Tuesday, Nov. 12, 2013 | 7:02 p.m.
The state Board of Finance Tuesday approved the refinancing of $40 million in bonds for the nonprofit Touro University, a medical school in Henderson.
Gov. Brian Sandoval said the deal will mean a higher interest rate initially but will save the school money in the long term.
The bonds are issued through a law that created the Nevada Public Improvement Trust and does not involve any state or local government money. But the refinancing must be approved by the finance board.
School officials said the restructuring will free up $2 million to make improvements on the campus including renovating an active, aging center with expanded clinical facilities.
School officials said they would not know what the interest rate on the new bonds would be when sold at public auction. But the longer term of the bonds will eliminate a "balloon payment" facing the school.
It has an estimated enrollment of 1,300 students in medicine, health and the biological sciences. It is part of a Jewish-affiliated not-for profit system with universities in New York and California.
School officials told board chairman Sandoval that yearly tuition is $47,500 for a student studying to be a doctor. But only 30 of the graduates end up practicing in Nevada. School officials said that upon graduation, the students must serve a residency requirement and there are limited opportunities in Nevada.
These students usually stay where they have served their residency.
According to the school's brochure, the faculty and students run a free clinic for community members without insurance.