The Miami Student Established 1826
FRIDAY, FEBRUARY 20, 2015
VOLUME 142 NO. 36
Regional campus forum gets heated REGIONALS
REBECCA HUFF STAFF WRITER
Tensions rose at the Regional Campus Process Committee’s public forum Wednesday, Feb. 18, on Miami University’s Hamilton campus. When audience members weren’t getting the answers they wanted, the meeting quickly shifted from informational and straightforward to an attack against the committee. Despite the harsh winter weather, roughly 60 people showed up to take part in the conversation. Students, faculty, staff, Alumni and most of the committee members were there as well. “You have what you call your marching orders, which is what some of us thought all along and what we’ve been protesting, that this is a done deal. Unfortunately, your people and sincere efforts are being manipulated and used for no good purpose because we are already screwed,” said John Krafft, provost and executive vice president for Academic Affairs. Committee Chair Jim Oris, went from being calm and collected to annoyed and exasperated as he rubbed his forehead when applause erupted. “You all have to understand I’ve been at Miami for almost 30 years. Some of my closest colleagues are people from Miami Hamilton and Middletown in the biology department,” Oris said. “I understand REGIONAL »PAGE 4
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Ohio public university debt hits $6.7 billion MONEY
EMILY WILLIAMS SENIOR STAFF WRITER
Miami University has more than doubled its amount of outstanding debt over the past five years, but it is not the only university relying on deficit spending to fund construction projects. A phenomenon referred to as the Edifice Complex, colleges have spent the past several years in intense competition, fueled by reduced funding from state governments and a need to attract students with increasingly modernized and elaborate residence halls, dining facilities, student unions and recreational centers. Richard Vedder, professor of economics at Ohio University and director of the Center for College Affordability and Productivity, thinks this massive debt accumulation calls for major reform in the way colleges are borrowing and spending money. “There’s an Edifice Complex that universities have that ties into the academic arms race going on in higher [education], where every school feels compelled for competitive purposes, in other words, to get students, to have to have the latest and coolest facilities,” said Vedder. From 2004 to 2014, Ohio’s 14 public universities have more than doubled their debt, reaching a combined total of about $6.7 billion. Of those universities, Miami ranks third in debt accumulation, trailing only behind Ohio State University’s (OSU) $2.6 billion and the University of Cincinnati’s (UC) $1.2 billion in debt.
Trustees discuss university changes BOARD OF TRUSTEES
EMILY TATE
UNIVERSITY EDITOR
In the Marcum Conference Center, the Miami University Board of Trustees discussed several proposed changes, including a new department, two new majors and increased fundraising goals. Several points on the agenda, which were addressed between 8:30 and 11 a.m., included: The implementation of a new Global and Intercultural Studies department for the Spring 2016 semester, as well as the recommendation of an eventual Global Studies school or institute. Resolutions to add two majors to the regional campuses’ curri-
TODAY IN MIAMI HISTORY
cula, including one in information technology and a second in liberal studies. Increased goals for Miami fundraising — $100 million across five years (twice what the university raised in the last four years). Associated Student Government’s initiatives for the spring semester, including the effort to raise the limit on workweek hours for student employees; implementing the “what if” element on student DARS reports; and evaluating the allocation of the $1,860 in student fees. Announcements regarding the development of Miami’s Living and Learning Communities (LLCs) for the 2015-2016 academic year, which strive to make the LLCs more effective and better defined.
UNIVERSITY DEBT
Though Miami University has nearly doubled its debt in the last five years, it is not alone. The 14 public universities in Ohio have followed similar trends, as each competes to have new, state-of-the-art facilities.
OVERALL DEBT
STUDENT CENTER DEBT
Ohio State University
2.6 billion total
$ $
$
$
$
$ $
$ $
$
$
$ $
$ $
$
118 million
University of Cincinnati
1.2 billion total
$
$
$
$
$
$
$
$
80 million
Miami University
620 million
$
$ $
65 million*
$
total
* The total debt as of 2017
Ohio University
337 million
$
$
45 million
total
Bruce Guiot, Miami’s Director of Investments and Treasury Services, said Miami’s outstanding debt balance now stands at $619.8 million after principal payments made on Sept. 1, 2014. Guiot confirmed that there are no plans to take on any further debt at this time. “The bond that we issued in 2014 will provide the funding that we need for the next couple of years’ worth of projects,” Guiot said. Just as Miami has been investing in building costly projects, Ohio’s other public universities have been doing the same. UC’s new $80 million athletic center includes an eightstory facility, a boathouse and a sports museum. OSU’s 320,000 square foot student union took three years and $118 million to construct. The Baker University Center at Ohio University boasts a theater, game room and the only escalators in southeast Ohio, for a total of $45 million. With the cost of higher education consistently rising and the number of students enrolling in college declining for the past three years (the National Student Clearinghouse Research Center reported a 1.3% decrease in total enrollment for the fall of 2014), Vedder questions whether continuing to invest in these elaborate amenities will be worthwhile.
“There’s a notion that kids want to go to these schools with country-club-like facilities that are getting more and more expensive,” Vedder said. “That that model will persist indefinitely might be a questionable assumption.” However, relatively selective schools like Miami, said Vedder, will not likely see a drop in enrollment. In fact, Miami has seen a 49 percent increase in applications for admission from 2010 to 2015. Moody’s Investors Service, a
the State Higher Education Executive Officers Association, ranking Miami second in the nation for net tuition as a percentage of total revenue. Other sources of revenue include investment earnings, endowments and research funding. Since Miami relies so heavily on payments made by students, it has increasingly recruited out-of-state students whose tuition fees are more than double those of Ohio residents. “It has been part of our strategy to bring in more out-of-state stu-
There’s this notion that kids want to go to these schools with country-club-like facilities that are getting more and more expensive.” RICHARD VEDDER
ECONOMICS PROF.ESSOR, OHIO UNIVERSITY
top bond credit rating business, issued Miami a credit rating of Aa3 in its 2014 evaluations, distinguishing the university as financially stable. However, the report identified some financial challenges the school faces. “MU’s credit challenges include weak revenue diversity with a high concentration in student charges revenue coupled with a fiercely competitive market that has driven substantial increases in debt,” the report stated. Miami receives 51 percent of its revenue from student tuition and fees according to data from
dents because the net tuition is, on average, higher than the net tuition of in-state students,” said Guiot. According to Susan Schaurer, Miami’s Interim Director of Admission, the percentage of Miami students who are not Ohio residents has risen from 32.7 percent in 2010 to 43 percent in 2014. The number of applications from domestic out-of-state students has also risen by over 60 percent from 7,010 applications in 2010 to 11,310 in 2014. DEBT »PAGE 4
In 2003, The Miami Student reported the Oxford City Council voted unanimously to adopt a proposed nuisance ordinance, giving the police the right to enter private property and break up any party they deem harmful.
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