SulRossStateUniversity

Housing Pilot Program Study
Texas Higher Education Coordinating Board

May September 2002

Texas Higher Education Coordinating Board

Pamela P. Willeford(Chair)Austin

Martin Basaldua, M.D. (Vice Chair)Kingwood

Raul B. Fernandez (Secretary of the Board)San Antonio

Neal W. AdamsBedford

Ricardo G. Cigarroa, M.D.Laredo

Gen. Marc Cisneros (ret.)Corpus Christi

Kevin EltifeTyler

Jerry FarringtonDallas

Raul B. FernandezSan Antonio

Cathy Obriotti GreenSan Antonio

Gerry GriffinHunt

Carey HobbsWaco

Adair MargoEl Paso

Lorraine PerrymanOdessa

Curtis E. RansomDallas

Hector de J. Ruiz, Ph.DAustin

Robert W. ShepardHarlingen

Windy SittonLubbock

Terdema L. Ussery IIDallas

Coordinating Board Mission

The mission of the Texas Higher Education Coordinating Board is to provide the Legislature advice and comprehensive planning capability for higher education, to coordinate the effective delivery of higher education, to administer efficiently assigned statewide programs, and to advance higher education for the people of Texas.

THECB Strategic Plan

Coordinating Board Philosophy

The Texas Higher Education Coordinating Board will promote access to quality higher education across the state with the conviction that access without quality is mediocrity and that quality without access is elitism. The Board will be open, ethical, responsive, and committed to public service. The Board will approach its work with a sense of purpose and responsibility to the people of Texas and is committed to the best use of public monies.

THECB Strategic Plan

Executive Summary

Section 6, Subsection 8 of the Special Provisions of thThe General Appropriations Act, Senate Bill 1 of the 77th Texas Legislature (Section 6, Subsection 8(b), III-232) for the 2002-2003 Biennium states that educational and general funds appropriated to a state institution or agency may not be used for auxiliary enterprises. HoweverHowever, the housing needs of smaller public institutions in the state has prompted the 77th LegislatureLegislature – through Section 53, Special Provisions of the General Appropriations Act – to request direct the Texas Higher Education Coordinating Board to conduct a pilot program to study the amount of revenue needed to pay for student housing at such an institution. SulRossStateUniversity met the legislatively mandated criteria and was chosen as the small institution for this study. This directive was made in the General Appropriations Act, Senate Bill 1 of the 77th Texas Legislature (Section 53, III-245).

The Coordinating Board used the following methodology to conduct this study:

  1. Identify five institutions that are similar in size, remote location, and student demographic characteristics as SulRossStateUniversity.
  2. Study these peer institutions to determine the quantity, quality, and cost of their on-campus housing and the availability of off-campus housing.
  3. Determine what construction and/or renovations are needed to bring SulRossStateUniversity’s housing within the 75th percentile of its peers.
  4. Determine the revenue stream necessary to retire any debt issued for identified construction needs.

The findings of this study are as follows:

  • SulRossStateUniversity has an adequate number of residential units available for its students.
  • Residence halls require renovations to bring them up to the level of its peers, including extensive renovations to Graves-Pierce Hall due to the fire safety issues that have kept it closed for a number of years.
  • Existing New single student and family apartments should be demolished and replaced with new constructionwould be a more cost-effective alternative to renovating the existing units.. Renovations to these structures would not be cost-effective due to their age and condition.
  • Existing family housing units should be demolished and replaced with new construction. Renovations to these structures would not be cost-effective due to their age and condition.
  • Rent comparisons with its peers and available off-campus housing in Alpine indicate that the university’s residence hall rates are reasonable, but the university could charge more for its one-, two- and three- bedroom units.
  • None of the university’s peers use state funds for housing construction, renovation, or maintenance; primary funding sources include housing revenues and approved fees.

