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OHIO HIGHER EDUCATION CAPITAL FUNDING COLLABORATIVE February 15, 2012

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OHIO HIGHER EDUCATION

CAPITAL FUNDING COLLABORATIVE

February 15, 2012

2 Ohio Higher Education Capital Funding Collaborative

TTTTABLE OF ABLE OF ABLE OF ABLE OF CCCCONTENTSONTENTSONTENTSONTENTS

i. Executive Summary 3

ii. Strategic Investment Themes 5

Public-Private Partnerships 5

Workforce Development 6

Engineering Meets Science 7

Long-Term Maintenance 8

iii. Implementing Reform 12

iv. Appendix 17

Guiding Principles 17

Editorial Coverage 18

3 Ohio Higher Education Capital Funding Collaborative

I. Executive Summary

Governor Kasich presented Ohio’s higher education community with an unprecedented opportunity. Anticipating the realities of an austere capital construction budget, the Governor asked higher education leaders to think differently about the task of allocating the state’s scarce resources. He appointed The Ohio State University President E. Gordon Gee to lead this effort. Ohio’s college and university leaders embraced the challenge to act collaboratively—instead of competitively—to best serve all 11 million Ohioans. President Gee established a seven-member Commission to develop a set of guiding principles that reflected a more strategic vision for Ohio. Members included university presidents, community college presidents, and the leaders of Ohio’s higher education associations.

Higher Education Capital Funding Commission Dr. E. Gordon Gee, The Ohio State University (Chair) Dr. Morris Beverage, Lakeland Community College Dr. Paul Brown, Zane State College Dr. David Hodge, Miami University Dr. Lloyd Jacobs, University of Toledo Dr. Ron Abrams, Ohio Association of Community Colleges Mr. Bruce Johnson, Inter-University Council

The Governor announced that the State of Ohio would invest $400 million in higher education capital improvement projects. The amount very clearly demonstrated the Kasich Administration’s enduring support of higher education in light of turbulent economic circumstances.

The Commission now reports its final recommendations to the Governor on behalf of the state’s higher education community. This report details the Commission’s:

• collaborative process;

• guiding principles;

• recommendations for projects to receive the state’s investment; and

• additional ideas on how to further reduce the cost of construction in Ohio’s public sector.

The Process In previous state capital budgets, Ohio’s colleges and universities received state funds according to a formula. That formula was based on the age of a college or university’s facilities, its enrollment numbers, and the amount of infrastructure it must maintain. The old formula ensured that there was a fair and predictable distribution of funds, but it was also viewed as being less responsive to the needs of the state. The new collaborative process is equally fair and respectful. However, it was also found to be more flexible, more accommodating, and presented a more strategic vision for the State of Ohio’s investment. The Commission initially established a set of guiding principles to help ensure that the use of state resources would be more strategic and focused. The guidelines were distributed to Ohio’s college and university presidents, who took the opportunity to re-examine their initial capital request. As a result, most institutions

4 Ohio Higher Education Capital Funding Collaborative

altered their requests—some significantly—to ensure a unified approach for the state. The Results From that process emerged the recommendation to focus the state’s investment into four areas:

• public-private partnerships;

• workforce development;

• interdisciplinary approaches; and

• long-term maintenance. Addressing public-private partnerships, the Commission believes the state should reward innovative projects that include private sector partners—a mutually beneficial arrangement that brings our world-class faculty, researchers, students, and industry professionals under one roof to work on the state’s most pressing issues. As the state’s economic engine, colleges and universities in Ohio clearly understand the importance of prioritizing projects that promote economic growth and train our workforce. Projects that were viewed as necessary to meet immediate workforce needs, such as in Ohio’s emerging shale gas industry, were given the highest priority. College and university leaders also realize that they must be more collaborative internally. Interdisciplinary projects have proven successful, and have resulted in the creation of entirely new industries. The State of Ohio should encourage the natural synergies between the traditional laboratory sciences (chemistry, physics, etc.) and the market-enhancing practicality of engineering. College and university leaders believe that projects that both demonstrate collaboration across disciplines and

