Colleges, universities back more projects with alternative financing

Louisiana colleges and universities are taking out what amounts to mortgages as they add buildings or improve student housing to bypass limited state construction funds.

The schools rely on the goodwill of state lawmakers, good economic times and stable enrollment to make yearly payments on bonds underwriting construction of everything from dormitories to entire campuses. In 2005, the Louisiana Board of Regents, which oversees the state's public colleges and universities, approved construction policies that specifically address alternative financing.< The policies call for, among other requirements, business plans for such projects and audits for third-party financing, as well as scrutiny by university system boards to ensure ethics rules aren't violated. Regents must approve all projects using alternative financing. more...