An estimated $20.1 million is needed to bring Sul Ross’ housing up to the level of its peers. The following actions could be implemented to generate additional revenue to retire debt from remodeling and new construction:

  • Improve the residence hall occupancy rates to a constant 90 to 95 percent from fall to spring through increased enrollment, stricter housing policies, and updated housing facilities.
  • Increase the rental rates charged to students living in single student apartments by 20 percent.
  • Increase the rental rates charged to students living in family housing by 25 percent.
  • Initiate a $50 per semester housing fee. Many peer institutions in this study charge between $45 and $90 per semester..
  • Increase energy efficiency by renovating or replacing existing housing units.
  • Increase gifts/donations that can be applied to housing improvements. by $25,000 per year
  • Explore grant opportunities. Federal or state agencies and foundations offer grants for which the university may qualify.

The implementation of these actions would produce a revenue stream to support debt of approximately $10.27 million. Additional revenue sources need to be identified for the additional $9.9 13.1 million needed to complete required construction.

1

Table of Contents

Executive Summary

Background

Purpose of the Housing Pilot Program

Sul Ross State University Housing – Existing Conditions

Study Rationale

Peer Institutions

Adams State College

Chadron State College

Georgia Southwestern State University

Southern Arkansas University – Magnolia

Western New Mexico University

Comparison

Quantity

Quality – Dorms

Quality – Apartments and Family Housing

Housing Costs

Funding

Findings

Sul Ross State University Master Plan

Cost Estimates and Possible Revenue Sources

Conclusion

Executive Summary...... i

Background...... 1

Purpose of the Housing Pilot Program...... 22

Sul Ross State University Housing, Existing Conditions...... 33

Study Rationale...... 44

Peer Institutions...... 55

Adams State College...... 55

Chadron State College...... 66

Georgia Southwestern State University...... 77

Southern Arkansas University – Magnolia...... 87

Western New Mexico University...... 98

Comparison...... 1110

Quantity...... 1110

Quality – Dorms...... 1110

Quality – Apartments & Family Housing...... 1211

Housing Costs...... 1413

Funding...... 1514

Findings...... 1716

Sul Ross State University Master Plan...... 1817

Cost Estimates and Possible Revenue Sources...... 1918

Conclusion...... 2221

Appendix A: SulRossStateUniversity Housing Pictures...………………………………...A-1

Appendix B: Questionnaire………………………………………………………………………..B-1

Appendix C:Institutional Housing Department Contacts……………………………………C-1

Appendix D: Institutional Housing Conditions………………………………………………...D-1

Appendix E: SulRossStateUniversity Housing Revenue and Expense Report

for Fiscal Year 2001…………………………………………………………………E-1

1

Background

Sul Ross State University is located in Alpine, Texas, approximately 150 miles from Midland/Odessa. Alpine, with a population of approximately 6,000 people, is considered the gateway to the Big Bend Country. Its location features multi-cultural Indian, Spanish, Mexican, and Anglo characteristics. This cultural mix is reflected in the demographics of the university’s student population.

The institution was created in 1917 as a training college for teachers. In 1920, the college’s first class held had 77 students. Since that time, the institution has undergone many changes. In 1969, the Legislature changed the name of the college to SulRossStateUniversity. Branch campuses were created in Del Rio, Eagle Pass, and Uvalde in conjunction with SouthwestTexasJunior College. Known as the SulRossStateUniversityRio GrandeCollege, these campuses do not offer housing to their students. This study focuses on SulRossStateUniversity’s main campus in Alpine.

Currently, the university offers certificates, associates, bachelor’s, and master’s degrees in programs within three schools:

  • Arts and Sciences,
  • Professional Studies, and
  • Agricultural and Natural Resource Sciences.

Although Sul Ross’ enrollment has grown over the last several decades, the university’s main campus enrollment has decreased since 1997. Current enrollment figures hover around 2,000 total students. Of these, approximately 25 percent are pursuing master’s degrees. The demographic breakdown of the student body::

  • Approximately 97 percent of the students are state residents,
  • Over 40 percent of students are Hispanic, and
  • Approximately 90 percent of all students receive some form of financial aid.

Sul Ross offers its students a number of housing options to its students,, including three residence halls, three single student apartment complexes, and two family housing complexes. There are over 450 residence hall beds available for use, which are primarily assigned to freshmen and sophomore students at the institution. Sul Ross’ residence halls experience significant fluctuations in occupancy rates each year – sometimes as much as a 50 percent decrease from the fall to the spring. On the other hand, the more than 100 apartments and family housing units are extremely popular, maintaining an average 90 percent occupancy rate throughout the year. Overall, 31.8 percent of the university’s student body currently resides on campus.