encourage new ways of examining complex problems should receive the state’s support. Finally, higher education leaders have been concerned for several years about the growing cost to maintain our campuses. Therefore, the majority of recommended funding is for long-term maintenance projects. Specifically, the Commission recommends maintenance projects that are focused on either modernizing student learning environments or reducing the ongoing operating costs of our campuses. Statewide Projects The Commission acknowledges and supports the Board of Regents’ recommendation to allocate capital funds for projects of statewide benefit, including $19 million for a new student center at Central State University. Conclusion In short, Ohio’s higher education leaders wholly believe that the following report addresses the Governor’s desire for institutions to collaborate in order to maximize use of finite resources. College and university leadership took the challenge seriously, and worked in tandem to recommend the capital projects that best reflect an effective and responsible use of the state’s investment. Moreover, we believe that the approach adapted in this report can serve the State of Ohio in the future.

5 Ohio Higher Education Capital Funding Collaborative

II. Strategic Investment Themes PUBLIC-PRIVATE PARTNERSHIPS Recognizing that 21st century colleges and universities are no longer limited to traditional revenue streams, higher education leaders are seeking additional funding sources through strategic partnerships with business and industry. These are not simply projects to which the private sector has chosen to donate, but are ones that place industry professionals in laboratories and classrooms with students, faculty, and staff. One example of this strategic partnership approach is Wright State University’s capital request. Wright State leaders advanced a project that will build on the university’s successful relationship with Premier Health Partners, the largest hospital system in the Dayton region. The Neuroscience Engineering Collaboration (NEC) building will be home to the research arm of the Premier Health Partners—Wright State University Neuroscience Institute, a recognized Center of Excellence by the State of Ohio. The NEC building will allow Wright State’s Ohio Research Scholars in engineering and associated faculty to use cutting-edge research in imaging and sensors to advance their fields and work in partnership with clinicians to focus on improved patient care and commercialization. The Commission recommends that the state fund the following capital projects that enhance partnerships with business and industry:

INSTITUTION Project

Amount

Recommended

WRIGHT STATE Neuroscience Engineering Collaboration $12,000,000

TOLEDO Anatomy Simulation Center $2,000,000

NEOMED REDIZONE Partnership Development $650,000

NEOMED Simulation Center Partnership $125,000

State Investment $14,775,000

Local Investment $31,590,000

Private Sector Investment $49,320,000

6 Ohio Higher Education Capital Funding Collaborative

WORKFORCE DEVELOPMENT Ohio’s colleges and universities are the state’s leading economic drivers—educating the next generation of scholars and workers, and researching innovative, trailblazing technologies. The state’s increasingly strong energy industry, highlighted by Ohio’s emerging shale oil opportunities, in particular requires the immediate attention of Ohio’s colleges and universities. Zane State’s Energy Training and Education Center in Cambridge will include sophisticated laboratories and classrooms that will increase the college’s overall student capacity by 20 percent. The Center will directly support stackable short-term training, one-year certificates, and two-year degree programs in the high demand energy and related STEMM fields. As a result, Zane State will be in a better position to fill the rapidly growing demand for skilled energy workers. Stark State College’s capital request, an Energy Training Center to be located in downtown Canton, directly targets the region’s burgeoning oil and gas industry. This request will result in the enhancement of the College’s corporate and community training and certification offerings for area students and private sector partners. Additionally, the request will facilitate the establishment of new programs in oil and gas production technology. The project will allow the College to enhance access—for approximately 13,000 additional students over a ten‐year period—to its technical STEMM-related programs. The Commission recommends that the state fund the following capital projects that will enhance the State of Ohio’s overall workforce development efforts:

