Trustees set tuition, fees, compensation

While BGSU, predicting a $2.6 million reduction in state funding, will raise tuition and fees for the coming academic year, University budget administrators have kept the increase below the maximum allowed by the state.

Bowling Green trustees on Friday (May 7) approved a 9 percent tuition increase for students on the main campus for academic year 2004-05, below the state cap of 9.9 percent. Three percent of the 9 percent increase for all main-campus groups is targeted to support of need-based financial aid and improved technology services for students.

The overall fiscal year 2004-05 budget of $327.7 million approved by the trustees comprises a $231.1 million educational budget and a $96.6 million auxiliary and general fee budget.

Revenue in the educational budget increases 4.4 percent, largely from student fee income, offsetting the 3.5 percent drop in state funding from last year. Expense increases include the costs of improving technology services to students, higher utility expenses, and rising health care costs, according to Christopher Dalton, senior vice president for finance and administration.

In its ongoing commitment to making a college education attainable to all qualified students, the University will expand again the higher levels of financial aid it implemented last year. This year’s budget includes another $5.5 million for financial aid—a 15 percent increase—with $1.8 million targeted to need-based aid for low-income graduate students.

“Though we have to raise these fees in order to keep the doors open, with this additional financial aid it is our hope and desire that we’re not foreclosing anyone from obtaining an education,” said Trustee Michael Marsh.

Under BGSU’s two-tier fee structure, continuing students who enrolled before the summer of 2002 and those who enrolled that summer or later pay different instructional rates.

Effective fall semester 2004, main campus students who entered before summer 2002 will pay an additional $320 in tuition per semester, while those who entered in summer 2002 or later will pay an additional $332 per semester.

General fees will go up by $25 per semester, a 4.8 percent increase.

Graduate students will also see a 9 percent increase in their tuition, or $427 more per semester.
Firelands students will pay $85 more per semester, a 4.5 percent increase.

Firelands has been able to contain costs due to a number of factors, according to Dean James Smith. Enrollment at the Huron campus has grown from about 1,500 in 2001 to 1,900 this year, resulting in increased revenue from student fees and state support.

Raises granted
The board approved 3 percent raises for all University employees, with additional smaller pools of merit increases for eligible faculty and staff. An additional $260,000 was set aside for promotions, market adjustments and job reclassifications.

Regarding compensation, “the budget committee’s and my highest priority continues to be enhancing the competitiveness of BGSU faculty and staff compensation,” said President Sidney Ribeau. He added he is pleased to be able to offer higher raises than last year’s modest 2 percent, which was well below the state average, he said.

The advances do not come without sacrifice, however. “There is very real pain in this budget to make it balance,” said Dalton. The University will be making $4 million in permanent reductions from personnel budgets.

Permanently eliminating vacant funded positions that have been on hold since the University’s hiring freeze has been in effect will accomplish the bulk of reductions in many areas, Dalton said.

The money coming from the state for each pupil (or state share of instruction) has continued to decline in recent years, by well over $1,000 per student since 2000. The 2004-05 budget projects an additional $2.63 million (3.45 percent) reduction from the 2003-04 state share of instruction.

Bond issue approved
The trustees voted to allow the University to initiate a bond issue to refinance some older bonds and to fund the upcoming administrative software system BGSU will be purchasing.

“Interest rates are still relatively low but rising just now. It appears that what’s beginning is an increase in interest rates that’s going to continue,” Dalton said. “It behooves us to consider doing a bond issue now rather than later.”

The first part of the bond issue would refinance bonds from 1996 and 2000 that were issued to cover the renovation of Harshman and Kreischer residence halls and the union, respectively, among other projects. Bonds may only be refinanced once, Dalton noted.

The second part would be the issuance of new bonds not to exceed $35 million to pay for PeopleSoft, which Chief Information Officer Bruce Petryshak said will allow the University to use the same system for each of its administrative units, greatly enhancing the workflow and sharing of information.

BGSU is in discussion with other universities about sharing the system, which would both reduce costs and increase efficiency, he added.

Sale of property discussed
The trustees agreed to a change in plan for dealing with the home on Hillcrest Avenue formerly occupied by President Ribeau. The new plan calls for the University, which owns the 1.86-acre property, to sell it. The BGSU Foundation will buy a new, more suitable house, which the University would then lease from the Foundation. The board agreed to allow Dalton or Ribeau to negotiate with the Foundation on the lease terms of what will be named Foundation House.

The board had formerly allocated $750,000 to renovate the Hillcrest house to make it more usable both as a residence and as a site for fund-raising events and entertaining visitors to the University.

However, all bids received and options presented were cost-prohibitive, Ferkany said. The president has since purchased the condominium in Bowling Green where he had moved when renovations on Hillcrest were expected to begin.

Legislation is required for the sale of university property, Dalton said. The Foundation board meets this week to discuss the matter.

The board also renewed its approval for BGSU to purchase property adjacent to campus, not to exceed $750,000 in one year.

New doctoral degree
The board also approved creation of a Doctor of Musical Arts degree in contemporary music, with a specialization in composition or performance. In the new program, “contemporary” music is defined as art music created after 1945, although Marilyn Shrude, chair of the Department of Musicology/Composition/Theory, said other genres wouldn’t be excluded.

The doctoral program, unique in Ohio, will enhance the College of Musical Arts’ national—and international—reputation, she said, echoing comments by Provost John Folkins. Folkins said it will also build upon BGSU’s MidAmerica Center for Contemporary Music, as well as adding to the quality of the undergraduate experience in the college.

“The Academic Challenge Grant prepared us for this step,” noted Richard Kennell, dean of musical arts. He referred to a $1 million grant from the Ohio Board of Regents that, in 1987, went toward the addition of faculty and expansion of contemporary music programming and the New Music and Art Festival. The grant also led to the creation of the MidAmerica Center in 1990.

Among the trustees who praised the proposal was John Harbal II, saying the University must be careful not to become preoccupied with a current focus—technology—at the expense of existing strengths such as music.

The proposal now goes to the Ohio Board of Regents for final approval.

Policies added to Student Handbook
The trustees approved several revisions to the Student Handbook and the Student Code of Conduct, including two new policies.

An addition to the conduct code prohibits videotaping, audio taping or photographing members of the University community without permission—a policy precipitated by the advent of cell phones that can take pictures, said Edward Whipple, vice president for student affairs.

The second new policy requires off-campus students to submit a current, correct local address to Registration and Records. Many off-campus students use their permanent home addresses, which may be out of state, Whipple said, and delay the process of getting information to students.

Board elects officers
Board members elected Edward Ferkany as their new president, and Sharon Cook as vice president, for the coming year. Linda Dobb, executive vice president, will continue as board secretary.

In passing the gavel to Ferkany, outgoing trustee and Board President Valerie Newell described her successor as an accomplished businessman, with impeccable judgment and patience. “I’m delighted to pass the gavel to my esteemed colleague,’ she said.