TRUSTEES ADOPT BUDGET FOR 1999-2000

   COLUMBUS -- The Ohio State University Board of Trustees on Wednesday (9/1) adopted the university budget for fiscal year 2000. The board also heard reports on planned giving and the endowment fund, and conducted other business.

FY 2000 budget supports university goals

   The budget for fiscal year 2000 will advance several university priorities, including increased support for academic units and service improvements that directly benefit students, senior administrators told trustees.

   General fund revenues and expenditures are projected to reach $715.5 million this fiscal year, an increase of 5.6 percent over revenues and expenditures of $677.3 million in 1998-99. The total university budget, which includes general funds, earnings operations and restricted funding, is projected to increase 9.6 percent from $1.75 billion to $1.92 billion.

   "This budget reflects a steady increase in state subsidy and substantial increases in targeted performance funding. The university is very supportive of the position that the Regents, the Legislature and the governor have taken to target funding for success through programs like Research Challenge and Success Challenge. Such programs help us to compete by providing resources and salaries that attract the best students, faculty and staff," said Edward J. Ray, executive vice president and provost. "At the university we have made strategic choices, too. We have targeted funding in support of priorities established at this university -- reinforcing academic programs, improving the quality of the student experience, enhancing diversity initiatives, and expanding Ohio State's outreach and engagement."

   The budget reflects the fifth consecutive year of budget stability since achieving budget equilibrium in 1995, added William J. Shkurti, senior vice president for finance, business and administration.

   Income projections are based in part on an estimated enrollment of 48,142 on the Columbus campus, and reflect a projected 3 percent increase, to $314.6 million, in state instructional subsidy. The university also will receive $12.2 million in Performance Challenge funds -- a 79.4 percent increase over the $6.8 million received in FY 1999 -- and a 5.8 percent increase in student fee income.

   Of the increase in general fund expenditures, 3.8 percent will cover increases in continuing services such as compensation (4 percent for salaries, 12 percent for health care premiums and $600,000 for faculty promotions); student financial aid (6 percent for undergraduate scholarships and 5 percent for graduate fee authorizations); and inflationary increases for research support and facilities operating and maintenance costs.

   Ray also noted that expenditures reflect $12.5 million in continuing general funds and $24 million in one-time funds for six categories of targeted funds designed to support strategic goals. The strategic investments include:

   -- $1.75 million in continuing funds and $250,000 in one- time funds for Academic Enrichment and Selective Investment initiatives; $500,000 in continuing and $500,000 in one-time funds for enhanced recruiting of top students; and $667,000 in continuing funds for library acquisitions.

   -- $3.87 million in continuing funds and $1.79 million in one-time funds for Performance Challenge programs seeking to attract outside research support and provide more research opportunities for students, and to support initiatives that aid at-risk students, improve retention, reduce time to graduation, and fund scholarships.

   -- $934,000 in continuing and $185,000 in one-time funds from 1 percent of revenue generated by the 6 percent tuition and fee increase for undergraduates. These funds are set aside for program improvements that directly benefit students, and include $550,000 dedicated to instructional computing services. Other improvements include: student surveys; staffing for the Greek Life Task Force; Homecoming programming; diversity programming; Make a Difference Day; Ohio Union events and furniture; Student Financial Aid service improvements, including a toll-free number; Student Escort Service enhancements; and installation of more blue safety lights.

   -- $2.6 million in gift stewardship and support, including installation of a modern gift- and donor-tracking system, additional development officers and additional space.

   -- $529,500 in continuing and $19.5 million in one-time funds for service improvements, including $18 million for the Administrative Resource Management System (ARMS).

   -- $491,500 in continuing and $1.96 million in one-time funds for state and federal mandates -- including improvements in services for persons with disabilities -- and Y2K readiness.

Planned Giving Program update

   Office of University Development representatives updated trustees on the progress of the Planned Giving Program portion of the "Affirm Thy Friendship" fund-raising campaign. The campaign, now in its final year, includes a $150 million goal for bequest intentions. To date, $126.4 million has been pledged, reaching 84 percent of the goal.

   Jerry A. May, vice president for development, led a presentation to trustees, accompanied by planned giving officers. Presenters noted that in the five years prior to the campaign, the university generated $7 million a year in new bequest intentions. During the campaign, it has been averaging $30 million a year.

   To achieve the original planned giving goal of $100 million, annual activity needed to reach $17.7 million, or see a 153 percent increase. However, actual giving from 1995-96 to 1998-99 was $31.2 million per year, an increase of 346 percent, said Joseph Bull, director of planned giving.

   The Planned Giving Program has had a major impact on the university endowment, resulting in 34 new chairs, 163 new scholarships or fellowships, 196 new research or program funds and $84.8 million added to the endowment. To date, the Affirm Thy Friendship campaign, which has a goal to raise $1 billion, has contributed 63 new chairs or professorships and 404 new scholarships or fellowships.

Trustees hear endowment report

   University Treasurer James L. Nichols updated trustees on the university's endowment, which had reached a market value of $1.08 billion as of Aug. 26. That compares with $1.06 billion at the end of July. The total number of funds now exceeds 2,700.

   In his quarterly report, Nichols said the endowment stood at $1.08 billion as the quarter ended June 30. Ten years ago, the endowment was $345 million. The total return last year was 15.5 percent, while the amount distributed to colleges and departments last year was $39.5 million.

Trustees authorize hiring of architects, call for bids

   Trustees authorized the university to hire architects and engineering firms and seek construction bids for three campus projects.

   Designers will be hired and bids sought for a Wetland Research and Education Building to help Ohio provide national leadership in wetland ecology and management, and wetland and river restoration and ecotechnology, and to continue the collaboration among several Ohio universities working in these fields. The total estimated project cost is $2.8 million, with construction costs estimated at $1.8 million. A Board of Regents grant will provide partial funding of $1 million.

   Dentistry clinical facilities on the fourth floor of Postle Hall will be converted into four generic research labs, at a cost of $1 million. House Bill 850 provides funding.

   The Board of Regents will be funding a $95,000 project to remove asbestos-containing materials insulating the water and steam lines in the tunnel system from the McCracken Power Plant that serves many south campus buildings.

Trustees approve purchase and sale of property, grant easements

   The board authorized the purchase of one property, sale of another, and agreed to two easements across university property.

   The university plans to buy 7.51 acres located within the Airport Master Plan study area. The property at 1704 W. Case Road will be purchased for approximately $320,000, to be funded by a Federal Aviation Administration grant and the University Airport.

   Approximately .72 acres on Coffey Road, at the rear of 770 Kinnear Road will be sold to Lifeline of Ohio for $35,000. Lifeline of Ohio owns the adjacent property at 770 Kinnear Road and intends to use the property for a memorial garden.

   Trustees also approved two 25-year renewal easements to Columbia Gas of Ohio. One consists of a strip of land 400 feet long for a gas pipeline starting at the east line of the North Star Avenue right-of-way near Ridgeview Road. The other is for a 10-inch gas line running through the University Golf Course along the north side of Tremont Road to Reed Road. The university will receive $950 for granting the easements.

Miscellaneous business

   In other business, trustees:

   -- Approved 437 grants totaling $34.9 million for research projects funded in June and July.

   -- Granted competitive bid waivers for 95 purchases totaling $45.9 million for the period of April to June 1999.

   -- Appointed investment managers.

Contact:
Edward J. Ray, Academic Affairs, (614) 292-5881
William J. Shkurti, Business and Finance, (614) 292-9232
Jerry May, Development, (614) 292-2970
James Nichols, Treasurer, (614) 292-4777
Jill Morelli, University Architect, (614) 292-4458