Nova plans dealt setback

Nova plans dealt setback

June 10, 2008, Sun Sentinel.com

http://weblogs.sun-sentinel.com/news/politics/broward/blog/2008/06/nova_plans_dealt_setback.html

By SCOTT WYMAN

Nova Southeastern University was dealt a setback in efforts to build graduate housing near the Davie campus.

County commissioners balked Tuesday at immediately agreeing to $60 million in tax-exempt bonds for the university. Of that, $40 million would go to construction of a two-tower Rolling Hills Graduate Residence Hall while $20 million would go to improving its utility system.

Commissioners, at the urging of union representatives, pressed Nova administrators for details on how affordable the housing would be to students. The Service Employees International Union has been in a long-running fight with Nova and has often pressed the county to intervene.
Nova will have to come back with more answers before the county is ready to approve the bonds.

“I want to know what has been done to resolve this public acrimony between you and the SEIU,” Commissioner Stacy Ritter told Nova administrators.

Here’s what the SEIU said about the proposed deal:
“On June 10th, the Broward County Commissioners will decide whether to approve Nova's bond request.

Why tax payers should be concerned about issuing more tax-exempt bonds to Nova Southeastern University:

• History of Problems: Nova has a history of problems with poor record keeping and mismanagement of funds. A 2006 audit by Ernst & Young noted that the university was not engaged in post-issuance monitoring to ensure that proceeds of the bonds were being used for tax exempt purposes. The public deserves assurances that these tax-exempt funds are being spent on their intended purpose.

• No Public Benefit: Although Nova benefits enormously from the ability to raise money tax-free, the savings Nova enjoys does not appear to have been passed along to students in the form of lower tuition. Tuition rose 26% over the past 5 years, and Nova students rank in the top ten in the nation for student debt. If Nova receives this tax-exempt bonds, the school should make a commitment Broward residents that it will keep tuition costs in line.”