A Democratic state lawmaker from Oshkosh says it may be in the state’s best interest to settle with the creditors of financially-troubled UW-Oshkosh Foundation. The private foundation doesn’t have enough cash to cover $14.5 million in debt. State representative Gordon Hintz says he agrees with Regent Michael Grebe who said a potential agreement would protect UW System assets if the foundation can’t pay back its loans. “Whether we act or not act, the state may be on the hook, and because of the language in some of the agreements the state might be liable anyway,” Hintz told WFDL news. Sen. Steve Nass says use of taxpayer money would amount to a bailout of the foundation’s debts. The Department of Justice is negotiating the settlement on behalf of the UW System and Board of Regents. A UW spokeswoman says a settlement with the foundation would not affect the system’s lawsuit against former top officials at UW-Oshkosh which alleges they illegally transferred $11 million from the campus to the foundation.
