Board of Trustees

February 26, 2003 Minutes Part One

The University of Toledo
392ND  Meeting
Board Of Trustees
Wednesday, February 26, 2003
Student Union Room 2592 - 8:15 a.m.

The three hundred and ninety-second meeting of the Board of Trustees of The University of Toledo was held on Wednesday, February 26, 2003, at 8:15 a.m. in the Student Union Room 2592.

Ms. Joan Uhl Browne, Chair of the Board, presided and Ms. Joan A. Stasa, Assistant Secretary to the Board, recorded the minutes.

1. CALL TO ORDER

The Chair of the Board requested the Assistant Secretary to call the roll:

Ms. Joan Uhl Browne
Mr. Daniel J. Brennan
Mr. C. William Fall
Ms. Megan M. Mamarella, Student Trustee
Ms. Rebecca Mocniak, Student Trustee
Mr. Robert C. Redmond
Mr. Richard B. Stansley, Jr.
Ms. Olivia K. Summons
Mr. James M. Tuschman
Mr. Hernan A. Vasquez

constituting a quorum of the Board.  Trustee Judge Richard B. McQuade, Jr. was absent:

Also present: Dr. Daniel M. Johnson, President; Dr. Alan G. Goodridge, Provost and Vice President for Academic Affairs; Dr. Tyrone Bledsoe, Vice President for Student Affairs; Dr. Joseph Brennan, Executive Director for Public Relations; Mr. William R. Decatur, Vice President for Finance and Administration; Ms. Sandra A. Drabik, Vice President and General Counsel; Mr. Richard Eastop, Interim Vice President for Enrollment Services; Mr. Calvin Lawshe, Executive Director for Community Relations; Mr. David Lindsley, Interim Vice President for Information Technology; Mr. Michael O’Brien, Director for Intercollegiate Athletics; Ms. Sally Perz, Executive Director for Government Relations; Professor Gerald Sherman, Chair of the Faculty Senate; Professor Penny Poplin Gosetti, Faculty Representative to the Board; Mr. Donovan Nichols, President of Student Government; Ms. Heidi Jenkins, Vice President for Student Government and Mr. Ryan Smith, THE BLADE.

2. PRESIDENT'S REPORT
 
President Johnson gave the following report:
The classic line, "It was the best of times; it was the worst of times" is an apt description of our present situation.  In many ways, we are seeing some unparalleled growth and progress.  The faculty, staff, department chairs, deans and executive staff are working very hard to move our University forward in the face of unrelenting bad news from Columbus.
 
I am particularly pleased with the progress we are making on funding for research, the growing support in the community for the university, the leadership and excitement for our UT "Family Campaign," the plans for the new residence hall, the good work of the Strategic Planning committee, the launching of the "master planning" process, and so many other areas of progress.  In some ways, these are "the best of times."  
 
I hope you, as members of our Board of Trustees as well as our faculty, staff, students and administrators, will take justifiable pride in the efforts being made across the campus and the forward movement of the university as reflected in the progress we are seeing in these and other areas.
 
And while it would not be entirely correct to say "these are the worst of times," everyone in this room knows these are very, very difficult times with respect to the funding of public higher education in Ohio, and indeed, many other states. 
 
I am not going to use my few minutes this morning "whining" about lack of state funding. We have made our case. We have had the opportunity--individually and collectively with other presidents and universities--to convey our story to the Governor and our legislators on both sides of the isle, in our region of Northwest Ohio and across the state.  They know the facts.  They have been buried in facts. 
 
As one person said to me, "The people of the State of Ohio have spoken."  We now have to find our way.
 
As you know, Vice President Bill Decatur, Associate Vice President Dawn Rhodes, our budget staff, the Fiscal Advisory Committee, the Executive Staff and others have been laying the groundwork for another round of possible cuts. We have worked diligently to anticipate where we would be once the legislature finishes its deliberations on the state budget.  That has not been easy.
 
I received word last night that our FY 2003 State Share of Instruction allocation will be cut by 2.5%. That translates to   $2,050,000 dollars in this fiscal year.
 
