By Michael M. Shapiro
The private fundraising effort to pay for a $30 million shortfall in the financing of a $102 million stadium expansion for Rutgers University has been a debacle. Less than $2 million has been raised since the governor and state Sen. Raymond Lesniak (D-Union) announced the initiative nearly a year ago. Gov. Corzine, who is leading the effort, has donated $1 million, the vast majority of the funds obtained to date. Meanwhile, even the strongest supporters of the idea, like Sen. Lesniak, now say that the drive will result in far less than $30 million and more like $10 million, leaving a gaping $20 million shortfall in funding. Interest-bearing short-term commercial loans are currently subsidizing the stadium expansion, creating further indebtedness.
Currently, the Rutgers Board of Governors is discussing how to make up the shortfall but the ideas on the table, including raising ticket prices, hiking tuition, and taking stadium revenues from other athletic programs, will likely not cover the shortfall and worse, will cripple the Rutgers athletic program and the university itself since fans are already balking at the increase in ticket prices this year and students are disturbed about the steep tuition hike last year.
