U.O. Bonding for Endowment

The University of Oregon is pushing ahead with legislation for a controversial plan to sell $800 million of bonds to help create an endowment twice that size.

The seven-school system has two bills moving forward in the legislature—– SB 559 and Senate Joint Resolution 20 — that would create a new management structure for the university and put a constitutional amendment on next year’s ballot to use the state bonds to fund the endowment.

The university’s proposal, dubbed the “New Partnership,” calls for using matching private gifts in tandem with the bonds to create a $1.6 billion endowment to fund the budget.

During a hearing before a legislative committee Tuesday, university president Richard Lariviere said he is also seeking a 5% annual cap on tuition increases and a guaranteed fixed tuition cost over four years, according to Eugene’s Register-Guard newspaper.

The newspaper said the additions to the plan appear to be in response to student concerns.

Some experts and lawmakers have said the proposal is too risky and unfairly favors one university over other state schools.

Lariviere told The Bond Buyer in October that he has made the pitch to try to build stable financing and reduce reliance on shrinking annual contributions from the state.

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