Leaders at the University of Wisconsin-Madison are once again pushing state lawmakers for more financial autonomy in this year’s state budget negotiations. The university is requesting authority to borrow funds for construction projects that are funded by UW-Madison itself, without state tax dollars. Currently, the authority to issue bonds rests with the state.

As one of the only universities in the Big Ten without this power, UW-Madison argues that granting bonding authority would enable the institution to be more agile and competitive with other top universities.

“It’s kind of embarrassing as a research institution,” said Ananth Seshadri, a UW-Madison economics professor. “I’ve been here for 24 years as a faculty member. Every chancellor has wanted some version of bonding authority.”

Seshadri, who served on a legislative committee examining the future of public universities, noted that most members of the committee supported the idea of granting UW-Madison bonding authority. However, they recommended safeguards such as limiting the authority to certain projects' costs.

Not all lawmakers support this idea, though. Democratic Sen. Chris Larson, who served on the committee, expressed concerns, stating that the proposal left “too many open threads” for him. Assembly Speaker Robin Vos also voiced hesitation, arguing that the state could ultimately bear responsibility if the university failed to repay its debts.

"The reason I do not support it is because I am concerned that whatever project was bid out, strings would be put on that enact a political agenda based on the ideology of the folks on campus, as opposed to the best interest of the state," Vos explained.

While UW-Madison officials are open to discussions about oversight, they also stress that the ability to issue bonds would help the university avoid over-reliance on state funding.

“We recognize that an appropriate level of oversight will be necessary to ensure transparency into the process for campus building projects,” said UW-Madison spokesperson Greg Bump.

Seshadri emphasized that the university could have completed vital infrastructure projects—like a new engineering building—more quickly if it had had bonding authority. The university had to go through a lengthy and politically entangled process to get approval for the building.

With the National Institutes of Health cutting research funding, including a potential $65 million loss in "indirect costs" for UW-Madison, the need for greater financial independence is more pressing. "Bonding authority would allow the campus to rely less on the state for projects and increase economic activity through more construction," said Seshadri.

In a related issue, UW-Madison students will vote this month on a referendum calling for bonding authority to help alleviate the “student housing crisis.” According to Dominic Zappia, a senior and chair of the Associated Students of Madison, rising rent and decreasing availability of student housing are urgent issues that need addressing.

“The university can create more supply to meet demand by building new residence halls or repairing aging ones,” Zappia said.

While some lawmakers are skeptical of the proposal, former UW System Board of Regents member Scott Beightol has urged for a shift in approach. “Let’s free them up,” he said, arguing that UW-Madison is a key economic driver in the state and could be more efficient if granted more financial autonomy.

Despite political challenges, UW-Madison remains committed to discussing the future of bonding authority with state lawmakers. As the budget process moves forward, the university will continue pushing for the ability to fund essential infrastructure projects without relying solely on state dollars.

Originally reported by Becky Jacobs in The Cap Times.