COLUMBUS -- Students stand to benefit from improved academic programs, expanded research opportunities, a greater emphasis on retention and timely graduation, safety enhancements and other services built into the fiscal year 2001 budget at The Ohio State University.

"Academic priorities drive our budget process, and we fully intend for students to be the primary beneficiaries of new and enhanced programs and services," Executive Vice President and Provost Edward J. Ray told the university's Board of Trustees Wednesday (8/30).

General fund revenues and expenditures are projected to reach $754 million this fiscal year, an increase of 5.3 percent over revenues and expenditures of $715.9 million in 1999-2000. The total university budget, which includes general funds, earnings operations and restricted funding, is projected to increase 7.7 percent, from $1.99 billion to $2.15 billion. Trustees approved the final current funds budget.

"We continue to align our resources with the university's academic goals and diversity and outreach initiatives. With our success in earning additional Performance Challenge funding from the state, we're making strides in a number of critical areas this year so that everyone - faculty, staff, students and community members - ultimately will benefit," Ray said. Increases in Performance Challenge funding reflect Ohio State's progress in critical areas of importance to the state, such as student retention and attraction of external research support.

The university is making almost $39 million in strategic investments in academic programs, enhanced recruiting, student service and technology support, fund-raising support and service improvements. That investment figure results from $12.4 million in continuing general funds, $12.8 million in one-time general funds and $13.5 million in nongeneral funds, such as private gifts and exclusive pouring rights royalties.

Student-related investments include:

· $2 million in continuing funds to support Academic Enrichment and Selective Investment programs for multidisciplinary initiatives and the university's most outstanding academic departments.

· $1.9 million in Office of Academic Affairs multiyear commitments, such as enhanced recruiting and increased library acquisitions.

· $5.8 million in state Success Challenge funding for such items as undergraduate scholarships, Honors & Scholars programs, targeted recruiting, a personal contact program for students having difficulty in their first year, and diversity scholarships and programs. A total of $3.5 million is targeted for scholarships, including a new program for the top students from underrepresented groups who graduate from Ohio's two-year colleges and then transfer to Ohio State. Success Challenge funding rewards successful program completion of at-risk students and timely graduation for undergraduate students.

· $1.4 million in Research Challenge funding, which supports efforts to secure external research grants and ultimately will help expand opportunities for students to participate in leading-edge research. Research Challenge funding supports and rewards success in attracting external research support.

· $3.1 million in increased student financial aid to fund tuition increases for the university's neediest students, and $2.7 million in pay raises for student employees.

· $651,000 for a High Street safety initiative, financial aid improvements, late-night programming, study abroad and other Student Affairs projects.

· $700,000 in continuing funds and $9 million in one-time funds to support instructional technology and other computer systems improvements, which also will affect some staff and faculty.

Budget income projections are based in part on an estimated enrollment of 47,942 on the Columbus campus, and reflect a projected 2.4 percent increase, to $320.3 million, in state instructional subsidy. The university also will receive $19.6 million in state Performance Challenge funds - a 60.7 percent increase over the $12.2 million received in FY 2000 - and an overall 7.4 percent increase in student fee income, which reflects the 6 percent undergraduate fee increase, a 5 percent graduate fee increase and higher increases for specialized or new advanced-degree programs.

Other strategic expenditures include $2.9 million in nongeneral funds to support the private fund-raising operation; of that, $1 million will be used to create a reserve for a modern gift- and donor-tracking computer system. A new funding method for University Development will replace $2.5 million in general funds with money generated by a 1.1 percent assessment of the interest earned on the university endowment. The university also is committing $2.1 million in continuing and one-time funds to a variety of service improvements, including a centrally monitored alarm system, continued development of a new pay classification system, and research facilities and support.

William J. Shkurti, senior vice president for business and finance, noted that this represents the fifth consecutive year of budget stability since achieving budget equilibrium in fiscal year 1996. He said Ohio State continues to operate with limited resources, but makes the best possible use of the resources it has.

"We have sufficient resources to continue to move toward achieving our goals, but we do face some challenges," Shkurti said. "We have reduced flexibility due to earmarking revenues and expenditures, and our operating margin for continuing funds is extremely tight. We continue to face capped undergraduate tuition, declining enrollments in some graduate programs, intense competition for students and faculty, and the state's effort to address a court decision regarding school funding.

"Overall, in this environment, the advancements made in academic programming and university services this year demonstrate the university is managing its scarce resources well in order to maximize progress toward its academic goals."

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