The Ohio State University remains on strong financial footing in the short- and long-term, officials told the Board of Trustees this week.
The university spent tens of millions of dollars since March 2020 to combat COVID-19 on campus and faces revenue losses caused by the pandemic in areas including net tuition and fee revenue, auxiliary revenues and athletics. Yet, long-term, Ohio State is poised to rebound, university officials noted in an interim financial report covering July 1, 2020, to March 31, 2020.
The long-term picture is anchored by an increase of nearly $1.4 billion of investment income for Ohio State compared to the previous fiscal year.
The university plans to resume its Annual Merit Compensation Program for faculty and staff, in which eligible employees can receive an increase of up to 2% of their base salary.
The board also heard and approved proposed Tuition Guarantee rates for incoming first-year students. The university plans to increase tuition and fees for incoming Ohio freshmen by 3.8%, a $418 annual change from last year’s rate. This rate will be frozen for four years for these students – representing the sixth straight class of Ohio students to graduate with no tuition and fee increases.
Ohio State will remain the second most affordable for resident undergraduates among selective admission public universities in Ohio and at the median for in-state tuition and fees among public Big Ten schools.
University leadership also shared more plans on reactivating campus in the fall, centered on reinvigorating campus life because of the success of the COVID-19 vaccines. At least 75% of classes will be in person, and class size will be tiered, with classrooms with fewer than 50 students allowing full capacity.
Additionally, residence halls will revert to a more traditional setup, with visitors permitted, increased engagement and an estimated capacity of 15,200 students across campuses, up from 12,600 last academic year. Dining options will also expand, with more than double the amount of capacity for in-facility dining.
“Our plans are on track for a more-normal, in-person semester,” Ohio State President Kristina M. Johnson told trustees on Thursday.
The board also took the following actions:
Provost McPheron honored
The board issued an expression of appreciation to Provost Bruce A. McPheron, who will be ending his term as provost and returning to the faculty in the College of Food, Agricultural, and Environmental Sciences. The board noted McPheron’s contributions as an alumnus, scholar, former dean and provost, where he launched groundbreaking initiatives including the Buckeye Opportunity Program, Teaching Support Program and the Digital Flagship initiative. McPheron has served as provost since December 2015.
Professional services and construction contracts approved
The board authorized the university to enter into and increase professional service and construction contracts for the following projects:
Campbell Hall renovation
The project will replace the existing building systems, roof and windows, and will make building envelope improvements eliminating up to $18.5 million in deferred maintenance. Additionally, the renovation of interior spaces (115,000 square feet) will enable the College of Education and Human Ecology’s longtime goal of centralizing teaching, research and administrative functions along Neil Avenue. Trustees approved professional services contracts totaling $4 million, to be paid with state funds.
College of Food, Agricultural, and Environmental Sciences, Wooster: Fisher Auditorium renovation
The project will renovate under-utilized space around the existing auditorium to create a combination of new teaching and outreach functions, a combined campus library and co-located student service functions, creating a new academic, social and cultural hub on campus and addressing $8.1 million in deferred maintenance. Trustees approved professional services contracts totaling $1.2 million, to be paid with state funds.
Newark: Founders Hall enhancements
The project will renovate 70,000 square feet of interior classroom and lab spaces that have been relocated to the new Alford Center for Science and Technology. This will allow the campus to meet the demand for growing enrollment and expand academic offerings and address $13.8 million in deferred maintenance. Trustees approved professional services contracts totaling $2.4 million, to be paid with state funds.
Wexner Medical Center loading dock expansion and renovation
The project will renovate 28,000 square feet of the existing dock area and add 6,000 square feet; the expanded dock will support the continued growth of the Wexner Medical Center. Trustees approved an increase to professional services totaling $1.3 million, to be paid with auxiliary funds. The total project budget is $16.9 million.
Energy Advancement and Innovation Center
The project builds a 66,154-square-foot facility to serve as a cornerstone of the public/private partnership with Ohio State Energy Partners. It includes dedicated lab space, collaborative learning and gathering space and small focused workspace, plus a 210-seat seminar room and a 96-seat café that will serve the Innovation and Research buildings. Trustees approved an increase in professional services and construction contracts totaling $10.4 million, to be paid with university and partner funds. This includes a plan to add a fourth floor of 13,609 square feet, which includes additional lab/research space, testing pod and smaller innovation spaces. The total project budget is $47.1 million.
