TRUSTEES

The Ohio State Board of Trustees held its monthly meeting April 4 in the Eisenhower Memorial Center on the Mansfield campus. Ohio State is governed by a board of 11 trustees (including two nonvoting student members) who are responsible for oversight of academic programs, budgets and general administration, and employment of faculty and staff. The governor annually appoints one voting member to a nine-year term and one nonvoting student member to a two-year term.

Shkurti outlines plan to absorb latest budget cuts

A plan to deal with the state's latest budget cuts for the 2002-03 fiscal year -- which slashed a total of $11.2 million in state funding from the university's coffers -- was submitted to the university's Board of Trustees by William J. Shkurti, senior vice president for business and finance, at the board's April 4 meeting.

The plan proposes reallocation of one-time funds at the Columbus campus to absorb the loss of $7.7 million in state share of instruction, which equals a 2.5 percent budget cut from the state. The plan also calls for $3.5 million in reductions at regional campuses and in other university line items.

The university will make the cuts in the following manner: $5.1 million from college budgets, $2.6 million from support units, $500,000 from the regional campuses, and $3 million from separately funded line items.

Shkurti told trustees that the reductions were carefully coordinated to be in line with the goals of the university's Academic Plan. Because of this, student financial aid and Selective Investment Funds were protected from the budget ax.

Shkurti stressed that the plan addresses only the reductions already announced by Gov. Bob Taft's executive order, and additional corrective action will be necessary if there are further reductions in state support.

"These are not cuts Gov. Taft wanted to impose, but were necessary to balance the state budget for fiscal year 2003,"Shkurti said. "We are hopeful the governor and the legislature will be able to agree on a package of increased revenues for the coming biennium that will not require additional cuts because additional cuts will have a severe negative impact on future economic growth in the state of Ohio."

He also said that since the $7.7 million reallocation required the use of one-time funds, permanent reductions will need to be addressed as part of the fiscal year 2003-04 budget process.

The board will be asked to adjust fiscal year 2003 resources and expenditures to reflect changes -- including an estimated $2.4 million from higher than expected enrollment, which will be distributed to colleges and support units -- as part of the third-quarter budget report at the board's May meeting

Trustees approve cost-savings plan

Trustees approved a long-term cost management plan that, combined with increased state support, tuition and other revenues, is necessary to achieve the goals of the Academic Plan.

Recommendations were presented in six specific areas:

• Core processes I (capital project approval, design, construction and commissioning)

• Core processes II (purchasing goods and services)

• Energy cost management

• Health care benefits

• Borrowing costs

• Return on investment from major systems

Teams of university administrators are currently working together to reduce costs and are examining the results of external and internal reviews, said William J. Shkurti, senior vice president for business and finance.

For example, Shkurti said that a review of the approval, design and construction of large capital projects began a year ago and included a detailed review by an outside consultant (Deloitte & Touche) and an internal review conducted by university Treasurer Jim Nichols and Senior Vice Provost for Academic Affairs Alayne Parsons. A number of suggested improvements have been identified, aimed at reducing construction costs.

"Although cost savings figures have not yet been developed, every 1 percent savings represents approximately $1.25 million,"Shkurti said. "Reduced construction costs also reduce pressure on our bonding capacity and stretch state capital dollars."

The potential for significant savings in the other target areas have been identified, but still need to be refined and verified, Shkurti said. He also said this process will be closely coordinated with reviews of administrative processes to be conducted under the auspices of the University Senate Fiscal Committee.

Regional status reported

The Academic Affairs Committee of the board heard a report from Randy Smith, associate provost for academic affairs, on the university's response to recommendations made by the Presidential Commission on the regional campuses. Initiatives include a new communications plan, highlighting the concept of "one university with many locations,"revising the college application form to include a second choice of Ohio State campuses, and allowing a student to transfer to the Columbus campus with a 2.0 GPA and 45 credit hours at a regional campus. The regional campuses have implemented a new collaborative, distance-learning course in general business with the Fisher College of Business, and new curricula are being considered in the long term depending on the needs of specific campuses.

Research report heard

The board also accepted 220 research grants and contracts, totaling $22.2 million, awarded to the university in February by governmental, industrial and other agencies in support of research, instructional activities and service.

Endowed funds named

Trustees accepted 11 new named endowed funds, totaling nearly $440,000. The funds were established with gifts received by the university from alumni, industry and individuals during the month of February.

• DeeDee and Herb Glimcher Program Fund, $100,000.

• The John Mac and Nancy Earls Cassady Scholarship, $61,814.

