3-5-99

TRUSTEES HEAR FINANCIAL REPORTS, APPROVE CONSTRUCTION

   COLUMBUS -- The Ohio State University Board of Trustees on Friday (3/5) heard an annual financial report that compared the university with some of its peers and were updated on the status of the endowment fund. Trustees also approved construction projects and awarded contracts.

Trustees hear report on financial benchmarks

   Trustees received an annual report from William J. Shkurti, senior vice president for finance, business and administration, about how the university's revenue and spending compares with its benchmark institutions and within the state of Ohio.

   The benchmark institutions are nine universities that are highly ranked academically and comparable to Ohio State in mission, size and configuration. They are Pennsylvania State University and the universities of Arizona, California at Los Angeles, Illinois, Michigan, Minnesota, Texas, Washington and Wisconsin.

   At $23,715, Ohio State has 19 percent fewer resources per student than the $29,420 average of its peers, but still has kept its undergraduate tuition and fees 6.9 percent below the $4,196 average of the benchmark institutions and 9.3 percent below the $4,174 average of others in the state, Shkurti told trustees. Michigan has the highest revenue per student at $39,153 and the highest annual tuition at $6,489.

   State support and grants and contracts also are below benchmark institutions, but the gaps have been closing in recent years, he said.

   The university spends less per student than the benchmark institutions, though it spends more per student for instruction and public service, Shkurti said. Ohio State spent 128 percent of the benchmark average for public service and 112 percent of the average for instruction, he said, but significantly less on student support services.

   "But despite its limited resources, Ohio State has continued to improve the quality of its academic programs and the quality of the experience of its students," Shkurti said. "This university is a tremendous value to Ohio's taxpayers, with a higher academic reputation and lower tuition than other ranked state institutions."

   Ohio State was ranked 37th in academic reputation by U.S. News and World Report in 1997 and had annual tuition of $3,879, while Miami University was ranked 65th and had tuition of $5,802, Ohio University was 84th and had tuition of $4,530, University of Cincinnati ranked 116th with tuition of $4,746, and Kent State University ranked 148th with tuition of $4,714. Ohio State is ninth among the 13 public universities in the state in annual resident undergraduate tuition and fees.

Trustees hear endowment reports

   University Treasurer James L. Nichols updated trustees on the university's endowment, which had reached a market value of $1 billion at the end of January, telling them that the fund now supports more than 2,600 individual endowment funds.

   Decreases in the stock and bond markets in late February pushed the fund down to $968.2 million at month's end, Nichols said. Despite the market fluctuation, Nichols reminded trustees that the university does not worry about periodic dips. Now that the fund has crossed the $1 billion threshold once, "the long- term trend is up," he said.

   Nichols said a recent report by the National Association of College and University Business Officers showed that, as of June 30, 1998, Ohio State's endowment ranked 33rd nationwide among all colleges and universities, both public and private. The fund was eighth largest of the nation's public universities.

   Nichols also told trustees that the fund had a return for fiscal year 1998 of 20.6 percent, compared with an average return of 18.1 percent in the Big Ten and 17.4 percent for the nine benchmark institutions.

Trustees approve construction work and award contracts

   Trustees authorized the university to hire architects and engineering firms and to seek construction bids for three campus renovation projects. Trustees also awarded construction contracts for work on a food science and technology building.

   Designers will be hired and bids sought for the renovation of two parking garages in the Medical Center area. Funding for the $8.5 million repair of the north and south medical garages, located on Cannon Drive between West 10th and West 12th avenues, will come from revenues earned by Transportation and Parking Services.

   The College of Medicine and Public Health will renovate space in Starling-Loving Hall in the Medical Center area to relocate the cancer cytogenetics laboratory. The James Cancer Hospital and Solove Research Institute will pay for the $415,000 project.

   Housing, Food Services and Event Centers plans a $500,000 renovation of the kitchen, food service and dining areas of Baker Commons on West 12th Avenue. University bond proceeds will pay for the work.

   Trustees also awarded contracts for construction of a facility for the food science and technology program. The new building on the agriculture campus will house classrooms, offices, research laboratories and computing facilities. The $18.3 million project also will renovate the third floor of Howlett Hall.

Contacts:
William J. Shkurti, senior vice president for finance, business, and administration, (614) 292-9232
James L. Nichols, university treasurer, (614) 292-6261
Jill K. Morelli, university architect, (614) 292-4458