The university’s housing policy requires single students under 20 years of age and with less than 45 semester credit hours to reside in a residence hall unless they:

  • Are married,
  • Have a child,
  • Reside with their parents, grandparents, or legal guardian,
  • Are veterans and have spent at least 24 months on active duty, or
  • Are 21 years of age or older by the first class day of the semester.

Purpose of the Housing Pilot Program

According to the Special Provisions Relating Only to State Agencies of Higher Education, Section 6, Subsection 8 of the General Appropriations Act, 77th Legislature for the 2002-2003 Biennium, educational and general funds appropriated to an institution or agency in the state may not be used for auxiliary enterprises. However, the housing needs of smaller public institutions in the state has prompted the 77th Legislature to request direct the Texas Higher Education Coordinating Board to conduct a pilot program to study the amount of revenue needed to pay for student housing at such an institution, as stated in the Special Provisions of the General Appropriations Act:

Sec. 53. Housing Pilot Program. As part of the review mandated in Section 49 (Formula Funding Study) the Higher Education Coordinating Board shall provide for a pilot program at the smallest public university within the Texas State University System in a county along the Texas/Mexico border. Notwithstanding the limitations elsewhere in this Act, the Legislature expressly finds that there is a demonstrated need to provide funding for improving student housing at a small university in this state in order to study the effect of formula funding on small institutions. The pilot program shall allow such university to use education and general funds for the limited purpose of providing student housing. The pilot program shall study the amount of revenue necessary at small universities to bond or otherwise pay for student housing in the event the limitations in Section 6, Subsection 8 (Appropriations Expenditure Authorization) or similar legislation remain in place. The board and the university shall report the results of the pilot program to the Legislative Budget Board no later than January 2, 2003.

Sec. 49. Formula Funding Study. [add this section referenced in the above rider]

Sec. 6. Expenditure Provisions.

Subsection 8. Appropriation Expenditure Authorization.

Paragraph b. No educational and general funds appropriated to any institution or agency named in this article may be expended on auxiliary enterprises, unless specifically authorized in this Act.

SulRossStateUniversity Housing –, Existing Conditions

Sul Ross offers its students a variety of different housing options, ranging from residence halls to apartments. Sul Ross has three residence halls, although one has been closed for a number of years due to fire safety issues.

Residence Hall / Year Built / Year Renovated / Total Number of Beds / Spring 2001 Occupancy / Fall 2001 Occupancy
Mountainside Hall / 1969 / – / 350 / 47% / 97%
Fletcher Hall / 1963 / – / 110 / 83% / 94%
Graves-Pierce Hall / 1966 / – / 120 / closed / closed

Students who satisfy the residential living policy by the first class day of a semester are permitted to move out of the residence halls and into an on-campus apartment or off-campus residence. Single students have the option of three different on-campus apartment facilities:

Apartment / Year Built / Year Renovated / Total Number of Units / Spring 2001 Occupancy / Fall 2001 Occupancy
Marquis Hall / 1958 / 1982 / 17 / N/A / N/A
Smith Hall / 1961 / 1981 / 24 / N/A / N/A
Brick Cottages / 1948 / – / 28 / N/A / N/A
Total / 69 / 85% / 92%

Students with families can may choose to reside in one of the following facilities:

Apartment / Year Built / Year Renovated / Total Number of Units / Spring 2001 Occupancy / Fall 2001 Occupancy
Rock Cottages / 1935 / – / 17 / N/A / N/A
Duplexes / 1950 / – / 39 / N/A / N/A
Total / 56 / 89% / 92%

Sul Ross officials believe that the institution’s housing should be upgraded because housing quality maycan be a big draw to prospective students or, alternatively, a deterrent. Sul Ross currently has closed a number of apartment units due to various fire safety, structural, and plumbing problems that it believes are not cost-effective to repair due to the age of the buildings. The institution would demolish most of its apartment buildings in favor of a more modern complex if appropriate funds were available. Sul Ross would also renovate its residence halls to provide certain amenities that are currently lacking in their existing facilities. See Appendix A for pictures of the university’s housing.

