Campus repairs to cost millions

Decrease in state aid builds up $58 million in needed improvements

Windows, roofs and major utility systems on campus need repairs, but Ball State University does not have the money to fix all the problems.

Repairs on academic buildings have fallen behind due to a shortage in state repair and rehabilitation funding to the university.

According to the 2005 Ball State financial report, the university needs $58 million in deferred repairs. This figure comes from at least six years of decreased state funding, Tom Morrison, associate vice president of Human Resources and State Relations, said.

Bill McCune, associate vice president of Controller and Business Services, said, "The reality is they have cut back on that as the state has been going through tough times. Wear and tear still happens but the money isn't there to replace it. You can get by for a few years, but in a few years the wear and tear becomes apparent."

Because of state financial difficulties, funding to Ball State dropped from $10.4 million between 1999 and 2001 to $1.2 million between 2003 and 2005. The Indiana state budget is on bienniums - two year periods that begin July 1.

The state budgeted $5.2 million to Ball State to be used for facility repair and rehabilitation between 2005 and 2007, William Bogard, assistant director of education for the state of Indiana, said. The improved financial situation of the state made the increase possible, he said.

"We plan on having the books balanced this year," Bogard said. "At this time there are no plans for universities to not have access to their current R and R appropriation."

Although Ball State has received a $4 million increase in repair and rehabilitation funding this biennium, Kevin Kenyon, associate vice president of Facilities, Planning and Management, said it was still less than half the money the university should receive according to the formula the state uses.

"The formula says it should be over $11 million for the biennium, so it's still half." Kenyon said. "It is better, and we appreciate that, but it isn't going to get us out of the hole we are in."

While day-to-day repairs such as broken chairs and chalkboards are covered by other funds, Jim Lowe, director of engineering and operations of Facilities, Planning and Management, said, there was a growing list of major improvements Facilities, Planning and Management needs to accomplish.

Kenyon said projects included repairing leaking roofs and windows, updating mechanical systems, installing sprinkler systems and problems buildings experience as they age over time. None of the problems are significant safety issues.

"Not having sprinklers in the building is a concern, but it doesn't mean it's a safety violation," Kenyon said. "It doesn't mean anyone is at risk."

The drop in repair and rehabilitation money means more projects have been put off. When state funding becomes available, Kenyon said the university goes straight down the list of necessary repairs until the money runs out.

"Sometimes something is near the line and you can do a little shuffling, but anything below that line generally gets pushed to the future," Kenyon said. "It may rise higher on the list for the new year, but it may not."

While the increase in funding for 2005 through 2007 will help Ball State complete more repairs than during the previous biennium, all the deferred repairs still need to be addressed.

"It's something you are always chasing," Morrison said. "If we can get back to fully funding the formula, we will be able to put a big dent in it."

While Facilities, Planning and Management has $58 million in deferred repairs to complete, the financial report said the university as a whole is in a better financial state than most other Indiana schools.

The amount of interest Ball State owed in 2005 on money borrowed to build facilities, compared to the amount it received from the state to operate, was lower than other Indiana state schools. McCune said he estimated the university could increase the amount of interest it pays on the debt from $9.4 million to $13 million and still rank better than the average Indiana school.

According to the financial report, Ball State could increase its debt, but McCune said it was unlikely the university would be willing to pay for the needed facility repairs.

"I imagine that would be one way to do that, but I imagine we would be reluctant to do that," he said. "What we are talking about here is academic buildings. These are buildings that the state typically pays the debt service on."

Lowe said some larger repairs were being temporarily patched until funding could be found to permanently solve them. Because the overall amount of funding Ball State received during the past six years is only 20 percent of what it should have been, more patching has been replacing permanent repairs, he said.

Most of the maintenance problems are not immediately noticeable, but they still need to be dealt with so they do not effect the learning process. Lowe said one of his major concerns was water leaking into classrooms and offices.

McCune said, "The trick here is to try to cut costs without infringing on the quality of your education."

There are also two renovation projects on several campus buildings and the heat plant which need to be completed. The building improvements are estimated at $28 million, and the heat plant renovations at $48 million. Requests were submitted to the Indiana State Legislature to get funding for the additional projects, according to the financial report, and Ball State has been given permission to begin the heat plant renovations.


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