There goes the reserve

9/29/2010: Utterly unsurprising news in the RG today. The arena is not going to bring in the revenue Frohnmayer promised when he was selling the bonds to the legislature. And Chip Kelly needs another big raise to keep him on board. So the ticket money will go to Kelly, and the reserve fund – the principle, not just the income – will be used to make the bond payments. They are looting the reserve to pay their salaries, and when that money runs out they will run too. You can bank on it.

Now Lariviere has to go back to the legislators to sell his restructuring plan, to try and save UO’s academic and research missions:

“Well, Richard, the last time a UO President came to talk about bonds – I think his name was Dave – he played me for a fool. The state took on $200 million in debt, lost $10 million in revenue, and drove up borrowing costs for other agencies. And the money ended up in the pockets of your coaches. Hell, even the Register Guard figured it out. Now the Treasurer tells us the state is above our debt limit. So why should I listen to your new scheme?”

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