Funds restricted to construction
The President's Office recently compiled a list of the most frequently asked questions and answers about the University, including the following. Future issues of Main Hall to Main Street will carry others.

Question: The University campuses often point out the shrinking revenues the state provides as a problem related to the daily operation of the campuses. Why can't the University use some of its construction money to alleviate its budgeting woes?

Answer: Funding for capital improvements comes from three primary sources: the state long-range building program, private donations and the issuance of revenue bonds. The long-range building program earmarks funds, excluding operational costs, for the construction/renovation of specific projects approved by the Legislature.

To date, major private donations to the University are restricted by the donor for the purpose of constructing facilities. Therefore, the University has no discretion to use these funds for operational purposes.

Bond proceeds can only be used for the acquisition, renovation or construction of properties/facilities (projects) as defined in the bond document, which specifically precludes use for operational expenses. Any bond fund remaining at the completion of the project must be used to make future debt service payments.

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