PROJECT COST INCREASE S.C.R. 52: COMMITTEE SUMMARY






Senate Concurrent Resolution 52 (as introduced 6-13-06)
Sponsor: Senator Beverly S. Hammerstrom
Committee: Appropriations


Date Completed: 6-14-06

CONTENT
The Department of Management and Budget, on behalf of Jackson Community College, is requesting that the total project cost for the Information and Technology Center and Center for Health Professions Renovation project be increased by $800,000 (5%), from $16.5 million to $17.3 million, to be paid for entirely from college resources.


The project was initially authorized for construction in Public Act 297 of 2005 with a total project cost of $16.5 million with $7.5 million (45%) coming from the State and $9.0 million (55%) matched by the college. The College indicates that the bids received on the project were higher than anticipated due to increases in the cost of steel, copper, and petroleum-based products. The College has agreed to fund the entire cost increase. There is no requested change in the State's portion of project financing.


Fund Source Current Authorization Requested Change Revised Authorization
  State $7,500,000 $ 0 $7,500,000
Institution $9,000,000 $800,000 $9,800,000
  Totals $16,500,000 $800,000 $17,300,000
FISCAL IMPACT
There would be no fiscal impact on State government as the college will be financing the entire cost increase from its own revenue.

Fiscal Analyst: Michael Hansen

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. 52/0506