UPBC members present were: Nitin Badjatia, Jacob Birnberg, George Chambers, Thomas Detre, Ronald Gardner, Darlene Harris, James Holland, James Isaacs, Randy Juhl, Peter Koehler, James Maher, Franklin McCarthy, Richard Nelson, Joan Slezak, Ben Tuchi, Philip Wion, Bruce Williams, and Julius Youngner. Also present were: Rhonda Gross, Jeffrey Liebmann, William Madden, Robert Pack, James Stuckart, and Lawrence Weber.
UPBC members not present were: Thomas Anderson, Toni Carbo Bearman, Sharon Nelson-Le Gall, Jack Ochs, Jeffrey Romoff, and Judith Zimmerman.
Wion noted that the terms of ex-officio members depend upon the terms of the positions they hold. Maher suggested that either members be replaced as their eligibility changes, or that once an ex-officio member is appointed to the UPBC they serve a three-year term whether they remain in the relevant position or not. Detre moved that the UPBC recommend that ex-officio appointments should change as the persons occupying those positions change. Holland seconded. The motion was approved unanimously.
Wion suggested that necessary changes to the Planning and Budgeting System document should be submitted for review to the University Senate. Maher agreed, stressing the need to facilitate endorsement of those changes needed to meet current appointment requirements. Nelson suggested that the PBS text relative to the UPBC subcommittee structure be edited to reflect current practice. Detre agreed, emphasizing the retention of flexibility in creating subcommittees as needed.
Members discussed other operational matters, including the use of proxy votes and the schedule for staggering replacement of members. Gardner expressed concern over the assignment of voting versus non-voting status to regional campus faculty members (currently, only two of the four regional campus faculty representatives have voting status). Birnberg suggested that all four regional campus faculty representatives should be given voting status. Wion did not disagree, but stated that some Pittsburgh Campus faculty may object to a perceived over-representation of the regional campuses. Chambers responded that the University consists of five campuses and should not be viewed as a main campus with four lesser regional campuses. Birnberg added that the Pittsburgh Campus is generally also represented by the ex- officio Senate representatives. Members agreed to take up these issues at a later date.
-- Establish a task force (co-chaired by Pack and Gross) to identify duplicated services and programs and examine University processes in need of reengineering.
-- Establish a task force (chaired by Birnberg) to study costs associated with University services and internal pricing mechanisms and budgeting practices of auxiliary enterprises, with an emphasis on evaluating potential "make or buy" decisions.
-- The Attribution and Cost Study Methodology Subcommittee (chaired by Wion) will revise the methodology developed last year, refining the allocation of costs associated with space, debt service, Computing and Information Services, and the University Library System. Detre stressed the need to involve deans and department heads in attribution discussions and to examine the total context especially for departments for which the standard methodology may be inappropriate. Maher agreed that every effort will be made to solicit input and involve interested parties in the development of the methodology. He stressed that any attribution scheme must be used wisely and not merely as an excuse to reduce unit budgets without consideration of qualitative factors.
-- The Strategic Issues Subcommittee will discuss the establishment of institutional financial and management ratios aimed at improving resource allocation decisions, as well as University policies and practices associated with the use of Plant Funds.
-- The FY 1996 Parameters Subcommittee (chaired by Koehler) will produce operating budget parameters for FY 1996, identify the most appropriate format for reporting budgetary information, and work with the Strategic Issues Subcommittee to develop a long-term University budget.
Maher also stressed the importance of the University making necessary budget reduction and reallocation decisions humanely and intelligently. He explained the pressures facing the University from faculty, trustees, legislators, parents, and others to set priorities and finance them appropriately. For example, he cited the need to improve the satisfaction graduates feel about their experience with the University. Maher stated that he would look to the UPBC for advice on related procedures, issues, and available data bases.
Juhl asked whether a subcommittee would work on the capital budget process. Tuchi recommended retaining the Capital Projects Subcommittee for one more year to complete the implementation of the process and address the large number of deferred capital projects. Gross stated that units will soon be asked to submit five-year capital budgets and that this year will see the production of the first year of a five-year institutional capital budget.
Tuchi stated that issues being discussed in the higher education task force being chaired by Representative Cowell stress the need for Pennsylvania institutions to come together on various financial and management issues. Tuchi stated that the Tuition Challenge Grant Program will likely continue and that Commonwealth support will more likely take the form on one-time capital funding rather than increased funding for ongoing operational expenditures. He also cited growing concern by legislators linking increasing tuition rates with increases in compensation and the need for institutions of higher education to pursue more cost cutting measures.
Birnberg expressed concern over the incremental nature of the Ph.D. program proposal. He stated that a better review could have followed submission of a complete proposal from the School on all related initiatives. Birnberg added that since the University will be responsible for addressing any revenue shortfalls, that the University should also benefit from new revenues produced which are planned to offset new expenditures. Pack responded that both proposals will be implemented with existing resources and that, especially in the case of the Ph.D. proposal, it would be cost ineffective to not make the proposed use of faculty in which the School has already invested.
The meeting adjourned at 12:11 p.m.