The Daily Beacon

Page 1

Issue 5, Volume 121

Tuesday, August 28, 2012

SGA works to ensure tuition security David Cobb Assistant News Editor Next year’s incoming freshman class will see no more than a three percent tuition increase per academic year during their time at UT. UT’s SGA executives lobbied for the change this summer during meetings with Chancellor Jimmy Cheek, Vice Chancellor for Finance and Administration Chris Cimino and Vice Chancellor for Student Life Timothy Rogers. Despite some initial concerns, Cheek presented the plan to the University of Tennessee’s Board of Trustees. The locked tuition is set to be implemented alongside the “Take 15, graduate in 4” academic plan that will be introduced to UT’s next crop of freshman, the class of 2017. “Chancellor Cheek did a very good job about making sure that (the locked tuition) was in there,” said student body vice president Terry Nowell. “It was not a politically savvy move for him to do that, really, because it had to be presented in front of the board of trustees, which, as he predicted, was not very kind to the thought of having a locked rate, because they thought it was a bad tuition model and a bad business model in general.” Nowell talked to the board on behalf of the student body, expressing that students need security and predictability when budgeting for the expenses of college. “It’s kind of a bit of a test program right now to see how students react to it,” Nowell said. “The classes that are currently enrolled, it’s not going to touch them. We’re not going to have a locked rate.” Although those presently enrolled at UT will not be affected by the change, Nowell said that tuition hikes over the next two to three years

will likely be in the three to seven percent range each year. During the discussions, Nowell, along with SGA president Adam Roddy, worked to minimize the tuition increase for the 2012-2013 school year. The original proposal, Nowell said, was for tuition to increase by 10 percent for the current year as opposed to the final number of eight percent. “We had to work with them quite a bit on the numbers,” Nowell said. “Because originally it was proposed to be about a 10 percent increase, seven to 13 percent is what they were originally projecting, so we ended up getting it set for this next year at about eight (percent).” Roddy said he was pleased with the development of the new tuition plan, which was a primary running point used by his campaign, Fuel, during campaign season. “We didn’t expect a complete tuition overhaul in one year,” Roddy said. “But what we did do, we worked with the administration, and hopefully this is setting the precedent for students to have a say in the process going forward.” Another point being acted upon from campaign season is the ability of students to apply for administrative committees, such as the Technology Advisory Board and the Student Life Council. Empty positions in these bodies were previously filled solely by appointment. This change was actually adopted from the policy of the Revolt campaign, which opposed the current SGA executives during the spring election season. The appointments will be overseen by SGA chief of staff Allison Cunningham with factors such as passion, experience and communication abilities serving as the criteria for winning a spot.

Tara Sripunvoraskul • The Daily Beacon

Student Body President Adam Roddy, Student Body Vice President Terry Nowell and Student Services Director Taelor Olive celebrate their SGA win on March 29.

New Vice Chancellor UT athletics makes long-term strategy Staff Reports strives to be Top 25 RJ Vogt News Editor It is a long way from New Hampshire to Knoxville, but the new vice chancellor for research and engagement, Taylor Eighmy, has found his way to Rocky Top. “My wife and I both grew up in New England, and we have been heard to say, on occasion, that the Cumberland Plateau and Knoxville area remind us of home. We’ve fallen in love with the city of Knoxville,” Eighmy said. Beginning on October 2, Eighmy will bring his previous experience of growing research programs at Texas Tech University and the University of New Hampshire to UT. “Hopefully, with a little bit of luck, we will be arriving the last weekend of September,” Eighmy said. He began his career at New Hampshire as a research assistant professor in the Department of Civil Engineering in 1986, moving up to interim vice president for research and then assistant vice president for research. Since 2009, he has worked as a faculty member and research administrator at Texas Tech, most recently serving as the senior vice president for research. UT’s plans and goals for progress interest Eighmy. “Tennessee is right up there. If you look around higher education, there aren’t a lot of universities thinking this way,” Eighmy said. “I’m excited to work for a university who has aspirations to be a top-25 university.” His first goal as vice chan-

