ZANESVILLE — The Ohio University Board of Trustees approved an early retirement and voluntary separation plan as well as the first stage of a 10-year housing master plan at Friday’s full-board meeting.
The buyout plan allows eligible faculty, staff and administrators to accept an incentivized plan to leave the university early, and OU expects to replace about 60 percent of those who leave. The plan passed with little discussion from the board.
The buyouts would save OU about $13 million annually if 22 percent of those 1,197 eligible participated, said Stephen Golding, vice president for Finance and Administration. The plan also comes with one-time cost of about $15 million if OU meets its target of 22 percent participation.
“We haven’t quite made a determination of what is the best way to cover that cost,” Golding said.
These cost and savings estimates have increased since details of the buyout plan were initially announced because OU expanded the pool of eligible employees. Voluntary buyouts could prevent OU from having to lay off employees, but it all rests on how many faculty, staff and administrators participate.
“There need to be phased in ideas of how to do replacements. … We need to be thinking about how to do contingency hiring immediately,” said Executive Vice President and Provost Pam Benoit.
Trustees also approved the preliminary stage for a 10-year housing master plan that would renovate about 60 percent of the housing on campus and add 2,058 beds as well as some new buildings. The financial aspect of the plan has not been approved yet, but Vice President for Student Affairs Kent Smith said he hopes to bring a funding resolution before the board at its April meeting.
The project is expected to cost $281 million, and OU could go into debt by about $190 million, Smith said. OU is no longer considering a public-private partnership to pay for the construction and renovations.
“There are great rates available for bonds. … There could not be a better time to build and go into debt financing,” Smith said.
If the Residential Housing Advisory Committee goes ahead with its plan and a funding model could be approved by April, two new dorms could open by fall 2013.
“It’s something we need to do … in the long run it maintains the integrity of the university, what we stand for in terms of quality,” said Trustee David Brightbill.
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