“We’ve pledged to you as a board, we’re here to serve you,” Board of Trustees Chair Dennis Pawley told a full Elliot Hall Auditorium Thursday.  “We wouldn’t be well-served to write you all a check right now.”

“In giving the money back, we would not be doing our fiduciary responsibility and our responsibility to you, the students,” Pawley said.

Pawley expressed concern with the state of Michigan’s economy and the crumbling infrastructure of the university as a whole.

“We have been remiss in taking care of the state’s assets by keeping tuition down,” Pawley said.

He said that the university used up most of its reserves after last year’s lack of funding from the state and now needs to concentrate on planning for the worst.

“You just have to constantly stay out in front and ask the administration that if doomsday was ahead what are some of the things we can do to stay ahead,” Pawley said.

He mentioned that the University has about $157 million in deferred maintenance to be completed in the next few years.

Pawley has seen firsthand how parts of the university have fallen into disrepair.  He said he has asked Terry Stollsteimer, OU’s associate vice president for facilities management, to itemize the necessary maintenance and present the board with a list of what needs to be done.

Stollsteimer said he has prepared a 50-page report of maintenance that needs to be addressed in the next 10-12 years.

Among other necessary repairs, he and his team estimate $26 million in repairs to interior systems, including replacing floors, ceilings, walls and caseworker cabinetry in buildings throughout campus.

The team also estimates $20 million in repairs to heating and cooling systems throughout campus buildings, and $14 million in repairs to high-temperature hot water lines that provide climate control throughout campus.

“We’re constantly evaluating what we have to do and what can be deferred until next year,” Stollsteimer said.

Whatever the money will be used for, Pawley said that he wants to make the best decision as quickly as possible.

“No one wants to work faster than the people on this board,” he said.

But he stressed that the board wants to make sure the state provides sufficient funding for the coming school year.

Pawley’s comments came after OUSC president Rob Meyer addressed the board, saying that a majority of students would like to see the money used now.

Meyer asked that the money be given to students now, either by direct refund, investment into campus improvements, or a mix of the two.  He said that holding on to the money right now is not how it was intended to be handled.

“The one role that we never asked to play and certainly never agreed to was that of a banker,” Meyer said.

Meyer told the Board that a majority of students want to see the money spent on the students of this academic year, especially graduating seniors, who paid the price after a 13.9 percent tuition hike last fall.

Meyer said that the board answered just how he expected it would, and was unhappy how the board failed to specifically address graduating students.

“There is no question in my mind, the money has to go back to the students,” OU President Gary Russi said. “We will not keep it as a reserve long-term.”

Russi expects the state budget situation to be figured out by June or July.  He also mentioned that the Michigan House Subcommittee on Higher Education will hold a hearing at Oakland University on April 18, which should help resolve the issue of funding.

“The budget process is moving along quicker than it has in the past,” Russi said.

Board of Trustees member Ganesh Reddy said that some of the $4.8 million will need to go to replenishing university funds that have been depleted over the past year.

“Some of it has already been spent,” Reddy said. “There are a lot of different maintenance things that need to be done. The money has to come from somewhere.”

Board member Henry Baskin was more emphatic, saying the money would stay reserved for the students.

“The money is in a vault in my basement,” Baskin joked. “It’s not going anywhere.”

Baskin says he thinks the university will receive more funding in the coming year.

“The governor recommended it, and she’s my guy, she’s going to fight for it,” Baskin said.

President Russi also stated he expects OU will receive more than the three percent increase in funding it expects.

Student liaison to the board Aaron Kochenderfer said, although he was disappointed, he could see where the board was coming from.

“I think it’s understandable, but a tough thing for the board to do,” Kochenderfer said. “At the end of the day, though, the decision will benefit the whole student body.”