Lowndes County supervisors want more time to consider a resolution that would pave the way for a $13.5 million bond issue for the Communiversity later this year.
The Communiversity, which is currently under construction on Highway 82 next to PACCAR, is a joint project between Clay, Lowndes and Oktibbeha counties, along with East Mississippi Community College to build a regional workforce training center.
The resolution allows East Mississippi Community College to issue $13.5 million in bonds for the project’s local funding — $10 million from Lowndes County; $2.5 million from Oktibbeha County; and $1 million from Clay County.
Joe Max Higgins, CEO for the Golden Triangle Development LINK with which the three counties contract for economic development projects, appeared before Lowndes supervisors Monday and reported the bonds would be repayable over 20 years.
Board President Harry Sanders and District 2 Supervisor Bill Brigham asked if the Lowndes County could repay its portion of the debt sooner, or if the county could issue a separate $10 million bank loan for the funding with a faster repayment schedule.
Higgins said he didn’t think that would be a problem, but he’d have to check to make sure there weren’t any drawbacks.
“Fundamentally, I don’t think (EMCC President Thomas Huebner) would care if you walked in and handed him a $10 million check,” Higgins said.
Supervisors tabled the matter until the board’s next meeting.
Brigham, speaking to The Dispatch after Monday’s meeting, said supervisors support the Communiversity project. However, he said he’d like, if possible, to have a shorter period on the payments.
“Personally, I don’t like 20-year debt,” Brigham said. “I don’t like to obligate a community 20 years down the road. I like 10, max 15 (years) — preferably 10. I think we could pay it off in 10 years or less based on what our (ad valorem) mill is going to be doing.”
Brigham also noted that Lowndes County will likely go along with the 20-year bond if issuing its payment separately would negatively impact Clay and Oktibbeha counties.
The Communiversity is fully funded, with $18 million from the state, $13.5 in combined local funding and roughly $12.5 million in federal funding through an initial obligation and extra funding from a continuing resolution.
Higgins said the extra federal funding allowed designers to plan for 21 manufacturing bays, instead of the originally planned 15. Higgins said remaining money will purchase manufacturing equipment that’s used by local industries to help with training.
State cuts
While the Communiversity project moves ahead, community colleges across the state have to deal with a budget crisis brought on by sagging state funding. According to the Associated Press, community colleges began last year with $265 million in state funding. That figure will drop $28 million to $237 million in funding for the start of the next fiscal year.
Community colleges are raising tuition by 13 percent, and according to the report, are cutting a total of 250 jobs to deal with the shortfall.
EMCC, which eliminated its collegiate golf program due to the budget cuts, will run the Communiversity. However, Higgins said he’s not concerned that the state’s budget situation will have any serious long-term negative impacts on the project.
“Most of the state schools depend on the income they get from tuition,” Higgins said. “As I understand it, the industrial training center is a money maker.”
Higgins said he’s spoken to Huebner about the matter and is confident the cuts won’t jeopardize the Communiversity project.
“This is a bubble we’re in with the budget,” Higgins said. “This school won’t even be finished for another year and a half and will be operational for another 30 to 40 years.”
Huebner could not be reached for comment by press time.
Alex Holloway was formerly a reporter with The Dispatch.
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