University financing legislation passes House

Legislation that would give the state's colleges and universities more flexibility to finance their own building projects is on its way to the Senate.

The House approved House Bill 111 and HB 177 today by a vote of 91-0 and 90-0 respectively. Both bills are sponsored by Rep. Bob Damron , D-Nicholasville, who has filed legislation similar to HB 111 in three previous sessions.

Should HB 111 pass into law, public colleges and universities would be allowed to issue revenue bonds for capital projects like construction of dorms and research buildings without relying on the state to cover the bond debt. Forty three have already passed similar legislation, which Damron said gives schools the flexibility to fund such projects without affecting the state's bond rating.

HB 177 would allow colleges and universities to undertake capital projects between legislative sessions that are funded with cash restricted funds approved by the schools' governing boards and the state without coming to the Kentucky General Assembly for prior approval. That kind of flexibility, Damron explained, will save schools time.