Minutes of October 12, 1995 Meeting

     The meeting convened at 10:06 a.m. in room 817 Cathedral of Learning.

     UPBC members present were: Thomas Anderson, Toni Carbo Bearman, Jacob
Birnberg, James Cassing, H.K. Chang, Richard Colwell, Thomas Detre, Ronald
Gardner, Brian Hart, Peter Koehler, James Maher, Franklin McCarthy, Keith
McDuffie, Glenn Nelson, Michael Stuckart, Ben Tuchi, and Julius Youngner. 
Also present were: Ann Dykstra, William Laird, Jeffrey Liebmann, William
Madden, Jeffrey Masnick, Robert Pack, and Arthur Ramicone.
     UPBC members not present were: John Brice, Marjorie Carlson, Randy Juhl,
Jeffrey Romoff, Bruce Williams, Philip Wion, and Judith Zimmerman.

Approval of Minutes

     The minutes of the October 2 meeting were approved.  Maher reported that
a subcommittee has been formed to assemble issues for review by the UPBC in
the coming months.

Recommendations of the Capital Priorities Committee

     Pack discussed the final draft report of the Capital Priorities
Committee, clarifying that there will be a small net gain in instructional
space since much instructional space that is of lower quality will be removed
from the University inventory.  He added that there is a need for a "space
bank" to house funded research activities.  In response to members' questions,
Maher explained that a goal is to integrate all elements of the University
into the space plan, including non-E&G areas such as Auxiliaries.
     McDuffie expressed concern over the lack of development of sites such as
the Burger King property between Fifth and Forbes Avenues.  He discussed
concerns of Oakland business owners about the impact on local businesses of
the University's capital budgeting decisions.  McDuffie agreed to draft a UPBC
resolution concerning the urgency of maintaining and improving University-owned properties in Oakland.
     Tuchi stated that the expectation on the part of the City of Pittsburgh
appears to be that the University will serve as the core of an Oakland
Business Investment District (BID), addressing areas such as storefront facade
changes, policing, street cleaning, and establishment of business facilities
within new buildings.  This BID would probably also involve UPMC, but the
other colleges and universities and the local hospitals have not been overly
receptive to invitations to participate.
     Maher stated that the Capital Priorities Committee recommendations will
proceed to the Board of Trustees Property and Facilities Committee, along with
an engineering report due to be completed by March 1996.  Birnberg expressed
concern about the projected cost of recommended projects, and stated that
space can no longer be viewed by units as a "free good."  Detre replied that,
in certain cases, academic priorities must supersede such financial concerns. 
Maher agreed that the University must continue moving toward real financial
accountability for capital costs.  McCarthy moved to adopt the recommendations
of the Capital Priorities Committee.  Detre seconded.  The motion was approved

Update on Planning and Budgeting in the Health Sciences

     Masnick reported on recent discussions of the Planning and Budgeting
Committee of the Senior Vice Chancellor for the Health Sciences.  Specific
concerns include the financial impact of a salary increase in January 1996,
the determination of program specific priorities, and the current distribution
of revenues among schools.  Detre discussed current trends influencing the
health sciences, such as forces affecting research grant funds, declining
reimbursement of education, and the surplus of available beds in hospitals. 
Detre predicted that some hospitals may be forced to close or merge in the
next several years as a result of the number of procedures now performed on an
ambulatory basis.  He added that, while UPMC is strong and at the cutting edge
of current trends, success in the next few years will require increased
discipline in the management of hard money budgets.
     Hart expressed concern over proposed salary increase differentials in
the FY 1997 budget parameters for medical school employees, stating that
morale could be affected if employees in the medical school receive lower
salary increases than other University employees.  Detre responded that in
previous years UPMC employees have received larger salary increases than other
University faculty and staff and that health science pay scales have
traditionally been higher.  He encouraged people to look at their salary
histories, not just the changes in one year.  Masnick added that the practical
reality is that the University received an increase in appropriations in FY
1996, while the School of Medicine did not.  Colwell requested that data on
salary increases in the health sciences be supplied to the UPBC and Masnick
agreed to do so.
     Maher discussed current ideas for the proposed salary increase to take
place in January 1996.  Birnberg expressed concern about its implementation
relative to the spirit of the UPBC's original recommendation as included in
the budget parameters for FY 1996.  Birnberg agreed to formulate a motion
clarifying this issue.  Hart affirmed that, once developed, the Senate Budget
Policies Committee and the Staff Association Council will be given the
opportunity to review the proposal.

     The meeting adjourned at 12:10 p.m.