INSTITUTION Project

Amount

Recommended

STARK STATE Energy Industry Training Center $10,000,000

ZANE STATE Energy Training and Education Center $6,000,000

BELMONT TECH Health Sciences Center $6,000,000

SINCLAIR Life & Health Sciences Education Center $4,000,000

NORTHWEST STATE Advanced Manufacturing Training Center $3,535,000

NORTH CENTRAL Health Sciences Center Renovation $850,000

TOTAL $30,385,000

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ENGINEERING MEETS SCIENCE College and university leaders recognize the immense potential in merging the economic sensibilities of engineering with the state’s brightest minds in the sciences. Ultimately, Ohio’s institutions of higher education must modernize STEMM facilities to encourage increased interdisciplinary collaboration and innovation, and to accelerate scientific discoveries. For example, The Ohio State University seeks capital funds to bridge chemistry and engineering through the Chemical and Biomolecular Engineering and Chemistry (CBEC) Building. CBEC will be a community of scientists, engineers, postdoctoral fellows, students, and technical staff working collaboratively in chemistry and chemical and biomolecular engineering. Furthermore, CBEC faculty are currently collaborating with more than 100 companies, and this facility will allow Ohio State to strengthen those partnerships. The building’s design is intended to promote a comprehensive, interdisciplinary research enterprise at the interface of chemical sciences and engineering research strengths. Miami University is working to bring together its renowned Physics Department with the School of Engineering and Applied Sciences through major renovations to Kreger Hall. Kreger Hall will house facilities and laboratories that will unite physicists and engineers in a variety of interdisciplinary projects. Additionally, Miami University, in collaboration with industry partners Children’s Hospital, Positronics, Inc., and Bruker Instruments, is exploring the development of innovations in medical technology using positron physics and Nuclear Magnetic Resonance Spectrometers. Kreger Hall would provide the research space necessary for a successful pilot study of positron physics, with the outcome of Positronics, Inc. establishing an Ohio-based facility to produce state-of-the-art medical technologies. Cleveland State University is capitalizing on its successful partnership with Parker Hannifin, the world's leading diversified manufacturer of motion and control technologies and systems, to deepen collaborations between the Fenn College of Engineering and the College of Sciences and Health Professions. Through laboratory upgrades, the University will be able to provide better-equipped platforms that will house multi-interdisciplinary programs involving the engineering, bio-medical, and science disciplines. The ultimate goal is for students to learn and experiment in an environment that brings different, but related areas together in order to develop new products and techniques for either commercialization or research support. The Commission recommends the following interdisciplinary capital projects for the state’s investment:

INSTITUTION Project

Amount

Recommended

OHIO STATE Chemical and Biomolecular Engineering and Chemistry Building $50,000,000

MIAMI Kreger Hall Renovations $18,200,000

CLEVELAND STATE Fenn College of Engineering $12,730,000

KENT STATE Cunningham Hall Repairs $5,000,000

KENT STATE Williams Hall Repairs $5,000,000

KENT STATE Smith Hall Repairs $1,000,000

KENT STATE Multidisciplinary Research Labs $5,000,000

TOTAL $96,930,000

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LONG-TERM MAINTENANCE As previously mentioned, Ohio’s colleges and universities are the state’s strongest economic engines, and will remain in that vital role for generations to come. However, the growing costs of maintaining the physical structure of campuses has become a pressing concern for nearly every institution of higher education in Ohio. It is our shared responsibility to protect citizens’ investment in our campuses and work together to maintain our basic infrastructures. Therefore, Ohio’s higher education leaders recommend that the majority of the state’s investment in this capital biennium be targeted toward long-term maintenance projects. Within the category of long-term maintenance, Ohio’s colleges and universities prioritized capital projects that will:

• Modernize the student learning atmosphere, particularly laboratories, to ensure that our students receive training in the proper environments that will keep them competitive in the 21st century global economy.

• Reduce the ongoing costs of operating our campuses. The Commission recommends the follow long-term maintenance capital projects:

