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Moratorium causes dismay
The state government's recent decision to freeze all new service contracts has left college and university administrators and officials in a whirlwind of uncertainty.
In a bid to balance a $1.9 billion deficit, legislators drew up a budget that was intended to cut state spending on consultant contracts. This was vetoed by Governor Jesse Ventura, but both the House and the Senate later overrode this.
However, because of what has been described by Rep. Joe Opatz, DFL-16A, as "bad language" being used in the document, the section of the budget that deals with the contract moratorium has been interpreted in a much broader sense. This has resulted in several unintended consequences.
The freeze, as it is being interpreted now, affects all contracts that SCSU and other state colleges and universities may sign between now and June 30, 2003. This includes maintenance contracts, events and programs such as concerts and speakers, as well as homecoming celebrations. Even funds obtained through student activity fees are included in this freeze.
There is, fortunately, slivers of hope for certain contracts deemed necessary. Any and all contracts must first be approved by the state Department of Administration through a request for a waiver.
The Minnesota State Colleges and Universities system attempted to circumvent this rule by making a carte blanche application for a waiver for its institutions. However, the department denied the request.
Opatz said that SCSU could still apply for waivers, as it appears that the Department of Administration will look at requests on a case-by-case basis.
"The department may issue a waiver if the contract is necessary," he said.
What this means is that contracts that the department deems "unnecessary" will not be approved. This is what worries Opatz and other legislators. For instance, contracts to bring in speakers and entertainers onto the SCSU campus may not be seen as "necessary," even though funding for these events would be from student activity fees and donations already received from private companies.
Another large significance to the campus community is the recent bonding issue. SCSU students voted for an increase in student activity fees in order to pay for a $16 million bond to be used to renovate Atwood Memorial Center, build a new multipurpose stadium and construct a new recreational facility. No architects have been contracted yet, and it is assumed that the contract would have to go through the waiver application process when the time comes.
"Quite frankly, because this is so new, I don't know what (the Department of Administration's) strategy is (for determining what waivers should be approved)," said Diana Burlison, associate vice president of administrative affairs. "Maybe they will (grant waivers) if it's student's money being used."
Another SCSU activity in jeopardy is the annual Mississippi Music Fest scheduled for April 28. Two bands, Wookie Foot and Blue Jupiter, were signed before the moratorium took effect. Efforts to sign a headliner have been hampered.
It is learned that alternative rock band Better Than Ezra was set to headline the festival, but due to the moratorium, nothing has been set in stone. Because no contract has been signed, neither the University Program Board nor the band's associates would confirm this.
"We can't make anything public because we don't have anything in writing," said UPB program adviser Kim Bruemmer.
However, the band's official Web site lists SCSU as one of its tour dates.
What is certain is that UPB, which organizes the majority of student activities on campus, could find itself in a quandary in the near future.
"It could stall our entire programming for next year," said UPB program adviser Jessica Twiest.
"(Fortunately,) most of our contracts are completely finished for spring (semester)," said UPB director Jessica Ostman.
One optimistic aspect of the entire situation is a bill which has been recently proposed. In this bill, the contracts paid by student activity fees are excluded from the freeze.
Opatz, who is a co-author of the bill, said the bill had been passed by the House Higher Education Committee and is now in the House Ways and Means Committee. When it is passed there, it will be brought to the floor for a vote. This is expected to take place on Friday.
A similar bill will be brought up in the Senate, but this is not moving as quickly and has yet to be brought up in the Senate Higher Education Committee.
"It's just a small part of the problem, but it's a start," Opatz said.
Britt Johnsen can be reached at: [email protected]
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