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Thursday, May 20, 2010

Duck prez: "You borrow $800 million, hand it over to us, then go away"

If you think the scoundrels running OHSU have hubris, check out this fellow. "We won't ask you for another penny for 30 years." Uh huh.

Comments (14)

There was a great picture of this guy that accompanied the article last week. He had this big wide used-car selling grin on his face.
This is a dumb-dumb-dumb idea. You don't borrow money to run operations. It is against the law for an oregon agency to do this, at present.
I'd like to know how many lobbyists and how much money the college is pumping into changing the law.
Ted Wheeler slammed this idea in an interview during the campaign. He pointed out that borrowing should be to cover infrastructure and capital facility replacement only, and it was unwise to use it to fund on-going operations.

Well. he's pretty confident that this is a buying opporuntiy in the markets.

I'm sure they'll throw the money at some bad idea progressives love, it'll go south, they'll be halfway thru projects that must be completed and then we'll pony up some more money in, oh say, 10 years - when LaRiviere is gone.

If this guy wants to be Harvard with its endowment, maybe he should look at Harvard today.

Forget it, he's just looking for leverage against the taxpayers.

My favorite probitive statement of the whole article:

"As a result of the [Mike] Bellotti matter? On the face of it, yes. But look at how we’ve handled it. The athletics program is a really good program. Absolutely healthy. It’s honest, it looks after the student athletes."

Just don't piss off Phil Knight, Dick.

It's a great idea. Borrow $800 million. Go into investments on 100% margin. What could possibly go wrong?

I think this is the definition of hubris.

Someone needs to remind U of O that they are a PUBLIC university.

What a ridiculous money shuffling scheme.
It's amazing how these bureaucrats think of schemes to play with other people's money.
And what does this clown think will need to happen when the money is misappropriated, and in a few short years there's not enough to cover the bottom line?
Oh, it's back to the state and the taxpayers for a bailout.
Are there any honest and responsible leaders in this State at all.
The Oregon University System is working behind the scenes to join OHSU in a reckless venture in SoWa.

I witnessed a PSU gal in a PDC citizen advisory committee meeting describe how the OUS will pay it's share of the $200 million crap shoot.
It will bond their share and pay if off with tuition money.
So there you go folks
The madness with the Tram and failed biotech cluster gamble in SoWa wasn't enough.
Now there's a new chapter with bigger risks and more phoney promises.
Promises that actually include more biotech research jobs.
OHSU says it will pay for it's share with their own bonds to be paid with revenue from the new SoWa building and campus.
What revenue? And none of the campus will pay property or business taxes in SoWa worsening the Urban Renewal PDC red ink.
Red Ink made much worse by shifting millions of borrowed UR money to the Milwaukie Light Rail boondoggle.

I swear if someone doesn't stop these fools they'll push it all over the cliff.

I think the plan is a good one. At the moment if UO raises a dollar from a donor to improve UO academics, the state responds by cutting the amount they spend. If the state doesn't, then the OUS Board takes away a dollar from us and gives it to one of the smaller schools. Donors respond by reducing their gifts for academics and giving it to the jocks instead, where at least they get a show. Lariviere's plan changes those incentives dramatically.

Good point about the photo though.

I'm sure the nice folks on Wall Street who will structure this deal will do their absolute darndest to get UofO the best possible rate and terms. They only have their clients' best interests at heart, since as Goldman's CEO said, they're "doing God's work."

Public universities are important. Citizens should support them. The solution to funding shortfalls is not to hand $ to each institution to invest / gamble as it sees fit. That's very foolish.

And we should all pitch in to help out the University of Oregon because ... ???

They need more football and baseball uniforms? One county-club style athletes-only study center is not enough? They're going to lose a boatload of money on their basketball Taj Mahal? Legals costs for the football team have exceeded projections?

No thanks. UO has tons of money. They just have NO sense of what a university's mission should be.

UO matters

Your case for "I thihk the plan is a good one" is as shallow and weak as as Lariviere's.

From any angle one can see red flags.
So what the heck is wrong with your thinking?

Earlier comment should be in caps--you don't float bonds for operations--period!! This is what brought NY almost to bankruptcy. What kind of lunacy prevails at Oregon's highest levels of officialdom?

"What kind of lunacy prevails at Oregon's highest levels of officialdom?"

Well, LaRiviere gets $800M to play with today instead of waiting over 20 years to get it. Spend now and let someone else worry about paying it back.

I love government.

how did this guy become the head of UO? that is the dumbest idea I have ever heard regarding public education...just look at today's near 400 pt drop in the dow to understand how dangerous this idea is...

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