Trustees Adopt #1.47 Billion Budget

UNIVERSITY BUDGET TO RISE 2.8 PERCENT

     The Ohio State University Board of Trustees on July 7, 
1995, adopted a $1.45 billion budget for the fiscal year 
which began July 1.  Overall spending will be up 2.8 percent 
from last year.

     The budget includes $560.5 million in General Funds, up 
3.9 percent from the previous year.  The General Funds 
Budget covers daily operating expenses, including academic 
programs.

     Revenues include a general tuition increase of 6 
percent.  Tuition levels and fees were announced earlier.

     Included in the General Funds budget is some $9 million 
in additional funding above last year's levels to improve 
student services and $1.4 million to address maintenance 
needs.  Initiatives to improve student services were 
announced in June.

     About $1 million will go to address a backlog of 
buildings in need of renovations or upgraded utilities, 
roofs, and other needs that accumulated during years of 
tight budgets.  The amount is in addition to funds provided 
by the state for basic renovations in the state capital 
budget.

     "We're putting money back into our physical plant," 
said William J. Shkurti, vice president for finance.  "One 
million dollars sounds like a lot of money.  It's not, but 
at least it's a move in the right direction."

     Another $400,000 will be spent to improve the 
appearance of campus by such things as improving entrances 
to buildings, landscaping, and washing windows.

     Also included in the budget are $294,000 to enhance the 
recruiting of faculty from underrepresented minority groups, 
and $210,000 to improve classification and compensation, 
performance management, and customer service in the Office 
of Human Resources.

     Shkurti reported that Ohio State will be faced with 
unfunded government mandates totaling about $1 million in 
one-time expenditures -- including $790,000 to address 
environmental issues -- and $400,000 in continuing costs, 
more than half of which is related to compliance with 
Occupational Safety and Health Act regulations.

     Shkurti and Ed Ray, senior vice provost, reported that 
multi-year commitments now total about $8.5 million, down 
from $15.6 million just two years ago when efforts were 
launched to eliminate those continuing costs.

     The university set aside $500,000 in state 
instructional subsidy to be allocated in the budget process 
for fiscal 1997.  Shkurti said the money represents Ohio 
State's share of the additional subsidies provided by the 
Senate in the state budget bill signed into law last week by 
Gov. George V. Voinovich.  Ohio State developed its budget 
based on the earlier funding level that had been provided by 
the House of Representatives and decided to save the money 
until next year.

     "It's the equivalent of holding a small balance in your 
checking account for emergencies," Shkurti said.  "It 
represents one-tenth of 1 percent of the university's 
overall budget and will be re-evaluated as part of next 
year's budget."

     Overall, Shkurti said, "We met the goal of achieving 
financial equilibrium for 1996.  Now we must continue along 
that path for '97."

     Issues to be addressed in the future include 
establishing a climate of fiscal growth in a period of 
financial uncertainty, particularly in terms of federal 
revenues.  Those funds represent about 11.6 percent of 
university income, most of which go for research.  However, 
a large amount of federal funds go directly to students in 
the form of financial aid.  That money doesn't show up 
directly in the university budget as federal aid but 
represents a significant percentage of student tuition 
collected by the university.

     "We need to think about how we need to prepare for the 
coming changes in the federal budget so that the university 
and our students are not adversely affected," he said.

     In addition, federal Medicare and Medicaid monies are a 
major source of income for University Hospitals.  The 
federal government also provides some support to Ohio State 
in educating health professionals.

     Another issue is how to make even better use of 
existing resources.

     Emerging university commitments include the third phase 
of developing the Administrative Resource Management System, 
which will include equipment, software, programming and 
training costs for upgrading Ohio State's accounting and 
human resources systems; additional funds to assist in 
recruiting faculty from underrepresented groups; potential 
additional funds for Campus Partners; the arena project; and 
potential start-up funds for a plan to make the Research 
Park self sustaining.

     In general, the emerging commitments will not involve 
General Fund monies, according to Ray and Shkurti.

     On another matter, Shkurti announced that formal 
recommendations for the 1997-98 capital budget will be 
delayed until August.  The state budget bill requires future 
debt service for new construction projects as well as 
projects already in progress to be funded through university 
budgets rather than by the Board of Regents.  According to 
Shkurti, Ohio State will delay its request until 
universities and the Regents have had a chance to determine 
the process that will be used to make those funding 
decisions.

RESEARCH PARK STUDY ANNOUNCED

     An expanded, enhanced research park could be in the 
offing as a result of a feasibility study conducted for Ohio 
State by The Research Park Consortium Inc., an external 
consultant.  The study was conducted in cooperation with 34 
members of the Research Park Advisory Committee, which 
included representatives from the state, city, and business 
community, as well as representatives from various 
university offices.

     Edward F. Hayes, vice president for research, said, 
"Further development of a university-focused research park 
can substantially enhance the academic and research programs 
of the university while at the same time provide a basis for 
the further development of knowledge-based and technology-
based companies that capitalize upon the business strengths 
of the community and the innovations of the faculty, 
students, and staff of the university.

