The Board of Supervisors postponed the Student Union fee increase request this past Thursday during the Board’s committee meeting.
The fee increase request will be re-evaluated after further research at the Board’s August meeting.
Board member Alvin Kimble motioned for the vote to be deferred to the next meeting.
“I think we needed more information for us as a Board, but also to show respect for the opinion of the students,” Kimble said.
Kimble said the Board will look for other potential sources for funding before passing the student fee.
Kimble has enlisted the University’s internal audit staff to help him analyze the Union’s annual operations budget.
“We’re looking for any funds that we can possibly redirect,” Kimble said.
Kimble said the Board seeks input from all interested parties and, in this case, students.
“To ignore the student vote would send absolutely the wrong message,” Kimble said.
The Union fee increase of $34, to be increased in implements of $8 spread over four semesters, was proposed to cover the renovation cost of the Union Theater.
If approved, the fee would be added to the spring 2008 fee bill.
The theater had been placed at the end of the construction plans because of a $24 million shortfall in the budget, caused by increasing construction costs after Hurricane Katrina.
The fee increase request was the first issue on the agenda for the Finance, Infrastructure and Core Development Committee.
Chancellor Sean O’Keefe said it was with great reluctance that he brought this request before the Board.
“There is only one body that has the authority to make this decision,” O’Keefe said. “If we didn’t bring it forward, we’d be making that decision without [the Board].”
The student body had made a decision on the Union fee increase during the Student Government elections held during the spring semester. The vote – 50.99 percent against, 49.01 percent in favor – was marginal, but against the student fee.
“Ultimately it was a close enough call that the Board should consider [the fee increase],” O’Keefe said. During O’Keefe’s presentation, he stressed the immediate action needed to implement this ‘perishable option.’ O’Keefe explained that funds could be raised, but it would take several years. This move would not only cut the theater out of the recent construction project, but would increase the cost. “The contractors have promised [until] December that the deficit cost would not exceed 24.6 million, but it would require initiation of the bond sales at the next bond issuance in November to fix these cost,” O’Keefe said. The fee increase would be used to pay the debt service for the bond issued. If the fee increase had been approved, O’Keefe would have then requested the bond issue proposal for approximately $24.5 million to be approved at the Board meeting in August. Greg Bursavich, associate controller for the finance and administrative services, said if the Board approves the Union fee proposal and the bond issue at the August meeting, the bond issuance in November is still an option. “It’ll be tight but still doable.” Bursavich said. Many of the Board members had questions about the students’ vote and the time constraints that led to the deferment of the issue to next month’s meeting. “Why would students be invited to participate in this vote and then have their vote not matter,?” said Louis J. Lambert, vice chairman of the FICD committee. Lambert said O’Keefe “set himself up for embarassment” by asking the students to vote on the fee increase then requesting it to be put on the Board agenda. O’Keefe contested that the law, referring to PM-29, giving students the right to a referendum on special service fees, was not binding. LSU System Counsel Ray Lamonica said in an earlier interview that the Union Theater fee was not a special service fee and therefore not a fee that had to be voted on by students. “The Board is not controlled by the students’ vote,” Lamonica said. “It’s not a determinative vote.” Graduate student Donald Hodge, who spoke prior to the meeting against the fee increase, was pleasantly surprised by the deferment. “Usually they just rubber stamp what the chancellors want,” Hodge said. “This is one of the biggest debates I’ve ever seen.” Ryan Cooney, incoming Union Board chairman, spoke before the meeting about the importance of the Union Theater for future generations. He said he will remain positive on the issue. “I wasn’t in favor of them postponing the judgment, but if that leads to a better decision for us then I am going to support it,” Cooney said. Union director Shirley Plakidas is already preparing to provide the Board with the additional information for the August meeting. “To stay on the timetable, the Board may now be considering both the Union fee proposal and the bond issue at the same meeting,” Plakidas said. SG President Cassie Alsfeld, who also serves on the 16-member board, said she believes students were properly represented at the Board meeting. “The Board really came together in support of the students,” Alsfeld said.
—-Contact Morgan Ford at [email protected]
Union fee decision pushed to August
By Morgan Ford
July 16, 2007