Study Rationale

To meet the requirements of the special provision requesting this study, a methodology was developed by the Coordinating Board in consultation with Sul Ross officials. This methodology uses comparisons between Sul Ross and institutions with similar student demographics, sizes, and remote locations to determine how well Sul Ross’ housing compares with other institutions’ housing facilities in quantity, quality, and student cost.

Due to Sul Ross’ small size and remote location, it was not feasible to compare it with any other public institution in Texas. Instead, schools across the country were studied to determine how closely they matched certain Sul Ross characteristics. The following five public colleges and universities were chosen for this study and accepted by Sul Ross prior to the study:

  • AdamsState College in Alamosa, Colorado
  • ChadronState College in Chadron, Nebraska
  • Georgia Southwestern StateUniversity in Americus, Georgia
  • Southern ArkansasUniversity – Magnolia, in Magnolia, Arkansas
  • WesternNew MexicoUniversity in Silver City, New Mexico

These institutions were chosen because they were similar to SulRossStateUniversity in the following manner:

  • Size of the city in which they are located,
  • Size of the student population,
  • Demographics of the student population,
  • Percentage of students receiving financial aid, and
  • On-campus housing availability.

A questionnaire requesting information on the quality and cost of on-campus housing, as well as the funding sources used to build, renovate, and maintain their housing facilities and the availability of off-campus housing (See Appendix B), was sent to each institution’s housing department. After answers were received, a conference call was set up to discuss their housing in more detail.

The results of the questionnaire and phone calls were used to estimate how much funding would be required to bring Sul Ross’ housing up to the 75th percentile of its peers in quantity, quality, and cost to students. After this amount was determined, possible methods to finance these improvements were considered.

See Appendix C for a list of institutional housing department contacts.

Peer Institutions

AdamsState College

Adams State College is located in Alamosa, Colorado, a city with a population of less than 10,000 people. Situated in the San Luis Valley 220 miles south of Denver and 200 miles north of Albuquerque, New Mexico, this college offers associate’s, bachelor’s, and master’s degrees in over 50 areas of study. Programs of study fall within the following schools:

  • Education and Graduate Studies,
  • Arts and Letters,
  • Business, and
  • Science, Mathematics, and Technology.

The demographic breakdown of the student body yields the following:

  • Approximately 75 percent of the students are state residents,
  • Approximately 30 percent of students are minorities, and
  • Approximately 77 percent of all students receive some form of financial aid.

Of the almost 2,500 students who attend classes on campus, over 44 percent live on campus. Adams State College housing includes three residence halls, three apartment complexes, and three family housing complexes.

The collegeAdams State Collegerequires students under 21 years of age to live on campus, unless they:

  • Are married,
  • Have a child,
  • Reside with their parents,
  • Have lived on campus for at least four consecutive semesters, or
  • Have obtained 30 credit hours with a 3.50 grade point average.

Adams State CollegeAdams State College

Residence Hall, Exterior Residence Hall, Interior

AdamsState CollegeAdams State College

Apartment, InteriorAdams State College Apartment, Interior

ChadronState College

Chadron State College is located in Chadron, Nebraska, approximately 240 miles from Cheyenne, Wyoming and 260 miles from Pierre, South Dakota. About 5,600 people live in the Chadron area. The college offers bachelor’s and master’s degrees from the following schools:

  • Business and Applied Sciences,
  • Education and Graduate Studies,
  • Liberal Arts, and
  • Math and Science

The demographic breakdown of the student body yields the following:

  • Approximately 68 percent of the students are state residents,
  • Less than 10 percent of students are minorities, and
  • Approximately 54 percent of all students receive some form of financial aid.

The college houses about 40 percent of the approximately 2,500 students attending classes on campus. Chadron State College offers single students a choice between of seven different residence halls (although one is currently out of service). Married students and students with children have the option of living in one of two apartment complexes.

Freshmen are required to live on campus, unless they are married, have a child, or live with their parents.Chadron State College requires freshmen to live on campus, unless they:

  • Are married,
  • Have a child, or
  • Reside with their parents.