Louisiana House Bill HB1170

Louisiana 2014 Regular Session

• Introduced: 4/1/14
• Refer: 4/2/14

Caption

Provides relative to the issuance of bonds to finance capital improvements for the Southern University System (OR +$1,800,000 GF EX See Note)

Impact

The implementation of HB 1170 is poised to enhance the infrastructure of the Southern University System, ultimately benefiting students and staff through improved facilities. This legislation permits the issuance of bonds with a maximum maturity of up to 30 years and stipulates that each funded project must secure a private funding match of at least 12% before financing proceeds. Such measures could potentially lead to increased financial stability for educational institutions while promoting continued investment in public education projects across the state.

Summary

House Bill 1170 seeks to empower the Board of Supervisors of Southern University and Agricultural and Mechanical College to finance capital improvements through the issuance of bonds, notes, or other forms of indebtedness. The bill is specifically designed to facilitate funding for multiple significant projects within the Southern University system, ensuring that these facilities can undergo necessary upgrades and expansions. Notably, the proposed legislation allows these projects to bypass the typical requirement of being included in the state's annual comprehensive capital budget, thereby streamlining the funding process for urgent educational infrastructure improvements.

Sentiment

The sentiment surrounding HB 1170 appears to be largely supportive among members of the legislature who recognize the need for updated educational facilities. However, conversations around financing methods, particularly the use of bonds, indicate a divide in perspectives regarding the long-term fiscal implications. Many legislators express positive attitudes towards investing in educational infrastructure, while others caution that reliance on bond financing may lead to debt concerns down the line.

Contention

While the bill enjoys a favorable view among proponents, critics may raise concerns about the legislative exemption for these projects from both comprehensive capital budget inclusion and further legislative approval. The ability for educational projects to proceed without these safeguards could stimulate debates about fiscal responsibility and accountability. Additionally, the focus on securing private matches might lead to questions about equitable funding, particularly in contexts where public funding is already limited.