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Pileggi Introduces Bill to Provide Capital
Financing to Independent Colleges for Economic Development Projects
HARRISBURG -- Senator
Dominic Pileggi (R-9) and Representative Peter Zug (R-102) today announced
legislation that would help to support capital financing for Pennsylvania’s
independent higher education institutions, specifically for campus projects
related to community and economic development.
The legislators were joined at a Capitol news
conference by the presidents of several institutions of higher learning. Among
them were Dr. Theodore Long, chairman of the Association of Independent Colleges
and Universities of Pennsylvania, and president of Elizabethtown College; Dr.
Rosalie Mirenda, president of Neumann College, Aston; and Dr. Paul Smith,
president of the Pennsylvania Institute of Technology, Media.
The proposed Independent Higher Education and
Community Financing Act would establish the program in the Pennsylvania
Department of Community and Economic Development. All of the projects would be
financed through college or university bond issues through the Pennsylvania
Higher Educational Facilities Authority (PHEFA). Under this measure, PHEFA would
be authorized to issue $50 million in bonds each year for a period of five
years.
The maximum bond authorization would be $5 million
per project. The Commonwealth would be responsible for 50 percent of the debt
service; the university or college would be responsible for the other 50
percent. Under the measure, a Board of Review would be appointed by the Governor
and the legislature to examine and approve fund applications. Applications would
be considered on a first-come, first-served basis. Dormitories and residence
halls would be ineligible for funding.
Pileggi noted that supporting capital financing for
independent higher education institutions is not a new idea. New Jersey has a
similar program, and the New York State Assembly is also considering the
concept.
“Pennsylvania’s independent colleges and
universities do more than educate students,” Sen. Pileggi said. “They provide
jobs. They provide a strong economic base for the communities we live in.”
Pileggi noted that the proposal builds on the
state’s Keystone Innovation Zone program, which provides incentives for economic
development and job growth in communities with colleges and universities. The
senator added that, according to a Brookings Institution study, Pennsylvania
remains one of the slowest growing states in the nation, with more people moving
out than moving in.
“By providing greater opportunities to invest in
capital projects, we can increase the attractiveness of Pennsylvania’s
independent colleges and universities, and offer good prospects for economic
expansion in the communities they serve,” said Pileggi. “We need to continue
attracting college students to support our workforce, and to do that we need to
support our independent colleges and universities -- the Commonwealth’s future
requires it.”
“Because of the significance that these institutions
hold in communities all over Pennsylvania, I’m pleased to encourage new efforts
in strategically supporting specific needs of our private colleges and
universities,” said Rep. Zug. “Through the provisions of this act, I believe we
can provide life-giving support in a fiscally responsible manner. The time has
come for the Commonwealth of Pennsylvania to enjoy a stronger partnership with
our private higher education institutions.”
“Many of our private colleges and universities are
located in economically depressed or slow-growth areas in need of development,”
said Dr. Long. “Supporting the right projects at these colleges and universities
can help these communities. We believe it is time to create a small pool of
funds to help our private colleges meet the needs of their students and
communities.”
Pennsylvania has over 90 private colleges and
universities. These institutions serve over 250,000 students and save the
Commonwealth $332 million annually, with an annual economic impact of more than
$10.4 billion. Pennsylvania’s independent colleges and universities award just
over half of all bachelor degrees and over 60 percent of all advanced degrees
granted in the Commonwealth.
In 2000, Pennsylvania ranked second in the nation in
attracting out-of-state freshmen, with three out of four such students coming to
Pennsylvania to attend a private college or university. In addition, with a 10
percent growth rate, independent colleges and universities are the fastest
growing higher education sector in the state.
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