University of Illinois Urbana-Champaign Senate

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SC.10.07
February 22, 2010

Board of Trustees Meeting (UIC)
January 21, 2010
Observer: Nicholas Burbules

Chancellor Paula Allen-Mears gave an overview of achievements of UIC, the host campus for this meeting.

The Board, after a preliminary vote at their last meeting, officially elected its officers, including Chris Kennedy as Chair; and Pam Strobel and Ed McMillan as members of the Executive Committee.

Trustee Karen Hasara presented the report from the Academic and Student Affairs Committee. The Committee will review campus self-study reports and strategic plans in order to provide them a baseline of information about the three campuses. She reviewed the multiple levels of review that academic proposals go through; Chairman Kennedy asked if this impedes the ability of the university to move quickly to implement change.

There was a report from Trustee Tim Koritz, Chair of the Hospital Committee. The UIC Medical Center combines a commitment to high quality care, public service, and patient safety with a mission to serve a broad range of patients, including many on public aid.

There was a report from Trustee Ed McMillan, Chair of the Audit, Finance, and Facilities Committee. There are proposals to increase student fees and housing fees on all of the three campuses. These proposals were reviewed and supported by student organizations on the campuses. Later these fee increases were approved by the Board.

Senior Advisor Craig Bazzani and VP Avijit Ghosh presented a proposal for reviewing cuts and consolidation of administrative costs across the campuses and at the University level. The emphasis is on long-term, permanent changes, and on improving service at the same time as reducing costs. Shared service centers are likely to be a key part of the recommendations. Twelve specific areas are targeted for review: Information Technology, Facilities and Capital Programs, Business Operations, Human Resources, Development, Alumni Affairs, Procurement, Energy and Utilities, Space Utilization, Auxiliary Operations, Printing, and Public Affairs and Communications. Information Technology is seen as an especially promising area for substantial savings; as are Procurement and Energy costs. A final report is due June 15.

VP Walter Knorr gave a report on the University budget for FY 2010. The state appropriation for this year ($743 million) is the same as last year; but it contains $45.5 million in one-time federal stimulus funds. As of December 31, only $46 million had been paid over from the state. The University has received $58 million since then. This is still only a fraction of what has been billed. The stimulus money is expected in February.

In constant dollars, there has been a significant drop in state appropriations over the past decade. This has been matched by a steady increase in tuition costs. Today the funds from tuition are basically equal to the amount of state funds; a dramatic change from the traditional expectations of a public university.

Good news: revenue from sponsored projects increased 13.4% over the previous year.

Good news: utility expenditures have (so far) been less than half of what was budgeted.

The university debt is about $1.7 billion, a large debt relative to our peers. Debt service is about 2.5% of the annual budget. The university’s Moody’s credit rating is currently higher than that of the State of Illinois.

VP Meena Rao described efforts made by the University to address this financial crisis. This includes a 6% reduction from units; a hiring freeze; and a personnel cost reduction program (furloughs).

VP Knorr returned to present the proposal on increasing student fees for FY 2011. For Urbana students this represents a total increase of $39 (2.8%). Housing rates will increase $201 (4.6%).

President Ikenberry said that a decision on tuition would be forthcoming after the financial situation is clarified in Springfield. The discussion would begin in March, but may not be settled until June. It must be settled by the July Board meeting. He predicted the increase could be 9%, or more.

The Board received a presentation on diversity of vendors and contractors with the university. Short version: we can do better.

The following agenda items, affecting the Urbana campus, were approved:

By voice vote:

Approve Honorary degrees
Appoint Interim VC for Academic Affairs
Appoint President Emeritus
Approve several BA, BS, and MS degrees, Urbana
Approve PhD in Informatics
Eliminate several MAT and MS degrees, Urbana
Approve student fees and housing fees Urbana (above)
Amend the UIUC Senate Constitution

By roll call vote:
Award contract for Ikenberry Commons, Urbana
Award contract for upgrades to HVAC systems, Main Library, Urbana
Award contract for polyurethane waterproofing, Memorial Stadium
Increase budget for HVAC replacement, College of Education Urbana
Increase budget for repair, Mumford Hall