Key Points

Education Opens the Door of Opportunity

• Education has always opened the doors of opportunity in North Carolina.
• North Carolina was the first state to start a public university. Our forefathers believed that all residents should have the opportunity to get a good college education at an affordable price. Today, 16 campuses are educating workers, training leaders and developing important research that's attracting global industry.
• North Carolina was among the first states to start a community college system. We set the pace nationally in providing industries with specialized worker training facilities at nearby community colleges. Today, students of all ages are learning a trade - or getting retrained for a new career - at 59 community college facilities.

Universities & Community Colleges Are Key to Prosperity

• Our state's prosperity - our booming economy and record numbers of new jobs -- is tightly linked to our universities and community colleges. It's no secret that companies want to locate or expand near universities and community colleges, to take advantage of the well-trained and well-educated workforce.
• Students of all ages have recognized that economic progress in almost any field in the 21st century is dependent upon additional education beyond high school.
• Within the next 10 years, enrollment in our universities and community colleges is expected to grow by approximately 100,000 students.
• Unfortunately, facilities are not keeping pace with demand. Classrooms, science and technology labs and dorms are inadequate and out of date. That hurts the quality of education.

Lack of Space Means Lack of Opportunity

• Most importantly, the lack of facilities is closing the doors of educational opportunity in the faces of some North Carolinians. Some universities have already been forced to cap admissions due to lack of space. Community colleges are bursting at the seams, with long waiting lists for classes due to lack of space.
• If the University/Community College bond referendum passes on November 7, the money will provide $2.5 billion for construction, repair and renovation of university dorms, classrooms and science and technology labs, and $600 million to upgrade capacity for community colleges. In all, more than 300 facilities will be upgraded across the state.

Passing the Bonds Will Not Raise Taxes

• Making these investments won't raise taxes, says State Treasurer Harlan Boyles.
• North Carolina is among the lowest-debt states in the nation, our Treasurer says. Investing in our university and community college infrastructure is a good investment, one that will reap great dividends in the future.
• In response, the General Assembly - Republicans and Democrats alike -- approved the bond referendum legislation with an overwhelming show of support.
• The General Assembly will be keeping a tight rein on the expenditures, with an Oversight Committee that will be monitoring the projects very closely.
• These bonds benefit the state like a mortgage benefits a homebuyer. You don't pay for and build a home one room at a time! You buy the home, then repay over time. "Paying as you go" sounds good, but won't buy a house - and it won't help North Carolina meet our university and community college needs.
• In low-wealth counties, local governments will not have to provide matching funds for the community college construction.

Please Vote on November 7

• We must keep open the doors to opportunity for North Carolinians.

8/2/00

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Key Messages for Advancing the University/Community College Bond Issue

• The proposed $3.1-billion bond issue for the University of North Carolina and community colleges reflects a bipartisan recommendation that was unanimously passed by both houses of the 2000 General Assembly. It would provide $2.5 billion for the University, including funds intended to replace previously appropriated capital dollars recaptured for flood relief, and $600 million for the community colleges.

• The bond funds will be used solely to construct new buildings and to renovate and modernize existing buildings on the 16 University and 59 community college campuses. The bond bill details how the funds would be distributed and used on each campus.

• Our University and community colleges systems each anticipate enrollment growth of about 50,000 students over the next ten years-a total of almost 100,000 new students. These enrollment growth pressures have been compounded by decades of underfunding for upgrading existing buildings, and many classrooms and laboratories are in dire need of renovation to meet current safety codes and educational standards.

• Faced with enrollment growth of over 30% in the next decade, University campuses will be unable to admit many qualified students unless we quickly address their capital needs. Some campuses already have had to limit admissions due to lack of space. Similarly, without a substantial infusion of capital funding, community colleges will be forced to turn away people who need to gain technical skills, prepare for further higher education, or earn high school credentials.

• The University's reputation for excellence in teaching and research gives North Carolina a competitive economic advantage, but unless we repair our classrooms, laboratories, and other buildings, that competitive edge will be lost. University campuses now have hundreds of buildings-particularly science buildings-that are no longer suited for their original purposes or badly in need of repair and renovation.

• · The Community College System is nearly 40 years old and many campus facilities are even older. Many community college buildings have undergone little or no renovation since their initial construction, due to limited local resources.