INSTITUTION Project

Amount

Recommended

CINCINNATI Medical Sciences Building Renovation $28,800,000

CENTRAL STATE Student Center $19,000,000*

AKRON Zook Hall Renovation $16,000,000

BOWLING GREEN Hanna, Mosely, Univeristy & South Hall Renovations $12,500,000

CUYAHOGA Crile Building Renovation $8,870,000

OSU - WOOSTER Electrical System Upgrades $7,600,000

COLUMBUS STATE Union Hall Renovation $5,000,000

TOLEDO Pharmacy Lab Renovations $4,000,000

TOLEDO Steam & Chilled Water Line Extension $4,000,000

OHIO STATE Midwest Campus Chilled Water System $3,750,000

RIO GRANDE Wood Hall Emergency Repairs $3,500,000

CLARK STATE Student Success Center $3,400,000

CINCINNATI Health Professions Building Roof Repairs $3,000,000

LORAIN COUNTY Physical Science Building Renovations $3,000,000

TOLEDO University Hall Renovations $3,000,000

OHIO UNIV Alden Library Renovations $2,700,000

OWENS Heritage Hall Renovation $2,700,000

SHAWNEE STATE Plaza Concrete Renovation $2,645,000

HOCKING Energy Institute $2,500,000

YOUNGSTOWN STATE Melnick Hall Renovations $2,500,000

LAKELAND Renovation of Science Hall $2,200,000

UC-BLUE ASH Muntz Hall Roof Replacement $2,100,000

TOLEDO Campus Energy Cost Reduction Project $2,000,000

OHIO STATE Chiller Replacements $2,000,000

9 Ohio Higher Education Capital Funding Collaborative

TOLEDO Core Research Lab Renovations $2,000,000

OHIO STATE Replacement Emergency Generators $2,000,000

YOUNGSTOWN STATE Roof Renovations $2,000,000

OHIO STATE Mendenhall Lab Roof $1,900,000

CINCINNATI STATE STEM Lab Renovation $1,800,000

YOUNGSTOWN STATE Building Exterior Repairs $1,500,000

OHIO UNIV Lindley Hall Steam Piping Replacment $1,500,000

OHIO UNIV Memorial Auditorium Repairs $1,500,000

UC-CLERMONT Snyder Bldg Roof Replacement $1,500,000

CINCINNATI STATE Classroom Technology Upgrade $1,400,000

OHIO STATE South Campus Sewer $1,400,000

OHIO UNIV Convocation Center Roof/Ramp Repairs $1,300,000

CUYAHOGA Roof Replacements, Western Campus $1,210,000

JAMES RHODES ST. Tech Lab Repairs $1,150,000

OHIO STATE Graves Hall Elevators $1,130,000

YOUNGSTOWN STATE Campus Elevator Upgrades $1,100,000

OSU-NEWARK Founder Hall Renovations $1,100,000

OHIO UNIV Pruitt Field Repairs $1,100,000

OHIO UNIV West Green Roof Replacement $1,100,000

SOUTHERN STATE Central Campus Exterior Renovations $1,050,000

OHIO STATE Boiler Replacements $1,000,000

OSU-MARION Morrill Hall Renovations $1,000,000

TERRA STATE Renovation Building B $1,000,000

OHIO STATE Starling Loving Hall Elevators $1,000,000

OSU-MANSFIELD Student Union Renovations $1,000,000

OSU-LIMA Library Renovations $980,000

EASTERN GATEWAY Roof Replacements $950,000

KENT-TUSCARAWAS Classroom Building Renovations $930,000

BGSU-FIRELANDS Allied Health & Sciences Building $900,000

CENTRAL OHIO Maintenance Facility $900,000

OHIO STATE Meiling Hall Roof $900,000

OHIO STATE Hitchcock Hall Roof $870,000

KENT-TRUMBULL HVAC Replacements $855,000

LORAIN COUNTY Energy Efficiency Projects $850,000

SINCLAIR Access Control & Security Cameras $800,000

KENT-ASHTABULA Main Hall Renovations $800,000

AKRON-WAYNE Science Lab Renovations $800,000

OWENS High Bay Building Renovation $770,000

OWENS College Hall Renovation $760,000

OHIO UNIV Campus Roadway Improvements $750,000

OHIO UNIV Exterior Painting / Woodwork Repair $750,000

TOLEDO Nitschke Training Center $750,000

WASHINGTON STATE Parking and Bridge Repairs $750,000

10 Ohio Higher Education Capital Funding Collaborative

OHIO UNIV Peden Stadium Concrete Restoration $750,000

OU - CHILLICOTHE Shoemaker Center Repairs $750,000

KENT-STARK Fine Arts Building Renovations $685,000

OHIO STATE Atwell Hall Elevators $680,000

NORTH CENTRAL Keyhoe Center Bridge Replacement $650,000

KENT-STARK Library Renovations $615,000

OHIO STATE Hayes Hall Foundation Repairs $610,000

SINCLAIR Building 1 Air Handler Units $600,000

OHIO STATE McCracken Power Plant Elevators $600,000

OU - EASTERN Shannon Hall Renovations $600,000

