What is the single most constraining factor in expanding the UW and remaining nationally competitive in research? Space. As NIH budgets continue to grow, promising UW research to be funded by grants is either being left unfunded or postponed until space becomes available. This puts the University at a distinct disadvantage with competing research institutions. Unfortunately, given intense competition for State of Washington capital dollars, the State is less able to provide funding for new research facilities through direct capital appropriations.

The University addressed this dilemma in low profile legislation submitted earlier this spring. This legislation gave the UW and WSU authority to enter into financing arrangements to help fund research facilities. This financing authority will enable the two research Universities to leverage private gift and grant funds by substantially reducing the time to finance research facilities and increasing the certainty that a transaction will be completed. Additionally, the new legislation complements authority that was granted last session that allows the Universities to issue their own long term bonds to be paid back with indirect cost revenue.

Financial Management personnel partnered with Government Relations, the Budget Office, and the Attorney General to develop the draft legislation, shepherd it through the legislative process, and answer questions from legislative staff. It was a great relief to all involved when the word came from Olympia that the proposed legislation will become law in July of 2003.

The impact of this change on the future of research at UW is measured in turnaround time and research dollars. It will soon be possible for administrators to identify a need, develop a financing plan, and fund a research building in a much shorter time period. The months and years saved could mean the difference between a large research grant staying at UW or going to another school. This vital improvement will help carry UW’s “margin of excellence” into the future.

The Debt Financing Group is Doug Breckel, Scott Davies, and Chris Malins.