Newton Hall renovation and new nursing building
The project will build approximately 35,000 new square feet to the south of Newton Hall including flexible classrooms, informal learning spaces and offices, and renovate existing space including a new facade, relocation of existing entryway and plaza, and an updated corridor and wellness space. The project will accommodate student and faculty growth and enable the relocation of College of Nursing groups back to Newton from off-campus leased space. Trustees approved an increase of $5.1 million, to be paid with fundraising, university funds and state funds, for a total budget of $30.7 million. The increase will renovate 12,300 square feet of multiple areas on the first floor of Newton Hall and include other updates.
Property transactions approved
Trustees approved the following deals:
The sale of about 1.44 acres near West Dublin Granville Road, north of the Don Scott Airport. The land is vacant and will be sold to Dave Fox Remodeling Inc., whose office property is adjacent. Ohio State acquired the land in 1968 and the agreed-upon selling price is $500,000.
The purchase of 149,000 square feet consisting of 3.42 acres of vacated streets and alleys described as 11th Avenue between Neil Avenue and North High Street, together with interconnecting public alleys located between 9th and 11th Avenues, from the City of Columbus. The acquisition will support the goals of creating a walkable campus core by moving traffic from 12th Avenue to 11th Avenue and enable future redevelopment of the block between 10th and 11th Avenues. With the recent purchase of the 75 W. 11th Ave. parcel, the university owns all property on both sides of 11th Avenue. This is necessary to gain ownership of the entire block to execute a project that eliminates parking meters and enables two-way bus and vehicular traffic on 11th Avenue. No purchase price disclosed.
The purchase of 0.373 acres of land at Hughes Street between Hawthorne Avenue and Phale D. Hale Drive for $20,310 from the City of Columbus. This acquisition supports the university’s plan for redevelopment of land west of Hospital East.
The leasing of 9.38 acres of property at 420 E. 19th Ave. to Metro Early College High School, which includes a two-story, 95,000-square-foot building formerly known as Indianola Middle School that is listed on the National Register of Historic Places. The university acquired the property in 2018 from Columbus Public Schools for $2.35 million. In lieu of rent, Metro will acquire necessary funding to renovate the building for educational use and is contingent upon Metro entering into a funding agreement with Battelle and receiving an award for additional funding from the Ohio Facilities Construction Commission.
A perpetual sewer easement of 2.301 acres located along Olentangy River Road to the City of Columbus to support the city’s Lower Olentangy Tunnel project. The city has compensated the university for the project at $575,138.
Joint use agreements with the following:
Charitable Pharmacy of Central Ohio, a nonprofit, for $50,000 that the university was allocated in the 2020-21 state capital bill for use by the nonprofit. In exchange, Charitable Pharmacy of Central Ohio will use the funds for the construction and renewal of a new facility in Columbus, which the university can use in a variety of ways.
Knox County Regional Airport Authority, a government entity, for $900,000 that the university was allocated in the 2020-21 state capital bill for use by the airport. In exchange, Knox County Regional Airport will use the funds for construction of the Knox County Regional Airport Aviation Center, which the university can use for aviation-oriented programs and activities.
Ohio Hills Health Services, a nonprofit, for $100,000 that the university was allocated in the 2020-21 state capital bill for use by the nonprofit. In exchange, Ohio Hills Health Services will utilize the funds for construction and capital equipment to outfit the new Monroe Family Health Center in Woodsfield, Ohio, which the university can use to expand its partnerships and activities in Monroe County.
PAST Foundation, a nonprofit, for $300,000 that the university was allocated in the 2020-21 state capital bill for use by the nonprofit. In exchange, PAST Foundation will use the funds for construction of a new digital innovation lab in the PAST facility located at 1003 Kinnear Road in Columbus, which the university can use in a variety of ways.
Awarding of Joseph Sullivant Medal
Every five years, the board approves the awarding of the Joseph Sullivant Medal to serve as a memorial to the services of Sullivant, who was a member of the first Board of Trustees and contributed significantly in determining the character and future of Ohio State. The board and president approved the award for N. Geoffrey Parker, Distinguished University Professor and Andreas Dorpalen Professor of European History.
