Campus Services projected to lose $6.7M

The University of Cincinnati's Campus Services was projected to lose $8.9 million this year, but increased revenue and cost saving measures, including payroll cuts, have lowered the budgeted deficit to approximately $6.7 million.

Steve Sayers, senior associate vice president for Campus Services, made the announcement at Wednesday night's Student Government meeting. Campus Services' budget for fiscal year 2006-07 was around $56 million, according to Sayers, which included the almost $9 million loss. The budget is made up of eight units including debt payments, utility costs, payroll, operating costs and house keeping and maintenance.

"This deficit was planned, we knew MainStreet was not going to make money right away," Sayers said. "But the university's situation put the onus on us to get our house in order more quickly than planned."

According to Sayers, Campus Services is about $2 million above its original budget.

There is still a $1.9 million deficit between the amount brought in from student life fees and the debt payments that money goes toward. Sayers said the student life fee money is supposed to cover the debt payments, but it is $1.9 million short of what it should cover.

The rest of the $6.7 million deficit is comprised of $5.1 million in MainStreet operations and $1.7 million in housing fees. The amount of the deficits adds up to more than $6.7 million, but Sayers said that is because Campus Services is making revenue in other units.

The increased revenue is coming from Food Services and retail, according to Sayers.

Sayers said Campus Services is looking at other options to help decrease the deficit for this year and for years to come.

"We are still looking at every angle," Sayers said.

Other options include lowering the number of part-time employees, changing operating hours and changing operations in Food Services. He said the university plans on expanding service at CenterCourt dining hall on Saturdays and Sundays, opening every station instead of the limited number they operate now. But, Sayers said the university is scheduled to close MarketPointe on the weekends starting Fall Quarter of 2007.

Stadium View Café hours also are scheduled to change, staying open until midnight seven days a week.

Employment opportunities for students also may be at risk. When asked by Internal Holdover Senator Qasim McCreagh at Wednesday's Student Government meeting, "Are we talking about cutting student staff?" Sayers said cuts may or may not be implemented, with the reduction of staff most likely coming from the Campus Recreation Center.

The increase in minimum wage also played a role in Campus Services' decision, because it increased the hourly wages of student workers.

"It adds to the decision," Sayers said. The largest increases came from the Rec Center and Tangeman University Center because they employ the largest number of student workers.

Sayers also said Campus Services has vacant positions they are not going to fill, but those positions may be taken by student employees. "There are positions we will not be filling," Sayers said, "which means we need to find different ways to get things done. We may need more students," to balance it out.

Sayers said Campus Services is projected to lose $3.5 million next year.