State refuses to pay for university utilities
This year’s decision by the state Legislature not to fund recent rises in fuel and power prices has left universities across the state, including Utah State University, with a large deficit.
The problem is that while state funding for utilities has stayed the same for years, fuel and power rates have increased leaving the universities to pay the extra, said Ronald Godfrey, vice president for business and finance. USU has not been able to keep up with the increases and has accumulated a deficit around $5.8 million, Godfrey said.
Last year USU proposed that the state pay for the difference – a proposal that was denied in March, Godfrey said.
“We were bitterly disappointed. The rules were changed and no one knew the rules were changing. This all came as a real shock,” Godfrey said. “I’ve never seen anything so shocking as last spring.”
The legislative decision puts the university in a situation where it has to find a way to pay the deficit when the university is already”strapped financially,” Godfrey said.
“We have a serious situation here,” said John DeVilbiss, public relations and marketing executive director.
Students have been affected by the decision as well.
“It’s become very frustrating with the amount of budget cutting taking place. It’s like we’re losing some of our decisions even though we, as students, are paying more and more,” said Les Essig, Associated Students of Utah State University president.
Kendall said he is also frustrated because USU prides itself on conserving energy. USU watched temperature control to insure that more heat or air conditioning than needed is not used. The university also makes sure that all lights in basements and tunnels are turned off and has thermal maps to show where heat is lost and gained. The power plant, built just north of the Spectrum a few years ago, is also a great help, Kendall said.
“Utah State has never been more efficient in its use of fuel and power,” Godfrey said.
The university is still paying its utility bills, but is looking for different ways to pay the deficit. The 43 percent proposed tuition increase will go in part to paying this deficit, Essig said.
“I hate to see current students pay for past usage,” Godfrey said.
Essig said he didn’t know if there were any bills in proposal this year to change the funding problem, but hopes students will get out and vote to make a difference in higher education.
“We could send a message to the Legislature and they would have to listen,” Essig said.
Universities across the nation are receiving less and less funding, Godfrey said, and other Utah universities have similar deficits. While schools struggle to understand the recent funding trends the state says there is no more money to give.
“The state has gone through a recession and revenues available have been minimal. Funding that normally went to higher education has been cut back,” said State Board of Regents Commissioner Richard Kendall.
The cut backs are noticeable. In 1998-99 universities received $5,694 per student and now receive $4,641. In 1992-93, higher education received 17.7 percent of state tax funds and now receives 15.4 percent of state funds from the legislature, Kendall said.
Money is also going to other state priorities, Kendall said, such as Medicaid, growth in public education and highways.
“The Legislature is almost trying to privatize higher education,” Godfrey said.
Kendall said he sees the only options to fix the funding needs as changes in the tax structure and tuition increases.
“There aren’t that many options. There are just limits as to how far you can tighten your belt so to speak,” Kendall said.
In the worst case scenario, if neither changes in the tax structure or tuition increases can occur adequately, Kendall said, the universities will then be faced with having to phase out certain things they do such as programs and majors – a situation he said he hopes never happens.
“I hope higher education becomes a higher priority. I think higher education is one of the best investments. You have to look at it as an investment and not an expenditure,” Kendall said.
-hilaryi@cc.usu.edu