November 17-18, 2005

ITEM 129-2801-R1105  Authorization to Establish a Mandatory Lewistown Building Fee; Montana State University-Northern

THAT: The Board of Regents of Higher Education authorizes Montana State University Northern (MSUN) to establish an additional mandatory Lewistown Building Fee.

This item is contingent upon successful conveyance of the BLM Lewistown Field Office, 80 Airport Road, Lewistown Montana.

Estimated effective date of the fee is beginning of Fall Semester 2006 at a maximum rate of $70 per credit per semester.

For the FY08-09 budget discussions, MSUN will bring forth a budget item requesting general fund to cover the O & M for this building. The Lewistown building fee will be reduced accordingly for any general fund received.

EXPLANATION: MSUN estimates O & M expenses for the conveyed BLM facility to be approximately $159,000 per year. This includes utilities, custodial, phone, data connections, maintenance, and insurance expenses. All current instructional costs (faculty, support staff and supply expense) incurred in Lewistown are covered by current tuition and fees paid by Lewistown students.

The Lewistown Building Fee is estimated to generate $136,500 at the maximum fee requested. The remaining O&M costs will be funded by current unrestricted funds.

Discussions have been held with both student government leadership and Lewistown students.