Senator outlines formula fund proposal for higher‑education capital projects; colleagues urge safeguards on operating costs

Senator Milner presented Senate Bill 174 to create a new approach for funding higher‑education capital projects by phasing in an ongoing fund. Under the proposal, the Legislature would appropriate an ongoing annual amount into a fiscal account that regional systems would allocate to institutions using a formula that accounts for degree completion, institutional efficiency, regional student population growth, facility age and academic space including off‑campus facilities.

Milner said the plan would let institutions undertake smaller, more cost‑effective projects on a rolling basis while preserving checks and balances: projects would continue to go through the Regents, the Building Board and the Intergovernmental Review Group (IGG) so legislative oversight remains. While the fund is phased in, larger projects (for example, $50 million and above) would still follow existing review processes.

Senator Hilliard asked whether the proposal included safeguards for recurring operating and maintenance costs, warning that institutions sometimes request appropriations for O&M after a project is started. Hilliard urged the Legislature to require realistic budgeting for ongoing costs and proposed consequences for institutions that begin projects without sustainable operating plans. Milner responded the bill’s intent is fiscal accountability and to require institutions to live within appropriations; he emphasized legislative oversight and performance metrics would help control long‑term costs.

No final floor action on SB174 was recorded in this transcript excerpt; the bill was uncircled for discussion and received extended floor attention that will likely continue in committee.