STATEHOUSE (Feb. 25, 2010) - Senate lawmakers voted 50-0 to approve a measure that could spur economic development and job creation by streamlining the financing process for state university and college building projects.

State Sens. Ron Alting (R-Lafayette) and Brandt Hershman (R-Lafayette), sponsors of House Bill 1297, said the legislation would help universities accelerate building projects by allowing them to finance grant and contract anticipation loans for the full amount, as opposed to 80 percent of the grant as allowed by current law.

In addition, schools could issue grant anticipation notes for projects funded by individual donors as opposed to waiting to receive the full donation amount. Currently, debt cannot be issued based on individual donor gifts.

“This bill allows for economic development opportunities, because projects could be started without waiting for the entire gift or grant amount to be received,” Hershman said. “This would mean that jobs would be available sooner and construction would be finished earlier, which is likely to result in cost savings.”

Alting said some donations to colleges and universities are incremental, and it is unfortunate projects are placed on hold until the full amount is received.

“If grant, loan and gift money is put to work quicker, projects will not have to be delayed for a long period of time,” Alting said. “Not only does this spur economic development, it helps our state universities progress and provide a more positive learning atmosphere for their students.”

Sen. Alting represents Senate District 22, which includes a portion of Tippecanoe County.