By Cassie Tomlin
Arizona Daily Wildcat
Monday, January 31, 2005
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The UA plans to use $20 million of anticipated tuition money to fund campus building projects in 2006, a measure administrators say is a last resort.
The Arizona Board of Regents approved the Deferred Renovation, Building Renewal and Infrastructure project Friday, granting the UA permission to take out tuition-supported certificates of participation, which are comparable to bonds.
Joel Valdez, senior vice president for business affairs, said the UA has not received state funding for building renewal in four years.
The UA has been relying on the state for special building costs since 1990, but in recent years the legislature brought their allotment down to nothing, forcing the university to look elsewhere for money.
President Peter Likins said in past years, there has been a systematic transfer of financial responsibility from the taxpayers to tuition.
"But what can we do?" Likins asked.
Both ASU and NAU have borrowed from tuition money for building costs.
However, Valdez said he does not believe tuition is the only source of funding for the project, suggesting the possibility of seeking private donor money.
ASUA President Alistair Chapman said after Friday's board meeting, he is "extremely concerned for the tuition year."
"Timing concerns us," Chapman said. "Approving these significantly large items prior to any tuition negotiations almost seems like you're putting early additional pressure for a minimum tuition increase."
Chapman, a molecular and cellular biology senior, noted the 39.1 percent increase in tuition in the past three years and said UA students might not see the reason for an even larger increase this year.
"The students may have some difficulty seeing the relationship between increased building quality and tuition dollars," he said. "I'm sure a lot of students don't understand the pressure the university is under to use tuition dollars for other things."
Benjamin Graff, student regent, shares Chapman's worry and said approving the project before tuition is decided might set a floor cost.
"Before we even go in to decide tuition, there might be a number tuition cannot go under," Graff said.
However, Graff said he believes administration will diligently search for other sources of funding before taking the full $20 million from tuition.
"I have a lot of confidence that president Likins and Joel Valdez will dedicate themselves to find other sources," Graff said. "They're reluctant to have to use future tuition money, but they're backed into a corner. We have to keep buildings safe and up to code, and I honestly feel the administration doesn't have another choice right now."
Administrator's reports state of the $20 million, $10 million will go toward building renewal, about $2.5 million to building renovation, $5 million for utility extensions and improvements, and more than $2 million for surface infrastructure.
The Administration building, Crowder Hall, Education building and two buildings at UA South campus will need replaced heating, ventilation and air conditioning and structural and elevator repairs.
The Architecture building and the Nugent building will be upgraded or replaced.
The project also anticipates repairing sidewalks and paving the south lane of the main mall, as well as paving streets and addressing drainage at UA South.
Construction on the first project may begin as early as late 2005.