Editorial: Not many choices for UNR’s president

Thursday, Dec. 6, 2001 | 8:26 a.m.

John Lilley is in a tough spot. The University of Nevada, Reno's new president must find a way to pay off a construction loan for its troubled fire science academy in Carlin. As part of the plan to bail out the university-run academy that will train professional firefighters, Lilley has proposed using $30 million in revenue bonds to pay GMAC so UNR can take ownership of the academy, which was closed due to environmental problems. In addition, Lilley wants to take out an $8.5 million bank loan to get the academy ready by May 2002 so it can start taking firefighters for training. Lilley also would redirect funds from UNR's library and increase student fees by $2 a unit to help the academy, but boosting student fees has created opposition from members of the University Board of Regents who say that it's unfair.

Lilley doesn't have many choices. If he doesn't honor a court-ordered settlement that requires UNR to pay GMAC $30 million, Lilley says GMAC could try to attach assets of the university, a move that could jeopardize the school's bond rating and force it to pay higher interest rates when it borrows money. For that matter, Lilley hopes to persuade the 2003 Legislature to come up with more money so he can drop the student fee. Instead of criticizing Lilley, who inherited this mess, the regents should work with him so that the plan has as little impact as possible on the students and on the institution's financial well-being.