“GRCC votes to borrow $28.5M: Divided Board of Trustees plans to sell bonds
for campus repairs”
http://www.mlive.com/news/grand-rapids/index.ssf/2012/06/a_divided_grcc_board_of_truste.html
A divided Grand Rapids Community Board of Trustees tonight
approved a plan to sell $28.5 million in bonds to fund what administrators say
are urgently needed campus repairs.
The move comes about a month after voters overwhelmingly
defeated a request to raise GRCC’s millage rate. Had the measure been approved,
the college would have sold bonds totaling $98.6 million to pay for campus
repairs and renovations.
Revenue generated from the sale of the bonds will help the
college buy new windows, update its sprinkler systems and fix its heating,
ventilation and air conditioning system, among other repairs.
Ryskamp, who abstained from the vote, asked whether the
college could pay for the repairs using revenue from the facilities fees
instead of borrowing. The fee is expected to generate $2.8 million in its first
year.
Administrators said such a route could be pursued. But they
cautioned that under such an approach, the price of repairs would rise because
of inflation and the college would fall further behind on maintenance projects.
Declining enrollment means the college will collect less
money from its facilities fee, which is what the college will use to cover
interest payments on the bond.
“We’re taking an ultra-conservative approach on enrollment,”
Ender said. “When you’re building bond principal and interest payments off of a
revenue stream that depends on student enrollment, you do not want to
overestimate enrollment.”
Common Sense Review
Grand Rapids Community College is the epitome of hypocrisy.
In May they posed the question before the people to give
them millions of dollars to repair their facilities and the people said…..
NO! So now sadly they have to increase
enrollment fees to cover the expense and the trustees have agreed to borrow
$28.5 million to address the issue.
I took a moment to review the GRCC academic class catalog,
low and behold the offer a basic Accounting class… Wow!
The class description:
“This program prepares students for responsible positions in
the accounting department of small businesses and for support positions in both
financial and manufacturing accounting in larger firms”
Apparently, those who work at GRCC didn’t take the
class.
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