A projected $1.3 million deficit and potential layoffs might not prevent Ohio University's Board of Trustees from giving pay raises next year.
Bill Decatur, vice president for Finance and Administration, attributed the estimated deficit to a decrease in projected investment income, money OU invests in the stock market. OU is earning less money because of decreasing interest rates and a falling stock market, he said, adding he expects to bring the board a balanced budget in June.
We had a balanced budget put together
but because of the economy there was a $1.35 million deficit Decatur said.
At the Resources Committee meeting yesterday, Budget Planning Council proposed contingency plans for next year in the case of decreases in state funding or enrollment, which included delaying a $1.2 million salary increase. The trustees rejected the plans, saying salary increases were more important than avoiding possible layoffs.
Frank P. Krasovec, a national trustee, said people are at risk but OU has to fight and scrape to do what it can.
The estimated total revenue for fiscal year 2009 is $358.6 million, with estimated total expenditures at $359.9 million.
The committee also discussed an optional $40 quarterly health fee that would take effect Fall Quarter 2008 and are sending it to the full board today for final approval.
Students paying the optional $40 fee would be exempt from co-payments, which Student Health Services will impose this fall regardless of approval from the board to pay for improvements such as 24/7 crisis intervention.
The board will not vote on building a proposed health center, said Kent Smith, vice president for Student Affairs. Officials hope to present it for a vote at June's meeting.
The health center is the second step in a plan to improve Student Health Services. An independent consultant reported in fall 2007 that health services was underfunded and understaffed.
Should the board eventually vote against the new facility, the optional fee with co-payments could be here to stay, Decatur said.
If you decide not to ever build a facility Student Affairs proposes a continuation of the waivable fee and co-payments
Decatur said.
If the board approves the new center, a mandatory $38 fee would replace the optional fee in 2011 when officials expect the building to be operational. Once the mandatory fee kicks in, students would no longer shoulder co-payments.
The optional fee and co-payments will provide immediate enhancements, such as 24/7 crisis intervention, but that increased spending does not place OU amongst the top spenders on student health, Smith said.
It puts us certainly not at the top but middle of the row
Smith said. In terms of our aspirational peers
we're still near the bottom.
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Emilie Schneider
