97-04-04 Trustees: Financial Report, Construction, Misc. TRUSTEES HEAR EXPENDITURE REPORT; AWARD CONTRACTS COLUMBUS -- The Ohio State University Board of Trustees on Friday (4/4) heard a report comparing Ohio State’s expenditures with those of its peer institutions, awarded construction contracts and purchased property. Trustees hear report on university expenditure benchmarks Since 1991, growth of Ohio State’s general fund expenditures has barely kept pace with inflation, William J. Shkurti, vice president for finance, reported to trustees. Despite an average annual increase of only 3.1 percent -- and average inflation of 3 percent a year -- the university has managed to target its limited resources consistent with its academic goals, including focusing some investment in critical areas. Academic initiatives, which include Academic Enrichment, have grown an average of 20.1 percent a year, and during the past three years have totaled $5.2 million in one-time and continuing funds. The university’s unrestricted endowment, which includes expenditures on behalf of student financial aid, has grown an average 16.8 percent, and financial aid has grown an average 8.9 percent. Support for research has grown an average 9.9 percent each year, but payroll has increased only an average of 2.2 percent and benefits also just 2.2 percent. Compared with its peer institutions, Ohio State has invested only $22 less than the $8,217 average per full-time equivalent student for instruction, Shkurti said. Peer institutions are the top 20 public research universities as determined by a composite of rankings by the National Research Council of Graduate Programs, U.S. News and World Report and the American Association of Universities. Ohio State spends 116 percent of the average of its peer institutions on public service, but lags far behind its peers in spending for non-instructional services, Shkurti said. Compared with its peers, the university spends 71 percent of the average on academic support, 68 percent on scholarships, 54 percent on research, 64 percent on institutional support, and 63 percent on operation of its physical plant. In fact, from fiscal years 1991 to 1995, there was no change in the level of university support of non-instructional expenditures compared with peer institutions. During the past six years, Ohio State has kept pace with most of its competitors in average faculty salary increases, Shkurti said. Average increases have been 3.2 percent at Ohio State and 3.1 percent at other public Ohio institutions and the 20 peer institutions. The university’s average faculty salary of $62,734 is 0.5 percent higher than the average for its 20 peers. Compared with benchmark institutions, Ohio State is competitive with the group average of selected institutions, but is below its target position, Shkurti said. Staff salaries are below the local and regional employer market for most occupational areas, he said. Trustees award construction contracts Trustees awarded construction contracts for work on new recreation and intramural sports fields. The $4.5 million project will construct the new fields on 38 acres of the west campus area. The fields, at the corner of Lane Avenue and Kenny Road, will replace existing lots at King Avenue and Cannon Drive that must be moved to make way for construction on state Route 315. The new site will provide two multipurpose spaces containing eight softball-baseball fields, eight flag football fields and two multipurpose spaces for sport club practices, contests and tournaments. Funding for the project will come from bond proceeds and university funds. The project will be completed by December. Trustees purchase property in Marion Trustees authorized the university to purchase a property adjacent to the Marion campus for $120,000. The three-acre parcel, one of a few remaining pieces of undeveloped property adjacent to the campus, will provide opportunities for future growth. In the short term, the wooded lot will provide a setting for classes in biology, plant biology and zoology to conduct field experiments and projects highlighting the influence of vegetation structure on animal communities and to examine local flora. The vacant treed lot is located across the street from the south property line of the campus. Funding for the purchase will come from the Marion campus, which will be responsible for maintaining and operating the property. The land, owned by Kazi Mobin-Uddin of Columbus, has an appraised value of between $115,700 and $125,000. Marion County commissioners recently permitted the property to be subdivided into five residential lots ranging from one-half to one acre in size. Miscellaneous business In other matters, trustees: -- Approved 164 contracts totaling $13.4 million for research projects funded in February. For the fiscal year through the end of February, federal support is up 22.4 percent to 524 contracts worth $82.8 million and state support is up 24.6 percent to 90 contracts worth $7.8 million. All categories of research support are up for the fiscal year a total 9.8 percent to $119.5 million. -- Approved changes to the Rules of the University Faculty to appoint a staff member to a two-year term on the University Senate’s Athletic Council. Other changes resized the council from 15 to 14 members and made public all documents of the faculty hearing committee. # Contacts: William J. Shkurti, (614) 292-9232 Jill Morelli, university architect, (614) 292-4458 Robert Haverkamp, assistant vice president for real estate and property management, (614) 292-7970 [Submitted by: Von Vargas (vargas.12@osu.edu) Fri, 4 Apr 1997 16:15:33 -0500 (EST)] All documents are the responsibility of their originator.