Even more challenging, we have been advised that there could well be a reduction on the order of 15% or more for FY 04.   

Atthis time, I would like to have Sally Perz talk briefly about the meetings in Columbus yesterday regarding this issue.  Sally commented that the mood is somber at best and there are many differences on how to resolve the state budget difficulties.  Sally distributed information from Gongwer News Service, Inc. - House Sends Taft Budget Fix, Avoids Conference Committee Despite Concerns Over Local Government Cuts.  (Ohio Report No. 37, Volume 72)
 
Dr. Johnson continued:  As I noted a few minutes ago, Bill Decatur, Dawn Rhodes and our budget staff have been developing different scenarios based on latest information including "best case," "moderate case" and "worst case" scenarios.  Many informed people believe we may well be faced with the "worst case" going into next year.
 
We know it will not be easy but we will address this challenge and be guided by our mission and the basic principles we, as members of the Executive Staff, agreed to last year. 
 
Two of these principles are particularly important: 1) We committed to "work together as a team for the betterment of the University."  We also agreed to "proactively address issues through creative problem solving." 
 
We must also link our budget decisions to our strategic goals and priorities.  It is very important that our budget decisions not be made just to get us a balanced budget; the decisions must be made in a way that we not weaken the whole university, that our priorities are honored, and that we emerge from this period as a stronger, more focused university.
 
I believe the principles we use to arrive at these decisions should include following:
1. We have to identify our niche, define our "core programs and activities" and be more "market oriented." 
2. We have to step up to the competition and communicate the value of public higher education. 
3. We have to acquire greater flexibility in setting fees, controlling expenses, and be able to experiment with new models to find greater efficiencies. 
4. We have to begin thinking and acting like a public or state assisted university rather than a state supported university. 
5. We have to look for even more opportunities for collaboration and joint ventures with other institutions of higher education--universities and community colleges, public and private. 
6. We must be able to act quickly and not be overwhelmed by the magnitude of this challenge. 
7. Perhaps for the first time, we have to allow the public to experience the consequences of this reduction in state funding.  We have been experts at hiding the effects of these reductions over the past several years.  We can no longer hide the consequences of these cuts. The public...the citizens of Ohio have to know what their representatives are doing to higher education. 
8. Finally, I believe we must begin looking for ways to make some of our programs more self-supporting. However, we must also keep in mind the need to maintain and support those programs and activities that make us a student-centered, metropolitan university.
 
This weeks Chronicle of Higher Education (Feb. 28) makes the statement, "If you think the flow of appropriations will resume once the recession ends, think again."
 
The history of public higher education funding has been one of recession-based low or level funding followed by several years when legislatures tried to make up for the bad years.
 
This time, it could be very different. Rising health care costs, increasing insurance rates, an aging population, and other demands make it unlikely we will see the return to normal we have seen following previous recessions.
 
We must plan not only for this immediate crisis but also plan for the long term.  We have to be realistic about what we as a university can afford; we must also recognize what our students and their families can afford and the very real limits to tuition increases and fee increases. And, we have to know who we are as an institution, our mission and our priorities as we face tough budget decisions.
 
To give you some idea of the magnitude of the reductions in state funding, let me quote from a memo I received from our Chancellor, Rod Chu:
 
"For the record, here is a recapitulation of budget cuts we’ve experienced in the past three years:
FY 2001 $20 million
FY 2002 $120 million
FY 2003 $121 million in July
            $13.4 million in February
            $39.2 million in March

The total is $313.6 million, or a little under $1,000 per full time student."
 
These are the realities we are now living. As we go through these uncharted waters, we will need to work together--Trustees, faculty, staff, unions, administration and students--if we are going to weather this storm.
 
And speaking of storms, I would like to take a moment to thank our grounds staff for the good work they are doing keeping our parking lots and walkways clear.  This has been an extraordinary winter.  We want them to know we appreciate their hard work in keeping the campus open.  Thank you.
 
