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2021 Session

Budget Amendments - SB1100 (Member Request)

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Chief Patron: McClellan
CO - HBCU Capital Outlay Language (language only)

Item C-0 #1s

Item C-0 #1s

General Conditions
General Conditions

Language

Page 609, after line 15, insert:

"9.  Notwithstanding other restrictions on public institution of higher education debt payments, the General Assembly authorizes the use of federal grant and contract funds due to a state institution of higher education to pay debt service on revenue bonds only as required through the United States Department of Education Historically Black College and University Capital Financing Program (HBCU Program)."



Explanation

(This amendment modifies restrictions on state university debt payments to authorize the use of federal grant and contract funds due to a state university to pay debt service on revenue bonds only as required through the United States Department of Education Historically Black College and University Capital Financing Program (HBCU Program). The HBCU Program provides HBCUs with low-cost capital to finance infrastructure improvements, facilitating the repair, renovation, and construction of classrooms, libraries, laboratories, dormitories, instructional equipment, and research instrumentation. In order to participate in the HBCU Program, the institution must permit the use of revenue from federal grants and contracts via administrative offset if the pledged revenues are insufficient to pay debt service. By modifying restrictions to permit the use of federal grant and contract funds to cover debt payments, this would allow Virginia State University and Norfolk State University to participate in the federal HBCU Program, thereby providing new opportunities for the institution to fund needed capital improvements. There is no fiscal impact to the Commonwealth of Virginia since no state funds may be used for this revenue bond exemption.)