From: John T. Moseley jtm@OREGON.UOREGON.EDU
Date: Wed, 24 Nov 1999 16:22:04 -0800
Subject: Funding for Capital Projects

To All Faculty and Staff:

Apparently there are some misconceptions going around about the funding for the capital projects as announced last week. In the press conference, the statement was made that of the $135 million total funding for these projects "over 90% will come from private gifts." This has led to the inference by some that the other 10% would come from general university funds which might be available for other priority uses. This is not the case.

Specifically, the only "general funds" in all of these projects derive from two sets of legislatively appropriated "G" bonds (bonds repaid by the state from general funds, not from funds directly appropriated to the Oregon University System). The first of these is approximately $3.7 million appropriated for general university classroom renovation and expansion as a part of the Gilbert Hall project. These funds, together with other private funds, will result in the replacement or renovation of all of the classrooms in that complex, and the addition of several classrooms for general university use. The second is approximately $6 million appropriated for the renovation and expansion of the Museum of Art. These bonds will be matched by an equal amount in private donations. The other funds in the project that are not from private gifts will be approximately $7 million dollars in the financial plan for the Autzen Stadium expansion project which will come from the increased revenues over time, generated by the increase in seating and the rental of the sky boxes. These funds will be borrowed, but will be repaid from the stadium-related revenues, not from general university funds.

Also, as was stated at the press conference for the Autzen project, the increased revenues from the expanded stadium will permit the University to recover the current subsidy of non-revenue sports and Title IX compliance costs, amounting to about $2.2 million, over a 5 to 7 year period, beginning with the completion of the stadium. This recovery is specifically built into the financial plan for the Autzen project. The $2.2 million will be unrestricted funds in the university's budget, and is the equivalent of the payout from a $55 million endowment.

This message is obviously not an attempt to answer all questions which might be raised about these projects, but to try to be sure that our discussions are informed by facts.

John Moseley Provost and Vice President for Academic Affair

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