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In a special meeting of the Arkansas Higher Education Coordinating Board held via conference call Friday at the Arkansas Department of Higher Education, the board approved a $6.435 million, 30-year bond issue for Southern Arkansas University in Magnolia.

The estimated annual debt service of the bond issue will be $427,175 at an annual interest rate of 5.5 percent.

Proceeds from the issue will be used to construct a new student activity/recreation center, renovation of Overstreet and Wilson Halls and repairs on the universities central distribution center for heat and air.

Some concern was expressed by some members of the Finance Committee regarding the overall economic conditions, with Kaneaster Hodges of Newport saying a 30-year bond issue based on current revenues could prove problematic in the future if a sharp economic downturn were to have a negative effect on revenues brought in through tuition and fees.

“I think we need to visit about this but not keep approving these issues routinely based on student revenue that may not be there in the future,” Hodges commented.

Although the issue was passed for recommendation by the Finance Committee and approved unanimously by the full board, Chairman Dick Trammel agreed that the board should discuss the issue, most likely at the July 25 AHECB meeting to be held on the campus of ASU-Beebe.