Topeka — A proposal to spend $115 million building research facilities at the state's top three universities hit a major obstacle Tuesday.
The bill authorizing bonds to finance the construction exempts the projects from numerous public disclosure laws, and that drew a sharp slap from powerful associations and some state lawmakers.
Rep. Tony Powell, R-Wichita, called the exemptions dealing with bids, contracts, purchases and public notices a "terrible idea" that could destroy the whole proposal.
Representatives of engineers, architects and contractors said they supported the construction of the facilities, including a biomedical research center at Kansas University, but they criticized the exemptions built into the bill.
"These statutes are in place to provide assurances that the taxpayer is being best served and that politics remain out of the selection process for contractors and other construction related professionals," said Corey Peterson, executive vice president of the Associated General Contractors of Kansas.
But Clay Blair, chairman of the Kansas Board of Regents, said the exemptions were necessary to give higher education officials "flexibility to move forward, move quickly and move efficiently." But, he added, the proposed exemptions are "open to negotiation."
The House Appropriations Committee conducted a public hearing on the measure but took no action. Committee Chairman Kenny Wilk, R-Lansing, said the panel would have to further examine the public disclosure exemptions.
A top priority
The measure, while supported by many legislative leaders, has also received a cool welcome from Gov. Bill Graves, who has said that the Legislature needs to focus on adequately funding higher education now before getting into future research initiatives.
Under the bill, the state would issue bonds to provide $60 million to KU for a biomedical center, $45 million to Kansas State University for a food safety facility and $10 million to Wichita State for expansion of aviation engineering. Higher education officials have touted the proposal as one of their top priorities for the current legislative session, saying that without it the state will fall behind in attracting federal research dollars.
The state would finance the debt over the first five years, which is expected to cost $50 million, and then the schools would pay off the remaining debt, with the plan being that they could foot the bill through the additional federal grants and research dollars generated by the facilities.
Blair has long complained of some restrictions on university construction projects, such as having to pay the state for architectural fees when some schools, such as KU, have architects who can work on buildings.
But under the legislation, the projects would also be exempt from other statutes including one adopted by the Legislature two years ago in the wake of the controversy over Atty. Gen. Carla Stovall hiring her former law firm to handle the state's portion of the Big Tobacco lawsuit.
That statute requires negotiated, competitive bids for professional services. Powell, one of the authors of the legislation, said the statute needs to be followed by the regents.
"You need to have an objective system in place to set up contracts. The good old boy network doesn't work anymore," Powell said.
Support for effort
Aside from the controversy over the exemptions, the proposed research initiative received widespread support.
Jewell Scott, executive director of the Civic Council of Greater Kansas City, and Pete Levi, president of the Greater Kansas City Chamber of Commerce, said the KU biomedical center was a crucial component in helping the area become a national leader in research in treating diseases.
Scott said the Stowers Institute for Medical Research, which has attracted internationally known scientists, is considering whether to build a second building. A big part of that decision will hinge on whether the Kansas Legislature adopts the research facility plan, she said.
Both Blair and KU executive vice chancellor Janet Murguia also pointed to the departure of nationally known kidney researcher Billy Hudson from the KU Medical Center as a reason for approving the research funding. Hudson left for Vanderbilt University, saying that Vanderbilt offered better research opportunities.
Hudson's departure robs the state of prestige in research and millions of dollars in research funds, Blair and Murguia said.
"We're going to do the best we can, but it would be disingenuous for me to say we're not affected by that in a real way," Murguia said.
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