The Badger Herald: Opinion: Understanding fee reserve distribution

Opinion

Understanding fee reserve distribution

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By Letters to the Editor
Tuesday, March 8, 2005 12:00 a.m.

5 Vote 0 Votes

Today the Associated Students of Madison Reserve Board will meet in order to discuss and debate the disposition of student segregated fee reserves. Based on feedback the Board received from the student body, we think it’s important to clear up misconceptions about what the reserves are, what they have traditionally been used for and the purpose of the Reserve Board.

To start, segregated fee reserves are an accumulation of unspent money from student organization budgets at the end of each fiscal year. Contrary to popular belief, the money in our reserves has accumulated over time and is not the result of Student Services Finance Committee overcharging students this year. In accordance with University of Wisconsin System policy, we are required to maintain a minimum level of fee reserves to use in case of emergencies or unforeseen circumstances.

In previous years, decisions regarding the reserves were left to Bascom without student input. We’ve been told they were used primarily to offset segregated fee increases, however the exact decision making process was unclear. In response, during last year’s spring elections, ASM asked the student body to pass a referendum to create a Reserve Board that would take the decision-making power from the administration and give students direct control over how reserves will be used.

At the time of the election many students praised this initiative. In fact, last February the Badger Herald’s Editorial Board wrote, “students themselves decide where the money is awarded in the beginning of the process and should have that same power in the end to decide for what this student tax money will be used.” We wholeheartedly agreed with this sentiment and are now celebrating yet another victory in the continual fight for student fee autonomy.

This new Reserve Board, composed of the ASM and SSFC Chairs, Vice Chairs and Finance Chair, convened in late February to decide the fate of segregated fee reserves. We are faced with the option of spending or saving the reserves and have asked the campus community to submit proposals for possible expenditures of the funds. This input from the student body will allow us to make the most thoughtful, informed decision possible.

We have received many suggestions for how we should use the reserves, both formally and informally. Many students believe that the best course would be to issue students a refund. Although we have not ruled that out, we know that it would be a logistical nightmare. For example, should a freshman who has only paid approximately 120 dollars in student-controlled fees since they’ve been on campus, receive the same amount as a senior who has paid in consistently for four years? And, what would the distribution process be? These are issues that must be worked out in a very short period of time before we could decide to issue a refund. We also have other options, one of which includes making a one-time allocation for a critical expenditure that would benefit the campus at large and the Board has received over 30 proposals from individuals and groups requesting the funds. Our other options could either be to simply to lower the reserve level and use it to offset the fees increases for next year, or to do some combination of the three options above. However, no matter what decision we make, we must keep in mind system policies that forbid us from completely depleting the reserves.

This has been a confusing process for us all and the Reserve Board has struggled with many issues, including coming up with a process that is fair, transparent and includes broad campus input and informing the student body about such a new process. While the lack of information may be frustrating, understand that it has been frustrating for members of the Board as well. This is what happens when you explore uncharted policy territory and come up with a new process, especially around a new pool of money that we previously had little information about or control over.

We know Board members must make thoughtful and fiscally responsible decisions about the fate of the reserves while the campus watches. We understand that based on our criteria, it isn’t possible to accept many of the proposals we have received from the student body. We are aware that our actions will set a strong precedent for how future Reserve Board members will make decisions. And finally, we know that no matter what final decisions we make, we won’t be able to please everyone. However, we on the Reserve Board promise that whatever decision we make will ultimately be in the best interest of all students on campus. All we ask for is everyone’s patience while we take another huge step forward in student fee autonomy at UW Madison.

Janell Wise (jmwise@wisc.edu ) and Kevin Otten (kcotten@wisc.edu) are the chair and vice-chair of the Student Services Finance Committee, respectively.

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