Dive Brief:
- North Carolina and Mississippi are among states using bond sales to help finance higher education needs.
- The Clarion-Ledger reports that the Mississippi legislature is considering a bond bill that would open up $95.7 million for college and university construction and renovation projects, as well as $35 million for the state’s community colleges to spend as they see fit.
- The HBCU digest reports North Carolina voters approved a $2 billion bond initiative that will similarly fund new construction and renovation projects, including $980 million for the University of North Carolina system and $350 million for community colleges.
Dive Insight:
When voters or elected officials approve bond sales, they are giving the state permission to take on debt to fund certain initiatives. With people across higher education bemoaning state disinvestment for public colleges and universities, debt is one way to fund necessary projects. Deterioration across Louisiana’s public colleges and universities has become a visible reflection of state funding cuts.
Many private colleges have a hard time raising money to pay for maintenance projects or student housing as donors consider academic buildings or scholarships to be preferable investments. As an alternative to going into greater debt, an increasing number of small colleges are making financial deals using private capital. With student housing, specifically, these colleges pledge a certain amount of future revenue to investors in return for upfront cash.