kansas board of regents postsecondary education institution loan application house bill (hb) 2237 of the 2007 kansas legislature, author

Kansas Board of Regents
Postsecondary Education Institution Loan Application
House Bill (HB) 2237 of the 2007 Kansas Legislature, authorizes $100.0
million in bonds ($20.0 million each fiscal year) beginning in FY
2008, to be requested by the Board of Regents from the Kansas
Development Finance Authority (KDFA) for Washburn University, the
community colleges, and technical colleges. The principal and interest
for the bonds would be paid from the State General Fund, with the
institutions reimbursing the State General Fund for the principal
portion of the payments each year. The bonds would be let as 8-year
bonds, with a cap of $15.0 million in bonds per institution over the
five-year period. Bond payments would begin after July 1, 2008.
Any default on payments due under the loan agreement will result in
the KBOR intercepting state funding to the institution and may require
the applicant to levy additional ad valorem taxes. KBOR is considering
asking the Legislature to extend years 2 through 5 to 20 year bonds.
Barton is initially requesting $1,300,000 from KBOR for the purpose of
renovating the Library and renovating and expanding the Technical
building. These bonds must be paid off within 8 years. The estimated
cost of the project is $4,300,000. There are two options for funding
the additional $3,000,000. If KBOR is successful in extending the
bonds to a 20 year payoff, Barton could apply for the additional
$3,000,000 in state bonds. If the bonds are not extended to 20 year
bonds, the additional funds would be financed with certificates of
participation.
For bond year #1, the application must be received in the KBOR office
by December 21, 2007.

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