Board of Trustees interim member approved; terms end for Shah, Krueger
The board approved the temporary appointment of Carly G. Sobol to serve on the committees on which Anand Shah currently sits. The governor-appointed terms for Shah and Cheryl L. Krueger ended May 13, 2021, and they’ll continue to serve until their successors are appointed or 60 days has elapsed – whichever is first. Sobol will replace Shah at that time, and his successor will take Sobol’s place when appointed.
Honda, Ohio State partnership recognized
The board formalized Ohio State and Honda’s partnership by signing a memorandum of understanding. Over the past two decades, two of the state’s brightest institutions have collaborated to build a better and brighter future, including partnering on 235 research projects in just the last five years.
New master’s degree in College of Medicine established
The board approved a Master of Science degree in Immunology and Microbial Pathogenesis in the College of Medicine, which will provide graduates with a foundational knowledge of health-related human immunology and microbial pathogenesis.
University Faculty rules, hospital bylaws amended
The board approved amendments to the University Faculty rules to clarify existing non-mandatory review procedures for both probationary and tenured faculty and establish consistent probationary contracts for clinical/teaching/practice faculty, and set a maximum contract of eight years for clinical/teaching/practice professors.
The board also approved Bylaws of the Medical Staff of the Arthur G. James Cancer Hospital and Richard J. Solove Research Institute and the Bylaws of the Medical Staff of University Hospitals.
Honorary degrees approved
The board approved the awarding of the honorary doctor of science degree to Ellen Ochoa; the awarding of the honorary doctor of public service degree to Joyce Beatty; and the awarding of the honorary doctor of business administration degree to Jamie Dimon, each of whom was honored at spring 2021 commencement.
Faculty personnel actions approved
The board approved the following personnel appointments and reappointments:
Jeffrey J. Chalmers has been named professor and Helen C. Kurtz Chair in Chemical Engineering in the College of Engineering, effective July 1, 2020, through June 30, 2025.
Laura Dugan has been named professor and holder of the Ralph Mershon Designated Professorship of Human Security in the College of Arts and Sciences, effective Aug. 15, 2021, through Aug. 14, 2026.
Todd Gannon has been named professor and holder of the Robert S. Livesey Professorship in Architecture in the College of Engineering, effective March 1, 2018, through May 31, 2021.
Pierre Giglio has been named associate professor-clinical and Esther Dardinger Endowed Chair in Neuro-Oncology in the College of Medicine, effective June 1, 2021, through June 30, 2025.
Maria B. Ignatieva has been named professor and holder of the Martha W. Farmer Endowed Professorship in Theatre at Ohio State University, Lima, effective July 1, 2021, through June 30, 2023.
Dana Renga has been named divisional dean, arts and humanities, in the College of Arts and Sciences, effective July 1, 2021, through June 30, 2026.
William E. Carson III has been reappointed professor and John B. and Jane T. McCoy Chair in Cancer Research in the College of Medicine, effective July 1, 2021, through June 30, 2025.
John W. Christman has been reappointed professor and holder of the John A. Prior Professorship in the College of Medicine, effective July 1, 2019, through June 30, 2023.
Steven K. Clinton has been reappointed professor and Robert A. and Martha O. Schoenlaub Cancer Research Chair in the College of Medicine, effective July 1, 2021, through June 30, 2025.
Datta V. Gaitonde has been reappointed professor and The John Glenn Endowed Chair for Technology and Space Exploration and Ohio Research Scholar in Advanced Propulsion Systems Integration in the College of Engineering, effective July 1, 2021, through June 30, 2025.
Patrick L. Green has been reappointed professor and Robert H. Rainier Endowed Chair in Industrial Veterinary Medicine and Research in the College of Veterinary Medicine, effective Jan. 1, 2021, through June 20, 2023.
Wael N. Jarjour has been reappointed professor-clinical and Martha Morehouse Chair in Arthritis and Immunology Research in the College of Medicine, effective July 1, 2021, through June 30, 2025.
Sorabh Khandelwal has been reappointed professor and holder of the Samuel J. Kiehl III MD Professorship in Emergency Medicine in the College of Medicine, effective April 1, 2021, through June 30, 2025.
Susan L. Koletar has been reappointed professor-clinical and holder of the Franke E. and Mary W. Pomerene Professorship in the Prevention and Treatment of Infectious Diseases in the College of Medicine, effective July 1, 2021, through June 30, 2025.
Peter E. Larsen has been reappointed professor and holder of the Dr. Larry J. Peterson Endowed Professorship in Oral and Maxillofacial Surgery in the College of Dentistry, effective Oct. 1, 2019, through Sept. 30, 2023.
