A bad deal for SDSU students.

 

The facts:

 

Measure G Stadium is 100% debt funded

The stadium would be financed by taxable revenue bonds that will cost about $15 million a year in debt financing.

State Law says that the university must raise student fees to cover unmet debt payments

California Education Code Section 90068:

“[R]ents, charges and fees shall at all times be fixed to yield annual revenue equal to annual operating and maintenance expenses, including repairs and insurance costs and all redemption payments and interest charges and reserve fund requirements on revenue bonds”

Rizzo vs Associated Students, San Diego State University:

“The power necessary to fulfill the Trustee's responsibility is extremely broad and without question includes the authority to impose fees on students to meet obligations to bondholders.”