Fiscal Analysis

StateBuilding Authority Lease

GogebicCommunity College

Bill/Sponsor

SCR 49,  Sen. Johnson

House Committee

Appropriations

Analysis

Summary

To approve a standard State Building Authority (SBA) lease between the SBA, the State, andGogebicCommunity College for special maintenance projects.  The property is also conveyed to the SBA.  This project received cost and construction authorizations under a previous Capital Outlay budget act.

Legislative approval of the resolution, a statutory requirement, enables the SBA to issue debt instruments to finance the state's share of the project's cost.

The Joint Capital Outlay Subcommittee (JCOS) approved this resolution, with recommendation.  The Department of Management and Budget also recommends approval.

State Fiscal Impact

Legislative adoption of this resolution commits the state to annually pay rent to the SBA until its debt obligations are fully satisfied.  The annual GF/GP high/low rental range of $78,000 to $98,000 is provided consistent with PA 183 of 1964.


Project

Total Project Cost

University/

College Funds

State Funds

GF/GPRental Range on SBA Financing

GogebicCommunity College – Special Maintenance.  These projects entail roof and structural repairs.

$1,000,000

$0

$1,000,000

$78,000 to $98,000

Analyst(s)

Al Valenzio

Mitchell Bean, Director - House Fiscal Agency

124 N. Capitol Avenue, Lansing, MI 48909

 Phone: (517)373-8080, Fax: (517)373-5874

 http://www.house.mi.gov/hfa