SC.03.12

September 29, 2003

University of

Illinois

Board of Trustees Meeting

June 27, 2003

Chair Lawrence Eppley at 10:35 a.m., June 27, 2003 in Chicago at the Chicago Illini Union with the introduction of new board member, Ms. Frances Carroll, called the meeting to order. Board member Schmidt conducted the official swearing-in ceremony of Ms. Carroll. President Stukel introduced various officers attending the meeting and also observers from the campus Senates and University Senates Conference. Since this was a specially called meeting, there was no public comment session.

The minutes of two previous Board of Trustees meetings, September 12 and November 14, 2002, were approved by voice vote.

Items from the approved agenda were then considered.

1. Elect Board Member to serve on Board of Trustees Executive Committee.

Due to resignation of Mr. Thomas Lamont, a member of the Executive Committee, Mr. Robert F. Vickery was recommended to fill the vacancy. This motion was delayed to a later time on the agenda for vote, and Mr. Vickrey was unanimously approved.

2. Administrative Review Project – Preliminary Report

The Board of Trustees in March directed President Stukel to “ examine all existing administrative structures and return to the board with proposals for consolidating, streamlining, and simplifying administrative structures wherever possible….study should cover business, financial and resources operations at every level of the organization; facilities planning and management operations; public affairs and external relations; and all other activities.” President Stukel discussed the status of the project and a timetable for the “Administrative Review FTE and Budget Summary”. Several items will be completed and potential opportunities identified for others by the regular July Board meeting.

3. Configuration of the Fiscal Year 2004 Internal Operating Budget.

President Stukel introduced the topic and Vice President Rugg gave a detailed Power Point presentation. With the addition of the budget control requirements, the Board of Trustees will approve and control all operating funds available to the University by object of expenditure. This unprecedented level of control will demonstrate to all segments of state government and to the taxpayers of Illinois that the University takes its accountability obligations seriously, and that the Board of Trustees exercises oversight over all University operating resources. All current budgetary oversight agreements remain in force also.

4. Approve Tuition Rates, Fiscal Year 2004

Vice President Gardner gave a detailed discussion of the Recommendations for FY 2004 Tuition, Fees and Financial Aid based on a 5% tuition increase (recommended by the Governor’s Office) for each campus, which was an abrupt change from the 8% tuition increase that was discussed early in the week of June 23. The Board passed the tuition recommendation unanimously, although several stated their concern that it was too low and that the consequences could be severe.

5. Other Tuition and Fee Increases and Cost Recovery Items for Fiscal Year 2004

Several separate program tuition and fee increases, cost recovery, off-campus, online fees and other program’s costs were considered and approved. These included the Executive MBA Program and several Master of Science degree programs in Business at UIUC. Other fees were: Online internet-based courses that require additional resources at all campuses, E-Tuition at Springfield, and Institute of Aviation at UIUC.

6. Student Fees for Chicago, Springfield and Urbana for Fiscal Year 2004

Student fees increases for a variety of services at each campus were approved. These amounted to: at Chicago, $18 increase (2.8%), at Springfield, $15 increase (6.7%) and at Urbana $18 increase (3.5%).

7. Student Health Insurance Fees for Fiscal Year 2004

Student Health Insurance Fee changes per semester were approved: at Chicago an increase of 15% to $363, at Springfield an increase of 36-38% to $194-$296, depending on age group, and at Urbana no increase, remaining at $155 UG and $214 Grad.

8. Rate Changes for University-Operated Housing Facilities for Fiscal Year 2004

Rate changes for University-operated housing facilities were approved for each of the campuses with increases ranging approximately from 3.5 to 5.0%. Separate schedules for specific units were presented.

9. Approve Illinois Emerging Technologies Fund as a Program of IllinoisVENTURES, LLC

Vice President Chicoine presented the recommendation from the task force of the University of Illinois Foundation for increasing the availability of privately sourced early stage capital. For this purpose Illinois Emerging Technologies Fund was formed to make equity and equity-related investments in promising new companies commercializing University of Illinois technologies. IllinoisVENTURES GP, LLC will be organized and serve as general partner of the Fund, which will be a limited partnership. The sole managing member of the General Partner will be IllinoisVENTURES, LLC whose private sector members of the Board of Managers will make investment decisions on behalf of the Fund. The Board of Trustees members were polled and unanimously approved the action.

Chair Eppley gaveled the meeting to a close at 12:00 noon.

Submitted by

Barclay G. Jones

UIUC Senate Observer