Building plans delayed due to budget cuts

University officials said this week that plans for renovating or building many University buildings will be delayed because of the administration's planned deficit, while those already under construction will continue as planned. The building delays are a result of President Sheldon Hackney's planned $19.5 million deficit, which administrators budgeted to offset the effects of Gov. Robert Casey's proposal to cut all state appropriations to the University. Officials said the University does not break ground on a project until all of the needed funds have been committed, as is the case with most of the current projects underway. "[The University] has to have the whole financial plan in place before breaking ground," Executive Vice President Marna Whittington said. "The contract has already been signed for the Law [School] Library, [for example], and there is a financial plan in place with gifts." Vice President for planning and development Rick Nahm said funding does not necessarily have to be in place if a division of the University is able to temporarily supply the money until enough donors give gifts. "Generally, we need a 100 percent commitment unless [the school] gives a loan from its reserves," Nahm said. Nahm said construction can also start before people are found to commit all of the funds if the proposed building will bring in revenue. "Financing can also be acquired if a revenue source will be located in the building such as a hospital or a research building," Nahm said. "[For a research building], there will be indirect cost recovery received from grants." The campus center is still in its planning stages, according to University officials, and will continue until developers are ready to break ground. The Revlon Foundation donated $10 million and other sources have donated a total of $3 million. This sum will pay for the architects during planning, but in order to break ground, fundraising must come close to the $60 million total since some revenue will come in from merchants in the Center. "In the Revlon Center, some parts will have revenue sources and will generate enough revenue to finance part of the project," Nahm said. The Institute for Advanced Science and Technology will receive substantial funds from the federal government for its development. Nahm said this project will continue as planned, although not all of the funds are in place. He said fundraising is working toward a $25 million goal. "They will continue to design the IAST because one-half [of the needed money] comes from federal funding," Arthur Gravina, vice president of facilities management, said. "It would be throwing a gift away if we didn't continue the project." The Biomedical Research Building will also continue as planned, due to its internal revenue and the lack of other renovations in that sector of the University, according to Gravina. "The plans for the Biomedical Research Building are in place," he said. "There is a myriad of cash flow there because they are not doing other renovations." Many other projects have not been as fortunate and have been put on hold until the University locates funds. According to Whittington, projects including the parking garages at both 38th and 40th streets on Walnut Street, the temporary Graduate School of Fine Arts at 33rd and Chestnut streets and the renovations to the Bookstore building have been put on hold. The deferred maintenance program, which evaluates the conditions of buildings annually and follows a five year capital plan, lost $1.5 million in the budget cuts. Plans for renovations which have not yet begun will be delayed due to this cutback. The planned cogeneration plant, which is a trash-to-steam facility, will not be affected by the budget cut because the University had no plans to finance it, although it would be eliminating the University's garbage. "The cogeneration plant does not use [the University's] money," Whittington said. "It contracts with outside sources so it will be unaffected."

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