     Hayes announced that issues and opportunities 
associated with organizing, managing, marketing, and 
financing the Research Park will be discussed in the months 
ahead by the campus community.

     The consultant recommended that the park be managed by 
an affiliated, non-profit corporation and that Ohio State 
resolve space and land-use issues regarding West Campus and 
clarify the terms and conditions under which the university 
would make land available for the park.  The consultant also 
recommended that the university become a partner with the 
city, county, state, and private business sector, and make 
commitments to start-up funds for capitalizing the 
corporation and for operating expenses.

     Based on the recommendations, Hayes said he is 
recommending that the university establish a task force to 
develop particulars for operating the non-profit 
organization and develop and propose an operating budget for 
the park office for the first two years.  Hayes said he 
would develop detailed plans for improving Ohio State's 
technology transfer and industrial relations.

COOKER RESTAURANT 
TO BE BUILT ON LANE AVENUE

     Cooker Restaurant Corp. will raze the Lane Manor 
Apartments at 296-306 W. Lane Ave. and construct a 
restaurant, pending completion of a long-term lease of the 
one-acre lot from the university.  Trustees authorized the 
lease, which university officials expect will provide a base 
rent of $75,000.  Other terms and conditions will be 
negotiated.

     "We would hope the restaurant will be open within a 
year," said Robert J. Haverkamp, assistant to the vice 
president for business and administration.

     Ohio State has been renting the apartments across from 
Converse Hall to faculty, staff and students, generating 
about $60,000 per year during the past three years.  The 40-
year-old brick building has 50 apartments, but only 42 are 
rentable because of building code restrictions.  According 
to Haverkamp, the building has been well-maintained, but is 
in need of major renovations which would decrease the 
profitability of the facility.

     We've stopped renting units for next year," said 
Haverkamp.  "At the time the building needs to be vacated, 
we expect only two units will be occupied.  We will work to 
relocate any remaining tenants in a manner convenient to 
them."

RULE CHANGES TO PERMIT 
EXTENSIONS OF TENURE CLOCK

     Trustees amended the Rules of the University Faculty to 
broaden the bases for which an untenured faculty member can 
apply to extend his or her probationary period.

     Current rules provide that an untenured faculty member 
may exclude time from the probationary period to reflect the 
care-giving responsibilities associated with the birth of a 
child or adoption of a child under age 6, or for personal 
illness, care of a seriously ill or injured person, or an 
unpaid leave of absence.  The new rules permit exclusions 
for other factors beyond the faculty member's control that 
would hinder the performance of the usual range of duties 
associated with being a successful faculty member.

     According to Nancy M. Rudd, vice provost for academic 
policy, personnel, and administration, "Possible reasons 
could include difficulties beyond the control of the faculty 
member in setting up a laboratory or department 
restructuring that resulted in a faculty member being faced 
with a considerable change in academic environment and 
expectations in the middle of the probationary period."

     Rudd said the changes will give Ohio State badly needed 
flexibility in providing promising untenured faculty members 
with the opportunity to be successful before a final tenure 
decision must be made.

     "Because of the review process associated with 
applications to stop the clock for any reasons other than 
childbirth or adoption, it is not anticipated that large 
numbers of faculty will be judged eligible for extended 
probationary periods," she noted.  "However, given the 
sometimes considerable investment the university makes in 
new faculty, it is very much to its advantage to have the 
option of extending the probationary period when 
circumstances warrant as an alternative to being forced into 
a premature decision on the granting of tenure."

     The rules provide for exclusions in increments of one 
year and a maximum of one year for associate professors and 
two years for instructors and assistant professors, except 
in extraordinary circumstances.

     Trustees also amended the Rules to permit the president 
to select one or two university faculty representatives to 
the Big Ten Conference, and to delete intramural programs 
from the authority of the director of athletics.

MISCELLANEOUS BUSINESS

     In other actions, the board:

     -- Adopted detailed policies on expenditures and travel 
on university business.  Expenditure policies cover such 
things as alcohol at approved university functions, employee 
recognition, tips, business meals, and other issues.  
Changes to the travel policies were made to bring Ohio State 
into compliance with federal tax regulations, to adjust 
mileage reimbursement and to provide reimbursement for tips.

     -- Authorized the treasurer and vice president for 
finance to buy, sell, assign, and transfer stocks, bonds, 
and other securities; to designate financial institutions as 
depositories and to open and maintain accounts; and to 
deposit or withdraw funds from those accounts.

     -- Accepted 75 waivers from competitive bidding 
requirements for purchases totaling $6.2 million, including 
68 waivers for purchases from sole-source suppliers, one for 
emergency purposes, and six for sufficient economic reason.


[Submitted by: Von Reid-Vargas (ereid@magnus.acs.ohio-state.edu)
               
Fri, 7 Jul 1995 17:15:34 -0400]
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