RALEIGH: "Failure to pass the bonds will mean lost educational opportunities and lost economic opportunities," said State Treasurer Harlan Boyles, an ex-officio member of the State Board of Community Colleges. Boyles added, "The return on the investments from these bonds will far outweigh their costs."

Boyles’ comments were in response to an editorial issued by the John Locke Foundation which asserts the required local match for the $600 million for community colleges included in the $3.1 billion Higher Education bond would create tax increases in many North Carolina counties.

Quite the contrary, said the State Treasurer at the State Board meeting: "This assistance from the state will take away a need for a tax increase at the local level." Boyles added the situation is quite the opposite from what some have asserted, because county burden is reduced. "This grant in aid program from the state will reduce the burden upon the counties to provide facilities for community colleges."

North Carolina Community College President H. Martin Lancaster commented that the article was "an unfortunate scare tactic and not based on fact." He added, "The fact of the matter is, except in a handful of counties, there should not be any heavy lifting to meet the match. Many counties have already contributed, creating an overmatch situation. Other counties have no match requirement because of their low-wealth status. This leaves only a handful with a required match." Lancaster added 29 institutions have no match required to enable them to receive bond dollars.

"Facilities are 100% the obligation of the counties unless the state voluntarily, through bond issue or appropriation, assists with capital expenses," said Lancaster. "Without this bond, the full responsibility for $600 million in repairs, renovation and construction would be on the counties, but these bonds will relieve a large portion of their fiscal burden."

The $600 million bond proposal provides $488 million -- almost five of every six dollars -- to counties without any local match at all. This amount includes $100 million for emergency repairs and renovations, which requires no match. Every community college will receive repair and renovation money.

While a match is required for $112 million, several options are possible for the counties. The match can be provided through revenue growth. Also, the counties have six years to spread out the payment if they choose to provide the matching funds. They can, however, opt to receive only the unmatched amount and provide no matching funds at all.

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