Lawmakers advance bill to help NU pay for $800M in deferred maintenance needs
“A lot of times, these don’t sound like flashy projects,” Carter said, but they are the type of maintenance project the new funding mechanism was designed to finance.
“Our faculty deserve teaching and lab spaces that reflect their amazing talents, and our students deserve excellent spaces for learning and working,” Carter said.
Many of the projects being brought forward are those that may not interest donors but are important to improving the core work being done on a university campus.
Chris Kabourek, vice president for business and finance, said IRS rules on tax-exempt debt mean the university will need to spend the $400 million within 36 to 60 months.
All told, NU has directed $103 million in deferred maintenance funds, including $26.5 million to about three dozen small projects, the university said.
NU asks state lawmakers for help addressing ‘$800M challenge’ of aging buildings
“We just can’t sit on this, so we’ve got to get it out the door,” Kabourek said.
An added benefit to the new program is the requirement that 2% of the cost of each project be set aside into a sustainable deferred maintenance fund, which will allow NU to keep up with repair needs in the future.