The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Friday, August 26, 1994                TAG: 9408260589
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY PHILIP WALZER, STAFF WRITER 
DATELINE: NORFOLK                            LENGTH: Medium:   79 lines

MORE CUTS POSSIBLE AT ODU, KOCH TELLS FACULTY

Old Dominion University, already facing a loss of up to $5 million in state aid in the 1995-96 school year, might get hit with yet another round of budget cuts, President James V. Koch told faculty members Thursday.

Even so, Koch offered a glowing outlook for ODU in his annual ``state of the university'' address. ``As an institution,'' he said, ``we simply have too much going for us, and too many sterling achievements to report, for me to be negative.''

Repeating the phrase ``We can do it,'' Koch ticked off a list of university projects and accomplishments: A redevelopment plan for the east side of Hampton Boulevard, which would include an arena, fraternity houses, research offices and up-scale stores. The growth of the Teletechnet program, which will offer televised courses to 1,000 people across Virginia this fall. The success of nine professors who won state or national awards.

Koch's upbeat message contrasted sharply with the dour tone of a letter he sent to employees in June, warning of layoffs and departmental closings. But Thursday, Koch said he was ``increasingly confident'' that legislators will funnel more money to ODU and that the university itself could save significant amounts through strategies such as early retirement plans and privatizing operations.

Yet he warned: ``In truth, I can't tell you what our financial outlook is. I can tell you there is a possibility that the governor may ask us to do more.''

Rumors are circulating across the state that Gov. George F. Allen will ask colleges, along with other state agencies, to draft plans for an additional cut of 2, 4 or 6 percent. State aid to colleges already has been sliced 21 percent since 1990.

``As I understand it, we're supposed to get some budget instructions next week,'' said Colette Capone, vice president for management and budget at the University of Virginia.

Allen, in his address to legislative money committees Monday, said state agencies would soon be asked for ``proposals to reduce spending,'' but he didn't elaborate. State Education Secretary Beverly Sgro said Thursday that she was not aware of any specific reduction plans.

In his 45-minute talk, Koch said his initial pitches for more aid had won positive responses from state officials and legislators. But Sgro said in an interview that although she was sympathetic to ODU's plight, it was too early to say whether the school could get more money during next year's General Assembly session.

``If there's funding available, they (the legislators) recognize the need to put some of it back into higher education,'' Sgro said. ``If they're going to have that money, I don't know.''

Koch also outlined a handful of proposals that could reduce costs:

An early-retirement plan for faculty members, which could save $1 million.

Contracting with private companies to run the university's car fleet or health center.

Cutting tuition waivers for employees or their relatives. That, Koch said, would save $400,000.

Switching administrators from 12- to 11-month contracts, with a cut in pay, and limiting each college to one assistant or associate dean.

``We can do it, if we set our minds to it,'' Koch said. ``If we present our case well externally, and we are willing to change our ways of operating internally, we have the ability to assemble a pot of resources that might seriously diminish . . . the budget problem.''

On the bright side, Koch said ODU would arrange internships for credit, starting in 1995, for any student who wants one. Administrators first proposed that internships be mandatory for all students, but Koch said some faculty members questioned their value.

The university also will reshape its general-education courses, required of all undergraduates. Koch said the revamping would ensure that students have ``mathematical and computer literacy. . ., that they come into contact with a non-Western culture and that they consider, in a non-dogmatic fashion, the implications of greater ethnic diversity upon American society.'' ILLUSTRATION: Photo

James Koch: His annual ``state of the university'' address was,

overall, upbeat.

by CNB