Officials face financial squeeze

By Kate Peabody

Faced with rising construction figures, faculty salaries and financial aid burdens, the university said it must find ways new ways to pay for projects and cut costs, officials told a budget forum Monday.

This week's forum came amid delays in constructing the new Library of the 21st Century and a new business school, as well as maintaining rising utility costs and helping students pay for college.

Such costs present students with an even greater burden of paying school bills. Tuition, which is a major component of paying for Santa Clara's operating expenses and student aid, has risen by several percent each year. Tuition is currently $28,899, a 6-percent increase from last year.

Currently, 20 cents of every tuition dollar go toward financial aid, helping to support the 70 percent of students that are on some form of assistance, said Bob Warren of the University Budget Council.

But new building campaigns, aside from operating expenses and aid, also have rising price tags.

The new library's projected cost â€" about $106 million â€" will have to be cut to about $90 million, officials said. Part of that cost is $9 million dedicated for new technology. Current projections place groundbreaking for the new library in June.

In October, the Board of Trustees approved a UBC plan to finance certain projects through loans, if necessary.

Among other cost increases:

* Utility costs are expected to rise by about 10 percent over the next few years.

* Salaries may rise as officials aim to recruit and keep top faculty and staff. The UBC favors a merit-based plan, among other proposals.

When the new Jesuit residence is finished, university officials plan to house Orradre Library staff on the first floor of the existing residence, Nobili Hall, with student housing placed on the remaining floors.

The university has stepped-up fundraising for a replacement to the Leavey School of Business, since Trustees denied requests to finance that building through loans.

In May 2004, university officials said they planned to cut $1.8 million in operating expenses over two years.

The UBC, which hosted Monday's forum in the California Mission Room, is expected to meet later in the academic year to present operating expenses to Trustees.