1993-94 University General Funds Budget

1993-94 University General Funds Budget

OHIO STATE RAISES RESIDENT TUITION 5 PERCENT, OTHERS 8

     COLUMBUS -- The state's undergraduate students who attend
The Ohio State University will pay 5 percent more in tuition this
fall.

     The university's Board of Trustees adopted the increase at a
meeting Friday (7/9) as part of its $537 million General Funds
Budget for fiscal 1994.  The overall budget for all funds is $1.3
billion for the period that began July 1.

     Out-of-state students and all graduate and professional
students will see their tuition bills go up by 8 percent.

     The 5 percent raise on in-state undergraduates is the
maximum allowable by law.  It will mean a $141 annual increase
for students enrolled for three quarters on the Columbus campus.
Full-time students will pay $980 per quarter in instructional and
general fees, up from $933 last year.  Students on regional
campuses will pay slightly less because their base fees are
lower.

     Charges to students on the Columbus campus for tuition, room
and board, books, health insurance and other expenses will
increase by an average 5.2 percent to 6.3 percent for
undergraduate students and 6.3 percent to 7 percent for graduate
students, with non-residents paying the higher amounts.  Room and
board charges alone will increase an average of 4.1 percent.

     William J. Shkurti, vice president for finance, noted that
the General Funds Budget for 1994 reflects the culmination of
several years of declining revenues and rising costs.

     State aid to Ohio State was reduced by nearly $80 million
between 1990 and 1993, he noted.  At 4.39 percent, it was the
largest reduction of any public university in the Big Ten
Conference.  Of the others, only Minnesota showed a reduction,
0.42 percent.  The others had increases ranging from 3.8 percent
at the University of Illinois and Penn State University to 10.8
percent at the University of Wisconsin.  The University of
Michigan's state support rose 9.74 percent during the period.

     Shkurti noted that Ohio State this past year eliminated
1,000 positions and reduced operating budgets by an average of
5.6 percent.  Most faculty and staff have had no pay raises since
mid 1991.

     However, the university managed to attract better quality
freshmen, reduce the number of students who were closed out of
classes, increase recruitment of minority students, and attract
more federal research dollars.

     "But, unless the university can forge a better fit between
resources and expenditures, this progress cannot be sustained and
the university's contribution to the State of Ohio will be
significantly diminished," he noted.

     "The university is in a period of transition.  This budget
is an important step in this process because of the necessity of
readjusting our spending to available resources.  The outcome of
this process may be a slightly smaller institution in terms of
students, faculty and staff, but we want it to be a better
institution," Shkurti said.

     The increases in tuition will generate an additional $6
million for Ohio State.  State support will increase $7 million
and other revenues will rise by $1 million.

     The new budget sets aside $6 million for pay raises for
faculty and staff, the highest funding priority.

     Faculty will receive up to a 2 percent increase, based on
merit.  Administrative and professional staff members will
receive a $300 across-the-board raise and up to a 2 percent total
increase, the rest based on merit.

     Classified civil service employees will receive a 1.5
percent raise or an additional 15 cents per hour, whichever is
greater, effective in July.  Details on the effective date of pay
raises for faculty and staff will be determined shortly.

     The president, vice presidents, deans and other members of
the Executive Committee will not receive pay raises.

     Total expenses are expected to rise by $30 million,
including $5 million for health care and other employee benefits,
$6 million for student financial aid, $6 million
for multi-year commitments, and $4 million for increased facility
and utility costs.

     Shkurti noted that government mandates account for $1.87
million in increased costs.  These include Medicare, occupational
medicine, storm water surcharges, waste disposal fees, and
renovations required for the university to comply with federal
safety and accessibility laws.

     The 1994 budget reflects $15 million in expenses that must
be reduced through internal reallocation to balance income and
expenses.  Current expenses are estimated at $552 million, a 5.7
percent increase from a year ago, while income rose only 2.9
percent to $537 million.

     Because the increased expenses are expected to outpace
revenues, colleges and offices are preparing for reductions that
could range from 3 to 10 percent.  Different targeted reductions
will be assessed based on principles and parameters defined in
the academic planning process.

     The reductions will be reported in an amended budget to the
Board of Trustees at the September meeting.  At that time, final
budget decisions will be made regarding the university's funding
priorities of employee compensation, academic enrichment,
computers, research infrastructure, and affirmative action.

     To reach the goal of financial equilibrium by the end of
fiscal 1995, Shkurti noted that Ohio State will strengthen its
recruiting efforts to attract more high ability scholars, improve
administration of student financial aid, and raise standards of
budget accountability.  The university also will re-evaluate
multi-year commitments, restructure colleges and offices, resolve
unfunded liabilities, and initiate planning on a two-year cycle.
                                #
                                
Contact:  William J. Shkurti, (614) 292-9232.

Written by Tom Spring.


[Submitted by: GERSTNER  (gerstner@ccgate.ucomm.ohio-state.edu)
               
Tue, 13 Jul 93 10:31:08 EST]
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