Fiscal Analysis

MCC CONSTRUCTION AUTHORIZATION

 

Bill/Sponsor

HOUSE CONCURRENT RESOLUTION 98/(as introduced) Rep. Valentine

House Committee

 

Analysis

Summary

Provides cost and construction authorizations for the Muskegon Community College capital outlay project entitled Student Services One-Stop Center.  Establishing these authorizations in this manner is consistent with Section 246(1) of PA 431 of 1984.  It is being fast-tracked due to critical timing issues of federal IRS regulations concerning the issuance of State Building Authority bonds.

This project was one of twelve community colleges who received a project planning authorization under PA 278 of 2008. This is the only one currently under construction.  This project was initiated in the fall of 2007 as a state approved, but non state-funded project costing $3.2 million.  Actual construction began in April and this part of the project is nearing completion.  Now with the infusion of state monies, the project scope has been expanded to allow for upgrading the Nursing Program space.

Fiscal Impact

Legislative adoption of the resolution commits state funds for construction.  State Building Authority bonds will be the funding source with debt service to be a GF/GP obligation.  This is estimated to be about $200,000 to $225,000, annually.

Total Authorized Project Cost

College Funds

State Funds

Muskegon Community College – Student Services One-Stop Center

This project entails renovating space in the MCC Main Building to centralize all student service components such as admissions, financial aid, and registration in close proximity.  Upgrading Nursing Program space is also part of the expanded project scope.

$5,000,000

$2,500,000

$2,500,000

Local Fiscal Impact

Muskegon CC will fund at least 50% of the project cost.

Analyst(s)

Al Valenzio

Analysis 11/04/08

                                                                                                                                                                                    Mitchell Bean, Director

                                                                                                                                                     124 N. Capitol Avenue, Lansing, MI 48909

                                                                                                                                               Phone: (517) 373-8080; Fax: (517) 373-5874

                                                                                                                                                                        http://www.house.mi.gov/hfa