Strategic Planning Committee Minutes, May 20, 2002

Strategic Planning (SPC) Committee Minutes
May 20, 2002

MEMBERS PRESENT:: Bruce Morton, Betsy Centa, Jaynee Groseth, Mary Noll, Mark Sheehan, Jon Wraith.

OTHERS PRESENT: Ben Sharp.

MEMBERS ABSENT: Bill Brown, John Carlsten, Kay Chafey, Greg Johnson, ASMSU representative.

The meeting was called to order by Chair Bruce Morton at 3:10 PM. Tom Stump, Director of Auxiliary Services, attended the meeting.

Dean Morton introduced the topic of the day by stating that part of SPC's charge is to consider the following issue: Assuming MSU should grow, how much growth should there be and how should the growth be accomplished?

According to Director Stump, during fall semester 2001, there were 2500-2600 students in the university residence halls and other student housing. If all of the rooms in the residence halls were double occupancy rooms, university housing could hold about 3260 students.

So far this spring, paid deposits by entering freshmen for fall semester 2002 have increased 394 over last fall. Resident housing can hold 2800-2900 students without a problem. Undergraduate housing can hold about 300 additional students but graduate housing is quite full. It is a requirement that freshmen live in university resident housing.

The most popular housing option for students is the suite style housing in the two buildings near Hedges. One of the buildings will be opened to year-around living for students, even though they may not register for classes during the summer, as long as they commit to attending classes fall semester. A third building of this type near Hedges is in the early planning stage. Whether to move ahead with the planning depends upon the SUB remodeling (a $25 million bond) and the progress of building projects elsewhere in the MSU system.

Fall semester 2002, there will be twenty housing units available for single students at junior or higher level. Although it does lower the number of units available for family housing, there is great demand for this type of housing for single students. Occupancy rates in family housing are currently running at 95-96%.

University housing (food and lodging) is an expensive option for students, but it is convenient for them. To lower costs, students have requested some more flexible food options on a lesser scale. However, the food option is an area where the university makes a significant profit. This coming academic year, thirty room scholarships will be available for students. The scholarships are given on the basis of GPA and other criteria. The scholarships will be offered to freshmen, also, but the scholarships will not apply until the student's second year.

There is a huge drop-off rate in student occupancy of the residence halls after the first year. A goal of Auxiliary Services is to increase retention. Some of the things students have requested are:

• A better living environment
  
• Fewer rules. Although some floors already have 24-7 quiet hours, quiet after 10 PM, and other options, some floors may be able to set their own rules.
  
• Longer hours of operation in the food service. In response, the food service may be open later than 7 PM.
  
• Additional "prepared on demand" food options. In response, the food service is providing more options such as hamburgers and pizza and may introduce a Mongolian grill.

Resident housing, resident food service, and family housing net about $5.2 million this past year. $2.7 million is needed to cover debt service, $1.2 million is used for general overhead and recharges, and $1.6 million is used for maintenance of the facilities. Any additional money can be used for Other Lawful Purpose (OLP). Usually there would be $.5 million to $1 million for OLP, but because the number of students in the residence halls was down about 120 students this year, that money is not available The central administration determines how to use OLP funds. It is used in a variety of ways that benefits the university.

The number of out-of-state students applying to live in the residence halls appears to be a higher per cent of the total than in the past. It is not known at this time whether it is in response to additional recruiting or the 9/11 event, which may be causing students to seek universities in less urban parts of the country.

A study done to determine how much it would cost to convert North Hedges to suites anticipates it would cost $8 million to do the conversion. It is anticipated a new building would cost between $15 million and $20 million. North Hedges is the most popular high rise, because it houses the Education Center and a remodeled basement and first floor. The freshman interest group living spaces in North Hedges are popular and can be expanded. However, the private living space is the same in both North and South Hedges. One plus to living in resident housing is that the MSU residence halls have the fastest internet connection of any housing provided for students in Bozeman.

It was suggested consideration be given to converting the high rises to university business offices and meeting rooms. Space would be made available in the SUB and other places on campus if some services could be relocated.

The cost of off-campus housing versus on-campus housing is tracked. Auxiliary Services plans to determine how much off-campus housing now exists and how much additional housing is planned.

If the student housing market is competitive, are there additional "value-added" possibilities? Might day-care other than the ASMSU Day Care Center be provided? Could there be additional faculty housing? Could OLP money be used to buy property near the campus which could be rented out or used in some way, pending use of the land for another university need?

As a planning strategy, various providers of Student Services (New Student Services, Financial Aid, Housing, etc.) are beginning to work more closely together. This coming fall semester, Student Services will begin to look at IT and other areas to develop an overall strategic plan.

Changes have been instituted in Financial Aid to make the office more responsive to the demands made upon it. Computer upgrades have been provided, some staff is being added, and some changes have been made to Banner which makes it easier for Financial Aid to do its work. A Banner module team leader for Financial Aid has been added. IT will look at areas (to be identified) at all four campuses to make the Financial Aid process work more smoothly. Electronic signatures and promissory notes will be used. Financial Aid is working with the same budget as twenty years ago, even with increased postage costs and number of students at MSU.

Other campus programs included under Auxiliary Services are the SUB, sports facilities, intramurals, and concert series.

Although the MSU Bookstore is a separate corporation from MSU and is owned by students and staff, it rents space from the SUB Gross sales in the Bookstore are about $8 million/year. Growth in sales has been about 2.5% per year over the past ten years. A 10% discount is made on all retail books. At one time, the reduction was 15%, but it has been lowered, and the difference has been set aside to remodel the Bookstore. Even at 10%, it is one of the most deeply discounted university bookstores in the country. It also does an exceptional job of bringing in used textbooks, which equate to better book prices for students and larger profit for the Bookstore.

It was suggested that the Bookstore has not yet optimally considered options such as textbooks on demand and marketing more aggressively to alumni and boosters.

In responding to a question about the difference between the MSU and UM Bookstores, it was pointed out that UM's Bookstore is university-owned. UM is aggressively promoting "branded" Griz products, such as food and clothing. Over the years, UM has put more resources into marketing, administration, and the library than MSU. MSU puts more resources into some other areas.

As there was no further discussion, the meeting adjourned at 4:30 PM.