Wednesday October 17, 2001

The $13.8 million state-mandated budget cuts expected to affect many aspects of life on the UA campus may only have indirect effects on the department of Residence Life, officials said.

Jim Van Arsdel, director of Residence Life and University Housing, said Residence Life is less vulnerable to the cuts because it is an "auxiliary" enterprise associated with but not funded by the university.

An auxiliary enterprise is defined as one that is not considered central to the academic functioning of the university, and is financially self-supporting.

Other auxiliary services on campus include the UofA Bookstore and the Student Union Memorial Center.

"As an auxiliary on this campus, we don't receive any money from the state," Van Arsdel said. He added that funding for the Residence Life department is provided through dorm fees paid by students.

He said he expects the department's auxiliary status will protect Residence Life from severe financial cutbacks.

However, all auxiliary enterprises must pay an administrative service charge to the university.

"The administrative service charge is the way in which auxiliary enterprises contribute (to the functioning of the university)," University of Arizona President Peter Likins said.

Joel Valdez, senior vice president for Business Affairs, said the administrative service charge paid by auxiliary enterprises on campus covers the processing of paperwork, such as paycheck cutting and payment recording.

He said the current administrative service charge for Residence Life is 5 percent of its monthly revenue. Typically, the department pays about $800,000 in service fees per year.

If a raise in the administrative service charge is put into effect, students could notice an increase in the cost of rent in residence halls.

Likins said that the possibility of raising the administrative service charge is one of many issues on "a long list of budget actions" to be considered.

The budget actions will be discussed by a cabinet made up of all of the university's vice presidents and two faculty members.

Likins called the possibility of raising the administrative service charge "likely."

"It probably will increase, but I can't quantify that right now," Likins said.

He said the cabinet will make a decision about the charges within two weeks.

If the charge is increased, students could feel the effects as soon as July.

Van Arsdel said it is too soon to predict how the cuts will affect the both the university and Residence Life. He said talk of a raise in the administrative service charge for Residence Life is premature.

"That is only an example of what could happen," Van Arsdel said. "At this time, I would have to say we don't know how this will affect us. Nobody has made any decisions yet."

"We've been told nothing official, because the university doesn't know (how the cuts will affect it)," he said. "Until the university is sure, we just don't know."