Buried in an otherwise turgid George Zofflinger op-ed in the Bergen Record is this zinger:
“‘The stadium expansion project is being financed entirely with borrowed funds. It was rushed into, with incomplete plans and a $30 million funding gap. We now find the costs are escalating, and we are forced to make significant cuts in the project.
Also, there is an increase in what we are borrowing, from $72 million to $100 million. New Jersey public entities are in a league of their own when it comes to piling on the debt.”
Read that again.
Someone should be kissing us because we certainly are getting screwed.
Because the drive for $30 million in private contributions failed and failed some more — either there is scant interest in Rutgers football or the fans there are are poor because, ring doorbells as Seatbelt Corzine did, he apparently raised no more than a few empty beer bottles. The vast bulk of purported Rutgers fans shut their wallets tight and does not that say something about the depth of fan support? — Rutgers now is going to borrow the whole $100 million, pace Zoffinger.
That makes no accounting sense. None whatsoever.
Fuzzy math was required to attempt to show that this stadium expansion would be self-funding on a $72 million note (with the other $30 million coming in the form of those private contributions that did not materialize). You cannot increase the borrowing by 40% and still insist this stadium will pay for itself.
It will not. NJ taxpayers and Rutgers students will be forced to pay for Mulcahy’s Folly — just as we have been saying for months.
This whole borrowing scheme is vividly reminiscent of the cockamamie loans (piggybacks) that have helped trigger the national mortgage-housing crisis — but at least now everybody should know this kind of scheme is doomed to fail.
It is time to pull the plug on Mulcahy’s Folly. We do not need this $100 million extravagance and apparently very, very few genuinely want it.
We demand to see a financial statement/business plan that shows neither public monies nor student monies will be needed to pay for Mulcahy’s Folly.
Rutgers students: Demand a halt to the stadium expansion…or hold your silence when the next round of tuition increases is imposed as the university scrambles to pay for Mulcahy’s Folly.
Rutgers alums: Hold on to your contributions to Rutgers because no matter where you want your money to go it will probably wind up helping to pay for Mulcahy’s Folly…unless our voices are loud enough to stop Phase 2 before the school finalizes its commitment.