NATCHEZ &045;&045; Running a university like a business is paying off at the University of Southern Mississippi, its president said Wednesday.

The institution has its main campus in Hattiesburg and a second campus on the Gulf Coast.

Dr. Shelby Thames, USM president since May 1, 2002, told Natchez Rotarians the university has added economic development to the traditional mix of teaching, research and service institutions of higher learning long have pursued.

&uot;We have a vice president for economic development now,&uot; Thames said, explaining that funds derived from that department have grown from $10,000 to $3 million.

The new approach, not popular with all who live and work among the university system, has brought increased outside money needed for research and construction projects. Further, USM gave $3.6 million in raises because of a complete overhaul of the university.

Trimming and consolidating has led to a more efficient physical plant. &uot;We hope to give raises again next year.&uot;

That expectation comes despite the loss of $25 million in appropriations by the state in the last five years, Thames said.

Another step the administration has taken to trim costs has been outsourcing, Thames said. Food service and the book store were two areas chosen.

&uot;We always have run our own food service and book store. We weren’t sure they were breaking even, though,&uot; he said.

&uot;We’ve outsourced those to Arrowhead for food and a Barnes and Noble book store.&uot;

The food service provider and Barnes and Noble both will improve the campus with their additions to the infrastructure, he said.

And the university will save money.

Freshmen admissions are up by 9 percent from last year, and the university boasts eight National Merit scholars.

&uot;We hope to get 20,&uot; he said. Student enrollment is slightly above 15,000.

Known nationally for its research in polymer science, an area Thames has led, the university

benefits from its reputation by bringing millions of dollars from outside sources for further research.

&uot;We brought in $82 million in outside research money last year,&uot; he said. &uot;Only 30 percent of our research money comes from the state.&uot;

A number of construction projects are under way at the campus, including a $47-million project for a student life center, expected to be completed in the next two years.