In closing, I want to draw your attention to "points of pride" (Exhibit A) so that you know UT is very much alive and making its mark in many areas.  One of those points of pride, Madam Chair, is our Interim Dean of Engineering, Dr. Nagi Naganathan.  As you may know, he was recognized as "Engineer of the Year" and his peers from across Northwest Ohio honored him last week at a gala dinner.
 
Nagi, if you would come forward, I would like to present you with a small token of our appreciation of your professional accomplishments and the recognition you received from your peers.

3. Consent Agenda Items - Exhibit B

a) Approval of Minutes - December 11, 2002
b) Faculty Personnel
c) Grants Report
d) Sabbatical Leave Recommendations
e) Request to Change the Name of the Division of Contract Education to The Division of Workplace Credit Programs
f) Staff Personnel
g) Amendment of the Alternative Retirement Plan
h) Stop Loss Insurance

Upon a motion by Mr. Tuschman, seconded by Mr. Fall to approve the consent items a) through h) as listed on the agenda and described in Exhibit B a roll call vote was taken:
Ms. Browne Yes
Mr. Brennan Yes
Mr. Fall Yes
Mr. Redmond Yes
Mr. Stansley Yes
Ms. Summons Yes
Mr. Tuschman Yes
Mr. Vasquez Yes

Motion passed.

4. Information Items - Exhibit C 

Academic Affairs Committee Update - A. Goodridge 
· Strategic Planning Committee Phase 2

Rob Sheehan reported that an open form on the Strategic Plan was held for faculty, staff and students with Provost Goodridge on February 13. The forum was well attended and a great deal of input on the plan was received.  Rob also mentioned that the entire month of February is reserved for public and campus comment on the plan and that comments can be sent in via email, surface mail, phone call, or by contacting any member of the Strategic Planning Committee.

Finance, Administration & Facilities Committee Update - B. Decatur
· Charter School Council Update

Mr. Stansley gave an update on the activities of the University of Toledo Charter School Council Transition Committee and mentioned that the meetings are going well and the transition team should be commended.  UTCSC annual review and evaluation of its sponsored schools has begun. Mr. Stansley also commented that no new Charter School applications have been received. 
· Financial Statements for Period Ending January 31, 2003

Bill Decatur, along with Dawn Rhodes, discussed recent financial statements.  Current funds cash and investment balances are consistent with the increase in fund balance and the changes in accounts payable compared to the prior year.
· Libbey Hall Renovation Update

Harry Wyatt discussed the status of Libbey Hall renovation at a budget of $2.1 million.  Wyatt discussed the program for Libbey Hall was a venue for presidential and fundraising events.  Renovation was made in keeping with the style of the building as it was originally built and at this point includes the lower two floors only.  The most prominent change to the building is the new structure that will house the elevator and its lobby.  Completion is expected fall 2003.
· Fee Schedule for Student Health Center

Mr. Brennan commented on the information item Fee Schedule for Student Health Center.  He explained that an analysis was on-going and that the old business model and the new business model need to be tested before we can go further.  Mr. Brennan moved to approve President Johnson engaging outside consultants and requested that President Johnson report back to the Board regarding the feasibility of services.  Rick Stansley seconded the motion, which was passed by unanimous voice vote.

Institutional Advancement Committee Update - V. Snyder
· Campaign Feasibility Study Summary 
Discussion postponed due to Vern Snyder's absence.

Strategic Issues and Planning Update - Dr. D. Johnson
· Key Performance Indicators/Dashboard Reports
Rob Sheehan discussed the Dashboard Indicator system and the two key components to examine trends across time within The University of Toledo and the ability to make comparisons to similar institutions.  Rob also mentioned that the Office of Academic Affairs has been developing consensus on campus regarding like institutions and mentioned that 16 institutions have been identified as appropriate to compare to UT.

Trusteeship Committee Update - S. Drabik
· Annual Presidential Assessment
In the absence of Judge McQuade, Rick Stansley presented information related to this year's presidential assessment process.  The Trustees will decide upon this item at the April Board meeting.