$298M in premium revenues to fund 20 state projects

$298M in premium revenues to fund 20 state projects
Alabama State Capitol (Source: Todd Stacey Alabama Daily News)

BIRMINGHAM, Ala. (WBRC) - Nearly $300 million in construction projects around the state will be funded through premium revenues from the state’s recent $1.25 billion bond sales, Gov. Kay Ivey announced Thursday.

The money will be dedicated to 20 projects.

”The announcement today marks a significant investment in the future of this state,” Ivey said in a written statement. “I’m grateful to the Alabama Legislature for the enabling legislation which established the (Public School and College Authority) and the astute work of State Finance Director Kelly Butler for positioning the bond sale in the best way possible.”

The $1.25 billion bond issuance was approved last month by the Alabama Public School and College Authority. However, thanks to the interest rate secured by the Ivey and the Department of Finance, the state will now see an extra $298 million that will go toward additional projects.

”Because of the low interest rate in the market, these extra funds were created,” Sen. Arthur Orr, R-Decatur, said. Orr sponsored the 2020 legislation that allowed for the bond sale. “Gov. Ivey has made strategic decisions that will benefit the state significantly in the decades ahead.”

The true interest cost of the bonds is 2.145% over the 20-year repayment period, Ivey’s office said Thursday.

Unlike the $1.25 billion that is flowing to school systems and colleges and universities, this $298 million was earmarked for specific construction projects, related to education and workforce development.

Lawmakers didn’t have a say in the distribution of premium money; that was the authority. But Rep. Bill Poole, R-Tuscaloosa, said the project list is “a good investment in the future of our state in multiple areas of our state and in multiple education sectors.”

”The PSCA bond is intended to invest in education and invest in economic development opportunities that spin off of education and improve the lives of Alabamians both now and in the future,” Poole said.

A formula approved by lawmakers this spring doles out a base of $400,000 to each K-12 system, then more based on enrollment and a previous education funding formula. It means at least $1 million to nearly all school systems. The state’s largest system, Mobile County Schools, will receive about $61.7 million, according to the Alabama Department of Finance.

Alabama’s four-year universities will receive a combined $217.8 million and the Alabama Community College System will receive $120 million.

Education entities can use the money for construction projects and repairs on their campuses.

Ivey originally proposed early this year a $1 billion bond issue. Lawmakers increased that amount to $1.25 billion.

The PSCA projects funded from the premium revenue and announced today are as follows:

University of Alabama Huntsville

Huntsville Regional Lab and Morgue                                                            11,000,000

HudsonAlpha

Expansion of Biotech Campus/designate Alabama the Discovery

Life Sciences Global Headquarters                                                                15,000,000

Auburn University

New STEM & Agricultural Sciences Complex                                              50,000,000

University of Alabama at Birmingham

Genomic Medical & Data Sciences Building                                                 50,000,000

Troy University

Center for Materials and Manufacturing                                                           9,450,000

Alabama Center for Arts

Dorm                                                                                                               15,000,000

University of South Alabama

New Medical School Building                                                                       50,000,000

University of North Alabama

Computer Science & Mathematics Building                                                  15,000,000

Alabama School of Deaf and Blind

North Alabama Campus                                                                                 28,519,992

Alabama Aviation College

Phase 2 renovations of Barnett Building and upgrade the hanger floor               500,000

Lauderdale County

Workforce Development Center                                                                8,000,000

Alabama Shakespeare Festival

Renovations & Repairs                                                                                     5,000,000

Alabama School of Math & Science

Science Research Center                                                                                   6,000,000

Outdoor Classrooms                                                                                             235,000

AIDT

Toyota/Mazda                                                                                                    8,000,000

Jacksonville State University

Randy Owen Performance Center                                                                   15,000,000

The American Village

Central Independence Hall & Tower Classrooms and Experiences                  5,000,000

Alabama A&M University

Library Roofing                                                                                                    907,500

Wilson Hall, Drake Hall, Carnegie Hall wood restoration project                       605,000

University of Montevallo

Residence Halls - HVAC/Roof Repair                                                              1,000,000

University of West Alabama

Brock Hall 2nd Floor Renovation                                                                       2,600,000

Alabama State University

Friendship Manor                                                                                              1,500,000

Total   298,317,492

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