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Minutes -- April 10, 2003 -- Board of Trustees -- University of Louisville

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MINUTES OF THE MEETING OF THE BOARD OF TRUSTEES OF THE
UNIVERSITY OF LOUISVILLE

April 10, 2003

In Open Session

The Board of Trustees met on Thursday, April 10, 2003 in the Jefferson Room, Grawemeyer Hall, with members present and absent as follows:

Present: Ms. Jessica S. Loving, Chair
Mr. Ulysses L. Bridgeman, Jr., Vice Chair
Ms. Marie K. Abrams
Ms. Virginia C. Brown
Mr. Tommie Burns
Ms. Linda Wallbaum Cauble
Ms. Donna Tinsley Denny
Prof. David Ensign
Mr. Nathaniel E. Green
Ms. Joyce Hagen
Mr. Christopher Marlin
Mr. William Mulloy, Sr.
Ms. Sandra Metts Snowden
Ms. Beth Worland
Absent: Mr. Kevin D. Cogan
Mr. Owsley B. Frazier
Mr. Grant Helman
Mr. Milton M. Livingston
Mr. J. Chester Porter
From the University: Dr. James Ramsey, President
Dr. Shirley Willihnganz, Acting Provost
Mr. Joseph S. Beyel, Vice President for Development and Alumni
Dr. Denise D. Gifford, Vice President for Student Affairs
Mr. Daniel Hall, Vice President for University Relations
Dr. Joel A. Kaplan, Vice President for Health Affairs
Dr. Nancy C. Martin, Vice President for Research
Mr. Larry L. Owsley, Vice President for Finance & Administration
Dr. Gene Gilchrist, Vice President for New Ventures
Ms. Angela D. Koshewa, University Counsel
Mr. David Barker, Director, Audit Services
Dr. Henry Enck, Institute for International Development
Prof. Diane Nichols, Ekstrom Library
Dr. Don Miller, Director, Cancer Center
Dr. Mordean Taylor-Archer, Office of the Provost
Ms. Cheri Jones, Associate Director, Audit Services
Ms. Rae Goldsmith, Associate V. P. for University Relations
Dr. James Brennan, Dean, College of Arts and Sciences
Prof. Les Abramson, Brandeis School of Law
Dr. David Tollerud, Institute for Cellular Therapeutics
Dr. Dennis Molfese, Chairman and Professor, A&S Psychology
Dr. Patricia Condon, A&S Honors Program
Ms. Kathy Keadle, School of Medicine
Mr. Jason Tomlinson, Office of Planning and Budget
Ms. Kathleen M. Smith, Assistant Secretary, Board of Trustees
Ms. Debbie Dougherty, Board Liaison, President's Office
Guests: Mr. Steve Williams, Norton Healthcare
Ms. Carolyn Gatz, Norton Healthcare
Ms. Mary Alice Czerwonka, Norton Healthcare

I. Call to Order

Having determined a quorum present, Chair Loving called the meeting to order at 1:05 p.m.

II. Consent Agenda

Approval of Minutes :

  • Minutes from Board meeting, 2/13/2003

  • Minutes from Executive Committee meeting, 3/13/03

From the Personnel Committee

 

  • Monthly Personnel Recommendations (March, April)

  • 2003 Alumni Fellows Awards

  • Approval of Honorary Degree Candidates

From the Finance Committee

 

  • Approval of Supplemental 403(b) Retirement Plan

  • Approval of Changes to 403(b) Retirement Plan

  • Approval of Petty Cash Authorization

  • Approval of Housing Fees for 2003-04

  • Approval of Food Service Meal Plan

  • Approval to Begin Planning Stages of the Bio-Medical Research
    Building, Phase III

From the Academic and Student Affairs Committee

 

  • Approval of the Certificate in Logistics and Distribution

  • Approval of the Modification to the Notification of Students' Rights Under FERPA

  • Approval of Honors Notation on Diplomas and Transcripts

Approval of Candidates and Degrees for May, 2003

Chair Loving asked the Board members if any consent items needed to be removed for separate discussion. Hearing no requests, Mr. Bridgeman made a motion, which Ms. Cauble seconded, to approve the consent agenda. The motion passed unanimously.