MIAMI-MIDDLETOWN Thesken Hall HVAC $589,000

OU - ZANESVILLE Herrold Hall Renovations $580,000

OHIO STATE 12th Avenue Vault Replacement $570,000

OHIO UNIV Clippinger / Accellerator Bldg Roof Repairs $550,000

NEOMED Research & Graduate Education Bldg $550,000

BOWLING GREEEN Organic Chemistry Teaching Lab $543,500

OHIO UNIV Cutler & Wilson Halls Waterproofing $520,000

OHIO UNIV Campus Safety Lighting Improvements $500,000

SHAWNEE STATE Classroom and Lab Renovations $500,000

YOUNGSTOWN STATE Cushwa Hall Elevator Upgrades $500,000

LAKELAND Existing Roof & Building Shell Renovations $500,000

OHIO UNIV Haning Hall Elevator Addition $500,000

LAKELAND Roadway, Parking Lot, Sidewalk Renovations $500,000

OHIO UNIV Stocker Air Handling Unit Replacements $500,000

YOUNGSTOWN STATE Campus Core Lighting Upgrades $495,000

KENT-SALEM Science Lab Expansion $485,000

OHIO UNIV Bird Arena Cooling Equipment Upgrades $475,500

NEOMED Creation of a Biomechanics-Gait Laboratory $450,000

OU - LANCASTER Herrold Hall Renovations $450,000

SINCLAIR Replace Building 14 Roof $450,000

OWENS Math & Science Building HVAC Replacements $448,500

OU - LANCASTER Brasee Hall Renovations $440,000

MIAMI-HAMILTON Phelps Hall HVAC $437,000

OHIO UNIV Bentley Hall Roof Replacement $425,000

OU - SOUTHERN HVAC and Lighting Upgrades $420,000

SINCLAIR Exterior Masonry Repairs $400,000

YOUNGSTOWN STATE Maag Library Elevator Upgrades $400,000

SINCLAIR Replace Air Temperature Control Devices $400,000

OHIO UNIV RTVC Building Roof Replacement $400,000

OSU-NEWARK LeFevre Hall Cooling System $378,000

OHIO UNIV Cutler Hall High Voltage Upgrade $350,000

YOUNGSTOWN STATE Emergency Generator Upgrades $350,000

OHIO UNIV Glidden Rehearsal Hall HVAC Upgrade $350,000

11 Ohio Higher Education Capital Funding Collaborative

CINCINNATI STATE Restroom Upgrades $350,000

KENT-EAST LIVERPOOL Mary Patterson Building Renovations $330,000

EDISON STATE Replace West Hall Windows $310,000

OHIO UNIV Chubb / Sing Tao/ Siegfred Roof Repair $300,000

OHIO UNIV Clippinger Elevator Upgrade $300,000

YOUNGSTOWN STATE Edward J Salata Complex Renovations $300,000

EDISON STATE Expansion of Parking Lot $300,000

SINCLAIR Replace Building 9 Boilers $300,000

OHIO UNIV Ridges Building #26 Demolition $300,000

CENTRAL OHIO LeFevre Hall Cooling System $295,000

OHIO STATE Utility Tunnel Safety Upgrades $280,000

OHIO UNIV Campus Accessibility Improvements $275,000

EDISON STATE Access Improvement Projects $270,000

OHIO STATE Hopkins Hall HVAC $270,000

KENT-GEAUGA Classroom Bldg. HVAC Replacements $259,000

OU - ZANESVILLE Campus Center Roof Replacement $250,000

WRIGHT STATE -LAKE Engineering Program Renovations $250,000

SINCLAIR Instructional Space Enhancements $250,000

OHIO UNIV Kennedy Museum Elevator Upgrade $250,000

MIAMI-HAMILTON Rentschler Hall Water Main Upgrades $250,000

YOUNGSTOWN STATE Storm Water Upgrades $250,000

OHIO UNIV Utility Meter Replacements $250,000

OHIO STATE Dulles Hall HVAC $240,000

OHIO STATE Math Building Roof $230,000

OWENS Administration Hall Exterior Repairs $228,000

OHIO STATE Caldwell Lab HVAC $220,000

WRIGHT STATE -LAKE Lake Campus Renovations $215,000

OU - SOUTHERN Collins Center Repairs $200,000

OHIO UNIV Ellis Elevator Improvement $200,000

OHIO UNIV Lasher Hall Roof Replacement $200,000

OHIO UNIV Park Place Utility Tunnel Structure Repair $200,000

OHIO UNIV Seigfred Elevator Upgrade $175,000

OHIO UNIV Campus Fire Alarm Upgrades $150,000

OU - SOUTHERN Classroom and Lab Renovations $150,000

OHIO STATE Pomerene Hall Elevator $150,000

EDISON STATE Replace North Hall Roof $150,000

EDISON STATE Information Technology Upgrades $140,000

OSU-LIMA Domestic Water Booster Pumps $125,000

MARION TECH Technical Education Center Upgrades $124,000

OWENS Access Improvement Projects $73,500

OSU-LIMA Service Building Controls Update $34,000

TOTAL $207,910,000 *Funding comes from statewide allocation through the Board of Regents.

12 Ohio Higher Education Capital Funding Collaborative

