Legislation to Increase Bonding Authority for GAHEFA Passes the Senate

ATLANTA (February 1, 2012) – The Georgia Senate today passed SB 302 with a vote of 45 to 5, showing tremendous bipartisan support for the measure. Sponsored by Sen. Cecil Staton (R-Macon), this legislation increases the amount of bonding authority for the Georgia Higher Education Facilities Authority (GAHEFA) from $300 to $500 million.

“I am pleased by the overwhelming support SB 302 received today by my colleagues in the Senate,” said Sen. Staton. “The passage of this legislation will help put more Georgians back to work through the various projects created by the additional bond revenue. The increase in bond revenue is not only a tool for economic development; it continues to incentivize Georgia’s best and brightest to attend universities and technical Colleges throughout the state.”

Since its inception, the Georgia Higher Education Facilities Authority has funded 18 projects on 13 campuses throughout the State of Georgia, and has served more than 54,000 students. Created by Senate Bill 562 in 2006, the authority is currently authorized to issue up to $300 million in revenue bonds.

If enacted, SB 302 would increase the maximum authorization from $300 million to $500 million, thereby supporting revenue-producing projects for the Board of Regents and the Technical College System of Georgia. All projects financed through GAHEFA must have a self-liquidated revenue source. To accomplish this, all bonds issued to the Georgia Higher Education Facilities Authority are paid for by funds which are produced within these facilities.

Co-sponsors of Senate Bill 302 include Sen. Buddy Carter (R-Pooler), Sen. Jack Hill (R- Reidsville) and Sen. Bill Cowert (R-Athens).

Senate Bill 302 will now travel to the House of Representatives for a vote.

RELEASE
For Immediate Release:
February 1, 2012

For Information Contact:
Natalie Dale, Director
Shawna Mercer,Sr. Communications Specialist
shawna.mercer@senate.ga.gov
404.656.0028