III. Action Item: Approval of Nominee for 2003 Trustees Award

Mr. Green reported the pool of applicants was outstanding. Before announcing the Committee's recommendation, Mr. Green shared nomination information about the recommended choice-Professor Les Abramson. Mr. Abramson is a full professor in the Brandeis School of Law and is an ideal candidate for the Trustees Award. Letters from current and former students attest to the fact that he provides an exciting and challenging classroom setting. Students are struck by the excitement of learning in his classroom. He videotapes the students while "performing" different legal functions and then using the taped performance, helps the students critique their work.

Mr. Green noted that Professor Abramson tutors students and is always available for discussions concerning practical considerations of a career in law. Many student letters included appreciation for his help in understanding the scheduling involved in Law School coursework, providing knowledgeable advice about sequencing the courses, how often courses are typically offered, and who the professors will be in upcoming semesters. Students commented on what a great service this was to them.

Mr. Green acknowledged that many students considered Professor Abramson to be a mentor, a colleague, and most important, a friend. He continues to follow his students' careers. He is a great encourager. One student wrote his, "genuine compassion for his students sets him apart and makes him not just a teacher but a role model for future lawyers. He is a dedicated teacher who strives to help students attain academic excellence in and out of the classroom. He leads by example."

One of his former students nominated him for the Red Apple Award, which he received in November 2001. In November 2002, he received the University Distinguished Teaching Award.

On behalf of the Trustees Award Committee, Mr. Green strongly recommended Professor Les Abramson for the 2003 Trustees Award. Mr. Mulloy made a motion, which Mr. Burns seconded, to approve the

Trustees Award Committee's recommendation to nominate Professor Les Abramson for the 2003 Trustees Award.

The motion passed unanimously. Professor Abramson thanked the Board for bestowing this honor on him. The Trustees gave Professor Abramson a round of applause. He will receive the award at the May commencement ceremony.

IV. Action Item: Approval of Professional Practice Plan of the School of Public Health and
Information Sciences

President Ramsey reported this proposal has the support of the dean and faculty of the School of Public Health and Information Sciences, and asked Vice President Kaplan to comment as well. Vice President Kaplan said the School of Public Health and Information Sciences anticipates frequent occasions for its faculty to consult with external agencies and to partner with other public or private institutions in research and service activities related to their professional expertise and practice. The Dean and faculty of the School propose this Professional Practice Plan to regulate those engagements in order to maintain the overall excellence of the School's endeavors in the fulfillment of academic responsibilities. He noted that the School has not yet reached the number of full-time faculty required for national accreditation. When the School reaches that number (25), a review of the Professional Practice Plan will be triggered. Should any material change in the Plan be required by the voting faculty, the Plan will be re-submitted to the Board of Trustees. Vice President Kaplan acknowledged Professor Ensign's efforts in working with Dr. Rick Clover on this proposal. Dr. David Tollerud was available for comment. Professor Ensign made a motion, which Mr. Burns seconded, to approve the

President's recommendation that the Board of Trustees approve the Professional Practice Plan of the School of Public Health and Information Sciences (Exhibit A), and

That the Board of Trustees require the School to submit this Plan (or its revision) for the approval of its faculty when twenty-five full-time faculty members, in addition to the dean, hold appointments in the School.

The motion passed unanimously.

V. Action Item: Approval of 2003-04 Tuition Schedule

President Ramsey noted the proposed recommendation regarding 2003-04 tuition was a fundamental component of the University's operating budget for the next year. Following the Legislature's decision to cut higher education, the University conducted an extensive review of existing programs and strategies to reduce costs, increase revenues, and pursue efficiencies. President Ramsey reported the actions results in budget reductions totaling $1.5 million. He also noted that administration had discussed strategic directions with the leadership of the Student Government Association, Faculty and Staff Senates, and placed the proposal on the web site for general employee and student comments. The proposed tuition rate for AY 2003-04 was sensitive to UofL students, but at the same time was responsive to needed income. President Ramsey then gave a thorough presentation of the budget issues:

The University of Louisville's state appropriation is $174.9 million for fiscal year 2003-04, as enacted in House Bill 269. This represents a net reduction of $1.8 million from the FY 03-04 base budget that was the basis for Board of Trustees' discussions that set tuition increase for FY 03-04 at 6.4%

