Committees approve policy allowing Nevada Infrastructure Bank to use loan proceeds for administrative costs; funding source change adopted

The joint committees approved revising the funding source for administrative costs of the Nevada State Infrastructure Bank from transfers of unobligated reserve interest in the Bond Interest and Redemption Fund to proceeds generated from bank activities (loan origination fees and interest earnings). The committees also adopted budget policy directing that the bank's administrative costs be funded using only loan origination fees and interest earnings (not principal repayments), preserving loan principal for future projects.

Fiscal staff reviewed the bank's recent activities following its transfer from the Department of Transportation to the State Treasurer's Office (effective July 1, 2023, under SB10). The bank currently reflects administrative costs funded historically by reserve interest transfers. The Governor recommended the bank use proceeds from its loan activity; fiscal staff noted projected origination and interest revenues of approximately $3.5 million over the biennium versus recommended administrative spending of roughly $730,000, giving a multi‑fold coverage of administrative costs.

Committee members questioned cash-flow timing and whether principal payments should be used to fund administration; staff recommended and the committee adopted a policy restricting administrative support to origination fees and interest earnings so principal remains available for loans. Technical enabling language for either the 2025 Capital Improvement Program bill or the 2025 Authorizations Act will be prepared by fiscal staff with input from state bond counsel to implement the change.

Senator Dondero Loop moved approval; Assemblymember Bachus seconded. The motion carried by voice vote.