Finance Committee Minutes -- May 8, 2003 -- Board of Trustees -- University of Louisville
MINUTES OF THE FINANCE COMMITTEE
UNIVERSITY OF LOUISVILLE BOARD OF TRUSTEES
May 8, 2003
In Open Session
The Finance Committee of the University of Louisville Board of Trustees met on Thursday, May 8, 2003 in the Jefferson Room, Grawemeyer Hall, with members present and absent as follows:
|Finance Committee Present:||
Mr. J. Chester Porter, Chair
Ms. Joyce Hagen, Vice Chair
Mr. Ulysses L. Bridgeman, Jr.
Mr. Kevin D. Cogan
Prof. David Ensign
Mr. Nathaniel E. Green
Mr. Owsley B. Frazier
|Other Trustees Attending:||
Ms. Marie Abrams
Ms. Virginia C. Brown
Ms. Linda Wallbaum Cauble
Mr. Grant Helman
Ms. Jessica Loving
Mr. Michael Sticklen
|From the University:||
Dr. James Ramsey, President
Ms. Angela D. Koshewa, University Counsel
Mr. Joseph S. Beyel, Vice President for Development and Alumni
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. Ronald L. Moore, Vice President for Information & Technology
Mr. Larry L. Owsley, Vice President for Finance & Administration
Dr. Gene Gilchrist, Vice President for New Ventures
Ms. Rae Goldsmith, Associate V. P. for University Relations
Dr. David Howarth, Associate Provost
Mr. Alvin Herring, Executive Director, Counseling Center
Ms. Terri Rutledge, Asst. VP for Finance & Administration
Mr. John Drees, Director, Communications & Marketing
Mrs. Kathleen M. Smith, Assistant Secretary, Board of Trustees
Ms. Debbie Dougherty, Board Liaison, President's Office
I. Call to Order
Having determined a quorum present, Chairman Porter called the meeting to order at 2:27 p.m.
Approval of Minutes, March 13, 2003
Mr. Bridgeman made a motion, which Mr. Green seconded, to approve the minutes of March 13, 2003. The motion passed unanimously.
II. Budget Workshop: 2003-2004 Operating Budget
Mr. Curtin presented a brief overview of the 2003-2004 operating budget. Vice Chair Hagen commended Mr. Curtin and his staff for their thorough briefing and their ability to create a sophisticated solution to complicated issues. Chair Porter reported that Mr. Curtin presented the budget to him and Vice Chair Hagen prior to the Committee meeting. Chair Porter asked the members to review the budget information and to be prepared to take action at the June meeting. If any member had suggestions or comments, Mr. Porter requested they work directly with Mr. Curtin.
III. Action Item: Approval of Demolition of Keller Psychiatric Building
Vice President Owsley described the projected construction of a 470-space addition to the Chestnut Street parking garage at the Health Sciences Center, which requires the demolition of the Keller Child Psychiatry Research Center Building. Mr. Owsley recognized the full support of Health Sciences Center administration. Prof. Ensign made a motion, which Ms. Hagen seconded, to approve the
President's recommendation that the Board approve the Keller Child Psychiatry Research Center, located at Jackson and Chestnut Streets, be razed for construction of a 470-space parking addition.
The motion passed unanimously.
IV. Action Item: Approval of Increase in MBA Tuition
Mr. Curtin reported that as soon as the University received news of the continuing budget cuts in the 2003-04 fiscal year, it formed committees to investigate possible new revenue sources and budget reductions. The recommendation to increase MBA tuition emerged from the "Ideas to Raise Revenue and Reduce Expenses at the University of Louisville," a report to the university community dated February 5, 2003. The proposal increases resident tuition per semester to $2874, or $40 per credit hour; nonresident tuition per semester to $7669. He acknowledged the increase recognizes the high demand for the degree. Compared to benchmark institutions, UofL's rate was below others. In response to Prof. Ensign's question, Mr. Curtin stated this increase was in addition to the 9% overall tuition increase. In response to Mr. Helman's question regarding the rate increase for the joint MBA/JD program, Mr. Curtin answered that the rate charged was determined by the school where the students take most of their coursework. Mr. Green asked about the potential impact on minorities. Mr. Curtin responded that he did not know CBPA's plans for minority recruiting; however, he did report that the President set aside a pool of funds containing $200,000 for tuition assistance. These funds will allow admissions staff to make immediate decisions on behalf of students with financial need. Mr. Green commended the University staff for the excellent work, but expressed a word of caution about a potential decline in minority students. President Ramsey said he would research the issue and get back to the Board. Mr. Bridgeman made a motion, which Mr. Green seconded, to approve the
President's recommendation that the Board of Trustees approve a 14.9% increase in the tuition charged for the Master of Business Administration (MBA), effective August 1, 2003.
