Press Release – June 17, 2015
Delaware Senate Majority Caucus
For Immediate Release
Contacts: Jesse Chadderdon (302) 744-4282 or (302) 743-0945;
Patrick Jackson (302) 744-4046 or (302) 242-0036
Delaware Senate Majority Caucus
For Immediate Release
Contacts: Jesse Chadderdon (302) 744-4282 or (302) 743-0945;
Patrick Jackson (302) 744-4046 or (302) 242-0036
Sen. McDowell sponsors legislation to create
Community College Infrastructure Fund
DOVER – Citing the mounting costs of deferred maintenance at Delaware Technical Community College’s four campuses, Sen. Harris McDowell, D-Wilmington North, has introduced legislation that would create the Community College Infrastructure Fund.
This fund would provide Delaware Tech a much-needed infusion of capital to upgrade its aging facilities while expanding to meet increased demand for its programs.
“It’s time to address the immediate and long-term capital needs of Delaware’s community college system,” said McDowell, who co-chairs the General Assembly’s Joint Finance Committee. “The College is currently facing $153 million in capital deferred maintenance and expansion needs as a result of an antiquated funding formula. This level of need should be no surprise given the fact the College does not have the ability to issue bonds, access large endowments or go out to referendum. Given the age of its facilities and statewide presence, I’m surprised the figure is not higher.”
Senate Bill 137 would provide bonding authority to the College’s Board of Trustees that is similar to the state’s school districts and mirrors the funding structure of the state’s vo-tech schools. If SB 137 becomes law, it would create a statewide property tax, with the rate projected to start at 1.9 cents per $100 of assessed value in FY 2017 and gradually increase to less than 5 cents per $100 of assessed value over the next 5 years. The tax rate would be capped at 10 cents per $100 of assessed value.
The CCIF would be used for capital projects only.
“This proposal would allow the College to conduct multi-year capital planning while saving the state $6 million per year in capital appropriations,” McDowell said. “Delaware Tech has proven to be a good steward of the state’s money in the past, and there’s no better time to reinvest in our community college system than now.”
Across Delaware Tech’s four campuses, the College maintains 1.3 million square feet of space in more than 40 buildings on 352 acres of land. In just five years, 50 percent of its facilities will be more than 40 years old. The replacement value of these facilities is approximately $400 million, and because of inconsistent annual funding allocations for infrastructure reinvestment, the amount of deferred maintenance alone has grown to nearly $85 million.
The CCIF would make more than $100 million in projects possible over the next five years – a potential boon to local construction firms. Ninety percent – more than $25 million – of the work completed during the College’s FY 2012 – FY 2015 capital maintenance program went to Delaware contractors.
“This is the responsible thing for the state to do – to invest in our community college and in our economy,” McDowell said. “Passage of this bill will finally provide a long-term solution to the College’s long-standing deferred maintenance problem while boosting Delaware’s economy in the short-term.”
Joining McDowell as prime sponsors are Sen. David Sokola, D-Newark, and Reps. Michael Mulrooney, D-Pennwood, and Edward Osienski, D-Newark.
“On behalf of thousands of Delaware Tech students and the hundreds of dedicated employees who serve them, we thank the sponsors of this landmark legislation for investing in the future and preventing this looming infrastructure crisis on our campuses,” said Delaware Tech President Dr. Mark T. Brainard. “We remain committed to providing high-quality programs and connecting Delawareans to local jobs. This legislation is essential to fulfilling that mission for the next generation and beyond.”
A copy of the legislation can be downloaded here.
This fund would provide Delaware Tech a much-needed infusion of capital to upgrade its aging facilities while expanding to meet increased demand for its programs.
“It’s time to address the immediate and long-term capital needs of Delaware’s community college system,” said McDowell, who co-chairs the General Assembly’s Joint Finance Committee. “The College is currently facing $153 million in capital deferred maintenance and expansion needs as a result of an antiquated funding formula. This level of need should be no surprise given the fact the College does not have the ability to issue bonds, access large endowments or go out to referendum. Given the age of its facilities and statewide presence, I’m surprised the figure is not higher.”
Senate Bill 137 would provide bonding authority to the College’s Board of Trustees that is similar to the state’s school districts and mirrors the funding structure of the state’s vo-tech schools. If SB 137 becomes law, it would create a statewide property tax, with the rate projected to start at 1.9 cents per $100 of assessed value in FY 2017 and gradually increase to less than 5 cents per $100 of assessed value over the next 5 years. The tax rate would be capped at 10 cents per $100 of assessed value.
The CCIF would be used for capital projects only.
“This proposal would allow the College to conduct multi-year capital planning while saving the state $6 million per year in capital appropriations,” McDowell said. “Delaware Tech has proven to be a good steward of the state’s money in the past, and there’s no better time to reinvest in our community college system than now.”
Across Delaware Tech’s four campuses, the College maintains 1.3 million square feet of space in more than 40 buildings on 352 acres of land. In just five years, 50 percent of its facilities will be more than 40 years old. The replacement value of these facilities is approximately $400 million, and because of inconsistent annual funding allocations for infrastructure reinvestment, the amount of deferred maintenance alone has grown to nearly $85 million.
The CCIF would make more than $100 million in projects possible over the next five years – a potential boon to local construction firms. Ninety percent – more than $25 million – of the work completed during the College’s FY 2012 – FY 2015 capital maintenance program went to Delaware contractors.
“This is the responsible thing for the state to do – to invest in our community college and in our economy,” McDowell said. “Passage of this bill will finally provide a long-term solution to the College’s long-standing deferred maintenance problem while boosting Delaware’s economy in the short-term.”
Joining McDowell as prime sponsors are Sen. David Sokola, D-Newark, and Reps. Michael Mulrooney, D-Pennwood, and Edward Osienski, D-Newark.
“On behalf of thousands of Delaware Tech students and the hundreds of dedicated employees who serve them, we thank the sponsors of this landmark legislation for investing in the future and preventing this looming infrastructure crisis on our campuses,” said Delaware Tech President Dr. Mark T. Brainard. “We remain committed to providing high-quality programs and connecting Delawareans to local jobs. This legislation is essential to fulfilling that mission for the next generation and beyond.”
A copy of the legislation can be downloaded here.
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Press Contacts
Scott Goss
Communications Director
(302) 744-4180
scott.goss@delaware.gov
Dylan McDowell
Communications Assistant
(302) 744-4282
dylan.mcdowell@delaware.gov
Scott Goss
Communications Director
(302) 744-4180
scott.goss@delaware.gov
Dylan McDowell
Communications Assistant
(302) 744-4282
dylan.mcdowell@delaware.gov