Univ. saves funds for new dorm

After two years of severe state budget cuts and little funding flexibility, the university finally has enough money to build a new dorm, which administrators say has long been a dire need for students.

Administrators want a new dorm that will hold 500 undergraduate students near the Center for Young Children and the Denton Community by 2008, said Linda Clement, vice president for student affairs.

Provost Bill Destler said he wants to put up a traditional-style dorm like the ones located on North Campus to help alleviate housing shortages. Even though this year's opening of University View on Route 1 brought 1,000 beds, the housing crunch is still one of the university's most pressing needs, Clement said.

"We've become so hugely residential over the last two decades," Clement said. "When I came here about ten years ago, only 50 percent of freshmen lived on campus. Now 92 percent of the freshmen do."

About 900 undergraduate students were on the on-campus waitlist at the beginning of this semester, she added.

Clement said they also plan on adding at least one new graduate student housing facility, and these new buildings will probably cost about $40 million each.

Officials from the Department of Resident Life Tuesday asked the University System of Maryland budget office if there are enough funds to construct these new buildings and await their answer before sending a request to outside contractors for proposals.

The university would have to borrow money from its "fund balance," money that is set aside for large projects, primarily student union buildings or dorms, or for "rainy days." The fund balance totals into the hundreds of millions.

Joe Vivona, system vice chancellor for administration and finance, said the outlook is good for the university for the first time in recent years after the state cut about $120 million from the system in 2002 and 2003. The university was able to build its fund balance to accommodate large debts, such as building a new dorm, he said.

The university has no plans to expand its student enrollment in coming years; however, Vivona said housing will always be a huge concern for administrators. In the past, the university had to house students in local hotels due to the housing shortages. Last year was the first year in many that administrators didn't have to resort to temporary hotel student housing.

"We don't want to be in that situation ever again," Clement said.

The dorm will most likely be a public-private partnership, which is the same agreement the university has with South Campus Commons and University Courtyard. Over the past 10 years, the shift has gone from entirely university-funded housing to private-public partnerships, where private companies manage the building and take up some of the cost burden.

Currently, the university has about $40 million in debt still from the Commons and Courtyards that will take about 20 years to pay off, Clement said.

Administrators typically don't use the fund balance for reasons outside of new buildings unless there are severe funding crises, Vivona said. John Porcari, vice president for administrative affairs, proposed a $10 million energy improvement program to help reduce the energy bill, which is the biggest long-term financial crisis for the university. Despite the crucial need for the energy program, Porcari said the university probably won't use its fund balances.

Resident Life officials also submitted their 20-year residence halls master plan, which details all renovations they plan to do. Officials plan to renovate Caroline and Wicomico halls in 2010.

Contact reporter Laurie Au at lauriedbk@gmail.com.