Collegian Venues - your weekend starts here
  Collegian Chronicles



Get a deal with Daily Collegian Coupon Corner
  The Digital Collegian - Published independently by students at Penn State NEWS
[ Thursday, March 17, 2005 ]

PSU projects need borrowed finances

Collegian Staff Writer

With construction booming across campus, Penn State officials say there are still projects to be completed -- projects that sometimes require the university to borrow funds.

Deborah Blythe, Office of Physical Plant (OPP) facilities resource manager, said that despite the "sticker shock" associated with building costs, construction is still needed.

"Many of our buildings, including Willard and Hammond, were built very cheaply in the 1960s and '70s, and are now falling apart," she said. "Even though everything costs a fortune, the projects are necessary to update our facilities."

She added that plans are currently in the works to renovate the Moore Building, another building constructed in that time period, which is expected to cost about $21.8 million.

The money spent on campus construction is not related to the continuing increase in tuition, Penn State spokesman Tysen Kendig said.

Funding for construction projects comes from state money allocated through the capital fund. The capital fund is separate from the university's general funds budget, which is used for things such as salaries and employee benefits.


Penn State's 2005-2006 capital budget request was $71.89 million, which includes $53.5 million for construction projects and $18.39 million for purchase of construction equipment. The request is part of a total $945 million five-year capital construction plan.

The university's 2005-2006 general funds budget request was $344.8 million, but Gov. Ed Rendell's budget released Feb. 9 contained $324.2 million.

Kendig said the lower general funds appropriation was in no way related to the amount of capital funding requested and will not affect construction on campus.

"The university's capital budget and its general funds budget are two separate entities," he said. "The amount of money requested for one has no effect on the amount received in the other."

Blythe added that Penn State's enrollment has grown faster than its building space, and the university currently has the least amount of square inch space per student.

"Our enrollment has increased faster than our facilities have, so it is only natural that we will need more space to accommodate the increased number of students," she said.

OPP spokesman Paul Ruskin said the three main funding sources for construction projects are state funds, private donations and borrowing.

"People are trying to connect construction funding with tuition," he said. "The reality is that we do everything we can to try and get state and private sources for our projects."

Dan Sieminski, assistant vice president for finance and business, said in an e-mail message that tuition is used to pay for debt associated with borrowing funds for construction projects.

"As we prepare our capital funding plans, we consider the amount of state funding available," he said. "Where those funds run short of needs, we augment those funds with a reasonable amount tuition dollars."

Ray Marsh, director of development communications, said the majority of donations to the university are not for construction projects.

"Most alumni give money to scholarship funds or to support programs within a specific college," he said.

"We do raise money for capital construction projects, but it is a small percent of our overall efforts," Marsh said.


 

Send an Opinion Letter to the Editor about this article.


   





TOP  HOME
Blogs  About  Contact Us  Back Issues  Advertising 

Copyright © 2008 Collegian Inc.
Updated: Thursday, March 17, 2005  12:31:35 AM  -4
Requested: Tuesday, October 07, 2008  9:24:27 PM  -4
Created: Wednesday, May 07, 2008  6:52:44 PM  -4