The South Carolina State University Board of Trustees voted Thursday to shorten a mandatory furlough of all employees from 15 days to 10.
Interim President Ernest A. Finney Jr. announced that a new state law gives SCSU flexibility in how it can spend $3 million in lottery money which had been restricted to technology and research.
"The bill became law as of 5 p.m. yesterday (Wednesday)," Finney said. It would have gone into effect five days earlier had Gov. Mark Sanford agreed to sign it.
Legislators were sold on the bill with the assurance that "if any relief could be given, it would be given" to the employees, said Derrick Green, ex officio trustee and Staff Senate president. "A lot of people's credibility of word is on the line on this."
Legislators "recognized we went to extraordinary lengths" to reduce expenses, Finney said. "We've made more sacrifices than any other institution in the state, and we believe we've done it with grace."
The 12 percent tuition increase was difficult, but sooner or later all of the publicly assisted institutions of higher education "are going to have to follow suit" with increases as high as 22 percent, Finney said.
Ordering the furlough was the toughest decision he's had to make, but a necessary one, Finney said.
"The furlough saved us $1.4 million for the 10 days it has been in effect," he said. "The furlough has been a lifesaver. I am convinced it has ... allowed us to survive."
The new money gives SCSU a way to meet expenses "other than on the backs of our staff," Finney said. "It would be totally inappropriate for us to require them to suffer under this furlough."
Trustee John Wilson balked, saying that while he is sensitive to the furlough's impact on employees, he lacks confidence in the accuracy of the financial information that has been provided to him "in light of the variety of things the auditors reported on."
Wilson cited "millions of dollars that have not yet been reconciled" as potential liabilities.
"It's important we understand clearly where we are," said Chairman Maurice Washington. "We need the big picture."
Who is supposed to provide it? asked trustee James Sanders.
"The administration," replied Finney, who offered reassurances. For the first time in years, he said, by the end of this fiscal year on June 30, "we will know every penny we have, every potential liability we have. ... We are going to end our year in the black."
Finney pressed for a board decision. "The check-writing process begins tomorrow," he explained.
After more than an hour of discussion, trustees voted to allocate $705,000 of the lottery money to end the furlough after 10 days, and an additional $1.081 million to cover a projected "negative cash balance" at year's end.
Trustees agreed to spend "not one dime" of the remaining $1.2 million until the university's financial picture becomes clearer.
Clouding the institution's finances are potential liabilities from lawsuits, including a $1.4 million judgment against the university on behalf of the original contractor for the new administrative building for the 1890 Research and Extension Program.
Negotiations between the university and the plaintiff are continuing, Washington said. Meanwhile, the university is under orders by the federal government, which provided funding for the building, to finish it.
Dr. James Walker, executive director of the 1890 program, said the new contractor began work two weeks ago, with completion set for November or December and occupancy by February 2004.
Another construction project, privatized student housing facilities, is on hold pending completion of an analysis of the university's capacity to incur further debt for housing units, Washington said.
Enrollment "continues to have an upward swing," said Dr. Carl Jones, vice president for student services. Headcount this semester is 129 above last spring.
Freshman application acceptances are up by about 150. Bulldog Fest attracted 250 prospective students and their parents, and 80 students spent a long weekend getting a firsthand taste of campus life.
To meet the increased needs for student housing, Queens Village -- traditionally the homes of married students -- and Faculty Row will be "brought back on line," Jones said.
Increased enrollment also increases the need for scholarships, Jones said. Trustees were glad to learn that a March fund-raiser featuring radio personality Tom Joyner resulted in financial aid for 46 students.
Another fund-raising effort -- Cruising for Contributions, a three-day Bahamas cruise aboard Carnival Cruise Line's Fantasy out of Port Canaveral, Fla. -- is being scaled back.
"We're running behind on our deposits" and reserving fewer rooms, Washington said of the trip from July 30 to Aug. 2. As an added incentive, prices are being slashed by $250. Call Shondra Abraham at 803-516-4791 or log on to www.scsu.edu for details.
Coming up sooner -- at 9 a.m. May 10 in Bulldog Stadium -- is graduation. Trustees approved a list of students tentatively approved for graduation and Finney announced the commencement speaker.
"We have extended an invitation to Gov. Mark Sanford," he said. "We have not received written confirmation" but his appointment secretary anticipates that the governor will accept.
T&D Staff Writer Lee Hendren can be reached by e-mail at lhendren@timesanddemocrat.com or by phone at 803-533-5552.