Ohio University’s plan to cut into the university’s $458 million maintenance backlog by issuing a century-long bond worth $250 million was presented at the Faculty Senate meeting Monday night.
Ohio University’s plan to cut into the university’s $458 million maintenance backlog by issuing a century-long bond worth $250 million was presented at the Faculty Senate meeting Monday night.
The proposed plan, which was presented Monday by Vice President for Finance and Administration Stephen Golding, hinges on a “central bank model” the university will institute once bonds begin selling.
“If we’re successful in what we’re trying to do … it will reduce the amount of borrowing the university will have to do,” Golding said
The model will treat individual maintenance projects, such as dilapidated academic buildings, as recipients of loans that will be paid back at a later date.
Departments receiving loans would have to pay the university’s “bank” back in a period determined by OU.
“It’s become fairly clear to me that simply doing the same old, same old was not going to address the problems on the campus,” Golding said.
In the current state of the market, the century bond would have between a 5 and 8 percent interest rate — a figure which is relatively low, according to Golding.
“We are taking care of our problems before they become problems,” he said.
Officials will present the plan to the Board of Trustees for a third time in October.
Over the course of a century, the bond could generate as much as $1.3 billion usable dollars, providing the university with anywhere between $12 and $15 million a year to apply to deferred maintenance projects.
Deferred maintenance projects include repairs on the university’s older buildings, which many faculty members at the meeting agreed is a recurring issue on campus.
“I wanted faculty to know about it because the senate is charged with representing the faculty in terms of providing input into the university’s financial affairs,” said Beth Quitslund, newly elected chair of Faculty Senate.
Executive Vice President and Provost Pam Benoit also reported to Faculty Senate on issues regarding enrollment demographics.
This year, OU enrolled 4,378 freshman, a 3.1 percent increase from the 2013 academic year.
The university recorded a slight loss in out-of-state students, but increased its share of in-state students, including a 10 percent jump in students from Appalachian counties, Benoit said.
A total increase of 171 first generation college students was also reported — totaling an increase of 19 percent, the highest number of the demographic since officials began keeping track in 2010.
The average ACT score of enrolled students dropped to 23.9 out of a possible 36, while students’ average high school GPA increased to 3.43.
Benoit also noted that student retention increased by 1.1 percent.
“(It’s) very hard to change the retention numbers … this is terrific news,” she said.
Benoit also gave an update on OU’s participation in the Higher Education Insight Survey, administered by the Chronicle of Higher Education and ModernThink.
The survey, which was administered to faculty members and classified and administrative staff last spring, was met with 54 percent participation.
“(The survey is) intended to be a broad survey of morale, satisfaction, campus opinions of all employees,” Quitslund said.
President Roderick McDavis opened the meeting with an update on how the university will tackle cases of sexual misconduct, adding that a presidential advisory committee, which will be tasked with providing recommendations to the President, is set to be established in a few weeks.
McDavis said a sexual assault “work group” already exists within OU’s administration, but the official committee will “formalize the good work being done at (OU’s) offices.”
All seven resolutions brought before the Senate passed, most of which addressed revisions to the language in the Faculty Handbook.
