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PREPARED STATEMENT OF Don I. Phillips 

 Executive Director, GUIR Roundtable 

 National Academy of Sciences 

 Page 14 



sustaining capacity, and stimulating selected growth in 



research capacity. Similarly the criteria could target 



the needs of various types of institutions. 



Debt Financing . Debt financing can be a useful mechanism 

 for sustaining research capacity and creating new capacity. 

 Furthermore, the university itself shares in the risk. Through 

 indirect cost reimbursement and tax policies, the federal 

 government already influences this funding mechanism. Pooling of 

 small bond issues and modifying the authorities of the Student 

 Loan Marketing Association and the College Construction Loan 

 Insurance Corporation were additional federal steps suggested to 

 increase the ability of colleges and universities to use debt 

 financing. 



Conclusion 



Adequate facilities funding requires sustained contributions 

 from all sectors. There will be no single or simple solution. 

 All partners in the research enterprise must be involved in 

 developing a comprehensive approach, and all sectors must be 

 committed to changing their current facilities financing 

 practices. 



Given financial constraints and other priorities, it is 

 unrealistic to think of a major federal initiative meeting most 

 needs for construction and renovation of research facilities. 



