When John Engler took over as interim president of Michigan State University, he had a mandate from his bosses - the Board of Trustees. He was to fix problems at MSU and find settlements to the hundreds of lawsuits of the school was facing.
"The board told me I had free rein to go after this" Engler, who is the former Michigan governor, said at the first Detroit Free Press Breakfast Club series Thursday morning.. "One of the things that surprised me was the lack of communication. It was easier to communicate with 50,000 state employees than 5,000 MSU employees."
What the board didn't say was that Engler was going to be anything more than an interim president. That's OK with Engler.
"I'm ready to go now," he said.
But before he goes, he wants to settle 300-plus lawsuits filed by Larry Nassar survivors as soon as possible — both for the good of the university, but also the survivors.
Engler said he recognizes the pain the survivors have and doesn't want to have them relive it all again in the courtroom.
That said, he also knows it's going to cost MSU a lot of money.
"It's going to be expensive," he said. "We're anxious to see a settlement."
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John Engler, Michigan State Interim President, talks with MSU Board Trustee Joel Ferguson at the Detroit Free Press Breakfast Club series hosted by columnist Carol Cain at the Townsend Hotel in Birmingham on Thursday, May 10, 2018. (Photo: Kimberly P. Mitchell, Detroit Free Press)
He was then asked that with the pending payments what type of risk MSU faced to its long-term future. His response? Depends on the settlement cost.
Mediation has taken place in the cases and more is scheduled for later this month.
Earlier this month, Moody's Investors Service has lowered its bond rating for Michigan State University, meaning the university will no longer get the best interest rate. The rating agency also joined other rating agencies in downgrading the overall outlook for the scandal-heavy university to negative.
The move comes after an extensive review of the university’s finances in the wake of the Larry Nassar sexual assaults scandal.
Michigan State University Interim President John Engler is interviewed by Carol Cain, during the Detroit Free Press Breakfast Club series at the Townsend Hotel in Birmingham, Mich. on Thursday, May 10, 2018. (Photo: Kimberly P. Mitchell/DFP)
“We expect operating performance to thin over the short-term, with ongoing legal costs and university investment into enhanced risk management and governance issues increasing costs,” the agency wrote in its decision. “Timing of the ultimate resolution of outstanding claims and litigation, which is currently in mediation, is uncertain, but the financial ramification could be material.”
The ratings agency said ongoing uncertainty regarding the senior leadership of the school, along with several investigations into the school by state and national agencies and unknown costs for settlements with Nassar victims, forecasts a shaky future for the school and it “could ultimately require years to resolve” the issues.
Nassar, a former MSU gymnastics doctor accused of molesting dozens of female students and athletes, has been sentenced to 60 years in federal prison on child pornography charges and is incarcerated at a high-security federal prison in Arizona. He also faces a 40- to 175-year sentence issued in Ingham County and a 40- to 125-year sentence in Eaton County, where he was charged with 10 sexual assaults. Those sentences will not begin until he finishes the federal sentence.
MSU has come under fire for its handling of the Nassar case. It led to the resignation of Lou Anna Simon as president. Engler replaced her as the interim president.
Contact David Jesse: 313-222-8851 or djesse@freepress.com. Follow him on Twitter: @reporterdavidj