The victims of the Larry Nassar Scandal at Michigan State received more justice on Wednesday.
Hundreds of lawsuits have been filed against Michigan State University by the victims of the Larry Nassar case regarding the school's negligence during the horrible events that inflicted mental and physical trauma upon dozens of innocent people. The settlement has been reached, and will pay out at a total of $500 million by the University.
The only comparable case to this one is the Jerry Sandusky case at Penn State. During that scandal, there were 35 victims, and the university had to pay out a total of $109 million.
The biggest debate comes over how Michigan State will pay. MSU interim president, John Engler, has said that the money will be covered by tuition and state aid, but lawmakers are adamant that state aid should not be used.
Parents and students are beginning to protest against MSU using tuition money as well. Engler needs to find a way to make it work, but not without a major blow to Michigan State's revenue.
During the 2016-2017 school year, MSU brought in $859 million in tuition revenue. That revenue makes up 29% of their total economic revenue. If enrollment were to drop, then MSU could see a major decrease in that revenue.
Michigan State has $1.1 billion set aside in unrestricted assets, which is money to be used in emergencies. This money usually goes towards infrastructure and projects, but because of the dire situation that the university is in, it may be necessary to send that money towards the settlements.
Then, finally, the victims may be able to receive some form of closure.