In Support of Education Bonds (Editorial)

Here’s what you need to know when deciding whether to vote yes on the higher education bond proposal on Dec. 13:

Unlike the highway bond proposal on the same ballot, this is a straight-up, one-time bond issue to pay for improved infrastructure — brick-and-mortar and digital — for the state’s colleges and universities. The total bond issue of $250 million would be used to refinance roughly $100 million in existing bonds, $10 million or so to connect the state’s four-year universities to a super-Internet for data-heavy research, $90 million for physical improvements at four-year schools, and $50 million for two-year campuses. A special legislative session would be necessary in January to actually allocate the money, but a spending plan that the colleges and universities can live with has been drawn up.

Unlike the highway bond proposal, this bond will be repaid by state tax revenue rather than a dedicated stream of federal turnback dollars. But the higher ed bond will not require additional taxes; instead, the state will be obligated to pay the current $24 million in annual debt services for about 14 more years.

Like every bond issue, the cost of making these higher ed improvements will be increased by interest charges and fees to bond lawyers and underwriters.

The state is enjoying a dramatic increase in enrollment — here’s hoping these additional students persevere to graduation — and the existing facilities are strained. In the olden days, before term limits, legislators might have made far-reaching deals setting priorities for higher education spending on a pay-as-you-go basis.

But now the political future is less certain, and 10 universities and 22 colleges are clamoring for their share of funding for needed facilities. Borrowing the money to fully fund the spending plan all at once has a powerful appeal to the higher ed community, and it is one that we can understand.

It may not be the cheapest way to make improvements to serve the student body this state sorely needs, but it seems to be the most efficient and fair. And it is worth remembering that education is an appreciating asset.

We therefore endorse the $250 million bond issue for higher education.