J_CDC_2016A 04/07/2016 07:32:00 AM Committee Summary

07:32 AM -- Discussion on Higher Education Revenue Bond Intercept Program



The committee was called to order. A quorum was present. Kori Donaldson, Legislative Council Staff, gave a presentation on the Higher Education Revenue Bond Intercept Program. Committee members received a copy of the presentation, prepared by Legislative Council Staff (Attachment A). Ms. Donaldson discussed draft legislation being considered by the Joint Budget Committee concerning changing the eligibility requirements for institutions to participate in the intercept program. Ms. Donaldson responded to committee questions about the current eligibility requirements and the impetus for the proposed draft legislation.



160407 AttachA.pdf



07:42 AM



Ms. Donaldson responded to a committee question regarding the state's total debt under the intercept program. Amanda Bickel, Joint Budget Committee Staff, came to the table to discuss the proposal to cap each institution's most recent annual intercept debt payment at 75 percent of the institution's General Fund appropriation in order to reduce the state's risk. Esther van Mourik, Office of Legislative Legal Services, came to the table to discuss the process for the introduction of the draft legislation. Ms. Donaldson discussed each institution's FY 2015-16 intercept program debt payment, as compared to its FY 2015-16 General Fund appropriation. She also discussed each institution's split between intercept program debt and non-intercept program debt.















07:49 AM



As an example, Ms. Donaldson discussed the eligibility requirements and financial position of the Colorado Community College System. She also discussed the other institutions included in the presentation. Ms. Bickel responded to a committee question regarding the rationale for choosing the 75 percent cap.



07:58 AM -- Discussion on Potential Legislation Concerning Submission Threshold



Committee discussion ensued on potential committee legislation concerning the submission threshold for higher education cash-funded projects. Committee members received a copy of the draft (Attachment B).



160407 AttachB.pdf

08:00 AM



The bill will start in the Senate with Senators Sonnenberg and Kefalas as co-prime sponsors. Representatives Brown and Becker will be co-prime sponsors in the House. Senator Baumgardner, Representative Vigil, and Representative Esgar will also be sponsors.

08:03 AM -- Continue Discussion on Intercept Program



Ms. Donaldson responded to a committee question regarding the current status of each institution's eligibility to participate in the intercept program. She also explained the difference between an institution's underlying and enhanced credit ratings.



08:08 AM -- Other Business



Senator Baumgardner discussed other potential legislation related to real property. Matt Becker, Legislative Council Staff, updated the committee on information it requested regarding vacant buildings and future meeting dates.



08:09 AM



The committee adjourned.