It’s important that students, faculty, staff, administrators, community members, and the public at large understand how large public construction projects are funded. The Student Union, Inc. is committed to openness and fiscal responsibility, remaining ever mindful of the current economic climate.No university or general fund base money is used to pay for the construction or renovation of Student Union, Inc. facilities.
No part of this project is taking money from any budget related to students’ academic pursuits or university department monies. Funding for the construction project comes from the sale of bonds held by the chancellor’s office, to be repaid through a combination of revenues generated through things such a concerts, gym memberships, and meeting space rentals, and also with annual student fees paid directly to the Student Union, Inc. for services that the Student Union provides on a daily basis for students. A fee increase for this projected was presented and approved by students through the means of an “alternative consultation,” and then approved by the California State University Chancellor’s Office during the 2006-2007 fiscal year. The funding and payment process, as well as the construction and renovation of this project, is subject to California State University system oversight through the Chancellor’s Office. The Student Union, Inc. at San José State University, like other Student Unions in the California State University, funds its operations through generated revenues and student fees.
While budgets across the country are tight, there is no better time in which to embark on a construction project. As a result of the economic downturn, costs for materials, labor, and planning are all drastically reduced compared to just a few years ago. Bonds to pay for the construction can also be bought now at a lower rate, compared to the height of the financial market. This allows for a greater return on students’ investment in the Student Union, maximizing the dollar-per-dollar power of collected fees.
The completed facilities will provides students with increased opportunities for campus life, and provide increased services for students, faculty and staff, complimenting the university’s educational mission. The new facilities will enhance the “town and gown” relationship between San José State University, the City of San José, and neighboring Bay Area communities.'
The total cost for the Student Union Renovation and Expansion is $90 million. Construction is $68 million, and the remaining cost includes project management, group two equipment, studies, and agency fees. For more information please read the CSU Student Union Project document.