Trustees adjust current budget
OSU trustees approve adjustments to current funds budget
Board also authorizes bidding for upcoming construction projects
COLUMBUS -- Higher education received a budget cut by executive order late this fiscal year, resulting in a $3.2 million (1 percent) reduction in The Ohio State Universitys Columbus campus State Share of Instruction and a $4.5 million reduction in all appropriations for all campuses. To soften the impact of the cuts, university officials proposed using Ohio States Rainy Day Fund to make up for most of the late-year losses. The universitys Board of Trustees, meeting on Friday (5/4), authorized the university to use $5 million or 50 percent of the Rainy Day Fund this fiscal year to offset the $3.2 million reduction in the Columbus campus revenues and a $1.8 million portion of the universitys utility cost increase. The board stipulated that the Rainy Day Fund be replenished from cash balances during Fiscal Year 2002.
Trustees also approved adjustments to the FY 2001 current funds budget to reflect changes outlined in a third quarter budget report presented by William J. Shkurti, senior vice president for business and finance. Adjustments to budgeted revenues and expenditures reflect an unexpected spike in utility costs, as well as the final enrollment figures for all four FY 2001 quarters -- which have minimal financial impact this year, Shkurti said.
With the adjustments proposed today, this years general funds budget will be in balance, he said. But we also know we must prepare for Fiscal Year 2002, which is expected to be a very challenging year financially.
He also said officials are continuing to monitor auxiliary budgets in Athletics, the Jerome Schottenstein Center and the University Medical Center.
Shkurti said that use of the Rainy Day Fund allowed the university to eliminate any cuts to appropriations in support of the instructional mission at the Columbus campus. However, several line-item appropriations were reduced by 1 percent this year in response to the states cut.
In other business, the board authorized additional investment in Campus Partners for strategic Campus Partners development initiatives, subject to separate board authorization for each request and joint development with the Oversight Committee of a comprehensive set of investment/underwriting criteria for evaluating such requests.
The board also authorized the employment of architects/engineers and the request for construction bids for:
- An approximate 1,000-space parking garage with some 16,000 square feet of retail space on the east side of Perry Street and north of 9th Avenue to serve the Heart Hospital. Estimated project cost is $20 million, and total estimated construction cost is $16 million, with funding provided by bond proceeds with debt service paid by Transportation and Parking Services.
- Phase II of University Hospitals East, including two ambulatory operating suites, relocation of the Physical Therapy department and endoscopy services and construction of a centralized waiting area and public elevator tower in the north building. Estimated total project cost is $5.5 million, and estimated construction cost is $4.6 million with funding provided by University Hospitals East.
- Remodeling of Ohio Supercomputer Center space at 1224 Kinnear Road to create a conference facility to disseminate information to current statewide users of the Blueprint for Advanced Learning Environment (BALE) Program. Estimated total project cost is $1.34 million, and estimated construction cost is $795,334 with funding provided by the Board of Regents ($1.25 million) and the Ohio Supercomputer Center ($97,031).
- Renovation of space in the Parker Food Science and Technology Building, 2015 Fyffe Road, to house a pulsed electrical field research and development pilot plant facility. Total estimated project cost is $500,000, and estimated construction cost is $432,000, with funding provided by the Board of Regents Action Fund ($132,000), OARDC ($80,000), Department of Defense ($36,000), College of Food, Agricultural and Environmental Sciences ($200,000) and gifts ($52,000).
- Construction of an additional parking lot east of the Fawcett Center, 2400 Olentangy River Road. Total estimated project cost is $650,000, and estimated construction cost is $500,000, with funding provided by Transportation and Parking Services ($400,000), the Alumni Association ($83,333), University Development ($83,333) and Housing, Food Services and Event Centers ($83,333).
- Upgrade of the McCracken Power Plant, including final design and installation of new boilers, upgrades of the electrical distribution system and construction of an addition to the plant. Total estimated project cost is $73 million, and estimated construction cost is $51 million, with funding provided by university bond proceeds, with debt service paid from central university funds. The board also authorized employment of a construction manager for the project.
The board also accepted the quarterly report on waivers of competitive bidding requirements. Waivers are granted in the event of an emergency, when a sufficient economic reason exists or when the goods or services can be purchased from only a single source. Fifty-two waivers were granted for a total of $7 million in purchases.
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