Amarillo College will move forward with a new $5 million line of credit through Amarillo National Bank, following a unanimous vote by the Board of Regents during a special meeting held Thursday, Oct. 9, at the Washington Street Campus.
The board’s decision aims to give the college greater financial flexibility as it continues work on projects tied to its 2019 bond and manages the challenges of delayed state funding and rising construction costs.
Board Chairman Jay Barrett made the motion to approve the new line of credit, with Regent Peggy Thomas seconding. Amarillo College President Dr. Jamelle J. Conner presented the item, explaining that the credit line would serve as a strategic tool to help the college bridge funding gaps and respond quickly to emergencies or facility needs.
“It’s standard practice at several institutions,” Conner said, noting that the line of credit would provide “operational flexibility” with a low interest rate and allow the college to maintain progress on key projects.
Addressing Funding Gaps
Thursday’s meeting was called to address the remaining $2.3 million needed to cover projects under the college’s $89.1 million bond program approved in 2019. The bond has funded a series of major renovations and expansions across multiple campuses, including:
First Responders Academy: A new facility for law enforcement, fire technology, and EMS programs at the former J.C. Penney building on Plains Boulevard.
Student Service Center: Renovations to Russell Hall to create a centralized location for admissions, financial aid, and other student services.
Innovation Outpost: A downtown hub designed to connect students with the local business community.
FirstBank Southwest Center (formerly Carter Fitness Center): Upgrades to support intercollegiate athletics, including the college’s new volleyball team.
Arts Department Relocation: Moved from Russell Hall to the College Union Building.
West Campus Expansion: Construction of Steven W. Jones Hall, a new three-story facility supporting nursing and dental health programs.
HVAC and ADA Upgrades: Completed improvements to accessibility and climate control systems.
Rising Costs and State Funding Delays
Dr. Conner explained that the additional $2.3 million in expenses stem largely from pandemic-related construction cost increases and changes to the state’s payment schedule.
Previously, Amarillo College received state funding ten times per year, but it now comes in only three installments — typically $10.2 million in October, $4.5 million in February, and $4.5 million in June. Conner said these payments can vary in timing and amount, complicating the college’s cash flow.
While the college also receives tax revenue at the end of December and tuition payments each spring, the timing mismatch between expenses and income has created pressure on operations and project budgets.
Fiscal Responsibility and Next Steps
Following more than an hour in closed session, the board reconvened to approve the line of credit agreement. Mark Shaffer, Board Secretary, outlined the financial terms, noting that the open line of credit would carry an interest rate of less than 1%.
Conner described the move as both “prudent” and “fiscally responsible,” emphasizing that it would provide a contingency plan to manage emergencies, maintain liquidity, and continue with planned capital improvements and technology upgrades.
Board Chair Barrett reflected on the progress the college has made through careful financial planning and strategic investment. “People now go to Amarillo College because they believe they are getting a quality education,” he said, noting the success of new facilities and programs in attracting and supporting students.
