Fee Q & A Why is this fee needed? Revenues have continued to climb each year; expenses, however, have risen even faster. Maintaining current programs and services has become more difficult. Without identifying the necessary dollars, maintenance and upkeep of the facilities will decline. The Unions management will be forced toward decisions such as: cutting back operating hours; implementing user fees for areas such as computer labs and meeting rooms; charging registration fees for student organizations; increasing prices for food and retail items. Where is the pressure coming from to generate new revenues? Without the identification of a new revenue source, the Unions will not have the financial resources to maintain the quality of either Student Union or other dining service facilities operated on the University campus. As an auxiliary on campus, the Unions are expected to primarily be self-supporting. This means covering all expenses including state employee wages, retirement and a major portion of employee health costs. These costs have dramatically escalated in recent years. Of the 23 million dollar annual budget, only about $840,000 is received from the University to assist with the cost of utilities and upkeep of public spaces. This amount is inadequate to the task. Among the major expenses the Unions are expected to pay is an administrative service fee to the University that currently exceeds one million dollars each year. We are using critically needed dollars to meet this requirement. The ability to continue reacting to student requests for new services, such as the Highland Market, healthy alternative food concepts (like IQ Fresh), or extended operation hours, will be greatly reduced. The Center for Student Involvement & Leadership has endured budget cuts for the past five years and will for the foreseeable future. The Center offers programs and services directly for students, including commuter student programs, the Social Justice Leadership Center, off-campus housing, programs for student organizations, leadership programs like Blue Chip and the leadership workshop series, and campus activities such as the Gallagher movie program, concerts, family weekend, cellar entertainment, and late night programs. The Unions are always busy; why are they asking for a student fee? The Unions’ revenue operations are all meeting their financial goals. But, using the Student Union Memorial Center as an example, revenue operations represent only about 37% of the total Union space. The rest of the Union (63%) requires some level of funding support. This includes areas such as student computer locations, meeting spaces, lounges, office spaces for ASUA, Graduate & Professional Student Council, Career Services, and The Center for Student Involvement and Leadership. In the past several years dramatic increases to the Unions’ expenses have exceeded the capacity to generate enough revenue to cover all costs; the fee will assist in maintaining the appropriate level of programs and services to students. If the proposed fee is approved, how will the money be used? Plans for the fee dollars have always been focused in three main areas: Fifty percent (50%) of the money collected each year is dedicated to increasing the quality and quantity of programs and services for students, Twenty-five percent collected each year will go toward service enhancements in the unions and at locations around campus, and The final twenty-five percent will be used for building renewal for the Student Union Memorial Center and Park Student Union. What role will students play in maintaining the accountability for the use of the fee? As a department of the University of Arizona, the Unions’ operations are subject to all audit and financial accountability procedures as specified by the University, the State of Arizona, and The Arizona Board of Regents. The student fee will be collected through the University Bursar’s Office as with tuition. Monies will be distributed to the Student Unions and directly allocated to respective recipients, programs and/or departments. An eleven member student committee (Student Union Fee Committee) will have oversight of fee allocation review responsibilities and assist in the preparation of an annual audit report. The student committee membership is proposed to be a cross section of student leaders. Currently the list includes: one student voting member from the Residence Hall Council one student voting member from the ASUA one student voting member from the Department of Multicultural Programs and Services one student voting member form the University Activities Board one student voting member from the graduate/professional population one student voting member from the Greek population one student voting member from the Student Unions Advisory Council one student voting member from the commuter population three student voting members will be appointed by the Student Union Fee Committee through an application process. How soon would there be noticeable changes? The first year, the majority of the money is dedicated to continuing and improving the quantity and quality of the activities, programs and services to students. Plans for service enhancements will be initiated immediately, such as the upgrade of computers available for student use in the The Cellar lab and some of our public areas. One major area of concentration is the assistance to student organizations. A portion of the new fee dollars will be dedicated to enhancing efforts to assist student organizations. Part of the fee money will be used annually to provide each recognized student organization dollars for use with Union services, such as fast copy, fast design, dining, etc. Plans also call for some of the dollars to be used to develop a web-based registration process for student organizations and a self-training module where organizations can demonstrate their familiarity with University policies and procedures, test out, and eliminate the need for the typical two hour fall meeting that requires attendance from every organization. Why is the fee better than a mandatory meal plan? A fee will generate dollars that are immediately available at the beginning of each semester, whereas the meal plan will generate only about 10-15 cents on the dollar after food, labor, and other expenses. A fee generates dollars more quickly and provides not only for the maintenance and upkeep of the facilities but also provides dollars that can be dedicated to the improvement of programs and services to students. A student fee requires less of a financial commitment from the on campus students whereas a mandatory meal plan may require as much as a $2900 per year commitment. The fee pulls all students into the fee structure at a low rate but amount provides for significant changes. What happens if the proposed student fee does not pass? A vote in favor of the fee will resolve the issue; a vote to reject the fee will lead us back to consider all available options and may include: user fees for student programs and services mandatory meal plan price increases reduction in hours of operation and programs When would the fee go into effect? The fee amount is phased and begins in fall 2007 at the rate of $10 per semester, increases to $15 per semester fall 2008 and increases to $20 per semester fall 2009 and remains at that rate thereafter. I am never on campus; do I still have to pay the fee? Students can file an “opt-out” waiver with the Student Union Fee Committee if they feel that they will not receive any of the benefits of the new fee.