free
THURSDAY
dec. 7, 2017 high 36°, low 25°
N • Economic report
S • Goalie’s secret
HOLIDAY GUIDE
Mike Haynie, one of Syracuse University’s vice chancellors, details why he thinks SU can improve its support of student entrepreneurs in the region. Page 3
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dailyorange.com
Syracuse Ice Hockey goalie Abbey Miller learned to control her competitive edge, allowing her to become one of the best goalies in program history. Page 24
See page 11
Inside the demise of M Street Pizza:
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t h e i n de p e n de n t s t u de n t n e w s pa p e r of s y r a c u s e , n e w yor k |
IT’S JUST NOT FAIR
The people that were harmed the most by this were the employees. They’re the ones that lived this. Jeff Smith
former co-owner of m street
M Street Pizza, which was located on 113 Marshall St., opened in fall 2015. Less than a year later, the pizzeria suddenly closed, leaving its employees without jobs and their last two weeks’ pay. daily orange file photo
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By Rachel Sandler asst. digital editor
he employees of M Street Pizza always got paid on Fridays. Direct deposit would usually kick in. Checks would shortly follow. But on a Friday in May 2016, nearly two weeks after Syracuse University’s commencement, neither happened. The previous two weeks of pay were gone. That was the first inclination something was up, said Lisa
Ramirez, the general manager of the Marshall Street pizza restaurant at the time. Ramirez panicked. She called Greg Allen, a former SU football player and one of M Street’s out-of-state owners. She called Jeff Smith, an intellectual property lawyer and the other M Street out-of-state owner. She wasn’t able to contact M Street’s primary owner and landlord, David Jacobs. She
see m street page 16
university senate
Budget committee report details 2018 financing By Michael Burke senior staff writer
Syracuse University’s fiscal year 2017 budget and projected 2018 budget each feature a surplus and illustrate a growing presence of online education programs at the university, a University Senate report shows. SU expects to have revenues of about $1.39 billion in 2018 and expenses of about $1.388 billion, according to a report presented at Wednesday’s Senate meeting by the Committee on Budget and Fiscal
Affairs that summarized SU’s fiscal year 2017 budget and broke down the university’s 2018 projections. A full breakdown of the 2017 budget is not included in the report, but the report notes that SU had a budget surplus of slightly more than $17 million during the year. Expenses were 1.6 percent below projections, which was the result of less spending on fringe benefits than expected, according to the report. Fringe benefits are defined as costs to the university such as healthcare, retirement contributions, employee tuition benefits and other benefit costs.
The distribution of the university’s revenues and expenses outlined in the report closely mirror distributions in years past, but the report does highlight one new trend at SU: There has been rapid growth of online education in recent years. Tuition revenue from online graduate programs has more than doubled since 2015, a period of growth that coincides with the launch of partnerships between several of SU’s schools and colleges and 2U Inc., a provider of online education degree programs. SU will also pay more than $34 million in 2018 in “online vendor
fees,” which are fees charged by third-party vendors, such as 2U, that administer online programs for SU’s schools and colleges, according to the report. In 2015, SU received about $7 million in net tuition revenue from online graduate programs, per the report. That figure surpassed $15 million in 2017 and is expected to approach $20 million in 2018. Over a similar period, SU has seen a drop in its revenue from the College of Law: SU received about $20 million in net tuition revenue in 2014 but see budget page 8
gso
Syverud addresses tax reform By Jordan Muller asst. news editor
At a special meeting of the Syracuse University Graduate Student Organization on Wednesday night, Chancellor Kent Syverud and Graduate School Dean Peter Vanable detailed how the university is working to address the Republican tax bills recently passed by the U.S. House of Representatives and the Senate. Syverud, at the meeting, said it would be hard for the university to make a commitment to its response effort until officials know exactly what the final bill’s text will be. One tax bill passed in the House of Representatives in November and another passed in the Senate last week. Both bills could dramatically raise the cost of higher education attendance for graduate and doctoral students. Lawmakers are currently negotiating over the bill differences in a conference committee before the combined legislation is sent to the White House for a final vote. “At present, we’re closely monitoring the reconciliation process in Congress,” Vanable said. “We’re awaiting an indication on whether or which provisions from the House bill will remain in the final bill.” The elimination of a tuition waiver tax exemption — a provision in the House bill — could cause the cost of higher education for some students to skyrocket. Universities can currently waive tuition costs for graduate students who do research or teach classes. The House bill provision would classify the waived tuition as taxable income. The Senate version of the tax plan does not include the tuition waiver provision or other provisions that could dramatically affect most graduate students. If a final bill includes a requirement that tuition waivers for graduate assistants be taxed, Vanable said the university will “intensively review options” to assist and support graduate students. Syverud said SU has been lobbying lawmakers. The chancellor said he was told there was consideration that the House could vote on the Senate version of the bill, which would not include the tuition waiver provisions. “There’s a role for some advocacy in favor of that solution,” Syverud said. But he added there are still provisions in the Senate bill people should be concerned about. In a letter to U.S. Rep. John Katko (R-N.Y.) dated Nov. 20, see syverud page 8