EWCHEC Financing Bill Filed
Rep. Diana Maldonado (D-Round Rock) filed a bill March 9 aiming to end financing difficulties for the East Williamson County Higher Education Center.

Banks have been hesitant to provide the credit necessary to begin construction on the 25,000 square foot educational facility because of its complex funding structure, which has been compounded by the ongoing recession and banking crisis.

While the center has $550,000 in annual pledged contributions for the next 20 years, by law, some of those entities are required to reapprove their donation each year. The possibility that one organization may decide to end its annual donation somewhere down the road has made banks skittish towards underwriting any bonds.

However, Maldonado’s bill, HB 2805, would allow those entities to “pledge irrevocably” to continue funding the facility until any bonds issued are paid back.

“I have a deep, personal respect for those who actively seek to gain the necessary education and training to enter our local workforce,” Maldonado said. “Increasing access to quality, affordable higher education is one of my top priorities, and I will continue working to ensure our students and families are trained and prepared to enter the global marketplace.”

The Higher Education Committee at the state legislature received the bill Tuesday. To become law, it must be passed by the House, sent to a senate committee, passed by the Senate and then signed by the governor.

Once signed, it would require the City of Taylor, Taylor Economic Development Corporation, Texas State Technical College, Taylor ISD and Temple College at Taylor Foundation to regularly appropriate their annual contributions without any debate.

However, the EWCHEC board is not hedging their bets even though bills of such a narrow scope — the adjustment to financing would only apply to affected organizations and only in this one case — are usually passed with little debate.

“I don’t know enough about the process to give any prognosis,” Temple College at Taylor Board Member John Nelson said. “People tell me it’s usually an easy thing to do, ... but we’re exploring all options.”

That includes seeking a possible 40-year loan from the United States Department of Agriculture, Nelson said. The loan would pay for half of the $7.5 million needed for construction of phase one of the center. EWCHEC would get a USDA guaranteed bank loan for the rest of the financing.

The USDA loan program is intended to create educational and employment diversification in communities with a strong reliance on agriculture, Nelson said.

Officials are also still seeking conventional financing through continued talks with a number of banks. A bank would be required to underwrite any bonds issued for EWCHEC’s benefit.

In the meantime, each contributing organization is being asked to pledge their support for the legislation to show solidarity. The Taylor City Council approved sending a resolution in favor of the bill to the legislature Thursday.

When completed, EWCHEC will become an educational neighbor to the new high school. The initial financing will pay for phase one of the project, though Nelson envisions a much larger facility offering a bevy of educational opportunities for the children and young adults of Taylor.

“(Phase one) will be a tremendous complex, but it’s just the start,” he said.