FVCC supports bill to allow bonding authority

A Kalispell lawmaker is proposing a bill that would allow community colleges to operate on the same terms as universities when they seek funding for building projects.

House Bill 159 would allow board of trustees of community colleges to use revenue bonds to afford projects expected to bring more dollars on campus.

The bill’s main sponsor, Mark Blasdel, R-Kalispell, used Flathead Valley Community College as an example of why he wanted the legislation passed.

“It’s something that’s silent right now in (Montana) statute and will give (FVCC) one extra way of being able to continue to move forward with some of the visionary things that they’re doing in the Flathead and other places in Montana,” Blasdel said.

The Senate Educational and Cultural Resources Committee listened to testimony around the bill Wednesday.

Flathead Valley Community College President Jane Karas said she spoke in support of the bill as a voice for the state’s three community colleges, located in Miles City, Glendive and Kalispell.

“Currently, the community colleges receive no long-range building funds or any type of state funds for any buildings that we build,” Karas said. “...(Revenue bonds) may or may not be the way we choose to fund a facility, but it provides just one more measure to look at.”

Aidan Myhre with the Kalispell Chamber of Commerce said as the Flathead Valley’s economy has grown — stretching the community’s need for educational opportunities — the college has adapted to meet those needs.

“When many people think of the Flathead Valley, they think of the gems like Glacier National Park, Flathead Lake, Big Mountain Ski area,” Myhre said. “But truly, one of the brightest and most brilliant gems in our community is the Flathead Valley Community College.”

She said a revenue bonding option would allow community colleges to better manage their growth.

Karas said as the state code sits, community colleges are limited to using general obligation funds, private funds or loans for building projects.

In September, FVCC entered an agreement with Glacier Bank for a loan of just over $9 million to build the college’s first on-campus student housing complex.

At the time, Kirk Zander, the FVCC vice president of administration and finance, said payments toward the loan would be due every May and November with varying payment. He said the first payment of roughly $228,000 will be due May 1, 2017.

Karas said before entering the loan, she approached the Bonds Council to see if the college could find a better deal. But the Montana Code didn’t clearly state community colleges could follow that route.

“We said ‘yes, it doesn’t say we can’t’ and he said ‘but it doesn’t say you can,’” Karas said. “Obviously, the Bond Council was the one who won that argument.”

Karas said if the bill passed, it would allow the college to seek funding for revenue-producing facilities like student housing, food service, a bookstore or a student center.

She said if the facility doesn’t involve sales, the revenue could come from student fees.

As of Friday morning, the Senate Educational and Cultural Resources Committee hadn’t schedule a time for executive action on the bill.

Reporter Katheryn Houghton may be reached at 758-4436 or by email at khoughton@dailyinterlake.com.