• Photo courtesy of Tennessee Today

cellor focuses on growth. “It is pretty clear that one of the first orders of business is to develop a plan for growing research enterprise within the context of the strategic plan already in place,” Eighmy said. “That’s something I’ll be getting on right away.” Chris Ludtka, junior in chemical engineering, hopes the new vice chancellor can make strides in relationships with national organizations. “I’m really hoping he will put more effort into strengthening the partnership between UT and ORNL. That’s a great resource for us,” Ludtka said. The vice chancellor for research and engagement is a position that has been filled by Dr. Lee Riedinger, a professor of physics whom Eighmy praised as “a wonderful ambassador for the institution.” “I’ve been impressed with the immense quality of the faculty. There’s been great growth in the research enterprise, and their allegiance is great to see,” Eighmy said.

KNOXVILLE, Tenn. — The 201112 fiscal year has closed for UT’s athletic department, and the department is reporting a $3.98 million deficit for the year. The department, which receives no public funding from the state of Tennessee, took in $106,485,376 in revenues against an expense total of $110,466,652 during the last fiscal year. To fund this deficit, the UT athletics department has utilized a substantial portion of its reserve, reducing the amount in the fund to slightly less than $2 million dollars. As part of the ongoing assessment of all components of UT Athletics during the past year, Vice Chancellor/Director of Athletics Dave Hart has evaluated all elements of the athletics funding process as well as ways to create a sustainable financial model that will promote growth within both athletics and the university. A deficit for the last fiscal year was anticipated, and the financial model currently in place for athletics is not sustainable long-term. A long-term strategy for building a reserve for the department of athletics, while drawing down current debt service, has been prioritized by Athletics Director Dave Hart as the current reserve amount is well below balances maintained by peer institutions. “It is critical that our athletics program be financially healthy and that its budget is sustainable,” said Chancellor Jimmy G. Cheek. “We are committed to having premier athletics programs at the University of Tennessee, and to do that, we must develop a financial model that pays for these programs while also building up the necessary reserve funds.” “I support Dave Hart’s efforts and commend him for the work that has already been done to get us on more sound footing. This work benefits the entire campus of the University of Tennessee.” There are multiple components related to the historical budget model for athletics at UT that are contributing factors to the current financial situation and the lack of a reserve. All of these issues are being evaluated for

possible adjustment by both Chancellor Cheek and Hart. Among those contributing historical factors are: Agreements historic in nature. The UT Department of Athletics provides a minimum gift/philanthropy transfer of $6 million to the University each year based on agreements under prior leadership. This transfer provides for undergraduate scholarships, graduate fellowships, initiatives related to undergraduate student success, discretionary funds for UT Martin, UT Chattanooga, the Agriculture campus at UT Knoxville, and the UT Health Sciences Center in Memphis, and debt service on selected UT parking garages. The total current athletics department spending within the University is approximately $21 million per year and also includes items such as scholarships for student-athletes, usage fees for Thompson-Boling Arena, fees paid to the campus parking authority for athletic event parking passes and licensing revenues generated by athletics that are used for University programs. These historical commitments were entered into in good faith by both the athletics department and University leadership but are currently being evaluated by the Chancellor and Athletics Director in order to determine if

See BUDGET on Page 3

Ian Harmon • The Daily Beacon

INSIDE THE DAILY BEACON

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adjustments are necessary. These athletics-generated revenues are budgeted by the University on the front-end of the fiscal year. Changes in leadership. During the past four years, the athletics department has experienced a significant expense related to payments to former coaches in the sports of football, baseball and men's basketball as well as former directors of athletics. These situations have played a role in diminishing the cash reserve balance of the department of athletics. Debt service. The UT Department of Athletics currently has more than $200 million in outstanding debt related to the construction of and improvements to multiple athletics facilities. The debt service is currently being drawn down per the previously devised schedule, but a plan is being developed to accelerate the reduction of the debt more aggressively. Fixed costs. There are certain costs, such as scholarships and utilities that are fixed and will continue to rise each year. Approximately 80 percent of UT student-athletes are from out-of-state, meaning the department pays higher tuition and fees on the great majority of athletes. Conversely, UT's general student body is comprised of only 10 percent out-of-state students.

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