Louisiana House Bill HB673

Louisiana 2013 Regular Session

• Introduced: 4/15/13
• Refer: 4/16/13

Caption

Provides relative to facilities maintenance and repair at public postsecondary education institutions

Impact

The passage of this bill would result in a significant change in how maintenance projects are funded at state universities, allowing for a structured method to collect fees from students and finance necessary repairs. This would help to ensure that institutions maintain safe and effective facilities, thereby improving the overall educational environment. It also strategically aims to relieve the financial burden on state resources by leveraging student fees to cover these costs, addressing a long-standing need for infrastructure support in higher education.

Summary

House Bill 673 establishes the Higher Education Deferred Maintenance Financing Program, designed to address the urgent financial needs of maintenance and repairs at Louisiana's public postsecondary education institutions. This program aims to fund deferred maintenance projects through a system of bonds that are to be repaid using a fee imposed on students, capped at $50 per semester. The Louisiana Local Government Environmental Facilities and Community Development Authority will be the overseeing body for the program, tasked with the issuance of bonds and the distribution of funds for qualified projects as identified by the Board of Regents.

Sentiment

The sentiment around HB 673 appears to be cautiously optimistic among supporters, who see it as a necessary measure to secure the future of Louisiana’s public institutions by ensuring that they can maintain functional facilities. However, concerns have been raised regarding the additional financial burden placed on students through the new fee. Detractors worry that while the bill aims to solve pressing issues, it may increase educational costs without a corresponding increase in educational quality or resources.

Contention

A notable point of contention regarding this bill revolves around the imposing of student fees. Opponents may argue that any increase in financial obligations for students further exacerbates issues related to student debt and financial accessibility to higher education. Additionally, the reliance on bond financing can lead to long-term financial liabilities, raising questions about the sustainability of this funding model against potential future economic downturns. Lastly, the approval process for the bonds through the State Bond Commission may also cause delays in addressing urgent maintenance needs.