State lawmakers criticize KU bond issue

Posted at 1:05 PM, Feb 02, 2016
and last updated 2016-02-02 14:05:08-05
Kansas lawmakers are criticizing an arrangement in which the University of Kansas borrowed hundreds of millions in out-of-state bonds to build facilities without the approval of the state Legislature.
The university used Wisconsin-based Public Finance Authority to issue nearly $327 million in bonds last month and set up a private corporation to serve as the debtor so it wouldn't have to seek legislative permission.
University officials say they followed the law.
The Wichita Eagle reports that House Republicans are drafting legislation to prevent state universities from making similar arrangements in the future.
House Speaker and Republican Rep. Ray Merrick criticized the arrangement as avoiding legislative oversight and public view.
The money will finance the construction of buildings on the Lawrence campus, including a science building, dormitory and student union.