Budget Givens :

  • Investment earnings from short term investment of cash are down by approximately $1.4 million

  • Health care insurance costs continue to escalate to a double-digit annual growth rate

  • UofL provided no permanent (recurring) salary increases in fiscal year 2002-03

  • Philanthropic giving is down primarily as a result of the sluggish U.S. economy

  • Available earnings in UofL Foundation used for discretionary purposes are down significantly for FY 02-03

  • UofL will maintain the same student enrollments as FY 2002-03. The operating budget will reflect the same mix of resident/nonresident students; undergraduate, graduate, and professional students

Budget Principles:

  • Protect Instruction and Research programs

  • Proceed with fourth-year allocations and reinvestments from the Challenge for Excellence Phase III

  • Maintain diversity programs

  • Budget Reductions

    • Avoid across the board reductions

    • Implement permanent budget reductions to better position the University for FY 04-05 budget

    • Review potential university-wide savings from the Challenge for Excellence Phase III - not yet implemented

  • Maintain financial aid awards at comparable levels to 02-03

  • Maintain budget reserve funds

  • Faculty and staff compensation

    • Continue progress on salary catch-up - equity adjustments

    • 3% salary pool to be awarded on merit with 2% floor

    • Fund basic increase in health insurance premiums

  • Fund essential fixed cost increases

  • Defer increases in supplies and expense budgets

  • To the extent that layoffs are necessary, provide counseling and placement assistance through human resources

Proposed Revenue:

Educational and General Revenue Budget:

2002-03 E&G Revenue Base Budget

 

$310,448,900

2003-04 E&G Revenue Base Budget

 

(1,845,200)

Adjustments to Tuition & Fee Revenue:

   

Tuition Rate Increase (6.4%)

5,259,800

 

Enrollment Growth & Other Tuition Adjustments

1,115,900

 

Challenge for Excellence Tuition Revenue Adj.

(336,300)

 

Other Fees (Athletics $35)

354,600

6,394,000

Adjustments to Transfers from Affilated Corp. (Ath.)

 

(666,300)

Adjustments to Non-Ed Rev (Interest Income)

 

(1,344,900)

Hospital Related Revenue

 

500,000

 

   

Total Projected E&G Revenue

 

313,486,500

     

Auxiliary Enterprises Revenue Budget

 

11,288,700

     

Metropolitan College

 

2,153,200

     

Total General Fund Revenue

 

326,928,400

     

Proposed Expenditures

   

Educational and General Expenditure Budget:

   

02-03 E&G Expenditure Base Budget

 

314,135,100

Expenditure Continuing Annual Requirements

   

(Current Year Budget Adjustments)

 

53,900

Fixed Costs

 

356,700

Proposed Allocation of New Funds:

   

-Faculty & Staff Base Salary Increases

3,842,300

 

-Other (Library, Financial Aid, Health Insurance)

3,306,500

7,148,800

Challenge for Excellence-Phase III, Year Four:

   

-Reinvestments

2,295,300

 

-Reallocations

(2,325,100)

(29,800)

Expenditure Increases Offset by Specific Revenue

   

or Departmental Credits

 

1,458,900

Hospital Related Revenue

 

500,000

     

Total Projected E&G Expenditure Budget

 

323,623,600

     

Auxiliary Enterprises Expenditure Budget

 

7,602,500

     

Metropolitan College

 

2,097,200

     

Total General Fund Expenditures

 

333,323,300

     

Projected Surplus (Deficit)

 

(6,394,900)

     

Deficit Funding Plan

   

Projected Budget Deficit

 

(6,394,900)

 

   

Reductions from Ideas to Raise Revenue and

   

Reduce Expenses:

   

Increase Tuition Revenue to 9% (see below)

   

Reduce Pathways Program

125,000

 

Reduce state-mandated programs proportionally

 

 

2.6%

201,300

 

Reduce Commencement Expenses

92,400

 

Adjust Refund Schedule for Drop/Add Process

50,000

 

Increase Undergraduate Ap Fee from $25 to $30

20,000

 

Reduce cap on flex-benefits by $50 per month

   

($245 to $195)

100,000

 

Increase Indirect Cost Recovery from ULRF

300,000

 

Increase Graduate Application Fees from $25 to $50

47,000

 

