The University of Hawaii is requesting from the state of Hawaii a total of $33.5 million to help replenish tuition revenues that was spent to cover salary restorations and increases that were made in the latest faculty contract that was ratified in 2010. If the state is willing to grant them this money, the university added that they would use $14 million of that money to debt service $212 million in revenue bonds to start to tackle the $487 million of repairs needed for deferred maintenance projects around their various campuses. University officials have proposed that if the state could provide them with a large enough bond, they would be able to eliminate the $487 million of repairs over the next six years and would repay back the money over the next 30 years through tuition increases. David Lassner, the Interim President, stated, "Our approach this year is to say, ‘Let's try something different. Let's come in and ask to see if the Legislature and the (Abercrombie) administration will support us taking responsibility for this backlog."
Not all of the lawmakers agree with the University of Hawaii's strategy. Representative Scott Nishimoto, who is the vice chairman of the House Finance committee, commented that over the past five years the school has doubled its tuition scholarships amount to $40 million instead of using some or all of that money towards obtaining construction bonds. Nishimoto stated "Part of my concern is that you've doubled the amount of tuition you guys are giving away, but you're also coming to us for more money. At what point do you cut that off or kind of taper that off?"
Lassner to responded to Nishimoto that the University of Hawaii has been increasing their tuition rates, but still need to make sure that needy students can afford tuition. Lassner stated, "Everything can be a trade-off, and reducing financial aid for needy students, or any number of things, certainly could produce revenue." Under the current plan, tuition will increase by a total of 35 percent over the next 5 years.
Source: Honolulu Star Advertiser, 1-16-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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