97-09-05 Trustees: University finances TRUSTEES RECEIVE ACCOUNTING OF UNIVERSITY FINANCES COLUMBUS -- The Ohio State University Board of Trustees on Friday (9/5) received a detailed accounting of the university’s income and expenses for the 1998 fiscal year and heard a report about state performance funding. Trustees also authorized the university to hire architects for an executive residence at the Fisher College of Business and conducted other business. Trustees receive budget book, hear about performance funds Trustees received a copy of the fiscal year 1998 budget book, which details the university’s finances. Trustees approved the budget at the July meeting. However, because of uncertainty about final state appropriations, which were debated by the Legislature until late June, university officials had not had enough time to prepare and present the books until now. “This budget reflects a commitment to advancing the university’s academic goals,” William J. Shkurti, vice president for finance, told trustees. “It includes a continuation of a multiyear effort to focus resources in academic programs, research, instructional technology, the student experience, our physical environment, and maintaining a competitive compensation package for our faculty and staff.” The current funds budget shows an increase in total revenue of 5.2 percent, from $1.53 billion to $1.61 billion, Shkurti said. The current funds budget includes all university revenues, including general funds, earnings and restricted endowments and sponsored programs. State instructional support to all campuses makes up $316 million of the general funds budget, while tuition accounts for $279 million. Total expenditures are $1.59 billion. Included among the highlights of the operating budget is the first increase in nine years for supplies and equipment. That budget had been held steady in the past as the university tried to recoup heavy cuts in state funding in the early 1990s. Other expenses include $400,000 in continuing funds and $1.75 million in one-time funds to comply with unfunded government mandates, Shkurti said. Shkurti also told trustees that the university will place into escrow money it receives from state performance funds, which are allocated for meeting certain criteria. Because the funds are based on performance and are not entitlements, Ohio State’s allocation will not be known for some time. But based on data from fiscal year 1996, the Ohio Board of Regents estimates that Ohio State will be eligible to receive approximately $800,000 for fiscal year 1998 and possibly $2.5 million in fiscal year 1999. Regents estimate the university’s regional campuses, including the Agricultural Technical Institute, would receive approximately $600,000 in 1998 and $800,000 in 1999. Shkurti said the university would wait until it received the money before committing it to use. During that time, officials will consult with various groups to determine what strategic objectives the university should seek to accomplish with the funds and how the allocations should be distributed. Trustees authorize design, award construction contracts Trustees authorized the university to hire architects and engineers to plan an executive residence to be part of the Max M. Fisher College of Business. The facility will house participants in various executive education training sessions. When finished, the building will complete a six-building complex for the college that will include undergraduate, graduate and executive program buildings, offices and a resource center with library and computing facilities. The first phase of the project, the graduate program building and eight-story college office building, is nearing its February 1998 completion. The phase two completion date is June 1999. The final piece of the project, the residence, is expected to cost $13.5 million, with funding provided by bond proceeds and debt service paid by Housing, Food Services and Events Centers, which also will pay the $900,000 in planning costs. Trustees also authorized the university to hire design firms and seek construction bids for replacement of an air conditioning unit for the Fallerius Technical Education Center at the Mansfield campus and renovation of classroom and office space in the Hopewell Hall Addition at the Newark campus. Cost of the Mansfield project is $46,900, with funding provided by the state. Cost of the Newark work is $56,800, with funding provided by the state and Newark campus. The board also awarded contracts for two renovation projects. The first will provide research labs and support space on the sixth floor of the Medical Research Facility. The $1.4 million project is being funded by the Arthur G. James Cancer Hospital and Research Facility and is expected to be completed by February 1998. The second project will update lobbies and other public spaces and provide rooms compliant with the Americans with Disabilities Act in four south campus area residence halls -- Park, Smith, Steeb and Stradley. The $1.8 million cost is being paid by Housing, Food Service and Events Center. The expected completion date is November 1997. Miscellaneous business In other business, trustees: -- Authorized the sale of approximately 21 acres of property near the intersection of U.S. 33 and state Route 161. The land, appraised at $60,000 an acre, is being sold for $66,000 an acre to the Morrone Development Co. Proceeds from the $1.4 million sale will be returned to the university’s endowment fund. -- Authorized the university to acquire a 118-unit student residence facility on the campus of the Agricultural Technical Institute in Wooster. The complex is being financed through a lease-purchase arrangement using tax-exempt certificates of participation. -- Approved 432 contracts totaling $39.5 million for research projects funded in June and July. -- Accepted 102 waivers of competitive bidding requirements for purchases totaling $34.6 million. -- Discussed a proposal that the university loan $495,000 to MedOhio Health Inc. for MedOhio’s participation in the Newark Clinic Surgery Center. The ambulatory surgery center is expected to open in mid-1998 and will be operated by Newark physicians in association with The Ohio State University Medical Center. # Contact: William J. Shkurti, vice president for finance, 614-292-9232 Jill Morelli, university architect, 614-292-4458 Written by David Bhaerman, University Communications, 614-292- 8422 [Submitted by: Von Vargas (vargas.12@osu.edu) Fri, 5 Sep 1997 16:01:50 -0400 (EDT)] All documents are the responsibility of their originator.