2008 Woodie Awards
State bill may save money
Kyle Hansen
Issue date: 3/14/07 Section: News
The changes to bonds would only apply to revenue-generating facilities, Gaither said. For projects that generate revenue, such as housing, the CSU is allowed to issue bonds when authorized by the board of trustees. Funding for classrooms and other structures comes from the state government, which much have bonds authorized by voters.
San Jose State University does not have any planned projects that could benefit from the change, Gaither said. But the new law would allow the CSU to refinance already completed projects, such as the Spartan Village.
"It is possible that a project at San Jose could be refinanced in the future if we can get a better interest rate," Gaither said by e-mail. "For now, the interest rates are very low, so we don't need to use variable rates, but once the bill is enacted, we have that flexibility for the future when interest rates go back up as they did a few years ago."
Ridley-Thomas also said that the bill would help to keep costs down by simplifying the bond process.
"SB855 will essentially streamline the external revenue bond financing and treasury process," Ridley-Thomas said. "That will, in effect, lead to greater efficiency and could eventually lead to lower costs for students."
San Jose State University does not have any planned projects that could benefit from the change, Gaither said. But the new law would allow the CSU to refinance already completed projects, such as the Spartan Village.
"It is possible that a project at San Jose could be refinanced in the future if we can get a better interest rate," Gaither said by e-mail. "For now, the interest rates are very low, so we don't need to use variable rates, but once the bill is enacted, we have that flexibility for the future when interest rates go back up as they did a few years ago."
Ridley-Thomas also said that the bill would help to keep costs down by simplifying the bond process.
"SB855 will essentially streamline the external revenue bond financing and treasury process," Ridley-Thomas said. "That will, in effect, lead to greater efficiency and could eventually lead to lower costs for students."
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