Associated Press

BOZEMAN, Mont. - The Montana Board of Regents on Friday approved spending $1.6 million to draw up plans for a new business college at Montana State University.

The unanimous vote to move ahead with the design of the new $20 million College of Business was one of several projects the regents approved as the board wrapped up two days of meetings in Bozeman.

The Bozeman Daily Chronicle reported the regents and the rest of the higher education officials in the audience gave a standing ovation to Jake Jabs. The 80-year-old furniture entrepreneur and 1952 MSU graduate donated $25 million to build the new business college, the largest gift in university system history.

"I want it to be a real showplace," Jabs said.

Susan Dana, the interim business dean, said the project is creating "energy and excitement among students, faculty, the business community and the entire campus."

The regents also approved a $1.5 million update to the Museum of the Rockies' planetarium and the creation of a new Institute of Ecosystems. That research project is to be run jointly by MSU and the University of Montana and is funded by a $20 million, five-year National Science Foundation grant.

The board also agreed to let MSU expand and renovate the student Writing Center at Wilson Hall, using $300,000 in building fees paid by students.

Regents approved the first contracts with the new Associated Faculty of MSU unions. The two contracts include modest raises of 1 percent plus $500 this year and 2 percent plus $500 next year, the same raises awarded to other university employees.

University employees said they are still concerned about pay levels that rank among the lowest in the nation.

Kevin McRae, the University System's chief negotiator, said the raises come at a time when the state Legislature gave no increase to other state employees.

McRae told the regents a study is under way to find what more can be done to improve pay and other factors that affect the hiring and retention of faculty and staff.