SENATE BILL REPORT

SB 6008

BYSenators Saling, Bauer, Cantu, Gaspard, Stratton, Smitherman and Bluechel

Creating the capital incentive program.

Senate Committee on Higher Education

Senate Hearing Date(s):February 27, 1989

Senate Staff:Jean Six (786-7423)

AS OF FEBRUARY 24, 1989

BACKGROUND:

Capital construction funds available for use by the institutions of higher education are deemed by many to be inadequate.  Institutions must request state tax dollars (general obligation bonds) for their building programs, rather than rely on dollars from timber sales and other institutional revenue such as building fees to be sufficient to meet capital needs.

SUMMARY:

A capital incentive fund is created and the moneys donated to the fund will be used by the institutions of higher education for the purpose of providing needed improvements to the lease, acquisition, construction, remodeling, furnishing or equipping of facilities.

Donations to the capital incentive funds may be either general donations or designated donations for specific capital facility projects or programs.  Donations to the community college capital incentive fund may be designated for a specific project, or for a specific community college.

The state four-year institutions of higher education and the State Board for Community College Education, on behalf of the community colleges, are authorized to provide vouchers for the payment of tuition fees to private entities, either individual or corporate, which donate moneys to an institution's capital incentive fund.

The possession or use of a voucher is not a guarantee of admission or continued enrollment at an institution of higher education.  The institutions or higher education are not required to make space available for the enrollment of holders or users of such vouchers.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 24, 1989