Norfolk State Deficit Loan (language only)

Item 231 #1s

Language
Page 82, strike line 14 and insert:
"231.  Educational and General Programs (10000)          $49,887,885    $52,730,393
Higher Education Instruction  (100101)             $27,721,108       $29,626,962
Higher Education Public Services (100103)             $439,343          $439,343
Higher Education Academic Support (100104)          $4,471,506        $4,621,506
Higher Education Student Services (100105)          $3,654,643        $3,654,643
Higher Education Institutional Support (100106)     $7,603,470        $7,603,470
Operation and Maintenance of Plant (100107)         $5,997,815        $6,784,469
Fund Sources:  General                            $23,798,210       $25,235,011
Higher Education Operating                        $26,089,675       $27,495,382
Authority: Title 23, Chapter 13.1, Code of Virginia.
A. Out of the amount for Educational and General Programs, the following general fund sums shall be made available for special enhancements. The University shall submit within 60 days after the end of each fiscal year to the Secretary of Education a report on the specific uses of this funding.                                      
First Year        Second Year
Enhancement of Academic Programs       $698,689           $698,689
Historic Deficiencies                 1,006,236          1,006,236
Outreach Programs                       141,605          1,846,530
B. Out of the amounts for Educational and General Programs, a maximum of $70,000 the first year and $70,000 the second year from the general fund for the Dozoretz National Institute for Minorities in Applied Sciences.  No allotment of these funds shall be made until Norfolk State University has certified to the Secretary of Education that funds, in cash, are available to match all or any part of the amount herein made available from the general fund.
C. Out of this appropriation, $509,400 the first year and $509,400 the second year from the general fund is provided each year to support Norfolk State University in initiating the Doctor of Social Work degree program approved by the State Council of Higher Education on January 11, 1994.
D. This appropriation includes $229,541 from the general fund and $41,676 in nongeneral funds the first year and $73,138 from the general fund and $41,676 in nongeneral funds the second year for lease payments to support the cost of equipment purchased with the proceeds of bonds issued by the Virginia College Building Authority. The Director of the Department of Planning and Budget shall transfer to the Virginia College Building Authority on July 1, 1996, the amounts in the first year, and on July 1, 1997, the amounts in the second year to support the authority's debt obligation.
E.1.  The Governor is hereby authorized to approve a deficit loan for Norfolk State University to be paid from the general account in an amount not to exceed $6,500,000 for the remainder of the 1998 fiscal year.  The State Comptroller is authorized to release funds to Norfolk State University based on allotments by the Department of Planning and Budget, as required to meet the institution's current financial obligations and commitments during fiscal year 1998.
2.  Prior to the release of any funds by the State Comptroller, the University must develop a plan to eliminate the existing deficit and prevent future deficits through the implementation of appropriate financial, administrative, and management actions pursuant to §4-3.02 of the Appropriation Act.  Such plan shall also include a schedule for repayment of the deficit loan, subject to approval by the Governor.
3.  By November 1, 1998, Norfolk State University shall provide a report to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees on its financial condition and progress toward repayment of the deficit loan."

Explanation
(This amendment authorizes a deficit loan, not to exceed $6.5 million, for Norfolk State University.)