The motion passed unanimously.
V. Action Item: Approval of Increase in Undergraduate and Graduate
Mr. Curtin reported that as soon as the University received news of the continuing budget cuts in the 2003-04 fiscal year, it formed five on-campus committees to investigate possible new revenue sources and budget reductions. This recommendation emerged from the "Ideas to Raise Revenue and Reduce Expenses at the University of Louisville," a report to the university community dated February 5, 2003. The report projected that UofL could raise its undergraduate admission application fees to $30 without a disproportionate impact on applications and could also explore a larger increase in graduate application fees comparable to the rates charged at the University of Kentucky. Mr. Curtin noted the 2003-04 Operating Budget includes this increase. He estimated that the University had not raised the application fee in approximately eight years. Mr. Cogan made a motion, which Mr. Bridgeman seconded, to approve the
President's recommendation that the Board of Trustees approve an increase in the Undergraduate and Graduate Application Fees, effective November 1, 2003, as follows:
Undergraduate $30 (from $25)
Graduate $50 (from $25)
The motion passed unanimously.
VI. Information Item: Interim Financial Statements as of March 31, 2003
Vice President Owsley reviewed the interim financial statements as of March 31, 2003 (copy attached). He reported that all revenues are within target. The unrestricted net assets total $95,108,000.
VII. Information Item: Report on Phased Retirement for Faculty
Dr. Howarth noted the Board's approval of a two-year trial implementation of a program to allow faculty members who meet certain criteria to retire through a phased reduction in their university workload assignments. Dr. Howarth reported responses from the units varied, with a total of 14 faculty who have elected phased retirement and an additional three faculty considering the option. He presented data with projected savings from this program. He agreed to update the Board next year.
VIII. Information Item: 2004-2010 Agency Capital Plan
Mr. Curtin reported that state law requires all state agencies including public universities to submit, on a biennial basis, information about their capital needs (KRS 7A.120(3)). The institutional Agency Capital Plan, in its prescribed format, conveys this information (copy attached). The capital plan includes:
Summary of UofL's Mission and Programs,
Agency Facilities Management Procedures,
Capital construction and renovation projects for fiscal year 2004-2010,
Research and Information Technology equipment and IT systems for fiscal years 2004-2006,
Ancillary Projects - Major Maintenance,
A status report on currently authorized projects from the 2002-2004 biennium,
UofL's "Future List" of capital construction and renovation projects, and
Other various reports.
Mr. Curtin stated the Agency Capital Plan reflects the capital construction, renovation, equipment projects and other items submitted on April 15, 2003 to the Capital Planning Advisory Board (a committee of the Kentucky General Assembly), to the Council on Postsecondary Education (CPE), and the Governor's Office on Policy and Management (GOPM). The university's architectural staff prepared cost estimates for the capital construction and renovation projects, as well as for major maintenance. Proposed research and Information Technology (IT) equipment and IT System items were developed by the Colleges, Schools and Divisions of the University. Chairman Porter noted that he and Vice Chair Hagen thoroughly reviewed the Plan with Mr. Curtin, and Mr. Curtin has invited any trustee interested in a more detailed review to contact him.
Ms. Hagen made a motion, which Mr. Green seconded, to adjourn the meeting at 2:40 p.m. The motion passed unanimously.