CHICAGO - Missouri House members have proposed an alternative bonding proposal to one announced by Gov. Jay Nixon to finance a new state psychiatric facility.
Nixon proposed in his fiscal 2015 budget announcement in January to borrow $200 million in appropriation-backed bonds to fund construction of a new 300-bed maximum and intermediate security psychiatric facility to replace the aging Fulton State Hospital. The plan called for issuing 25-year bonds.
"Interest rates are low. Our credit rating is high. And the need is undeniable. Friends, let's roll up our sleeves, work together, and for the safety of all our communities, get it done this year," Nixon told lawmakers.
Missouri House members have countered with legislation that would finance the facility with appropriation backed borrowing that would be repaid in five years at a cost of $47 million annually. The sponsors say it is more palatable to Nixon's proposal because it would save $120 million in interest.
Nixon's proposed a $27.7 billion budget for fiscal 2015 does not include any other new borrowing proposals although there is some legislative support for a transportation and building program supported by borrowing.
