Continuous Improvement

Capital

Unmet needs identified in the space needs assessment will be met by two planned initiatives: The Performing Arts and Education Center, which will feature a 1,200-seat performing hall and will bring great events to the campus and community, and the expansion of the Forestry Building. These projects already have State and private funding commitments and we anticipate completion by the year 2000. Expansion of the Library (see Chapter 10) as part of a new Science and Information Resource Center is slated as the next priority in our State Capital Outlay Budget Request. Future program growth and capital needs will be addressed and prioritized in the strategic planning process.

We expect a combination of State and private support to be adequate for future needs. The State of Michigan’s capital outlay system has been generous, by providing a few major facilities every ten years. However, in 1996, the State required a 25% match on all capital outlay projects. We expect the State will continue to require a match on all future capital requests, which could constitute a threat to future University projects. While some uncertainty exists due to the political nature of the process, it has been reliable in the past. By anticipating capital needs, the University has organized and staffed its Advancement Office to solicit funding for capital projects in addition to equipment funding. Given our continuing growth, we are fortunate to have a strong local pool of high-quality construction contractors.

Operations

While the State provides excellent funding for capital projects, it provides little or no funding to operate new facilities. It is a significant challenge to find funding to support operations, particularly those associated with new research facilities. To date, we have succeeded in identifying new resources and realigning others, thanks to the relative autonomy of our State governance system. One consequence of realignment is the use of General Fund and auxiliary revenues to supplement growing research and graduate programs. Maintenance and renewal has been funded internally from the auxiliary maintenance reserve and State special maintenance funding discussed earlier. However, this auxiliary reserve is now depleted, and State funding is sporadic and unreliable. New resources are needed to sustain future programmatic activities, operations, existing facility renovation and major maintenance, and to implement technology improvements in the classrooms.

Finding funds for future maintenance and renewal is critical as we cross the threshold from new low-maintenance facilities to older facilities that require a significant increase in renovation and maintenance. With a square-foot average age of 30 years, our campus has just reached the age (25–30 years) of programmatic obsolescence—the age when major maintenance costs begin to escalate. Although our facilities are now in good condition, they will demand higher levels of funding for maintenance and renewal in the future.

Integrity

The Goal 7 Committee Report [6.2B9] indicates the University has a high level of credibility with all professionals and contractors. Relationships with State funding, enforcement, and regulating agencies are equally strong because of Michigan Tech’s emphasis on long-term results and relationships.

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