ARIZONA STATE SENATE
Phoenix, Arizona
REVISED
NAU; debt service.
(NOW: NAU; bonds; debt service)
An emergency measure,
expressing legislative intent to appropriate $4 million from the state general
fund for FY 2002-2003 to the Arizona Board of Regents (ABOR) in the FY
2002-2003 general appropriations act to fund debt service on bonds issued on
behalf of Northern Arizona University (NAU).
Statute authorizes the ABOR
to issue revenue bonds, subject to legislative approval, for capital projects
on behalf of a state university. The
Legislature approved the issuance of up to $245.4 million in revenue bonds for
the three state universities in 1996 (Laws 1996, Chapter 334). Of this amount,
NAU was allocated $54.8 million. The
Joint Committee on Capital Review (JCCR) gave the multiyear bonding plan a
favorable review in May 1997. Laws 2001,
Chapter 233 authorized additional bonding authority of $39.1 million for NAU,
bringing NAU’s total bonding authority to $93.9 million. Approximately $63 million of the total
amount allocated to NAU remains unused.
Law requires JCCR to again review the multiyear plan, which was done at
the October 4, 2001 meeting. The plan
received a favorable review, but the bonds have not yet been issued.
During the 2001 regular
session, NAU was appropriated $4 million for FY 2002-2003 in the general
appropriations act as part of a $16 million biennial general fund university
funding package (Laws 2001, Chapter 236).
(NAU did not receive any monies from the funding package for FY
2001-2002.) The university proposed
using the $4 million to offset tuition collections that would be used to pay
the debt service on the proposed $63 million bond issuance. However, the appropriation was repealed
during the 2001 budget special session along with other FY 2002-2003 general
fund appropriations.
S.B. 1079 expresses
legislative intent to “reappropriate” the $4 million that was repealed
during the second special session.
Should the funding be approved in the FY 2002-2003 general
appropriations act, there will be a $4 million impact to the state general
fund.
Provisions
1. Expresses legislative intent that $4 million be appropriated from the state general fund for FY 2002-2003 to ABOR in the FY 2002-2003 general appropriations act to offset tuition collections used to fund debt service on bonds issued on behalf of NAU.
2. Requires the appropriation to be added to NAU’s base budget.
3. Requires an estimate of the impact of the bond issuance authorized in the 2001 regular session to be included in NAU’s multiyear bonding plan reviewed by JCCR.
4. Becomes effective upon signature of the Governor.
Amendments
Adopted by Committee
· Adopted the strike everything amendment.
Senate Action
APPROP 1/22/02 DPA/SE 12-0-0-0
3rd Read 2/6/02 27-0-3-0
Prepared by Senate Staff
February 7, 2002