Alan Michaels has been reappointed professor and Edwin M. Cooperman Chair in Law in the Moritz College of Law, effective Jan. 31, 2021, through Jan. 31, 2026.
W. Jerry Mysiw has been reappointed professor and Dr. Ernest W. Johnson Chair in the College of Medicine, effective July 1, 2021, through June 30, 2022.
Anil V. Parwani has been reappointed professor-clinical and Donald A. Senhauser, MD, Chair in Pathology in the College of Medicine, effective Dec. 1, 2021, through June 30, 2025.
Kamal S. Pohar has been reappointed associate professor and Julius Skestos and Diana Skestos Chair in Urology in the College of Medicine, effective Dec. 1, 2021, through June 30, 2025.
Matthew D. Ringel has been reappointed professor and Ralph W. Kurtz Chair in Hormonology in the College of Medicine, effective July 1, 2021, through June 30, 2025.
Orlando P. Simonetti has been reappointed professor and holder of the John W. Wolfe Professorship in Cardiovascular Research in the College of Medicine, effective Oct. 1, 2021, through June 30, 2025.
Marcia M. Worley has been reappointed professor-clinical and holder of the Merrell Dow Professorship in Pharmaceutical Administration in the College of Pharmacy, effective Jan. 31, 2020, through June 30, 2023.
Director of athletics’ contract extended
Gene Smith, Ohio State’s senior vice president and Wolfe Foundation Endowed Athletics Director, agreed to a contract extension that runs from July 1, 2021, through June 30, 2026. Smith has run the department since 2005.
Executive compensation philosophy, strategy approved
The board approved a new Executive Compensation Philosophy and Strategy to replace the Total Compensation and Philosophy for University Executives and the Procedure for Setting and Reviewing Compensation for University Executives.
Interim capital investment plan for fiscal year 2022 approved
The board approved the interim capital investment plan that allows the university to begin or continue capital projects from July 1, 2021, through Aug. 31, 2021; the university has not yet finalized its operating budget for the fiscal year.
Utility system interim capital improvements approved
The board approved the Ohio State Energy Partners fiscal year 2022 interim capital improvements plan and authorization to make capital improvements for the fiscal year beginning July 1, 2021; the university has not yet finalized its operating budget for the fiscal year.
Revocation of emeritus status for two professors
The board approved the revocation of emeritus status for Dr. Samson Jacob and Bradley Peterson, in the College of Medicine and College of Arts and Sciences, respectively. University policy says faculty members’ emeritus status can be revoked if they have engaged in serious, dishonorable conduct or caused harm to the university’s reputation.
Interim operating budget for fiscal year 2022 approved
The board approved the interim operating budget for fiscal year 2022, allowing the university to continue to advance its academic and financial goals from July 1, 2021, through Aug. 31, 2021, prior to the operating budget’s finalization and adoption.
Waiver of tuition for certain students approved
The board approved a waiver of tuition for Ohio State students who enroll in university-approved third-party provider or direct enrollment study abroad programs for fiscal year 2022 and fiscal year 2023. Since fiscal year 2015, the university has requested and received a tuition waiver for approved provider programs from the Board of Trustees and the Ohio Department of Higher Education so that students avoid two tuition payments during study abroad.
Amendments to university’s investment policy approved
The board approved amendments to the policy to govern the management of the university’s investment portfolios to better align it with policy best practices and Ohio State’s current investment management strategy. A complete update to the policy last occurred in 2013, with revisions in 2014 and 2016.
University Foundation Report approved
The board approved the report as of March 31, 2021, which includes the establishment of two endowed chairs; seven endowed professorships; one designated professorship; two endowed professorship funds; one endowed fellowship; one endowed scholarship; 28 additional named endowed funds and the revision of 15 named endowed funds.
Committee charters approved
The board approved the revised charter for the Academic Affairs and Student Life Committee, the Audit, Finance and Investment Committee, and the Master Planning and Facilities Committee.
The board also approved the charter for the new Research, Innovation and Strategic Partnership Committee and the new Legal, Risk and Compliance Committee.
Klingbeil reappointed as charter trustee
The board approved the reappointment of James D. Klingbeil as charter trustee of the Board of Trustees for a third three-year term from May 14, 2021, through May 13, 2024.
