University making thousands from CatCard contracts

Wildcat File Photo Arizona Daily Wildcat Richard Roberts, UA's chief budget officer, said he anticipates making about $10,000 next year from the Saguaro contract

The contracts will continue making money for the school, although university officials said profit is not the program's goal.

"No one is pressuring me to hit a half-million dollars," said CatCard Director Liz Taylor. "This is a service card. It is not to bring money into the university."

Before the initial carding drive, student and employee Social Security numbers were released to MCI and Saguaro, prompting the university to retract the personal information.

The new CatCards were issued to all University of Arizona students, faculty and staff, and included options that enabled it to be used as an MCI calling card or a Saguaro bank card.

Contracts between the UA and each company allow the university to profit in various ways when the particular organization's services are used.

The UA receives 35 percent of all off-campus calling card charges made through MCI using the CatCard.

The program generated $23,600 in revenue for the university - 75 percent of the money went to the CatCard office and 25 percent went to the Center for Computing and Information Technology, which coordinates the technical aspects for MCI.

Saguaro Credit Union compensates the UA $1 for each new CatCard issued, $.50 for each Saguaro Campus Card account opened and 1/4 percent of the daily balance of the campus account.

Saguaro paid $40,000 to the UA in 1998 for newly-issued CatCards, most of which was earned during the first month. The UA made an additional $3,400 from Saguaro for other contract points. All revenue from Saguaro went to the CatCard office.

Taylor said the Saguaro contract will not be as valuable to the UA in future years since only new freshmen and transfer students will be purchasing new cards.

The MCI contract had potential to make more money for the school, although it would have to come from the company's initiative, she said.

"It would be great if it were bigger," Taylor said. "But they have to find their own customers. We aren't going to pressure people."

Richard Roberts, UA's chief budget officer, said he anticipates making about $10,000 next year from the Saguaro contract, and "no more than" the $23,600 made this year from MCI.

Hard numbers are difficult to predict for next year since the program has only been around one year and business cycles cannot be determined, he said.

"I will be a lot more comfortable making predictions on this program a year from now, to see if there are trends in the data," Roberts said.

Profits earned by the CatCard office from these two programs will be added to its general fund to pay for staff and used to build up a reserve fund, Roberts said.

Saguaro Credit Union, whose membership has been predominantly the UA community since 1954, said they do not consider their connection with the CatCard a money-making venture.

"The university is our number one sponsor," said Suellyn Hull, Saguaro vice president of operations. "It is to provide a service and not to make money."