III. Implementing Reform

In 2011, after more than 120 years, the State of Ohio passed landmark construction reform legislation. Those reforms, which higher education leaders had been seeking for decades, will allow the projects recommended in this report to be built faster and more efficiently. Looking ahead, the Commission explored the possibility of additional ways to reduce the cost of public construction in Ohio, without sacrificing quality. Higher education leaders recommend that the state:

• Ensure that State Laws Do Not Hinder Private-Sector Partnerships – Allow state colleges and universities to partner with the private sector in order to utilize modern financing options that relieve some of the upfront debt burden, such as lease-leaseback financing.

• Collaboration Contracts – Higher education leaders believe there are certain types of projects that lend themselves to being bid as a bundled group. These standard projects and services—roof replacement and paving projects, surveying, inspections, and testing, for example—could be bundled together across campuses to achieve efficiencies. Ohio’s colleges and universities have agreed to work together to begin combining many of these projects into larger packages that could be bid regionally in order to take advantage of our combined purchasing power.

• Lower Commodity Prices for Construction – The Commission recommends that the State of Ohio collaborate with the state’s colleges and universities to evaluate the potential merits of combining the purchasing power of the State of Ohio, the Ohio School Facilities Commission, and Ohio’s colleges and universities to try to obtain better pricing on the basic elements of construction projects in Ohio, such as steel.

• Reduce Surety and Bonding Costs on Public Construction – Many of the financial and construction experts on our campuses expected surety and bonding costs to decrease after the implementation of construction reform. Unfortunately, the industry has chosen to not reduce its rates. Some would argue that we may now be substantially overpaying for these services. Higher education leaders have agreed to begin exploring the formation of our own surety and bonding agency in order to ensure that we are not paying more than the appropriate cost for these services on our projects.

• Authorize the Use of Owner Controlled Insurance Programs (OCIP) – An OCIP is an insurance policy designed to cover all liability and loss arising from a construction project. Under an OCIP, all construction, hazard, and other building-related insurance are purchased by the owner as part of a single policy from a single insurer. In order to achieve the greatest possible savings, we recommend that the state also allow workers' compensation to be part of OCIPs on all public projects within the State of Ohio. Owners benefit from an OCIP, because all insurance costs are collected into one transparent policy premium rather than spread across the bids of dozens of contractors and subcontractors. Owners also obtain direct control over administrative costs by dealing with a single broker and insurer.

13 Ohio Higher Education Capital Funding Collaborative

• Flexibility of State Funding for Smaller Projects – One of the strongest virtues of the state’s basic renovation program was that it bundled funding together for smaller construction projects and delivered those funds to colleges and universities as a block grant with broad flexibility for its use. We believe this principle still has great merit, and recommend that projects appropriated in this capital biennium at a level of $2 million or below be delivered to institutions in a similar fashion.

14 Ohio Higher Education Capital Funding Collaborative

By signature below, the Inter-University Council Presidents affirm their approval of the Higher Education Capital Funding Commission’s final report and recommendations, as presented at the February 14, 2012, Inter-University Council meeting.

