In response to the April 19 letter “Burdening the future”: I want to offer a few points of clarification regarding the Century Bond proposal.
First, to help mitigate the financial burden of the bond issue, we will set aside $7 million to $8 million at its inception to cover principal payments due in 100 years. This will alleviate a significant portion of the debt.
Second, UNC-Chapel Hill’s backlog of repairs is not a result of poor budgeting. The annual cost of repairs and renovations is about $45 million. However, because of significant budget challenges over the past decade, the state of North Carolina has been able to fund only about 20 percent of these projects. We must find other ways to help maintain our infrastructure.
Finally, not all bond funds will be used for renovations and repairs. A percentage of the money will go toward capital projects that will leverage future revenues to support payment of the bond.
The letter-writer is right to be thinking about North Carolina’s future. We, too, care deeply about the people of our state and their future. The Century Bond proposal will help ensure that UNC-Chapel Hill remains a financially sound, world-class research university for generations to come.
Matthew M. Fajack
Vice chancellor, Finance and Administration, UNC-Chapel Hill