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Higher Education Bonds Sail through the Legislature
Oversight Provisions Added to Monitor How the Money is Spent

Without a single legislator opposed, the House and Senate voted unanimously Thursday to approve legislation calling for a fall referendum on issuing $3.1 billion in bonds to begin a massive construction program at UNC System and community college campuses. The rare unanimous accord on the bill, S. 912 Bonds for Higher Education, capped the measure's whirlwind passage through the legislature. It was on its way to Gov. Jim Hunt for his signature three days after it hit the floor and less than two weeks after the legislature reconvened for the year. Gov. Hunt will have a bill signing ceremony on the Capital grounds on Thursday, May 25, at 10 a.m.

On second reading Wednesday, only one of the 170 House and Senate members voted no. That was Rep. Toby Fitch (D-Wilson), who said he believed the bonds didn't direct enough money to the university system's historically black campuses.

NCCBI strongly supports the bonds and has volunteered to help lead the campaign for their passage.The bond campaign unofficially kicked off Wednesday when NCCBI released the results of a poll of 804 likely voters that found 77 percent of them would vote for the bonds in November.

"The campaign should begin right now, with this vote," said House Speaker Jim Black (D-Mecklenburg). "It's going to take hard, hard work. The university family and the community college family both need to get to work immediately if we're going to get this passed."

"We are pleased that our lawmakers agree that the capital needs of our community colleges and public university campuses are critical," said N.C. Community College System President Martin Lancaster. "If the voters approve the referendum, the $600 million allocated for community colleges in the bond will provide $100 million more in capital support for community colleges in this one package than has been provided since 1963."

The vote came on an amended version of the higher education bond bill that passed the Senate last year but which hit a wall in the House over demands that the bonds be put to a vote of the people. The measure, known as the "Michael K. Hooker Higher Education Facilities Finance Act, calls for issuing the bonds in the following amounts and times:

Fiscal Year Universities Community Colleges
2000-01 $201,600,000 $48,400,000
2001-02 $241,900,000 $58,100,000
2002-03 $483,900,000 $116,100,000
2003-04 $483,900,000 $116,100,000
2004-05 $564,500,000 $135,500,000
2005-06 $524,500,000 $125,800,000


The legislation imposes reporting requirements to allow the General Assembly to monitor all aspects of bond spending. The UNC Board of Governors would be required to report annually to the Joint Legislative Commission on Governmental Operations on how the money is being spent. The bill also creates a Higher Education Bond Oversight Committee, which will consist of 10 members, with three appointed by the House speaker, three by the Senate president pro tem, two by the Board of Governors and two by the State Board of Community Colleges.

To address concerns of several African-American legislators who complained that the historically black UNC System campuses won't get enough of the bond money ($1.1 billion of the total $2.5 billion would go to UNC-Chapel Hill, N.C. State and East Carolina), the legislation directs the Board of Governors to continue to study and monitor any inequities in funding for capital improvements and facilities needs at the historically black schools.

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