President Luis M. Proenza University of Akron

President Mary Ellen Mazey Bowling Green State University

President John W. Garland Central State University

President Gregory H. Williams University of Cincinnati

President Ronald M. Berkman Cleveland State University

President Lester A. Lefton Kent State University

President David C. Hodge Miami University

Jay A. Gershen Northeast Ohio Medical University

President E. Gordon Gee The Ohio State University

President Roderick J. McDavis Ohio University

President Rita Rice Morris Shawnee State University

President Lloyd A. Jacobs University of Toledo

President David R. Hopkins Wright State University

President Cynthia E. Anderson Youngstown State University

15 Ohio Higher Education Capital Funding Collaborative

By signature below, the OACC Presidents affirm their approval of the Higher Education Capital Funding Commission’s final report and recommendations.

Dr. Joseph E. Bukowski President, Belmont College

Dr. Bonnie L. Coe President, Central Ohio Technical College

Dr. O’dell M. Owens President, Cincinnati State Community College

Dr. Karen E. Rafinski President, Clark State Community College

Dr. David T. Harrison President, Columbus State Community College

Dr. Jerry Sue Thornton President, Cuyahoga Community College Dr. Cristobal Valdez President, Edison Community College

Dr. Ron Erickson President, Hocking College

Dr. Laura M. Meeks President, Eastern Gateway Community College

Dr. Morris W. Beverage, Jr. President, Lakeland Community College

16 Ohio Higher Education Capital Funding Collaborative

Dr. Roy A. Church President, Lorain County Community College

Dr. J. Richard Bryson President, Marion Technical College

Donald L. Plotts

President, North Central State College

Dr. Steven Lee Johnson President, Sinclair Community College

Dr. Kevin S. Boys President, Southern State Community College

Dr. Para M. Jones President, Stark State College

Dr. Thomas L. Stuckey President, Northwest State Community College

John Satkowski Interim President, Owens Community College

Dr. Debra L. McCurdy President, Rhodes State College

Dr. Barbara Gellman-Danley

Dr. Marsha Bordner President, Terra State Community College

Dr. Bradley Ebersole President, Washington State Community College

Dr. Paul R. Brown President, Zane State College

President, Rio Grande Community College

17 Ohio Higher Education Capital Funding Collaborative

IV. Appendix

Guiding Principles At the onset of the cooperative evaluation process, the Commission established the following principles to serve as a guide for the variety of capital projects recommended in this report. The Commission firmly believes these guiding principles reflected the most strategic and effective use of the state’s resources. The capital bill should do more than simply build or modernize buildings. The state’s investment should:

• Help build world-class programs.

• Stimulate creativity by advancing strategic collaborations through

partnerships both on campus and with others in the public and private

sectors.

• Reflect the needs of today’s student by strengthening their learning

environments, ensuring their safety, and encouraging new degree and

certification completion opportunities.

• Increase Ohio’s competitive advantage by capitalizing on our existing

strengths.

• Strengthen our ability to respond to new or increased workforce

development opportunities in the state.

• Encourage joint efforts to reduce construction costs and generate ongoing

efficiencies.

18 Ohio Higher Education Capital Funding Collaborative

Editorial Coverage of Capital Bill Collaborative

Exercise in collaboration

AKRON BEACON JOURNAL Editorial Sunday, January 29, 2012

Ted Strickland and Eric Fingerhut advanced the notion of the state’s far-flung colleges and universities thinking of their institutions as one. They christened the University System of Ohio. Now John Kasich has pressed further. The governor pointed to the tight capital appropriations budget and told the schools to craft a proposal together, building a consensus around priorities.

A seven-member planning commission, led by E. Gordon Gee, the president of Ohio State University, has been working on the task, facing a deadline of the middle of next month. The advantage in the governor’s approach is that the process takes a detour around the usual practice of the best lobbying team prevailing at the Statehouse.

As Bruce Johnson, the president of the Inter-University Council, explained to Gongwer Ohio, the approach is “more strategic,” the schools pushed to weigh what is best for the whole, a practically revolutionary turn for the state.

The job won’t be easy — beyond the familiar rivalries and competing agendas. The governor has stressed the hard reality of the capital budget. Colleges and universities will be dividing roughly $400 million, below the $498 million of 2009-10 and the $528 million of 2007-08. The state skipped a capital budget in the most recent fiscal years.

