TexasTerror
May 23rd, 2010, 10:09 AM
A financial look at the obligations of the Jax State program as they expand their stadium and open the new dorms...
If all goes as planned, university officials say the revenue from the dorms and the football program will prevent them from tapping into the university’s other funding sources, which include money from the state and federal governments and — biggest of all — tuition. However, if it doesn’t earn enough revenue from football and the dorms in any one year, JSU would have to look elsewhere for money to make its bond payments.
“The current plan provides sufficient funds to cover the bi-annual payments. Any excess funds will be set aside to cover future debt service payments,” said Clint Carlson, JSU’s vice president of business affairs. “If these sources will not cover the bi-annual payments, then other revenues of the institution will be used to cover the institution’s debt service obligation.”
University officials say they do not want to do that, and it seems clear that the revenue will be there at least in the first year to make the payments. However, some students continue to believe their tuition dollars will be diverted to the football program, despite assurances to the contrary. And officials face a tall task in convincing skeptics of the worth of the project, given the rarity with which Paul Snow Stadium’s previous 15,000 seats were filled.
http://annistonstar.com/bookmark/7595376-JSU-says-it-can-afford-to-expand-Paul-Snow-stadium-without-dipping-into-tuition
If all goes as planned, university officials say the revenue from the dorms and the football program will prevent them from tapping into the university’s other funding sources, which include money from the state and federal governments and — biggest of all — tuition. However, if it doesn’t earn enough revenue from football and the dorms in any one year, JSU would have to look elsewhere for money to make its bond payments.
“The current plan provides sufficient funds to cover the bi-annual payments. Any excess funds will be set aside to cover future debt service payments,” said Clint Carlson, JSU’s vice president of business affairs. “If these sources will not cover the bi-annual payments, then other revenues of the institution will be used to cover the institution’s debt service obligation.”
University officials say they do not want to do that, and it seems clear that the revenue will be there at least in the first year to make the payments. However, some students continue to believe their tuition dollars will be diverted to the football program, despite assurances to the contrary. And officials face a tall task in convincing skeptics of the worth of the project, given the rarity with which Paul Snow Stadium’s previous 15,000 seats were filled.
http://annistonstar.com/bookmark/7595376-JSU-says-it-can-afford-to-expand-Paul-Snow-stadium-without-dipping-into-tuition