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Regents board approves $13M obligation to protect multiyear contracts as constitutional repeal looms
Summary
The Board of Regents approved a staff recommendation to obligate up to $13 million from reserves to cover multiyear grants and federal matching commitments if a constitutional amendment (Act 2 22) passes and liquidates the LEQTF‑funded support fund; staff warned unobligated funds would be swept on the day of any affirmative public vote.
Board staff briefed members on a contingency plan to protect ongoing contracts and federal matching obligations tied to the Board of Regents Support Fund.
Miss Carrie Robinson (support‑fund staff) summarized the FY27 plan and noted a pending constitutional referendum, Act 2 22 of 2025, scheduled for a statewide vote on May 16, 2026. The legislation as described in the meeting would repeal the trust fund that underpins the support fund and, if approved by voters, would trigger an immediate sweep of fund balances to pay unfunded actuarial liabilities.
Robinson said the board has a legal and practical interest in ensuring that obligations already made — multiyear research contracts and federal matching commitments — can be fulfilled if the fund is liquidated. She told the board: "We are recommending $13,000,000... to cover existing contracts that would outlive the repeal as well as any obligations we've made to federal awards." The staff recommendation proposed obligating that amount from unexpended earnings/reserves to preserve continuity for institutions and federal matches.
Regents debated the proposal, asking whether obligating reserves would leave the account with insufficient liquidity and how staff positions would be handled if the support fund ceases. Robinson said the board maintains a policy reserve floor (statutory and policy constraints require retaining $2 million) and that the planned $13 million obligation would be structured on top of required reserve dollars; she added that any additional uses of reserve funds would require board approval.
A motion to obligate the funds was moved and seconded; after discussion the board approved the recommendation. Board officials said unobligated support‑fund balances would be swept immediately if the constitutional amendment passes, and that obligation was intended to ensure ongoing federal awards and multiyear contracts are honored.
