TRUSTEES APPROVE BUDGET, CAPITAL REQUEST, CONSTRUCTION, ARMS SPENDING

   PUT-IN-BAY, Ohio -- The Ohio State University Board of Trustees, meeting Friday (7/2) at F.T. Stone Laboratory on Gibraltar Island, approved the university's fiscal year (FY) 2000 current funds budget. The board also approved a request for the FY 2001-FY 2002 capital budget, authorized the university to hire architects and engineers and seek construction bids, and authorized spending on the ARMS project.

Trustees approve current funds budget

   Trustees authorized a spending plan for the university for fiscal year 2000. Some budget details, including the final budget book detailing finances for the year, will not be available until September because of the short time frame between the Ohio General Assembly's budget passage and the university board's first meeting of the new fiscal year.

   General fund revenues and expenditures are expected to be $716.8 million this fiscal year, an increase of 5.8 percent in revenues and 5.7 percent in expenditures over 1998-99. The total university budget, including income and expenses at University Hospitals and other auxiliary units, exceeds $1.7 billion.

   Income projections are based in part on an estimated enrollment of 48,142 on the Columbus campus, and reflect a projected 2.9 percent increase, to $314.2 million, in state instructional subsidy. Expenditures reflect a 6 percent increase for undergraduate scholarships and 5 percent increase for graduate fee authorizations, minus a $2 million decrease because of a decline in graduate student enrollment. Other expenses include a 4 percent increase in salary budgets plus $600,000 for faculty promotions and a 12 percent increase in the university's share of health care premiums for employees.

   More than $13 million in general fund spending is earmarked for strategic investment in such areas as academic enrichment, recruitment, student services and instructional computing.

   As part of the budget, trustees approved an additional 2 percent tuition increase for resident undergraduates attending the Columbus campus, bringing the total tuition and fee increase for this year to 6 percent. Tuition will not be increased on Ohio State's regional campuses this year.

   Though final budget details won't be available until September, the board authorized expenditures within projected income levels.

Trustees approve capital budget recommendations

   Trustees approved capital budget recommendations for the FY 2001-FY 2002 biennium made by university administrators after consultation with the Space Facilities Committee and vice presidents. The board must submit the request to the Ohio Board of Regents.

   Officials have estimated that Ohio State's share of the next capital bill will fall between $75 million and $80 million for building projects on the Columbus campus. Recommendations of $79.3 million in state capital funds for 10 projects, including $26 million that will allow for completion of a new Physical Sciences Research Building and $24 million for design and renovation to the Botany & Zoology Building, were advanced to trustees.

   Other state capital fund recommendations are: $5 million toward the design of Larkins Hall renovations, including academic space that will be used by the School of Physical Activity and Educational Services; $10.3 million for design and renovation to Page Hall, which will house the John Glenn Institute for Public Service and Public Policy; $3 million in planning money for a new psychology building; $2.5 million for design services at Robinson Laboratory for the Department of Mechanical Engineering, a replacement project that will be phased in over the next three biennia; $500,000 toward a feasibility study relating to a Main Library renovation; $1.5 million for a space and facilities study for the College of Food, Agricultural and Environmental Sciences; $3.5 million in start-up support for a new specialized heart hospital; and $3.5 million for Lord Hall demolition.

   The Lord Hall demolition is related to a proposed arts complex that would provide a combination of new and renovated facilities to serve as an interdisciplinary technological hub for teaching and research in the arts. Administrators recommended reassessment of the timing of the rest of the complex in planning for the FY 2003-FY 2004 biennium.

   University planners also propose that the next biennium be used to develop a comprehensive space plan for the College of Medicine and Public Health in anticipation of pursuing a construction and renovation package for educational and biomedical research facilities for the college in future years.

   Basic renovation projects of $1.5 million or less are not included in the capital request because they are funded by a separate $15.5 million line item.

Architects employed, bids sought for several projects

   Trustees authorized the university to hire architects and engineers and seek construction bids for six projects, including two at the Fisher College of Business. The college complex will include an Executive Residence to provide guest rooms, physical fitness and banquet facilities, and informal areas for those attending Executive Education programs. A kitchen build-out also is planned in Pfahl Hall. The total residence project cost is nearly $27.4 million, and the kitchen cost is $1.3 million; Housing, Food Services and Event Centers and the college will pay debt service on university bonds. They also will share debt service for a $569,115 project to replace the fire alarm system in Jones Tower.

   The Woody Hayes Drive bridge is due for structural rehabilitation and widening, and a high-pressure steam line will be installed as a back-up line to the mid-west campus area. The university will fund the $6.5 million project.

   Other projects include renovation of space in Rhodes Hall to accommodate two additional cardiac catheterization labs and on- call labs, and the relocation of Respiratory Therapy, at a cost to University Hospitals of $5.9 million; and completion of Fred Taylor Drive from Lane Avenue to Ackerman Road and construction of a parking lot for up to 2,000 cars on the west side of Taylor Drive at a cost to the university of $5.5 million.

Additional $18 million authorized for ARMS project

   Trustees authorized the expenditure of up to $18 million for the Administrative Resource Management System (ARMS) to be used during the first half of fiscal year 2000.

   ARMS is a major upgrade and re-engineering of core human resources and procurement and general ledger systems. It is designed to replace out-of-date systems that are increasingly expensive to maintain, and also will address potential Y2K problems.

   The $18 million will be used to proceed with Phase VII-A of the project, which will include completing the upgrade begun in 1999 of the human resource system, and beginning the upgrade of the procurement system and installation of the general ledger system. The human resources system, which was first implemented two years ago, is designed to integrate the employment, benefits and payroll systems. The procurement system will replace the systems for purchasing, accounts payable, equipment inventory, and stores and receiving.

   In order to focus on successful implementation of the human resources upgrade, the general ledger implementation was delayed until July 1, 2000. The current accounting system has been in place since 1977.

Contact: William J. Shkurti, Business and Finance, (614) 292-9232
Edward J. Ray, Academic Affairs, (614) 292-5881
Jill Morelli, University Architect, (614) 292-4458