Concerns about the financial sustainability of Off Campus College Transport was front-and-center for the second time in two years at a preliminary meeting Friday.
The board of directors and members of the Student Association met to discuss changes in authority and the potential for administration involvement, in the hopes of fixing the company’s structure and avoiding more financial challenges in the future.
According to Giovanni Torres, service manager of OCCT, the bus company’s latest financial woes stem from adding routes to the Binghamton University Downtown Center (UDC) and the Information Technology Center (ITC) without proper monetary backing.
Student Association President Adam Amit said that the bus company, which is funded by a chunk of BU’s transportation fee, as well as contributions from the Graduate Student Organization, the SA and Off Campus College, could fall into bankruptcy within five years if action isn’t taken.
According to Gail Glover, spokeswoman for BU, there is no immediate financial crisis facing OCCT, and hence no immediate issue as to “OCCT continuing current services.”
“At Friday’s meeting, the SA was seeking authority from the OCCT board to meet with the administration and discuss possible alternatives to the status quo arrangement,” she said. “The University and the SA have the same goal, and that is to be able to continue to provide reliable bus service over the long term.”
In fall 2008, the company’s future was at risk because of a 1984 tax error that threatened its ability to legally contract with the University. Still, bus service was never halted.
ADMINISTRATIVE INVOLVEMENT
According to Amit, having OCCT collaborate with the administration would simplify the company’s structure and ensure that the buses continue to run.
“An administrative proposal is the only proposal that speaks to long-term viability; the others are short-term plans,” Amit said.
Dave Husch, the director of OCC and an OCCT board of directors member, said that if the administration becomes involved, it will not take full ownership and the OCCT will continue to receive revenue from the student entities.
Torres, a BU alumnus and service manager since June, does not support an administrative merger. He wants to keep the OCCT as close to student-run as possible and pledges to do anything to keep the company the way it is.
Cagri Idiman, the president of the GSO and a representative on the board, said that administrative involvement may not be in the best interest of the students.
“If the OCCT is not student-run, GSO will not be a part of it,” Idiman said.
According to Brian Rose, vice president for student affairs, the administration wants to make sure that OCCT can continue to provide reliable transportation for students, and he hopes to work with the SA and OCCT to do so.
“We don’t want to see the [OCCT’s] service get compromised,” he said.
ALTERNATIVE OPTIONS
Idiman offered a counter-proposal to administrative involvement: handing over positions, such as the CEO and CFO, to the GSO.
The GSO did not outline a financial plan for its proposal, but vowed to finalize one within 15 days of gaining the graduate student body’s approval.
Idiman also said he is considering campaigning to increase the GSO’s current per-student rates, or matching the $12.50 the undergraduate body provides.
Torres suggested having a budget supervisor at OCCT with no time limit; the service manager is currently a two-year rotating position. With a permanent appointee, there would be no wasted time and resources in training someone new.
Torres is also considering scaling back service, such as running four buses at one time instead of five and doing away with late-night buses to decrease operating costs.
Members of the GSO do not agree with the discontinuation of night transportation, seeing it as a safer option to get to and from Downtown, especially when drinking is involved.
OCCT’s board is currently looking into grants it can apply for to maintain independence, as well as researching rider statistics.
Board members plan to meet with the administration in the next two to three weeks.