Facilities needing repairs could have to wait
Deferred maintenance costs for Eastern hover around $176.5 million
Stephen Di Benedetto/Staff Reporter
Issue date: 2/12/09 Section: News
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President Bill Perry said deferred maintenance costs, maintenance work that should be done to facilities but is too expensive to conduct, would increase if there were a budget reduction in state appropriations for next year.
He said if the university has to relinquish the 2.5 percent in reserve, deferred maintenance costs would increase slightly for this year as well.
"This year, there is some impact," Perry said. "Next year, there will be more impact."
Deferred maintenance costs for the university are $176.5 million. The university's base budget for this year that goes to conducting deferred maintenance work is $1.9 million.
"That's not enough," Perry said. "There's maintenance we can't get to with that."
He said, in the event of budget reductions, the university would focus its time and money to safety-related deferred maintenance.
The other types of deferred maintenance are maintenance work that disrupts the educational operation of the university and miscellaneous maintenance work.
Facilities Planning and Management is in charge of tracking deferred maintenance on campus.
Gary Reed, director of Facilities Planning and Management, said his department tracks building conditions through its maintenance work control system and periodic assessments that are recorded in a deferred maintenance log.
Reed said, according to facilities management guidelines, the university would need to invest 1.5 percent of replacement value in existing buildings.
"We are funded at about 0.5 percent," Reed said. "If funding remains flat, deferred maintenance keeps increasing."
Perry said, although deferred maintenance needs attention, other needs of the university are more important.
He said 75 percent of the general revenue budget, comprised of tuition and state appropriations, goes to personnel costs. The other 25 percent goes to operating costs, facilities included. Three-fourths of the operating costs are fixed costs the university has to budget such as utilities, Perry said.
"It's a non-trivial exercise," Perry said of deferred maintenance. "You know what you have to get done and you do as much as you can do."
Paul McCann, interim vice president for business affairs, said as a building gets older, it requires more maintenance work. He said people would start to see the need for maintenance work on facilities throughout a long period. For example, the steam plant, which was built around 1926, has $30 million of the total deferred maintenance costs that accumulated throughout time.
"We can say we need $176 million of work done around campus but, when it comes right down to it, probably some of this you would never see," McCann said. "It would never affect anything that we are doing."
Reed said, without additional funding, conditions of campus buildings will continue to decline.
McCann said the university would address safety-related deferred maintenance first. Other deferred maintenance work might be delayed until additional funds are available, he said.
"There's a lot of flexibility in that number," McCann said of the $176.5 million deferred maintenance costs.
Perry said, with the university having less state appropriations then it did in fiscal year 2002, the university has been constrained. He said, despite this, the university needs to move forward.
"We'll be good stewards of the state's resources and good stewards of the tuition revenue we get from our students," Perry said. "We're going to keep the university moving forward."
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Stephen Di Benedetto can be reached at 581-7942 or at sdibenedetto@eiu.edu.
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