House of Representatives

HB 2588

NAU bonds; debt service

Sponsors: Representatives O'Halleran, Sedillo,

Carruthers, et al.

 

DPA

Committee on Education

x

Committee on Appropriation

 

Caucus and COW

This bill as introduced contains an Appropriation clause.

 

As Passed the House

 

HB 2588 appropriates $5.0 million from the state general fund in FY 2001-2002 to the Arizona Board of Regents to use to fund debt service payments at Northern Arizona University.

 

History

Title 15, Chapter 13, Article 5 provides the statutory authority for the Board of Regents to issue revenue bonds for capital projects secured by fees, tuitions, rentals and other charges from students, faculty, staff members and others using the Universities’ facilities.  The Board of Regents may only issue the bonds if authorized by the Legislature (' 15-1683). 

 

Laws 1996, Chapter 334 (HB 2334) authorized the Board of Regents to issue revenue bonds in the aggregate amount of $245 million to be used throughout the university system.  Northern Arizona University (NAU) was provided with bonding authority of $55.0 million and in 1997 issued $31.1 million in revenue bonds.  Currently, NAU has a total of $23.9 million in bonding authority left from their allotment pursuant to Laws 1996, Chapter 334.

 

HB 2588 provides NAU with an addition $39.1 million in revenue bonding authority for a total bonding authority of $63.0 million.  NAU plans to issue the bonds to continue repairing and renovating existing campus facilities.  HB 2588 requires a review of the Board of Regents multi-year bonding plan by the Joint Committee on Capital Review and the Governor before the bonds can be issued.

 

HB 2588 appropriates $5.0 million from the state general fund in FY 2001-2002 to subsidize NAU’s operating budget for the use of tuition monies to secure the debt service from the issuance of the revenue bonds.  The $5.0 million would be added to NAU’s base budget to subsidize the operating budget throughout the 20-year term of the bonds.

 

Provisions

·                      Provides an additional $39.1 million in revenue bonding authority to NAU.  When added to existing bonding authority, NAU will have a total of $63 million in revenue bonding authority.

·                      Provides that before revenue bonds are issued, the Joint Committee on Capital Review and the Governor shall review the Board of Regent’s multi-year bonding plan.  No revenue bonds may be issued for a project that does not appear in the multi-year bonding plan.

·                      Appropriates $5.0 million from the state general fund to the Board of Regents in FY 2001-2002 to be used to replace tuition monies reallocated by NAU from operational funding to debt service payments.  The appropriation is exempt from lapsing.

·                      Stipulates that the $5.0 million appropriation would become part of NAU’s base budget for future years.

The Education Committee amended HB 2588 as follows:

·                     Appropriates $5.0 million from the state general fund to the Board of Regents in FY 2002-2003 to be used to replace tuition monies reallocated by NAU from operational funding to debt service payments.

·                     Moved the stipulation that the $5.0 million be part of NAU’s base budget to a Legislative intent section.

 

 

 

 

 

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45th Legislature                                                                                                                                   

First Regular Session                                       2                                                            March 1, 2001

 

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