The bill sponsored by state Sen. Robert Adley would allow the Louisiana Community and Technical College System to undertake a series of capital improvements worth $250 million across the state. It gathers a 12 percent match from private sector concerns, who figure the improvement will increase the pipeline of skilled workers to them, and then gets the state to pay in $20 million a year over 20 years to pay it all off.
Controversially, it goes outside of the normal capital outlay process, where the Legislature puts up a list of projects, which if it exceeds the net state tax supported debt limit then is culled by the State Bond Commission. The bill exempts this outlay from that limit. Treasurer John Kennedy raises the alarm about the precedent set in this ability in a technical sense to exceed that limit, as this could increase interest rates faced by the state and obviously creates increased obligations in the future.