Discussion on Higher Education Revenue Bond Intercept Program
COMMITTEE ON CAPITAL DEVELOPMENT COMMITTEE
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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.
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.
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.