Higher Education Financial Obligation Repayment

In 2008, the state entered into lease-purchase agreements to fund capital construction projects for state-supported institutions of higher education and allocated a formula-based amount of federal mineral lease revenues to the ongoing repayment of certificates of participation (COPs) issued in connection with the lease-purchase agreements. In order to address current and anticipated future federal mineral lease revenues shortfalls, the act transfers all money in the higher education maintenance and reserve fund (reserve fund) to the higher education federal mineral lease revenues fund (revenues fund). The act eliminates the reserve fund, requires federal mineral lease revenue that is currently required to be credited to the reserve fund to instead be credited to the revenues fund, and, on and after July 1, 2016, authorizes the general assembly to annually appropriate money in the revenues fund to the department of higher education for transfer to the state treasurer, continuously appropriating to the state treasurer any moneys transferred for the purpose of making COP payments.

(Note: This summary applies to this bill as enacted.)