Kansas lawmakers struck back at the University of Kansas on Thursday by adding a provision to the state’s budget to restrict the university from spending certain money. The provision is a response to the university decision to circumvent the Legislature’s authority last month when it issued $326.9 million in bonds. KU relied on a Wisconsin agency to carry out the January bond deal – instead of the Kansas Development Finance Authority – as a way to avoid the need for legislative approval on the bonds. http://www.kansas.com/news/politics-government/article58515218.html
As they say in Kentucky, “Po’ folks got po’ ways.” U of Kansas is driven to issue bonds out-of-state in order to fund construction projects? Unclear from the article whether or not some of these bonds are for capital expenses only or included operating expenses as well.
Tim Caboni, KU’s vice chancellor of public affairs, called the amendment “a targeted attack on the University of Kansas” and said that the legislation “inserts the Legislature into the most basic of our budgeting and financial transactions and threatens our ability to conduct everyday business operations.”
“In addition to hamstringing KU’s ability to make basic budgeting and financial transactions and serve Kansans, this amendment sends a signal nationally that Kansas is not a state that’s receptive to business and development,” Caboni said. “While more than 30 states have passed legislation encouraging this type of financing model, Kansas now stands alone in being the only state trying to restrict it.”
When legislatures ask universities to act like businesses, then universities should be able to borrow money. I guess that business model is subject to certain “rules and exclusions”, yes? Kentucky public universities have this independent bonding capacity but I am unclear whether they have to do so within the state subject to legislative approval/veto.
