S.D. Admin. R. 24:59:04:02

Current through Register Vol. 51, page 67, December 16, 2024

Section 24:59:04:02 - Approval of new bonds for lease purchase agreements

The South Dakota Board of Technical Education shall propose the adoption of a resolution for new facility bonds for lease purchase agreements if it considers it necessary and feasible based upon need and capacity for additional bonding. Items that the Board of Technical Education may consider in its deliberations are:

(1) Identification and description of the purpose of the proposed bonds;

(2) Availability of local, regional, and other outside support of the project;

(3) Industry support for the postsecondary technical institute and the program or programs it is expanding as part of the project;

(4) Projected five-year enrollment growth at the postsecondary technical institute due to the project;

(5) The estimated increase in state fees charged to students needed for debt coverage;

(6) Ratio of state fees charged to students for bonding projects to total tuition and fees;

(7) Physical capacity constraints of current facilities;

(8) Historical enrollment growth of postsecondary technical institute, particularly as it relates to past expansions;

(9) Anticipated demand for new and expanded curriculum;

(10) Information on how South Dakota postsecondary technical institutes total tuition and fees, state appropriation, and local taxing authority appropriation compare to those of other regional two-year colleges and technical institutes;

(11) Graduate placement rates of the postsecondary technical institute considering construction;

(12) Debt term length and payment structure of all existing bonds and new bonds being considered;

(13) Debt coverage ratio of all existing bonds and new bonds being considered;

(14) The term of bond compared to the average useful life of the asset or assets; and

(15) Capital expenditures of each postsecondary technical institute over the past ten years. New bonds for lease purchase agreements for postsecondary technical institutes must receive approval by adoption of a resolution from the Board of Technical Education and must be approved by the Legislature before being issued.

S.D. Admin. R. 24:59:04:02

Transferred from 24:10:46:02, 44 SDR 184, effective 6/25/2018

General Authority: SDCL 1-16A-94, 13-39A-24.

Law Implemented: SDCL 1-16A-93, 1-16A-95, 13-39A-24, 13-39A-25, 13-39A-26.