STATEHOUSE (March 8, 2010) - A measure co-sponsored by State Sens. Ron Alting and Brandt Hershman (Rs-Lafayette) that could spur economic development and job creation by streamlining the financing process for state university and college building projects is now on its way to the governor’s desk.

House Bill 1297 easily passed its final legislative hurdle, advancing to the governor’s office after a 93-0 vote.

“This 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,” Hershman said. “By no longer delaying building projects due to the financing process, colleges and universities can help spur economic development opportunities and job creation.”

Schools can also 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, Alting said.

“Some donations and gifts to colleges are not given in lump sums,” Alting said. “When funding for a project depended on a donation, that project ran the risk of being put on hold until the entire gift amount was received. Now, projects can be started without waiting for the entire gift amount.”

Hershman represents Senate District 7, which includes Carroll, Clinton, Howard, Jasper, Tippecanoe and White counties.