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HB24-1231

State Funding for Higher Education Projects

Concerning state funding for four projects related to health sciences education programs for medical professions being undertaken by state institutions of higher education, and, in connection therewith, authorizing the state to issue financed purchase of an asset or certificate of participation agreements to finance a portion of capital costs associated with construction of facilities for the university of northern Colorado's college of osteopathic medicine, metropolitan state university of Denver's health institute tower, Colorado state university's veterinary health education campus, and expansion and renovation of Trinidad state college's valley campus main building, providing funding for escrow money that is required for accreditation of the university of northern Colorado's college of osteopathic medicine by transferring money from the general fund for ultimate deposit to an escrow account and reducing the state reserve by the same amount for the period during which the money is held in escrow, and making an appropriation.
Session:
2024 Regular Session
Subjects:
Capital Construction
Fiscal Policy & Taxes
Higher Education
State Government
State Revenue & Budget
Bill Summary

The bill requires the state treasurer, on behalf of the state, to execute, no later than October December 31, 2024, financed purchase of an asset or certificate of participation agreements (financing agreements) to finance capital costs related to the construction of facilities for 4 state institutions of higher education. The financing agreements are to be issued in the aggregate principal amount of $246,936,092 plus reasonable and necessary administrative, monitoring, and closing costs and interest, including capitalized interest. The anticipated annual state-funded payments for the principal and interest components due under the financing agreements must not exceed $17,500,000 with principal amortization not occurring before July 1, 2027.

The proceeds from the financing agreements will be used for the following 4 capital projects:

  • Construction of facilities for the university of northern Colorado's college of osteopathic medicine;
  • Construction of a health institute tower by metropolitan state university of Denver;
  • Construction of a veterinary health education complex by Colorado state university; and
  • Renovation of Trinidad state college's valley campus main building to move nursing and allied health programs into the building, address deferred maintenance issues, and create an assembly room that will serve both the college and the community and a one-stop student services center to support career and technical education and allied health students.

The bill also provides for a general fund transfer of $41,250,000 to the university of northern Colorado for deposit into an escrow account to be held in escrow in accordance with the requirements of the accrediting body of the college of osteopathic medicine.

If the money in escrow, including interest, is released to the university of northern Colorado upon graduation of the first cohort from the college of osteopathic medicine, then the university shall provide notice of the release of escrow to the joint budget committee of the general assembly, to the state treasurer, and to the office of state planning and budgeting. Additionally, for the state fiscal year in which the escrow money is released, the amount that is to be paid to the university pursuant to its fee-for-service contract for that state fiscal year is reduced by the lesser of an amount equal to the amount of the escrow money or an amount equal to the amount of a portion of the escrow money that reduces the amount to be paid pursuant to the fee-for-service agreement to zero. If the amount of the escrow money exceeds the amount due under such fee-for-service contract, then the amount the university of northern Colorado would otherwise receive from the college opportunity fund is reduced by an amount equal to the excess. If, after both reductions, there remains excess escrow money, then in the next state fiscal year the amount that is to be paid to the university of northern Colorado pursuant to its fee-for-service contract for that state fiscal year is reduced by an amount equal to the amount of the remaining escrow money. The university of northern Colorado must use the escrow money, or a portion of it, as applicable, for each applicable reduction as an offset for the reduction.

If the escrow money is released for failure of the college of osteopathic medicine to complete accreditation, then the university of northern Colorado shall provide a report of this to the joint budget committee of the general assembly, to the state treasurer, and to the office of state planning and budgeting. For the period that the escrow money is held in escrow, the amount of unrestricted general fund year-end balances that must be retained as a reserve is reduced by $41,250,000.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)


(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Status

Introduced
Under Consideration

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Bill Text

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The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details