Southeast regents mull $40M in bonds to fund overdue renovation projects

At the current rate of its piecemeal renovations, it could take up to 10 years for Southeast Missouri State University to make improvements to its science labs. University officials hope to curtail the wait by selling bonds to finance university construction projects.

The science facilities are Southeast's $37 million top request for capital funds from the state. Each year colleges and universities submit their top capital requests to the Department of Higher Education. In recent years, new funding sources have not been available.

The university's board of regents will consider setting in motion a plan to pursue $40 million in bonds to fund some of the projects that Southeast officials say are overdue. During the past two years, resolutions for a statewide bond issue have been introduced into the Missouri Legislature, but both measures failed.

Southeast president Dr. Ken Dobbins said the university will pursue Build America Bonds, low-interest bonds available through the American Recovery and Reinvestment Act.

"Now is a good time for bonds," he said.

Projects included in the bond proposal include:

* $14 million for renovations to Magill and Rhodes halls. Magill Hall was built in 1960 and Rhodes Hall was built in 1983.

* $18 million for repairs in Academic Hall, which was built more than 100 years ago. Upgrades include new pipes and windows. Bursting pipes have been a consistent problem in the building, Dobbins said. In January pipes burst in the registrar's office when student billing was being processed, he said.

* $8 million for other deferred maintenance projects, including plumbing, mechanical and electrical upgrades.

A student fee has been funding the lab upgrades, which are done incrementally each summer. The university has completed $2.9 million in renovations and secured grants to aid the project.

The fee and state appropriations for maintenance would go toward paying off the debt, Dobbins said. The final plan would be presented to the board in the fall. If approved, improvements could begin in the spring, he said.

"We think it will rejuvenate the economy," he said.

The last time the university received funds for a capital request, he said, was the River Campus. The $2.6 million Autism Center for Diagnosis and Treatment received state funding but it was not among the university's submissions to the department, Dobbins said.

The regents will also consider the university's budget for the upcoming fiscal year. At $96.3 million, the budget is $570,000 smaller than last year, said Kathy Mangels, vice president of finance and administration. The budget includes layoffs, attrition and other budget-reducing initiatives announced earlier in the year.

For the second year, there will not be raises for university employees aside from those who received promotions. The increase for promotions is more than $252,000, Mangels said. The budget for salaries is $51 million.

The total cost of personnel will be cut by $2.81 million over two years, Mangels said. The university has been pursuing academic changes and cost-cutting measures to make $7.76 in budget cuts over the next two years.

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