Business Administration Information
November 3rd, 2014
With the midterm elections right around the corner, Oregon could soon make history by allowing the state to sell bonds to set up an endowment with bonds sold to help provide financial aid for college students.
If passed, Measure 86 would amend the Oregon Constitution to allow the state to borrow funds for non-capital purposes.
Ted Wheeler, Oregon’s state treasurer, has championed the measure’s campaign because he thinks that the state can create returns on the endowment that will be higher than the price of repaying the bonds.
With decreased state funding for education in recent years, Wheeler felt that major change was needed. Oregon’s amount of financial aid for public universities has decreased by 34% in the past five years, according to the State Higher Education Executive Officers Association
“It’s a bold proposition, but considering where we’re starting, it requires us to take some bold steps,” he told Bloomberg.
About $500 million in bonds would likely be needed to fund the endowment, though that could vary based on interest rates. If the measure passes, the funds would be managed with Oregon’s pension pool.