Utah Legislature: Bill would allow bonding for higher ed projects

SALT LAKE CITY — Times might be financially tough for Utah state government. But lawmakers approved a bill Tuesday night that calls for spending at least $210 million on various building projects around the state, most of them on university campuses.

Unlike the $90 million in general obligation bonds approved in another bill Tuesday, HB5 allows the institutions of higher education to issue revenue bonds (which are paid for out of student fees) and/or use donations, federal matching grants or surplus monies to build a number of facilities.

Technically, the state does not stand behind revenue bonds. If the colleges and universities fall on hard economic times, they are liable for the bond payments.

But in reality, the state is not going to let any public institution default on bonds, and it likely would step in if the colleges couldn't make payments.

Those items approved in HB5 include:

$15 million for Weber State University for student housing.

$12 million for the University of Utah to buy the Ambassador Building.

$25 million for the U. to buy the Orthopaedics Building.

$10 million for the U. to expand the Guest House.

$119 million for the U. to build an Ambulatory Care Complex.

$2.5 million to Southern Utah University for Southern Utah Museum of Arts.

$17.8 million for the U. for an addition to the Henry Eyring Building.

$3 million for Utah State University for construction of a Botanical Center classroom building.

$1.5 million for an addition to the Blind Center facility.

$3.3 million for an Ogden driver's license building.

The U. can solicit donations for preliminary plans for a dental school building.

The state courts can buy the Spanish Fork Courthouse on a lease-purchase agreement.

e-mail: bbjr@desnews.com