Plan for higher UNR fees criticized

Jennifer Knight

Friday, Nov. 30, 2001 | 9:14 a.m.

A plan that would raise registration fees at the University of Nevada, Reno, to pay off old debts at the defunct Fire Science Academy is meeting opposition from the Board of Regents.

At least three regents say they will vote against the plan because the more than $1 million in higher fees would only pay off old debts and not directly benefit UNR students.

However, UNR President John Lilley said the plan is the only way to save the university from stripping other programs in order to repay a $31 million loan due by May 1.

"Better for the students to pay a higher fee at the cheapest flagship university in the country than to strip away assets that are badly needed for the university's projected growth," Lilley said Thursday.

The proposal before regents next week calls for each student to pay an additional $7 per credit hour in registration fees over the next three years. The students will pay a $2 increase the first two years and $3 the final year.

Additionally, university officials will divert about $400,000 intended for the new $66 million library, Lilley said, noting that plan will not delay construction of that project.

The new sources of income will make the payments on a $31 million bond that will be taken out to pay the May 1 debt.

Regent Steve Sisolak said he doesn't like the plan.

"This is voodoo economics is what it is," Sisolak said. "I think we need to cut some other programs to get the money. Cut some fat. You don't see him (Lilley) proposing to reduce administrative salaries. It's more their fault than the students."

Problems with the Fire Science Academy began before Lilley became president. Soon after the doors opened in 1999 enrollment was low. The remote location in Carlin was partly to blame, some regents said.

One year later, the academy was closed after soil contaminated with gasoline additives was found at the facility.

The university system has since defaulted on a $230,000-a-month loan payment. Those missed payments hurt the university system's ability to get loans.

Lilley said that if the new $31 million debt is not paid, the university's bond rating will be further crippled.

Regent Thalia Dondero said that before the Dec. 6-7 regents meeting convenes in Las Vegas, she and other university officials will scramble to find other sources of funding. One possibility, Dondero said, is to ask for the state's portion of estate taxes to pay off the loan.

"I've got grandkids up there," Dondero said. "I can't have them paying that extra money. We've got to come up with some other way to repay this loan. The estate tax fund may be one way."

Regent Tom Kirkpatrick, said, "Why should the poor students be stuck with this?"