RICHMOND -- Gov. Tim Kaine formally signed legislation Thursday authorizing nearly $1.5 billion in borrowing to finance college and state building projects, including a Roanoke medical school planned by Virginia Tech and Carilion Clinic.

Kaine signed the bill in a ceremony on the south portico of the state Capitol, surrounded by college presidents and state lawmakers from both parties who hammered out the compromise approved by the General Assembly last month.

"I'm very proud of the work that we've all done together on this," said Kaine, who started the process in December by introducing his own building plan. "It took a lot to get us to this day, and I'm very encouraged by the fact that everyone saw a goal, recognized it as a worthy one, and coordinated their efforts to get us here."

The bill provides $1.47 billion in funding over two years for specific building projects, including $59 million for the planned Virginia Tech Carilion School of Medicine. Construction of the 150,000-square-foot building at the Riverside Center will begin this summer. The first class is scheduled to begin studies in 2010.

Lawmakers in both parties embraced the medical school project, which Tech President Charles Steger described as "a wonderful example of the idea of the public-private partnership."

"It gives us an opportunity to bring to bear the assets that we have in research and computing along with the medical education activities already under way at Carilion," Steger said Thursday.

In addition, Steger said, "it's going to be a significant economic development engine for all of Western Virginia."

The bond package also includes funding for a sciences building laboratory at Tech, a business school building at Radford University and projects at Virginia Military Institute and community colleges in the region.

"This has been the best bond bill ever for us," said Radford President Penelope Kyle. "We are extraordinarily pleased with how we were treated in this."

Kaine's original proposal would have required voters to approve the bond issue in a referendum. But the legislation signed by the governor calls for the debt to be issued by the Virginia Public Building Authority and the Virginia College Building Authority, allowing the state to move more quickly on the projects.

In addition to the bond package, the legislation calls for funds to begin planning another $853 million worth of projects as part of a six-year capital improvements program.

Kaine applauded lawmakers for taking extra time to craft the compromise. House and Senate negotiators could not reach an agreement before their regular legislative session ended in March, but worked out an agreement that was passed during a brief special session in April.

Del. Lacey Putney, I-Bedford, the bill's sponsor, called the legislation "a product of complete, total cooperation."

"This is probably the most significant piece of legislation that I've been associated with in 47 years," said Putney, the longest-serving member in the General Assembly.