Guest ContributorIn this latest Q&A feature, we visit with Arizona Board of Regents Executive Director Chad Sampson, who assumed that role last year after previously serving as ABOR associate general counsel and as vice president of academic affairs and institutional analysis.
Sampson discusses the importance of Arizona’s three public universities to the economic success of the state, ensuring its talent pipeline remains full so Arizona can continue to attract job creators.
He also discusses ABOR’s SPEED bond proposal and how it will help Arizona meet its workforce demands.
Can you briefly explain the Arizona Board of Regents’ roles and responsibilities?
The Arizona Board of Regents serves as the governing body for Arizona’s public university system, overseeing Arizona State University, Northern Arizona University, and the University of Arizona. The board is responsible for hiring university presidents, setting tuition, approving budgets, making policy, and ensuring that the universities fulfill their educational, research, and service missions. The board plays a vital role focusing university initiatives on the needs of our state.
How do you ensure our public universities are meeting the needs of Arizona employers, whether it’s for today’s jobs or the future?
Our board and universities are focused on educating and preparing students to enter the workforce, particularly high-demand industries. At the Phoenix Bioscience Core, our universities are at the center of cutting-edge medical research alongside industry partners such as TGen, Banner Health, Exact Sciences and the Dignity Health Cancer Institute. Our universities are cited as a main reason the Department of Defense selected our state as the microelectronics hub for the southwest. We are critical partners in training the next generation of Arizona teachers, healthcare workers, engineers, entrepreneurs and so much more. Our universities work closely with industry leaders to identify workforce trends, invest in innovation, and adapt quickly to economic changes, creating a talent pipeline that supports Arizona’s economy.
What are SPEED Bonds?
SPEED bonds are construction loans used by Arizona’s public universities and supported by Arizona Lottery ticket sales. Bond repayments are a shared responsibility with both the university and the Arizona Lottery splitting the costs of the annual debt service.
Can you please explain the SPEED Bond expansion proposal and why it’s important?
SPEED bonds are the only recurring financial support provided to build and maintain public university facilities. Our universities have seen tremendous enrollment growth over the past decade, while at the same time have sustained large budget cuts from the state. Expanding the SPEED bond program will allow our universities to meet the facility needs that support workforce demands for additional health care, mining, agriculture, energy and water professionals.
How will this impact the General Fund?
Lottery profits are distributed as waterfall funding, with university SPEED bonding as one of the last beneficiaries. All remaining lottery revenues are deposited into the General Fund. Since SPEED bonds are covered by lottery and university revenues, the impact to the General Fund could be offset by lottery growth. Based on historic lottery performance, we anticipate that SPEED expansion will be covered by lottery growth and bond sale timing.
How does Northern Arizona University plan to utilize expanded SPEED Bond capacity?
NAU plans to build a new nursing facility with expanded SPEED bond capacity, which will serve more than 1,200 aspiring health professionals each year who are committed to serving Arizona communities, including rural areas.
What is Arizona State University’s plan?
With the increased need for doctors and health professionals in Arizona, ASU plans to use expanded SPEED bond capacity to build a desperately needed medical school in the Phoenix Bioscience Core.
What about the University of Arizona?
With expanded SPEED bond capacity, U of A plans to revitalize its environmental, hydrology and atmospheric sciences building to support workforce needs in Arizona’s mining, agriculture, energy and water industries.
Why are these upgrades and developments important for the state?
Each university proposal is tackling a critical workforce need for our state. In addition, building these facilities will stimulate the economy in each region by creating new construction jobs, which was part of the original intention of SPEED when it was first passed by the legislature during the Great Recession.
Are there any additional guardrails on how universities can use SPEED bonds?
The legislature has wisely included an additional step for SPEED bond projects. Although SPEED capacity is set in the state budget, universities must bring their plans for each project before the Joint Legislative Committee on Capital Review, which includes legislators from both chambers.
Joseph Kavetsky
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