Recover Cost from Shelby Campus Users (ITRC

   

and Distance Education

102,000

 

Apply Stop-Loss Insurance Coverage (one-time,

   

effective January 1, 2004)

418,000

 

Subtotal

 

1,455,700

     

Increase Tuition Rates Above Already-approved Rate:

   

Raise Tuition Rates to 9% (incremental)

1,925,600

 

Increase in Student Financial Aid (tuition offset)

(558,400)

 

Subtotal

 

1,367,200

     

Unit Budget Reductions:

   

Academic units (average 1.4%)

1,915,700

 

Support units (average 2%)

1,656,300

 

Subtotal

 

3,572,000

     

Total Deficit Funding Plan

 

6,394,900

Total Surplus

 

0


Mr. Marlin thanked President Ramsey for the inclusive process of obtaining student opinion and noted the extensive time spent on discussing budget matters. Mr. Marlin acknowledged the education at UofL enabled students to be competitive with students from around the world. He noted that students, although not happy about the tuition increase, understood and acknowledged the current economic times as a factor. He further stated that Kentucky universities by increasing their tuitions are not letting down their students, they are simply playing the cards they've been dealt. He noted the state legislature has put the universities in this position. Ms. Cauble made a motion, which Ms. Abrams seconded, to approve the

President's recommendation that the Board of Trustees approve a revised tuition rate increase per the attached schedule for the Academic Year (AY) 2003-04.

The motion passed unanimously. Ms. Abrams complimented Mr. Marlin and all who worked toward this effort. She noted her vote in favor of the tuition increase was difficult, recognizing the difficult choices for the University. Mr. Green asked President Ramsey about possible considerations for AY 2004-05. President Ramsey referenced a recent communication from the state budget director warning there may be another state budget cut this year. In that letter, the budget director had reported the state budget as $390 million out of balance structurally.

VI. Action Item: Approval of Resolution in Connection with The Kentucky Plan

Acting Provost Willihnganz said The Kentucky Plan was executed in 1997 and contained goals for the Kentucky institutions of higher education with regard to resident African-American students and employees. The Partnership Agreement for the Kentucky System of Postsecondary Education - Commonwealth of Kentucky and the U.S. Department of Education, Office for Civil Rights - 2000 augmented The Kentucky Plan in January 2000, reinforcing the Commonwealth's commitment to continue its efforts under The Kentucky Plan in conjunction with the federally mandated desegregation plan begun in 1962. Dr. Willihnganz reported that each year the University assesses progress toward goals contained in The Kentucky Plan and reports this information to the Council on Postsecondary Education. She noted the Council then identifies a "Degree Program Eligibility Status for the Calendar Year." Because UofL fell short of its objectives in three categories based on academic year 2001-02, she said that UofL was on a "Quantitative Waiver" status for 2003. This means the Board of Trustees must adopt a Resolution affirming its intent to meet the goals before the University can present new academic programs to the Council for approval. Dr. Willihnganz presented the official data (in Exhibit B) in the assessment of the eight goals. She noted that only Kentucky residents are included in the data reported for purposes of The Kentucky Plan . As a result, UofL's overall progress is greater than this data reflects. The Povost recognized the University's strong commitment toward making a consistent and constant effort to maintain and exceed in every category. Ms. Abrams made a motion, which Ms. Cauble seconded, to approve the

President's recommendation that the Board of Trustees adopt the attached Resolution (Exhibit A) in connection with The Kentucky Plan 1997-2002.

The motion passed unanimously.

VII. Information Item: Advisory Board for Shelby Technology & Business Park and the Task
Force on Beautification of South Central Louisville

President Ramsey reported that as a follow up to the Board's action of September 24, 2001, the University will appoint an advisory board to monitor and advise during the development of the Shelby Technology and Business Park. He said the advisory board would exist through the evolution of the park and work with the University to assure the development meets the University's needs as approved by the Board. This allows for close communication with the neighborhoods. He listed the membership of the advisory board, noting this group consists of influential and experienced civic leaders to help move this development project forward.

