During a recent University of Guam Board of Regents Meeting – UOG reported that to cover a shortfall in the budget, the University has requested $4M to fund the construction projects for the school of health.
Here’s the update on the construction.
The construction of the Water Environmental Research Institute and Nursing Annex buildings for UOG’s School of Health has already completed 30% of the design process.
Sandra McKeever, UOG Board of Regents Treasurer stated, “The total amount of the grant was $8.5M, and the University was to match 1.7M dollars this makes the total amount of funding.”
However, according to the project’s architect, they found that the construction costs exceeded about $600 per square.
Due to this discovery, the cost of the project would jump up to 12 to 14 million dollars.
Mckeever added, “After the A&E Work, the funding available for construction is $9.1M, therefore there’s a shortfall of three to five million dollars.”
The UOG Board of Regents has identified sources of funding to help offset the cost of the project.
The Research Corporation of the University has indicated to the Board of Regents that they are committing $250K every year to make up for the shortfall.
Along with the RCUOG, UOG is seeking to request a loan from its Internal Endowment Fund to offset the shortfall and use revenues from the RCUOG as the source of repayment.
According to the Resolution, the President is authorized to borrow an additional amount of up to $1M if he determines that the $3M is not sufficient to complete the construction of the projects.
At the end of the Resolution’s presentation, the vote was passed unanimously.
Liza Provide, UOG Board of Regents Vice-Chairperson stated and quoted, “Okay hearing none, the last topic and the resolution carries unanimously.”