The Alabama Senate Education Appropriations Committee approved a new bill Wednesday. If passed, the bill would extend a $30 million loan to Birmingham-Southern University, allowing the financially struggling university to stay open.

The bill, introduced by state Sen. Jabo Wagoner, would remove State Treasurer Young Boozer from administering the loans and would instead be administered by Dr. Jim Purcell, executive director of the Alabama Commission on Higher Education. .

Rep. Wagoner (R-Vestavia Hills), BSC's staunchest advocate in the Alabama Legislature, offered insight into new efforts now in 2024.

“As you may remember, last year we passed this bill and appointed the State Treasurer responsible for administering a $30 million loan program to Birmingham Southern,” Wagoner said. he said. “But he (Boozer) refused and now there is another bill being introduced that would designate the Administrator of the Higher Education Commission as the person to administer this loan program. Basically the bill is the same.”

RELATED: Young Boozer: If Birmingham Southern University closes, it's their fault, not the state treasurer

BSC Chairman Daniel Coleman released a statement earlier this week regarding the bill's passage in committee.

“Our plan for financial stability is focused on a giving campaign,” he said yesterday. “The loan we are seeking from the state will give us time to complete that campaign.”

As the committee chairman, state Sen. Arthur Orr (R-Decatur) is concerned that the bill could set a precedent.

“Which university is going to be the next one that could be in financial trouble? In my opinion, we need to treat it the same way. It will be difficult to distinguish it from a university,” Orr said.

“For me, the new bill gives me pause because it brings so much more to the table. I voted for the last bill and thought it did a good job in terms of putting a lifeline on this facility. It’s a shame that it didn’t work out.”

Under Mr. Wagoner's bill, universities would have to meet the following conditions to receive loans:

• Operating in Alabama for over 50 years
• have a significant impact on the community in which it is located;
• are experiencing financial difficulties that may lead to the closure of their financial institution;
• Adopts a resolution approving an application for a loan from this program to maintain operations while replenishing the fund through private donations.
• Have sufficient assets to pledge as collateral

update: As of Thursday afternoon, the bill's sponsors are working to address the concerns raised by Sen. Orr in committee yesterday and are optimistic that a compromise is on the horizon.

Austin Shipley is a staff writer at Yellowhammer News.