In Texas, we have traditionally financed new college and university buildings by having institutions issue "tuition revenue bonds" with annual financing costs over the long term expected to be covered by the Legislature out of general revenues.
This is a prudent and essential process and historically has been considered to be sound by financial markets.
During the regular 2013 session, for the purpose of public college and university infrastructure financing, the Texas Legislature passed a $2 billion "tuition revenue bond" authorization bill in one chamber and a $2.5 billion bill in the other.
But they apparently couldn't come to a final agreement on the two bills. The result was that there has been no authorization for new higher education buildings since 2006.