Clearly, the commission won’t come close to covering the cost each school’s top priorities. Still, the members are likely to route the money more wisely, the exercise, ideally, opening the way to broader and sustained collaboration.

19 Ohio Higher Education Capital Funding Collaborative

Kasich craftily gives colleges a group project to set bricks-and-mortar

priorities: editorial THE CLEVELAND PLAIN DEALER Editorial Tuesday, January 10, 2012 Ohio Gov. John Kasich is right to push collaboration instead of competition for the limited funds the state has to support critical capital projects at Ohio's 37 public universities and colleges. To that end, he has asked Ohio State University President Gordon Gee to bring the colleges together to decide jointly which of their numerous building and renovation projects are worthy of state funding. The clock is ticking. The wish list for the capital budget is due by mid-February. College officials should have a reason to work hard at consensus: The 2011-12 two-year capital budget was zeroed out, compared with more than $400 million the prior two years. That has left colleges with a backlog of projects in search of state funding. Some college officials worry that smaller colleges will be elbowed away from the table by mammoth marquee schools or that mundane but important projects such as repairs to sidewalks, roofs and windows will lose out to glitzy libraries or student centers. That ought not to happen, although colleges should build routine maintenance into their regular budgets. A Kasich spokesman said the governor was looking for "substance over style," but was also intent on keeping the capital budget lean. The traditional approach of spreading capital budget money like peanut butter has led to a lot of wasteful spending. When times were good, college presidents added on student centers, libraries and other buildings, apparently without thinking much about the long-term maintenance of this growing empire. Now, when austerity rules the day, they need the state's help to maintain it. That was poor planning. College officials need to adjust their ways. A joint wish list should improve planning. The state has been trying for some time to get public colleges and universities to work together to serve more students, end duplication and save money. Money is a powerful inducement to join forces. This collegial supercommittee needs to find a way to work together.

20 Ohio Higher Education Capital Funding Collaborative

Building agreement THE COLUMBUS DISPATCH Editorial Friday, December 30, 2011

Gov. John Kasich has asked Ohio’s 37 public colleges and universities to figure out how to divvy up the state’s slim budget and submit a single wish list for campus construction and repairs. Positioning the schools to cooperate rather than compete is astute. University leaders are best-positioned to evaluate the hard choices that must be made, since they live with the problems daily and will have to live with the decisions long-term. And by making colleges sit down together to determine priorities, they cannot help but gain a better understanding of the needs of their sister institutions. The governor focused the universities by giving them a tight deadline to draw up a common capital-improvements request: They have two months. The tight deadline will reduce the amount of time for politicking and make this a more straightforward task. It reportedly took the schools a year and a half to agree on the formula they’ve been using for the past 14 years; it ensured that each school gets at least a share of the budget. Before then, politics ruled, so those with the best lobbyists could muscle their way to the biggest awards. The governor has asked Ohio State University President E. Gordon Gee to guide the schools, which are to submit the list by mid-February. State Budget Director Tim Keen already has warned all state agencies to carefully review their capital needs and request only essential funding. New construction, Keen wrote in a memo, will be held to “an extremely high threshold.” Universities might have some justification for arguing that they need relief because that threshold was not so high in the past. During prosperity, the state encouraged colleges to expand; now they have more buildings to maintain. And, to make things worse, the cash-strapped state skipped its last capital budget — one that, two years before, in 2009-10, had provided colleges and universities with $431 million. At present, Ohio’s universities face $5 billion in backlogged maintenance projects. Ohio University, for instance, says it needs $2.5 billion over the next 20 years to keep the campus from falling apart. The upcoming budget won’t provide nearly enough, but making the colleges confer could elicit a more-disciplined request. When colleges created lists individually, they were apt to ask for more than they expected to get, leaving state officials to try to figure out priorities.

21 Ohio Higher Education Capital Funding Collaborative

Times have changed. Schools will need to be respectful of each others’ challenges. Ohio’s public universities and colleges already are allied, having formed the University System of Ohio in 2007 to decrease duplication and share resources. Asking them to unify over a capital budget is a logical next step. And universities have been asking for less imposition from the state and greater freedom. This should give them the opportunity to show they can handle it.