Almost Midnight
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Vol. 73 No. 22
Tax-Free Bond Issue Discussed at Forum
by Jacob Stohler
Guilford College currently faces
one of the most important financial
decisions in its history.
The decision under consideration
is whether or not to sell tax-free bonds
as a way to raise money to pay for
proposed campus improvements and
developments.
The college administration is look
ing into the possibility of issuing a
new type of lax-free bond, which was
recently made available to institu
tions of higher education in North
Carolina, as a way to raise over $lO
million.
However, some worry that such a
sale, which would essentially put
Guilford into debt for the next 25 to
30 years, would place the college's
financial situation in jeopardy.
In the past, Guilford College has
never undertaken a project without
first having the money on hand. That
meant either having the cash or con
ducting fund- raising activities to get
it. Now, however, with Guilford's
Rally Held Against Painter Boulevard
by David Simpson
A rally was held last Wednesday
by Students Against Painter Boule
vard in an attempt to increase aware
ness about the possibility of the pro
posed road which would cut through
Guilford College property.
The rally began with a speech by
TomLalley.organizerof SAPB, who
called on the Guilford community
and residents of the city of Greens
boro to help the effort to block the
road. Lalley cited environmental,
educational, and historical issues as
reasons that the road should be re
routed or not built at all. It will take
five years of work to block this road,
said Lalley, and to do this we "must
begin in the present and the present is
now."
Other students also voiced their
concerns at the rally. T.J. Crook said
that the woods were one of the rea
sons he came to Guilford. He called
upon people to stand up and say that
the woods mean something to them.
Crook said that the Quakers have a
history of preserving woods and
people must help in order to continue
this trend.
Crook and other students said that
things such as the historical under-
GUILFORDIAN
larger endowment to cover such a
debt, the college is considering debt
service as a way to finance future
growth.
In a memorandum sent to faculty
and staff, President Bill Rogers out
lined five areas which have been
targeted to receive additional funds
over the coming years. They are
facilities improvements, salary in
creases, expansion of financial aid,
support for new educational pro
grams, and an increased endow
ment
The memorandum also suggested
three approaches for meeting those
goals: traditional steady- state fund
ing, limited growth, and aggressive
growth.
The limited growth plan, which
Rogers supports in the memoran
dum, includes "more ambitious sal
ary enhancement" of 7-7.5%, addi
tional teaching positions, tuition
growth of 9-10%, fund raising ef
forts to build the endowment fund,
and facilities development "perhaps
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Tom Lalley at the rally
photo by Eric Buck
ground railway site, the jogging trails,
and wildlife are all valid reasons that
the road should not cut through the
Guilford woods. In support, cries
such as "we don't need another un
functional road" rose from the audi
ence.
The last speaker was Tracy Russ,
1989-90 Community Senate Presi
dent-elect. In his election platform
Russ promised to help in the fight
against Painter Boulevard and he
Service Saturday
p. 5
Guilford College, Greensboro, N.C.
funded through a tax-free bond is
sue."
In an open meeting held for fac
ulty and staff in Stemberger Audito
rium last Wednesday, the bond pro
posal was introduced and discussed.
Present as part of the panel were
Rogers, Academic Dean Sam Schu
man, Dean of Students Nancy Cable-
Wells, Vice-President for Finance
and Development Jim Newlin, and
John Dierkes, a consultant with Alex
Brown and Sons.
The purpose of the meeting was to
solicit feedback from faculty and staff
as to whether selling tax-free bonds
is the best way to go about financing
the proposed improvements.
"I guess I should say as an editorial
judgement," said S chum an, "that it is
not my belief that we are discussing
today a proposal that, if accepted,
would pose serious threats to
Guilford's growth. I would also say
with all candor that I have not been
convinced that to fail to take that step
would be seriously jeopardizing the
renewed his promise at the rally by
saying that "Painter Boulevard does
not serve the purpose for which it
was intended." He said that the pro
posed route of the road, which is
intended as a belt way around Greens
boro, is much too close to the center
of the city.
The event ended with Lalley ask
ing participants to create a circle,
hold hands, and reflect of the woods'
importance.
academic future of Guilford."
John Dierkes, a technical expert
on tax-free bonds who has worked on
similar programs at other institutions,
said that in his opinion Guilford could
stand to take on a $lO million debt
without putting itself in financial
danger. He cited Harvard University
in Cambridge, Massachusetts, which
currently carries a SSOO million debt
stably. Local institutions which have
recently sold tax-free bonds to raise
money include Elon, Davidson, Wake
Forest and Duke.
If sold, such bonds would be of
fered in $5,000 increments. They
would earn an 8% rate of return, and
would not be subject to taxation by
either the state or the federal govern
ment If Guilford were to borrow this
amount of money through a tradi
tional banking institution, it would
pay 11 .5% interest as opposed to the
8% they would pay on such tax-free
bonds. The college is also hoping
that some who buy bonds will give
them back as gifts.
According to Dierkes, Guilford can
expect to receive an A credit rating
from one of the two independent
Commencement
Plans Take Final Form
by Michael Jack
On Saturday, May 6, the class of
1989 will assemble for the last time
as Guilford College students.
Commencement activities will
actually begin on Friday the fifth,
when seniors will meet in the Ra
gan-Brown Field House at 2:00 p.m.
for graduation rehearsal.
A baccalaureate service will fol
low from 5:30 to 6:30 in Dana Au
ditorium. The formal Quaker serv
ice, which will be attended by fac
ulty and staff as well as seniors and
their families, resumes a broken
tradition at Guilford.
President and Mrs. Rogers will
host their annual reception for gradu
ating students on the lawn at
Ragsdale House from 6:30 to 8:00
p.m.
On Saturday, seniors and their
families will be treated to a conti
nental breakfast on the Founders
Hall lawn from 8:30 to 9:30 a.m.
The commencement ceremony
McAloose to Leave
p.B
April 10, 1989
credit rating assessors. If granted, an
A rating would indicate to investors
that Guilford is a safe financial risk.
The request for a rating would
only be made if the college decided
to issue the bonds. That decision will
be made May 5 at the Board of Trus
tees meeting, and could be delayed,
according to Rogers, if they feel it
necessary.
At Wednesday's meeting, there
was both criticism and support for
the proposal. Bill Stevens, professor
of management, called into question
the effect that such apian would have
on Guilford's dependence on tuition
as its prime source of income. Ste
vens brought photocopied materials
which he offered to those at the
meeting. Among them was a graph
showing the sub-average number of
students who consider Guilford their
first choice and a chart showing a
drop this year in the number of appli
cants to Guilford.
Stevens' concern was that
Guilford's rising tuition is driving
students away, and that the sale of
continued on page 3
will begin at 10:30 a.m. with the
customary procession of faculty and
seniors to the Hege-Cox lawn. In
the event of inclement weather, the
proceedings will be moved to the
field house.
Commencement speakers will
include seniors Susan Nelson and
Seth Hassett, who were selected by
a vote of their fellow class mem
bers, as well as guest speaker Lee
Knefelkamp. Dr. Knefelkamp is an
Academic Dean at Macalester Col
lege in St. Paul, Minnesota.
Caps and gowns will be black for
the second year in a row and can be
kept by graduates as souvenirs. Di
plomas will be presented in maroon
leatherette covers with the Guilford
seal in silver on the front. Invita
tions are buff with maroon and gold
seals.
Seniors depressed about the end
of this chapter in their lives should
note that the noun "commencement"
means a start or beginning. Cheers!