• University buildings belong to the state, but over the past 75 years, the University has generated about 40% of all construction dollars spent from its own resources. Because of the General Assembly's historic pay-as-you-go approach to capital funding, the state's record of providing funds for University construction has been uneven and inadequate. Only since 1993 has annual funding routinely been made available for the repair and renovation of state-owned buildings. This bond issue will address the backlog of renovation needs, helping the state get and remian current on preserving its University assets.

• Community college buildings belong to the counties that sponsor them, and historically, the counties have been responsible for their construction and maintenance. This bond proposal represents a large infusion of state funds at low or no cost to local governments. The $600 million designated for community colleges will require less than $113 million in local matching funds from non-state sources. Many counties will have no matching requirement, since adjustments have been made based on local ability to contribute and previous local investments.

• Treasurer Boyles has reiterated his belief that the state could support $3 billion in higher education construction bonds without a tax increase.

• North Carolina's current debt is one of the lowest in the nation. Even after all currently authorized debt is issued-including the University and community college bonds-the state's level of debt would still be relatively low.

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DETAILED INFORMATION on the University/Community College Bonds

• Soon after arriving in Raleigh for the short session, the 2000 General Assembly unanimously passed a bill authorizing a November referendum on a $3.1-billion bond issue for University and community college construction. These improvements are needed to meet skyrocketing enrollment demand and to ensure that our college and University buildings meet modern code requirements and are equipped to prepare graduates for today's job market.

• As called for by the General Assembly, both the community colleges and the University have conducted in-depth studies of their building needs. Our University and community college systems each anticipate enrollment growth of about 50,000 students over the next 10 years-a total of almost 100,000 new students. These growth estimates are based on a combination of factors: the number of students already in North Carolina's public schools, historic college-going rates, and the escalating need for continuing workforce education.

• These enrollment-growth pressures have been compounded by decades of underfunding for upgrading existing buildings, and many classrooms and laboratories are in dire need of renovation to meet current safety codes and educational standards. [Prior to 1993, the state did not have an annual Reserve for Repair and Renovation of state-owned buildings.] The $3.1-billion bond issue would enable the University and community colleges to make real headway in addressing their most pressing capital needs.

• The bonds will be issued over a six-year period in amounts that will enable community college and University campuses to manage the construction and renovation efficiently, while minimizing disruption for students. The bonds will be repaid over a 25-year period, allowing the state to pay for the buildings as they are used-just like a mortgage on your home.

• The bonds would provide $2.5 billion for the University, including funds intended to replace previously appropriated capital dollars recaptured for flood relief, and $600 million for the community colleges. The bond bill details how the funds would be distributed and used on each campus.

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• While no one can predict whether taxes will go up for other reasons, State Treasurer Harlan Boyles and many other state leaders have plainly stated that the state will be able to repay these bonds without the need for any new taxes.

• North Carolina's current debt is one of the lowest in the nation. Even after all currently authorized debt is issued-including the University and community college bonds-the state's level of debt will be relatively low. Analysts project that between now and 2025, the state's annual required debt-service payment would exceed 3% of the state's budget in only three years. Financial experts consider any amount under 5% to be conservative to moderate debt.

• The University belongs to the state, and the General Assembly is the primary source of new building funds for the University. Still, over the past 75 years, the University has generated about 40% of all construction dollars spent from its own resources. The University is committed to continuing this shared approach to capital funding.

• Because of the General Assembly's historic pay-as-you-go approach to capital financing, the state's record on providing funds for University construction has been both erratic and inadequate, based on whether there was money left over after all operating needs have been met. This bond issue would provide a reliable stream of capital funding to meet enrollment growth, and would also enable the University to address the huge backlog of repair and renovation needs that has accumulated over many decades.

• While community college buildings are local assets, many community colleges have received special legislative appropriations for capital, and the entire community college system benefited from a 1993 statewide bond issue. The proposed 2000 bond issue would require many local governments to partially match funds targeted for new community college buildings. This matching requirement has been reduced or waived for low-wealth counties and eliminated for counties that have exceeded historic match requirements.

• If voters reject this bond issue, many community colleges will be forced to turn people away who need to gain technical skills, prepare for further higher education, or earn high school credentials.

6.7.00

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