bonding authority; board of
regents
SB 1257 allows the Arizona Board of Regents (ABOR) to issue bonds if ABOR does not spend more than 8% of its annual expenditures for capital debt and they have the approval from the Joint Committee on Capital Review (JCCR).
SB 1257 was amended in the Education Committee declaring that bonds may not be issued for any institution if the projected debt service and certificates of participation exceed 8% of the institution’s total projected expenditures and mandatory transfers. The calculation must be included in the institution’s capital improvement plan. Additionally, it removes the current proposed language for JCCR approval prior to the issuance of bonds and replaces it with the JCCR review of projects to be acquired.
Statute authorizes the JCCR to develop and approve formulas for computing annual building renewal funding, approve building systems for capital improvement plans and review current capital improvement plans. JCCR is required to report to the Legislature concerning funding for land acquisition, capital projects and building renewal and must review the scope, purpose and estimated costs when projects are estimated over $250,000.
Current statute states that ABOR has the authority to issue bonds to acquire projects for university institutions if approved by the Legislature. ABOR also has the power to refund bonds issued to acquire projects and refund any such refunding bonds. The interest rate and form of the bond, dates of issue and other matters relating to bond issuance are determined by ABOR. However, statute specifies that bonds must mature within 40 years of the initial date of issue.