Posted on: Friday, January 14, 2005

Lingle plan loosens UH's reins

By Beverly Creamer
Advertiser Education Writer

Gov. Linda Lingle announced yesterday that she will bring to the Legislature a package of bills to move the University of Hawai'i toward greater autonomy, including measures allowing the university to float $250 million worth of bonds for student housing, and control its own lands.

The measures, if passed in the legislative session that opens Wednesday, would move the university farther down the road to full autonomy launched in 2000 when voters passed an amendment to the state Constitution.

While the proposals could offer the university more independence, they won't affect plans for a tuition increase, said a UH spokeswoman.

"As UH prepares to celebrate its 100th anniversary, we want to do everything we can to ensure the success of the system," said Lingle. "We want the university to have the flexibility and authority they need to plan for the long term.

"They need to have additional autonomy and yet continue to collaborate with the government and the private sector," she said, adding that her five proposals "give the university greater autonomy to chart its own direction to reach its full potential" but are also a recognition of the many improvements needed on campuses throughout the UH system.

Interim UH President David McClain, who worked with Lingle for almost six months to prepare the proposed legislation, called the package a huge step toward giving the university the flexibility it needs to move quickly in many directions.

"It's about speed," said McClain. "Universities everywhere are seeking more flexibility.

"We're big and I think we're pretty smart and I think we're pretty tough," he said using a football analogy of what's needed to succeed. "But you also need to have the flexibility for a large powerful organization to operate, and the governor and her staff have recognized that.

"We've asked for that kind of flexibility and she's given it to us and we're just delighted."

While the measures, if passed, don't give the university full autonomy, they move it toward greater independence.

The five proposals include giving the university:

• Authority to issue up to $250 million in revenue bonds for construction and renovation of student housing anywhere in the system. Student housing payments would repay bond debt. Currently UH has a request for qualifications and proposals out for private developers to rebuild or renovate three of the oldest dorms at UH-Manoa. McClain said this new initiative would offer the university greater flexibility in negotiating a public/private partnership with potential developers.

• The ability to enter into long-term public/private partnerships for development, construction and financing agreements, to expedite progress on a West O'ahu campus in Kapolei, a new Cancer Research Center in Kaka'ako and additional student housing.

• The authority and independence to manage public or commercial activity on land it owns or controls. This proposal would enable the university to develop rules to oversee and control the type of activity that can take place on the land, including the ability to levy fines.

• The power to operate financial and accounting systems, making permanent a 1986 law set to expire June 30.

• Remove the university from constraints of the State Procurement Code, which were passed last year, by reinstating its authority to procure goods.

Lingle has supported full autonomy for the university since her election in 2002, but this is the first time that commitment has been demonstrated by a package of proposals.

Last year autonomy took a step backward when the university was swept back under the authority of the state procurement law and control by Department of Accounting and General Services regulations that have dramatically slowed purchasing even basic supplies, according to university officials.

Reach Beverly Creamer at bcreamer@honoluluadvertiser.com or 525-8013.