Thursday, February 21, 2008

UA Caught Planning to Rob Students

Thanks to blog readers and posters, here's a story that has been ignored or buried by the local media. Six months ago, UA Vice Chancellor Don Pederson proposed raising student tuition or fees by $9 per credit hour for every student who takes a course for the next 30 years. That would increase the cost of a degree by about $1,100 to pay off bonds for buying Fayetteville High School and its current centrally located campus.

You can read the whole memo here, but this is the nut graph:

Subject: Revised Fee Estimate to fund Property Purchase
From: Don Pederson
Date: Wed, 29 Aug 2007 17:08:35 -0500
To: "B. Alan Sugg"
CC: John A White, David Gearhart

"Flat annual debt service to cover borrowing the average of the two appraisals and at our current cost of money would be $3.81 million for 30 years. I estimate based on tuition (currently tuition is $159.05/ for undergraduate residents though the percentage of mandatory tuition and fees would be lower) that it would take a 5.7% increase in tuition to cover this debt service though not necessarily all in one year. As a fee it could be pulled out of any further increases over time. Such a new fee would be 4.5% of tuition and mandatory fees and be on the order of $9/"

Does anyone else think this is a bad idea? Does anyone think the UA Student Council President would veto a Resolution opposing this? Does anyone know why the local media have not covered this aspect of the scheme?

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