minority Leader Jeff Harris voiced his opposition to Gov. Matt Blunt's plan to sell assets from the state's student loan agency.

Harris' opposition, voiced today in the form of a letter submitted to Blunt, is rooted in a recent statement from Liscarnan Solutions LLC that recommends the state halt all plans to sell assets due to federal changes in student interest rates. Harris calls the Liscarnan analysis the "linchpin" of the initiative and the changed opinion of their own analysis seemingly renders the plan invalid:

"Based on the fact that MOHELA’s own advisers believe this plan could jeopardize MOHELA’s ability to continue to provide low-interest loans to students, I can no longer support the sale of MOHELA assets to fund this Initiative. The expert witness on whom you have based your case – an expert, moreover, whose independence has been questioned – now agrees with the other side. As an attorney, I can tell you that when your expert witness changes its opinion, you pay attention."

Harris also cites that changes in future Congresses and Presidents over the lifetime of Blunt's proposal leave the real security of MOHELA uncertain.

Harris' critique is not without suggestions for alternate action: (1) use the additional projected revenue for FY2008 estimated from $300 million to $500 million in a one time capital appropriation or (2) develop a capital budget to fund the projects over an extended period of time.

"As the leader of the opposition party in the House, I am extending my hand to you to accomplish the Initiative in a sensible, fiscally responsible manner that does not involve selling the assets of MOHELA," Harris concludes.

View the full letter here via the CDT Politics Blog.

REVISED: View St. Louis Post Dispatch coverage from Feb. 21.

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