J_CDC_2016A 01/21/2016 Committee Summary

07:31 AM -- Arapahoe Community College Two-Year List



The committee was called to order. A quorum was present. Dr. Diana Doyle, President, Arapahoe Community College (ACC), discussed a new project on its two-year projection of cash need: Science and Health Lab Renovation. Committee members received a summary of the project, prepared by Legislative Council Staff (Attachment A). Dr. Doyle explained the renovations planned for the college's Littleton and Parker campuses. In response to a committee question regarding the source of cash funds, Dr. Doyle explained that ACC does not usually use cash reserves for on-going operating expenses. Committee discussion ensued on ACC's other funding sources and reserves.



160121 AttachA.pdf

07:38 AM -- Higher Education Institutions Debt Capacity, State Treasurer's Office



Jon Forbes, Deputy State Treasurer, gave presentations on the debt capacity of five higher education institutions, including Colorado State University (CSU) (Attachment B), Western State Colorado University (WSCU) (Attachment C), Metropolitan State University of Denver (MSUD) (Attachment D), the University of Northern Colorado (UNC) (Attachment E), and the University of Colorado (CU) (Attachment F). Committee discussion ensued on the sources of revenue for CSU listed in Attachment B. Mr. Rich Schweigert, representing CSU, came to the table to discuss CSU's sources of revenue. Mr. Forbes discussed CSU's debt service coverage ratio.



160121 AttachB.pdf160121 AttachC.pdf160121 AttachD.pdf160121 AttachE.pdf160121 AttachF.pdf













07:51 AM



Committee discussion ensued on the minimum 1.5 debt service coverage ratio. Mr. Forbes then explained the annual debt service coverage schedule for CSU.



08:02 AM



Mr. Forbes discussed the analysis of WSCU's debt capacity. Committee discussion ensued on WSCU's enrollment projections and use of the Higher Education Revenue Bond Intercept Program.



08:09 AM



Mr. Forbes discussed the analysis of MSUD's debt capacity.



08:12 AM



Mr. Forbes discussed the analysis of UNC's debt capacity, credit ratings, and enrollment projections.



08:17 AM



Mr. Forbes discussed the analysis of CU's debt capacity, net revenues available for debt service, and its non-use of the intercept program. Kori Donaldson, Legislative Council Staff, responded to a committee question on the committee's oversight of non-intercept projects. Mr. Forbes also discussed potential legislation related to changing the requirements on pledging revenue for debt service. Committee discussion ensued on the impacts to the state budget and bond markets if projects backed by the intercept program were to default.



08:29 AM



Committee discussion ensued on credit rating organizations and how the state would respond to a situation in which an institution is unable to make an intercept project debt service payment.



08:32 AM -- Other Business



Representative Brown discussed an amendment for House Bill 15-1043 (Attachment G). Committee discussion ensued on the reason for amendment. Mr. Matt Becker, Legislative Council Staff, explained recent discussions by the Joint Technology Committee regarding the amendment and why the Governor's Office of Information Technology requested the amendment.

160121 AttachG.pdf



08:35 AM



Senator Sonnenberg discussed possible changes to the potential committee legislation regarding raising the submission threshold for higher education cash-funded projects. Committee discussion ensued on how legislative oversight would change under the potential legislation. Ms. Donaldson explained the committee's oversight of intercept program projects.



08:39 AM



The committee adjourned.