DALLAS - A Texas House proposal that would provide $2.8 billion of tuition revenue bonds for colleges and universities cleared its first legislative hurdle with approval from the education subcommittee of the House Appropriations Committee.
Rep. Trent Ashby, R-Lufkin, said the measure would provide debt service of about $250 million per year, according to the Dallas Morning News.
A similar measure, Senate Bill 150, is awaiting committee approval in the state Senate.
The tuition revenue bonds, which failed to win passage in the 2013 session, are designed to finance construction of new buildings for the university systems. The University of Texas System has requested $1.9 billion of TRBs.
"This was the No. 1 request across the board from institutions of higher learning," Ashby told the News. "We haven't done this in nine years," he said in an interview.
Ashby said he expects the full Appropriations Committee to adopt the proposal, but said it's unclear if the Senate will go along. Some Republicans are promoting a shift to online learning to avoid outlays on infrastructure.
TRBs require legislative approval because the debt is paid through state appropriations. However, lawmakers are not allowed to commit a future Legislature to spend money, so universities have to guarantee the bonds with student tuition and other revenue.
Ashby said House Higher Education Chairman John Zerwas, R-Richmond, has proposed which building proposals should be financed with the bonds.
