M E M O R A N D U M

							January 11, 2011

To:		Members of the Board of Trustees

From:		Nancy L. Zimpher, Chancellor

Subject:	Community College Capital Projects Delegation


Action Requested

      The proposed resolution delegates to the Chancellor, or designee, authority to approve the financing of the State share of community college capital projects, authority now exercised by the State University Board.

Resolution

I recommend that the Board of Trustees adopt the following resolution:

Whereas pursuant to Education Law �6304, 50% of the cost of a community college capital project is provided by the State (the �State share�) and 50% is provided by the local sponsor (the �local sponsor�s share�); and 

Whereas the State finances the State share either with State hard dollar appropriations (moneys appropriated for expenditure from the State Treasury without a requirement that the State be reimbursed) or with the proceeds of bonds issued by the Dormitory Authority of the State of New York pursuant to a bond financing program authorized by Education Law �6304(8) and Public Authorities Law ��1678(21) and 1680(9)-(16); and 

Whereas under regulations of the State University, the State share of a community college project is limited to one-half the amount of total capital expenditures for the project approved by the State University Board; and


Whereas by statute and regulations of the State University, an application for bond financing of the State share of the cost of a community college project is subject to the approval of the State University Board; now, therefore, be it 

Resolved that the Board of Trustees delegates to the Chancellor, or designee, the approval of (i) the amount of total capital expenditures for a community college project, (ii) the financing with hard dollar appropriations of the State share of a community college project, and (iii) the application of a local sponsor for bond financing by the Dormitory Authority of the State of New York of the State share of a community college project; provided, however, that the Chancellor, or designee, shall not grant such approvals unless (i) an appropriation has been enacted for the community college project, and  (ii) the local sponsor has approved the local sponsor�s share of the community college project; and, be it further

Resolved that the Board of Trustees, on its own initiative, may take up any matter delegated by this resolution.


Background

	The resolution delegates to the Chancellor, or designee, authority to grant approvals with respect to the financing of the State 50% share of the costs of community college capital projects.

		Under regulations of the State University, the maximum amount of State financial aid for the capital costs of a community college project is one-half of the total amount of capital costs approved by the State University Board for the project.  The State University Board may not approve the application of a local sponsor for the financing of the State share of a project unless an appropriation has been enacted for the project (8 NYCRR �603.1). Further, if the State share of the cost of a project is to be financed by bonds issued by the Dormitory Authority, the State University Board must approve the application for bond financing (Public Authorities Law �1680(13); 8 NYCRR �603.1(b)).  It has been the practice of the State University Board not to approve a local sponsor�s application for hard-dollar or bond financing for the State share of a project unless the local sponsor has already authorized the local sponsor�s share of project costs.




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Board Resolution		January 11, 2011