The University of Hawaii is facing a significant problem with deferred maintenance issues across their 10-campus system. According to UH officials, the problems would cost approximately $487 million to fix, with the vast majority of that amount, a total of $407 million, needed for the main Manoa campus. The school is requesting that state lawmakers give them the authority to issue revenue bonds to fund the maintenance projects, and stated that the debt for these bonds would be repaid over the next 30 years by increasing tuition costs. Howard Toto, the UH Chief Financial Officer, stated, "We have, really, a situation where we need to think hard about how we want to proceed going forward. It's something we can't ignore, but we're somewhat inhibited by funding because we can't do a whole lot without the funds."
However, many lawmakers are not comfortable with the concept of increasing the financial burden of future students by dramatically increasing their tuition. Issac Choy, a state representative and the chairman of the House Higher Education Committee, stated, "Let's just call a spade a spade: Revenue bonds mean tuition. The kids are the ones who were going to have to repay this." The state was willing to give the University of Hawaii $50 million in state-backed general obligation bonds for next year for systemwide capital revenue and deferred maintenance needs.
Source: Honolulu Star Advertiser, 5-17-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
