The University of Wisconsin System will use federal money to pay off bank loans taken out by the UW-Oshkosh Foundation, according to agreements released Friday.
The UW System paid $6.3 million to banks using federal money designated for administrative costs — meaning no state taxpayer money or tuition dollars, according to UW System spokeswoman Heather LaRoi. This money comes from reimbursements for administrative costs already incurred by the UW System related to federal grant activity at UW campuses.
At the close of fiscal year 2018, the UW System had about $9.5 million in federal money from this fund that had accrued over the last decade, according to LaRoi.
Remember that this is all because the former chancellor illegally backed loans by a private institution with taxpayer money. That private institution, the UW) Foundation, subsequently bought his house for way above market price. And in the end, who pays? The taxpayers. Meanwhile, take note that the UW System continues to horde slush funds.
This is also yet another example of how much of our money the federal government pisses away. Why in the world are they handing out millions to a university system for “administrative costs?”