GULFPORT - University of Southern Mississippi President Shelby Thames wants to bring more money to the school by getting more research contracts and grants.

To do that, Thames believes the university needs to operate a research facility and a clinic in the same building, he told the Gulfport Business Club on Tuesday.

That's where the veterans hospital in Gulfport comes in.

If the hospital in Gulfport is consolidated with Biloxi, the VA would like to lease the facility.

Officials at USM would like to lease that space to continue research in areas such as obesity, tobacco and exercise science already being done on the Hattiesburg campus.

"Our biggest challenge is raising revenue to give our faculty a raise," Thames said. "That's why we need a research facility in a clinical setting."

The total yearly budget for USM is $280 million. That money comes from various sources, including the state, tuition and research grants and contracts, Thames said.

So far this year, USM has received $81 million from those contracts; they want to increase that to $100 million by 2005.

Thames said the university is adding new buildings, old ones and adding students. He commented briefly on the snafu in counting students during the fall semester, a mistake which caused USM to fall from first to second in enrollment.

"You know how you can keep from making a mistake?" he asked. "Don't do anything. Someone made a mistake and that's all. But I don't like being second, so I plan on being No. 1 sometime in the near future."