Delaware colleges ask for 800 percent extra in capital funding

Delaware's three largest higher education institutions went for broke this week by asking the General Assembly for nearly $180 million to fund new construction and long-delayed maintenance projects.

Delaware State University wants $100 million to tackle a slew of repairs to the school's mechanical systems, campus roadways and existing buildings.

The University of Delaware is seeking $66.5 million, most of which would help fund a "transformational" new building on its STAR Campus.

And Delaware Technical Community College hopes to get $12.4 million to upgrade its own aging infrastructure and help support an expansion of the parking garage at its Wilmington campus.

Collectively, the three requests submitted to the Bond Bill Committee on Wednesday represent an 800-percent increase over the capital funding that Gov. John Carney recommended the schools receive in January.

They're also just the latest big-ticket items to appear on a crowded wish list of spending proposals vying for the $350 million in extra revenue the state is expected to rake in next year.

"It's going to be challenging," said Rep. Quinn Johnson, D-Middletown, who chairs the bond bill committee. "There is a lot of pent-up demand and that's coming out in these requests."

Carney's $4.25 billion operating budget proposal suggested legislators invest $100 million of the added cash that's expected next year on one-time spending items in the bond bill, which generally uses long-term financing to pay for roads, schools and state office buildings.

The capital spending plan he proposed topped out at $677.5 million, nearly 15 percent more than the state budgeted this year. The requests submitted by the three schools Wednesday would eat up more than a quarter of that total.

Carney's proposal would provide $6.5 million in capital funding to each of the schools and stuck to a long tradition of allocating capital funds equally among those institutions. That does not include the $237 million they would split in operating funds — an 8.5 percent hike over this year's budget.

The presidents of those institutions say the level of capital funding prescribed by the governor would come nowhere close to addressing their needs. With more revenue now on the table, they want a bigger piece of the pie.

The eye-popping $100 million sought by DSU Interim President Wilma Mishoe is more than twice the capital appropriation the Dover-based university has received in the last 10 years — combined.

It also would be the fourth largest appropriation under Carney's proposed capital budget, behind only the Delaware Department of Transportation, the state's public school system and the Office of Management and Budget, which funds a grab bag of major projects for various state agencies.

"I suspect [past DSU presidents] based their request on historical funding," Mishoe said of the university's skyrocketing request. "This is my first time here and I said I'm going to go for it."

Sen. Brian Busheweller, D-Dover, praised Mishoe for her "bold" request even while noting the "shocking" amount of money being sought.

"If we don't know what the needs of the university are, by definition, we're not going to be able to do a very good job of helping you," he said.

She received a warmer reception than UD President Dennis Assanis, who repeatedly characterized his $66.5 million ask as a "once in a lifetime opportunity" to help ensure his school becomes the epicenter of American efforts to mass produce cutting-edge drugs.

That's more than the total amount Appoquinmink School District is requesting to build a new high school, middle school and elementary school.

Most of the money, Assanis said, would be used to help fund the construction of a $156 million building to support the National Institute for Innovation in Manufacturing Biopharmaceuticals or NIIMBL — a U.S. Department of Commerce-backed endeavor housed at UD.

"The biopharma industry has the potential to change the economic landscape of Delaware," Assanis said. "Working with our public and private partners, we could see the creation of 1,500 to 2,000 jobs over the next decade."

Interim Provost Robin Morgan implored the bond committee to "reach deep into the state's sofa cushions" for funding.

But some lawmakers noted that UD — like DSU — already has the ability to raise money through the bond market.

They also pointed out UD's $1.3 billion endowment and questioned why state taxpayers should assist the university when so many other state agencies are also in need of additional funding.

"A whole host of [groups] need resources to function ... that don't come off as flashy as cutting-edge research technology but have such critical roles," said Sen. Bryan Townsend, D-Newark. "And they don't have endowments."

Assanis said demand for the state to fund capital projects sought by the Department of Correction and public schools is constant.

"The difference is, if they happen this year or next year ... the world will probably be the same," he said. "What we're trying to do is invest in the future."

Both Assanis and Mishoe said their respective schools have reached their borrowing limit by funding new construction projects in years when state funding was limited.

DelTech has not had that luxury.

Its reliance on state bond funding has produced a backlog of maintenance projects across its four campuses that total $100 million by 2020, according to president Mark Brainard.

Legislation has twice been introduced that would allow the community college to borrow money and then collect a small property tax to pay off that debt — a system now used by Delaware's vocational schools.

Those bills have not advanced in the General Assembly, however.

"The issue for us goes beyond just fixing the sidewalks and making sure the air is warm in the winter," Brainard said in a separate interview.

"Last spring, we had a roof leak in one of our buildings that eventually made its way to our server room," he said. "If it weren't for a 10-foot tarp, we wouldn't have the technology that supports all of our online learning, all the educational records and financial aid records we have."

The $12.4 million revised request he submitted on Wednesday would allow the college to undertake a series of minor capital improvements and major renovations, such as the addition of a new level on the college's parking garage in Wilmington.

Rep. Larry Mitchell, D-Elsmere, encouraged his fellow bond bill committee members to consider funding the request of DelTech, where he works as the chief of public safety.

"I've always advocated to say that Delaware Tech is a state agency," he said. "We have to maintain those facilities. So I would ask when we come down to the end ... that more is given to DelTech."

Contact reporter Scott Goss at (302) 324-2281, sgoss@delawareonline.com or on Twitter @ScottGossDel.

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