• The Shawn Springs Majority of One Scholarship Fund, $50,000.

• Polar Archives Support Endowment Fund, $40,000.

• The William U. Gibson, M.D., Merit Scholarship Fund in Medicine, $30,715.

• The Iams Innovation Fund, $30,000.

• Montgomery County 4-H Endowment Fund, $26,317.

• Greene County 4-H Endowment Fund, $25,903.

• The Fred O. and Joan G. Hartman Excellence in Pomology Endowment Fund, $25,000.

• The Huff Family Athletic Fund, $25,000.

• The Michael and Martha Passe Scholarship Fund, $25,000.

Changes in the name were made to the following endowed funds:

• The University Pathology Services Professorship is now the Donald A. Senhauser, M.D., Professorship in Pathology.

• The Geraldine McFadden Kuhn Scholarship is now the Geraldine McFadden Kuhn Scholarship Fund.

• The Ronald L. Stuckey Stone Laboratory Endowment Fund is now the Ronald L. Stuckey Stone Laboratory Teaching Endowment Fund.

Personnel appointments

• Dale A. Oesterle has been named professor and holder of The J. Gilbert Reese Chair in Contract Law in the Moritz College of Law, effective Aug. 16. He is currently Monfort Professor and director of the Center for Entrepreneurial Law at the University of Colorado at Boulder's School of Law.

• Barbara A. Hanawalt has been named director of the Center for Medieval and Renaissance Studies, effective July 1 through June 30, 2007. Hanawalt is King George III Professor of History in the College of Humanities.

• Douglas A. Rund, professor of emergency medicine and professor of family medicine, has been reappointed chair of the Department of Emergency Medicine in the College of Medicine and Public Health effective through June 30, 2006.

• Caroline C. Whitacre, professor of molecular virology, internal medicine and pathology, has been reappointed chair of the Department of Molecular Virology, Immunology and Medical Genetics in the College of Medicine and Public Health, effective through June 30.

• William S. Pease, associate professor of physical medicine, has been reappointed chair of the Department of Physical Medicine and Rehabilitation in the College of Medicine and Public Health, effective through June 30, 2006.

• Christine Ballengee Morris, associate professor of art education, has been reappointed interim director of the Multicultural Center, effective July 1 through June 30, 2004.

Contracts approved

Trustees authorized the university administration to enter into design contracts for the following projects. All funding will be provided by House Bill 675.

• Replacement of the roof of the Animal Science Building, 2029 Fyffe Road, including new insulation and copper flashing. The estimated cost is $350,000.

• Modernization and upgrade of three elevators in the Baker Systems Engineering Building to meet current codes and standards. The estimated cost is $375,000.

• Replacement of the exterior doors and jambs in Fisher Hall and Gerlach Hall. The estimated cost is $140,000.

• Improvement of the north entrance of Hitchcock Hall. The estimated cost is $250,000.

• Replacement of the elevator and modification of the machine room, including electrical service and air-conditioning system in Hopkins Hall. The estimated cost is $200,000.

• Improvement of the mechanical system in Hopkins Hall, including the dual duct heating/ventilating air handling units, boxes and ducts, sizing them for present and future use. The estimated cost is $500,000.

• Rehabilitation of the internal drainage system at McCracken Power Plant to meet EPA requirements. The estimated cost is $225,000.

• Upgrade of the fuel, steam, water and environmental compliance metering in McCracken Power Plant to comply with national fire code regulations. The estimated cost is $250,000.

• Implementation of spill control measures in McCracken Power Plant to meet EPA requirements related to fugitive emissions should a tank or pipe fail. The estimated cost is $300,000.

• Replacement of the main fire alarm panel and devices in Postle Hall to meet current codes and provide total building fire and smoke protection. The estimated cost is $300,000.

• Upgrade of the west campus chilled water system and replacement of the chilled water system at Scott Hall. The estimated cost is $1 million.

Construction authorized

The board authorized the following construction projects:

• Reconstruction of the natural turf at Football Practice Field #3 with new generation stabilizer mat and seeded with a premium blend of ryegrass and associated irrigation. The construction cost is $318,175, with funding provided by Athletics.

• Renovation of a portion of the Laundry Building facility, 2560 Kenny Road, to house the Department of Physical Facilities' tin and mechanical/electrical shops. The construction cost is $863,475, with funding provided by Physical Facilities.

• Installation of a new chiller system in MacQuigg Lab. The construction cost is $50,000, with funding provided by a grant from the Ohio Board of Regents.