Alabama Distressed Institutions of Higher Education Revolving Loan Program

From Bhamwiki
Revision as of 17:11, 19 October 2023 by Dystopos (talk | contribs) (Created page with "'''Act of Alabama 2023-560''' created a "Distressed Institutions of Higher Education Revolving Loan Program" under which the Alabama State Treasurer could loan state funds to eligible colleges for a period ending January 18, 2027. The bill was precipitated by the threatened closure of Birmingham-Southern College. College president Daniel Coleman had appealed to local governments and to the state for an emergency loan that would allow the institution to remai...")
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigation Jump to search

Act of Alabama 2023-560 created a "Distressed Institutions of Higher Education Revolving Loan Program" under which the Alabama State Treasurer could loan state funds to eligible colleges for a period ending January 18, 2027.

The bill was precipitated by the threatened closure of Birmingham-Southern College. College president Daniel Coleman had appealed to local governments and to the state for an emergency loan that would allow the institution to remain open while it sought donations toward a permanent endowment. As it happened, the request came during a year that the Education Budget had a surplus of more than $2.7 billion, largely from federal payments relating to the COVID-19 pandemic and economic stimulus included in the American Rescue Plan Act.

The legislation was co-sponsored in the Senate by Jabo Waggoner (R-District 16) and Rodger Smitherman (D-District 18). It was introduced in the Senate on May 2 and referred to the Senate Finance and Taxation Education Committee. It earned a favorable report the next day and passed the Senate by a 33-0 vote on May 4. The House of Representatives forwarded the bill to the House Ways and Means Education Committee the same day. On May 24 the bill was returned to the full chamber with a favorable report. Three minor amendments were adopted on the floor before it was passed on May 25. The Senate affirmed the changes to the bill that day and it was enrolled for the Governor's signature.

On June 1 Ivey wrote to the legislature requesting several changes to the bill, that she claimed would "enhance the integrity of the loan program". In the letter's conclusion, she added, "I have previously said that taxpayers' public funds should not be used to bail out a private college, and I remain concerned about the wisdom and propriety of this program." The executive amendments were adopted by both chambers on June 6, the final day of the regular session. The bill was signed by Governor Ivey on June 16.

In October 2023, BSC president Coleman made public that Alabama State Treasurer Young Boozer III had rejected the college's application for an emergency loan of $27 million under the Distressed Institutions of Higher Education Revolving Loan Program. He also announced that the college would file a suit in Montgomery County Circuit Court seeking to compel the loan's approval.

References

  • Cason, Mike (February 23, 2023) "Alabama faces decisions about how to use $2.7 billion in unexpected education funds." AL.com
  • Ivey, Kay (June 1, 2023) "Message from the Governor"
  • Thrailkill, Laurel (June 6, 2023) "Lifeline for BSC: Bill approved that could provide bailout." Birmingham Business Journal
  • O'Leary, A. J. (October 19, 2023) "BSC President: State treasurer's "grudge" against bank could harm college." Birmingham Business Journal

External links

Retrieved from "http://bhamwiki.com/w/index.php?title=Alabama_Distressed_Institutions_of_Higher_Education_Revolving_Loan_Program&oldid=207570"