The Texas State University System is seeing increased debt, a trend expected as its institutions increase in size. The Texas State University System has over almost $800 million in outstanding debt, which is supported by the use of different bonds, The University Star
Non-tuition revenue bond debt accounts for most higher education debt in Texas and at Texas State the debt is mostly due to construction projects. These projects include the North Campus Housing Complex which will be financed by students when they pay their room rent. Another recent construction project is the expansion of Bobcat Stadium, which will be paid back through ticket sales, alumni and other gifts, and the student athletic fee.
Texas State is seeing increased enrollment, which leads to more outstanding debt because additional facilities have to be built for the expanded student body. Current and recent projects include McCoy Hall, the Undergraduate Academic Center, and St. David’s School of Nursing at the Round Rock Campus. These are all financed using tuition revenue bonds, which are authorized by the legislature for specific projects. Texas State plans to ask the legislature to allow additional tuition revenue bonds for more projects early next year.
Susan Combs, the Texas comptroller of public accounts who released a report detailing outstanding debt at Texas’ higher education campuses, encouraged universities to use online education to save money. This suggestion would not help Texas State, as they already need a million more square feet than they currently have to support just the students attending now. They also need facilities for hands on research in engineering and science, skills that can’t be taught online.