Minutes of February 27, 1995 Meeting

       The meeting convened at 11:09 a.m. in room 817 Cathedral of Learning.

       UPBC members present were: Thomas Anderson, Nitin Badjatia, James
Cassing, Darlene Harris, Randy Juhl, Peter Koehler, James Maher, Glenn Nelson,
Joan Slezak, Ben Tuchi, Philip Wion, and Judith Zimmerman.  Also present were:
Kevin Evanto, Joseph Gil, William Laird, Jeffrey Liebmann, William Madden,
Kathy Tosh, Robert Pack, and Lawrence Weber.
       UPBC members not present were: Toni Carbo Bearman, Jacob Birnberg,
George Chambers, Thomas Detre, Ronald Gardner, James Holland, James Isaacs,
Franklin McCarthy, Jeffrey Romoff, Michael Stuckart, Bruce Williams, and
Julius Youngner.

Athletics Budget Information

       In response to Wion's request, Tuchi informed the Committee that the
delay in presenting detailed budget information on the Department of Athletics
was caused by changes in the federal Department of Education reporting
requirements and his need to obtain the authorization of the Chancellor to
release the information.  Maher stated that the Chancellor wants to provide
whatever information the UPBC needs.  Maher recommended examining the budgets
of football and men's basketball separately from other sports.

FY 1996 Budget Parameters

       Two new budget scenarios were distributed based on FY 1996 Parameters
Subcommittee input and revised estimates of several revenue and expenditure
items.  Both scenarios incorporate revised revenue projections based on FY
1995 actual enrollments and hold the total University salary budget constant
at FY 1995 levels with fringe benefits adjusted to account for savings
produced and required rate increases.  The first scenario assumes a 3.5%
tuition increase for all students.  The second scenario assumes a 3.5% tuition
increase for graduate/professional students only and no increase in
undergraduate tuition rates.
       Subcommittee members expressed concern that the scenarios had produced
balanced budgets several days earlier and were now showing large negative
balances of revenues less expenditures.  Koehler listed several assumptions
and policy changes that had been adopted by the Subcommittee to achieve a
balanced budget projection.  Madden explained that several large changes had
just occurred to alter previous assumptions, including fully funding the
research incentive program, revised enrollment projections, and lower expected
savings on health insurance.
       Members discussed the revised assumptions.  Pack emphasized that a $2.4
million decline in revenues projected from enrollment shortfalls should not be
included in the FY 1996 parameters as units will be moving to a net tuition
model that will hold them, not the University-wide budget, responsible when
they fail to achieve targets.  Wion stressed that improving control of the
compensation budget must be the top priority.  Concern was expressed about the
ability to provide sufficient budgetary information to reduce ongoing
fluctuations in the available projections.
       Members asked for detailed information on the $18 million surplus in
actual over budgeted compensation expenditures in FY 1994.  Tuchi responded
that the volume of the surplus is likely to reoccur, but that a prediction
cannot be made as to how or where it will occur.  Koehler expressed concern
that the implication of no salary increase is severe, especially since such a
parameter does not prevent a projected excess of expenditures over revenues. 
Tuchi agreed that a top priority must be providing a salary increase if
possible.
       Further discussion was referred back to the FY 1996 Parameters
Subcommittee.

       The meeting adjourned at 12:30 p.m.


Minutes of March 2, 1995 Meeting

       The meeting convened at 10:09 a.m. in room 817 Cathedral of Learning.

       UPBC members present were: Thomas Anderson, Nitin Badjatia, Jacob
Birnberg, James Cassing, Thomas Detre, Ronald Gardner, Darlene Harris, James
Holland, James Isaacs, Randy Juhl, Peter Koehler, James Maher, Joan Slezak,
Michael Stuckart, Ben Tuchi, Bruce Williams, Philip Wion, and Julius Youngner. 
Also present were: Ann Dykstra, Joseph Gil, Leon Haley, William Laird, Jeffrey
Liebmann, William Madden, Jeffrey Masnick, Robert Pack, and Douglas Wylie.
       UPBC members not present were: Toni Carbo Bearman, George Chambers,
Franklin McCarthy, Glenn Nelson, Jeffrey Romoff, and Judith Zimmerman.

Approval of Minutes

       The minutes of the February 20 meeting were approved.

Discussion of Compensation Variance

       Laird presented a detailed breakdown of the components comprising the
$18.4 million variance of budgeted over actual compensation in FY 1994,
including the following items: temporary transfers of monies to operating
expenses, tuition for teaching assistants, corrections in benefit costs, and
cost recovery in service units.
       Tuchi stated that a surplus will occur this year, though not as large as
$18.4 million.  Based on a review of expenditures to January 1, he estimated a
total surplus of approximately $11 million will likely occur and that, in
subsequent years, changes in the way the University budgets could reduce this
figure to between 2.0% to 2.5% of the total compensation budget.  Maher
stressed the need to eliminate recurring discrepancies by putting more
realistic figures into the annual budget.  Pack expressed concern that several
of the items, such as the medical insurance settlements and the renegotiation
of the fringe benefit rate for Medical faculty on federal grants, will
reappear in subsequent years as charges against the E&G budget.  Wion
suggested creating a contingency line in the budget based on all past actual
expenditures.

FY 1996 Parameters

       Tuchi reported that the Board of Trustees Budget Committee meeting has
been postponed for three weeks.  Koehler suggested that the FY 1996 Parameters
Subcommittee use this time to identify essential policy questions and
potential strategies for submission to the UPBC for discussion.  Koehler
expressed concern that the information provided on the compensation variance
may make certain previous parameters infeasible for FY 1996.  Maher stressed
the positive impacts that moving toward a net tuition model will have in FY
1996.  He added that upcoming presentations on the nature of Plant Funds and
associated transfers and on the Department of Athletics budget will provide
additional useful information.

       The meeting adjourned at 11:50 a.m.