President Ramsey also reported the appointment of a Task Force on the Beautification of South Central Louisville. Mrs. Ramsey and Mary Lou Northern, Metro Louisville Cabinet Secretary for Neighborhoods, Parks and Cultural Resources, will co-chair this task force. He stated this initiative grows out of a recent meeting between the University and the senior leadership of Metro Louisville. UofL's Belknap Campus will be a central focus of the Task Force, which will reach out to contiguous areas of the campus. The President expressed enthusiasm about the prospect of improving the overall appearance of UofL's surrounding environment and contributing to the good citizenship of the neighborhood. He invited the Board to suggest additional names for the Task Force. He hoped the Task Force would begin its work shortly after Derby.

VII. Executive Session

Pursuant to KRS 61.810(1)(b) and (c), Ms. Snowden made a motion, which Ms. Worland seconded, to go into executive session to discuss pending litigation and a real estate matter. The motion passed unanimously.

IX. Open Meeting Reconvenes

Chair Loving reported that the Board discussed pending litigation and a real estate matter during the executive session. Ms. Worland made a motion, which Mr. Bridgeman seconded, to approve the

President's recommendation that the Board of Trustees approve the disposition of the case of Joseph E. Granger v. University of Louisville, et al., Jefferson Circuit Court, No. 02-C1-00063, per the recommendation of legal counsel.

The motion passed unanimously.

X. Report of the President

Recognition of Chris Marlin

President Ramsey recognized the outstanding achievements of Chris Marlin, Student Trustee. Mr. Marlin has represented the student body at UofL with forceful leadership. President Ramsey read the following resolution and recommended its approval:

WHEREAS, Christopher J. Marlin served the University of Louisville faithfully, energetically, and effectively as a student member of the Board of Trustees;

WHEREAS, in his capacity as a member of the Board, he distinguished himself as a hard-working and cooperative participant in a wide range of board activities, winning the respect and affection of his fellow trustees;

WHEREAS, he served as the vice chair of the Academic and Student Affairs Committee, as well as a member of the Presidential Search Committee, various standing committees of the Board, and the 2002-03 Trustees Award Committee;

WHEREAS, he served diligently and capably as a member of the Boards of Directors of the University of Louisville Athletic Association, Inc. and the University of Louisville Research Foundation, Inc.;

WHEREAS, he is widely regarded by his university colleagues as a staunch advocate for the welfare of the university's students and has very ably and forcefully expressed the views of students to the University Administration and the Board of Trustees;

NOW THEREFORE BE IT RESOLVED, that the Board of Trustees of the University hereby expresses its sincere admiration and deep appreciation to Mr. Christopher J. Marlin for his exceptional performance as a member of the Board of Trustees from April 2002 to May 2003; and

BE IT FURTHER RESOLVED, that a copy of this Resolution, appropriately signed, be presented to Mr. Marlin.

Mr. Bridgeman made a motion, which Ms. Cauble seconded, to approve the above resolution. The motion passed unanimously.

Recognition of Overseers Scholar Award Recipients

President Ramsey announced his intent to recognize students who recently received Truman, Fulbright and Humphrey scholarships. He noted they were exceptional representatives of the academic excellence at UofL and asked Patricia Condon, Coordinator of the Overseers Scholars Development Program to introduce the students. After Dr. Condon introduced the students, the Board expresse its appreciation to the students.

Spirit Groups

President Ramsey introduced the coaches of the Ladybirds Dance Team, All-Girl Cheer and Co-Ed Cheer squads. They had just swept the National Cheerleading Association's National Championship with first place wins in all three categories. He said this was the first time in the history of the competitions for a single school to win all three. The Board applauded the three spirit groups. Ms. Abrams shared her admiration of the students for the excellent manner in which the represent the University and the fact that they don't need to leave the state of Kentucky to pursue their educational goals.

Update on Honors Program

President Ramsey asked Dean Brennan to present an update on the University's Honors Program. Dean Brennan distributed a memorandum which explained the critical role of the Honors program at the University. Dean Brennan noted a major advantage of the College of Arts & Sciences is research and introduced Dr. Dennis Molfese, Chairman and Professor, A&S Psychology Department. Dr. Molfese provided a Powerpoint presentation showcasing the ten year plan concerning child health/human development. He noted that in the Neuropsychology laboratory, he and his team investigate questions related to the brain and its relationship to cognitive processes (e.g., learning, language), electrophysiological predictors of cognitive development from infancy to adulthood, lateralization of language and cognitive functions, cognitive processes in head injured adults, and many others. The team conducts a number of research projects in collaboration with faculty from other institutions nationally and internationally, as well as with faculty and students in a number of programs in U of L Colleges including the Medical School and affiliated hospitals. Chair Loving thanked Dean Brennan and Dr. Molfese for this informative presentation.

