Minutes of May 15, 1995 Meeting

Minutes of May 15, 1995 Meeting

       The meeting convened at 2:03 p.m. in room 817 Cathedral of Learning.

       UPBC members present were: Thomas Anderson, Toni Carbo Bearman, James
Cassing, George Chambers, Ronald Gardner, James Holland, Randy Juhl, Peter
Koehler, James Maher, Franklin McCarthy, Glenn Nelson, Michael Stuckart,
Philip Wion, Jeffrey Woodard, and Julius Youngner.  Also present were: Joseph
Gil, Jeffrey Liebmann, William Madden, Jeffrey Masnick, Robert Pack, Kathy
Tosh, Lawrence Weber, and Douglas Wylie.
       UPBC members not present were: Jacob Birnberg, John Brice, Thomas Detre,
Darlene Harris, Brian Hart, Jeffrey Romoff, Ben Tuchi, Bruce Williams, and
Judith Zimmerman.

Approval of Minutes

       The minutes of the May 4 meeting were approved.

FY 1996 Budget Parameters

       Pack distributed the final draft parameters of the FY 1996 Educational
and General operating budget, noting that the only substantive changes relate
to compensation.  He explained that the proposed budget does not project a
salary increase in order to avoid the termination of current employees through
layoffs.  Changes in staffing patterns should result from programmatic
decisions based on planning priorities.  To any extent that salary increases
for faculty and staff can be provided in FY 1996, it will be done so as to not
increase the University's salary budget over FY 1995 levels.  Various salary
savings programs, such as recapturing salary funds from temporarily vacant
staff positions and reducing vacant staff position salaries to control points,
may provide for a modest salary increase for lower-paid employees.  To plan on
a significant salary increase would have the undesired effect of requiring
reductions in staffing levels.
       Youngner moved that the UPBC adopt the proposed FY 1996 parameters. 
Bearman seconded.  Wion expressed concern that the savings generated from the
decision to eliminate HealthAmerica as a medical insurance option are being
transferred out of compensation.  Maher responded that the University must
respond to concerns voiced by state legislators that colleges and universities
improve their efficiency and establish credibility as well-run organizations. 
Maher stated that the University must either convince important constituencies
of the need for current levels of compensation expenditure, or those
expenditures must be reduced.
       Anderson expressed concern over the need for the UPBC to be provided
more information, especially on nonacademic units such as athletics and
auxiliary enterprises.  Youngner suggested attaching a codicil to the motion
expressing concern over the incomplete nature of the information received by
the UPBC and stressing that the UPBC can better perform its advisory role to
the Chancellor with improved information.  Maher explained that one reason for
the delay in providing athletics information is the desire to report figures
that are consistent with recently modified Department of Education rules
requiring such reporting by January 1, 1996.  Koehler stressed the importance
of being able to defend the recommendations made in the FY 1996 parameters
despite the fact that all line items have not received an equal level of
scrutiny.  The motion was approved by a vote of 9 to 1 (see attachment for
full text of the motion and codicil).

Capital Priorities Committee

       Pack reported that the Capital Priorities Committee would soon review FY
1996 capital projects and submit a recommended capital budget to the UPBC. 
The Committee would then begin a long-term review of all currently planned
capital projects.  Maher stated that remaining FY 1995 capital projects would
not automatically carry over to the FY 1996 capital budget.

Duplication Task Force Update

       Pack reported that the Task Force has conducted an extensive survey
assessing current University services, identifying areas in which the
potential for duplication exists.  The Task Force is currently defining
exactly what a duplicated service is, how value added is measured, and how its
efforts fit with ongoing reengineering activities.
       The Task Force is pursuing two tracks, which include: (1) identifying a
set of areas where redundancy or unnecessary bureaucracy exists; and (2)
formulating a set of principles governing decisions relative to administrative
processes and service offerings.  In many cases, Pack stated, savings may be
less financial and more in terms of time spent on activities.  While a report
is forthcoming, Pack added that some issues identified by the Task Force are
already being considered by the Business and Finance Working Group.

       The meeting adjourned at 3:17 p.m.

FY 1996 Parameters Motion

The UPBC moves to adopt the current draft parameters of the FY 1996
Educational and General Operating Budget (draft 17).  The Committee wishes to
voice its concern that it had to construct this budget with incomplete
budgetary information.  The capacity of the Committee to discharge its
responsibility to advise the Chancellor on the University budget depends upon
the extent to which appropriate information is provided in a timely manner
from all segments of the University.  Specifically, the lack of information
this year about nonacademic units, particularly athletics and auxiliary
enterprises, made the budgetary review process less effective than it should
have been.