Establishment of the Farm Financial Management and Policy Institute
The board approved the establishment of the Farm Financial Management and Policy Institute, to be housed in University Extension, College of Food, Agricultural, and Environmental Sciences, to serve as a unified center for the integration, translation and communication of critical farm financial management and policy issues affecting Ohioans.
Retirement plan amendments confirmed
The board approved changes to the Ohio State retirement plan that expands eligibility for participants and documents amendments made in response to federal COVID-19 legislation. These are the third amendments made to the plans since 2016.
Benchmarks for the Long-Term Investment Pool and university operating funds approved
The board approved new and modified benchmarks
to evaluate the investment performance of the Long-Term Investment Pool and removal of the Sharpe ratio benchmark for the pool that had been used to evaluate the risk-adjusted investment performance of the pool.
Authorization for designated officials to buy, sell, assign and transfer securities approved
The board approved a request for designated officials to buy, sell, assign and transfer securities; to deposit or withdraw funds from bank and investment accounts held in the name of Ohio State; to designate depositories; and to execute treasury- and insurance-related agreements. This annual resolution is required by the institutions with which the university does business, and there are no changes from last year’s resolution.
Authorization to establish quasi-endowment fund
The board approved the establishment of the Entrepreneurial and Technology Commercialization Initiatives Endowment Fund, a quasi-endowment fund to provide a permanent source of funding for operations that support the university’s entrepreneurial and technology commercialization initiatives, with an establishment amount of $1 million.
Amended and updated charter for the internal audit department approved
The board approved the amended and updated charter for the internal audit department to ensure comprehensive oversight of the department and the university’s operations through the adoption of best practices.
Reappointments to the Self-Insurance Board approved
The board approved the reappointment of six members of the board that oversees the University Self-Insurance Program. The terms end for the members on June 30, 2023. The members are:
Dr. Arick Forrest
Dr. Andrew Thomas
Center for Slavic and East European Studies, Fisher College of Business department renamed
The board approved the renaming of the Center for Slavic and East European Studies to the Center for Slavic, East European and Eurasian Studies, as the center’s research and teaching mission has expanded to include Central Asia and Eurasia more broadly.
The board also approved the renaming of the Department of Management Sciences in the Fisher College of Business to the Department of Operations and Business Analytics, as the focus of the department has shifted substantially to operations management.
Naming of public university spaces
The board approved the naming of the following university spaces:
The Prior Family Rotunda in the Jerome Schottenstein Center, in recognition of significant contributions from Kevin and Raegan Prior to the Department of Athletics and the Athletics District.
In the John and Mary Alford Center for Science and Technology, on the Ohio State Newark campus, the following internal spaces were named in recognition of support from the organizations that contributed to the center’s construction:
Ariel Corporation General Chemistry Suite (300, 308, 310, 320)
Ariel Corporation Research Corridor (X309C)
Gilbert Reese Family Foundation Atrium (X102L)
Raymond H. and Beryl Dean Penick Organic Chemistry Suite (305)
LeFevre Foundation Biology Suite (265, 275, 285)
Newark Campus Development Fund Anatomy Suite (270, 280)
Park National Bank and Associates Concourse (X206C)
Melissa Warner Bow Earth Sciences Suite (205)
Licking Memorial Health Systems Simulation Center (110)
The Allinson Family Classroom (202) in Parks Hall, in support of the significant contributions to the College of Pharmacy by Russel and Amy Allinson.
The Clifton J. Latiolais Library (202a) in Parks Hall, in honor of the significant legacy left by Clifton J. Latiolais.
The Richard C. Hannon ’50 Teaching Laboratory (0152) in the Mars G. Fontana Laboratories, to recognize the continued partnership with Richard C. Hannon Jr. and his contributions to the College of Engineering.
In the new WOSU Public Media Headquarters at the corner of East 14th Avenue and Pearl Alley, the following internal spaces were named in recognition of support from donors that contributed to the center’s construction:
Linda Larrimer and Hugh Westwater Call Screen Room (222)
Bill and Mae McCorkle Foundation Master Edit Suite (313)
The Applewood Village Community Center at the Ohio State College of Food, Agricultural, and Environmental Sciences, Wooster campus, a renaming of the housing administration building to align with the future vision of the campus.
The Ohio State University remains on strong financial footing in the short- and long-term, officials told the Board of Trustees this week.