International Program

President Ramsey asked Dr. Henry Enck to present an update on the University's international program. Dr. Enck shared a Powerpoint presentation outlining the current status and enrollment of the international programs. To date, UofL has graduated 841 students in the programs abroad. Dr. Enck introduced Dr. Mike Boyle, who taught in El Salvador and Panama, Dr. Mary Hums, who taught in Athens, Dr. Wayne Jones, who taught in Hong Kong, Athens and Panama, and Dr. Don Taylor, an endowed chair who taught in Panama. Chair Loving thanked Dr. Enck and the professors for their educational presentation.

Update on Ekstrom Library Expansion

President Ramsey asked Professor Nichols for an update on the planned expansion of Ekstrom Library. Professor Nichols presented concept drawings of the expansions. The proposal will provide a new traffic pattern, make a new entrance to the Library and also create an automatic storage retrieval system, which will be robotically controlled. She noted the great cost savings of this retrieval system. Prof. Nichols also recognized the benefits to students from this expansion. She referred to the planned state-of-the-art auditorium for a variety of activities to help support many University-wide programs such as the lecture series and McConnell Center activities. The expansion will also provide office space for faculty and students. She reported the Ritazza Coffee Bar, which has been very popular, will enlarge to a café and there will be commercial spaces, including a CopyIt Center, fax capability for students, among other services. This expansion will enable the Library to be a 24-hour study facility, responding to students' requests for extended Library hours. She expressed appreciation to Senator McConnell for his support of the project.

Update on Cancer Initiative

President Ramsey introduced Dr. Don Miller, Director of the Cancer Center, and Mr. Steve Williams, President of Norton Healthcare. The President asked each to give the Board an update on the joint cancer initiative. Dr. Miller acknowledged the intense discussions with Norton Healthcare for a downtown cancer hospital have taken a different route. He noted that after two years of discussions, the University and Norton Healthcare have come to agree that a joint venture to operate a cancer hospital as originally envisioned was not realistic. He reported that both entities decided to move forward separately. Norton Healthcare will expand its clinical cancer care, and UofL's James Graham Brown Cancer Center will expand cancer research and treatment. Both organizations' common goal focused on improving cancer therapies for the people of our region. Dr. Miller thanked President Ramsey and the Board for their support. He acknowledged that UofL is right on track for obtaining NCI designation.

Mr. Williams expressed appreciation to President Ramsey for his efforts on this joint venture. He acknowledged the commitment of both parties in cancer care and treatment. Each organization supports the goals of the other, and both organizations are committed to making the Louisville Medical Center the destination of choice for cancer patients from throughout the Louisville area and beyond.

Vice President Kaplan thanked Dr. Miller, Mr. Taylor and Dr. Mark Pfeiffer for their hard work. Dr. Kaplan said the cancer program will evolve around the James Graham Brown Cancer Center and offer leading edge treatment and care. He wished Norton Healthcare well with their cancer hospital, noting the two entities would work in different models but serve the public well. He emphasized that the President has asked for the development of an NCI comprehensive cancer center, one of the highest Centers for Excellence goals, and assured the accomplishment of this goal. Dr. Kaplan noted his strong endorsement for Dr. Miller's work and offered to keep the Board of Trustees apprised as the project progresses. Dr. Kaplan thanked the Board for its support, and Dr. Ramsey for his commitment to NCI designation.

Recognition of Marie Abrams

President Ramsey recognized Ms. Abrams. The Center for Women and Families named Ms. Abrams in 2003 as a recipient of the "Women of Distinction" award. President Ramsey acknowledged Ms. Abrams' commitment to the many organizations she serves by her volunteer service. The Board gave Ms. Abrams a round of applause.

XI. Report of the Chair

Chair Loving had no report.

XII. Adjournment

Ms. Brown made a motion, which Ms. Hagen seconded, to adjourn the meeting at 4:00 p.m. The motion passed unanimously.

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