Regents vote to review Fire Science Academy

Friday, Jan. 14, 2000 | 11:35 a.m.

There won't be a fire sale for the financially plagued University of Nevada, Reno, Fire Science Academy -- at least not yet.

The Board of Regents, which oversees the University and Community College System of Nevada, voted 6-2 with three members absent Thursday to hire a consultant to review the Elko operation and report back on whether a business plan submitted by UNR can save the program that could lose more than $3 milion this fiscal year.

Regent Steve Sisolak, who was on the losing end of the vote, offered another option -- "cut our losses" and sell the facility to a private company.

"I'm concerned the bleeding (of taxpayer money) will continue," he said of the program that this year figures to have $5.2 million in operating expenses offset by just $2.1 million in operating revenues. Regent Tom Kirkpatrick cast the other no vote.

Regent Chairwoman Jill Derby voted for the consultant, saying, "It provides a careful monitoring mechanism -- a way to go forward in a responsible way."

Regent Douglas Roman Hill noted that "someone was asleep at the wheel" to cause the losses, but nevertheless made the motion for interim Chancellor Tom Anderes to hire a consultant. His original motion put a $10,000 limit on the cost of the consultant, but he withdrew it after other regents protested that it was too restrictive.

For 27 years, the academy, which teaches firefighting and crisis/emergency management skills, was a money-maker for the university system. The academy, which opened in Reno in 1972, moved to a $27 million facility in Elko last year. The move was necessitated by Reno's residential growth near the academy.

In recent times, the program has been losing money because, among other things, its marketing plan was not followed and enrollment was down, UNR President Joe Crowley said.

"Since June 1999 we discovered we had serious problems at the academy," Crowley said of the situation the board discovered in a recent audit. Crowley said he did not immediately divulge those financial woes to the regents because he felt it would be better if he first worked out solutions for the board to consider.

The plan Crowley presented to the board could turn a huge shortfall into a $500,000-plus operating reserve "by the end of the year," he said. But for that to happen, a lot of good things have to start happening to a program that has experienced a significant number of shortfalls.

For example, enrollment of 4,800 students was expected at the academy, while just 3,097 signed up. As a result, tuition fees are down $1.7 million. A projected $750,000 in consulting and advisory services has netted just $2,880. UNR also expected to pick up $350,000 in grants, but received just $15,000 in grant money this year.

UNR's plan calls for restructuring of the lease on the land and other operating expenses that could save the school $293,493.

Also, UNR loaned $750,000 to the academy from what Crowley called "discretionary funds."