Date: 02/02/2006
Final
Issues Discussion
COMMITTEE ON CAPITAL DEVELOPMENT
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08:04 AM
The committee was called to order. A quorum was present.
08:04 AM -- Discussion regarding COPs, Controlled Maintenance, and Potential Legislation
The committee opened a discussion regarding a number of topics pertinent to the committee's charge, including Certificates of Participation (COPs), controlled maintenance, and potential committee legislation. Senator Bacon gave a brief overview of these and other discussion topics, referencing a memorandum prepared by Legislative Council Staff (Attachment A). The discussion began on the state budget situation in general, both presently and in the recent past, and the budget's impact on the ability to fund capital development. The committee requested information from staff regarding funding figures for recent fiscal years.
08:16 AM
The discussion turned to the topic of revenue for capital projects. A suggestion was made to restore Controlled Maintenance Trust Fund monies. Discussion ensued regarding the potential for placing a moratorium on new construction and funneling available capital funding into maintenance of existing facilities. This discussion included talk regarding inmate capacity issues within the Department of Corrections. The committee requested a compilation of data detailing the reduction of the capital budget from years past, and a comparison of the cost of funding controlled maintenance for state facilities versus the cost of deferring maintenance to future years.
08:32 AM
The committee discussed potential solutions for restoring revenue for capital projects, again referring to Attachment A. The committee agreed to suggest to the Joint Budget Committee a change in the Senate Bill 97-1 diversion.
08:42 AM
The committee discussed the use of COPs for capital projects. The discussion included commentary on the need to determine the proper level of debt to be carried by the state through the use of COPs and the potential for a funding diversion for COPs similar to the Senate Bill 97-1 diversion.
08:49 AM
Senator Bacon suggested that future committee discussions include the topic of funding for controlled maintenance projects for higher education. Representative Reisberg suggested that the committee communicate with Colorado's congressional delegation with regard to the potential for acquiring federal funds for capital construction projects.
08:51 AM
The meeting was adjourned.