THE BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF MARYLAND


                      MINUTES OF THE MEETING

                          August 25, 2000

                         Shady Grove Center

                         EXECUTIVE SESSIONS



Chairman Chapman moved, Regent Larson seconded and the Board
of Regents voted unanimously to convene in closed and 
executive session on Friday, August 25, 2000, at the 
Shady Grove Center, Rockville, MD beginning at 8:30 a.m.
Those present were: Chairman Chapman, Regents Finan,
Gonzales, Houghton, Hoyer, Josey, Kendall, Larson, 
Nevins, Oxendine, Tydings, and Wood and Assistant
Attorney General Anderson. The meeting adjourned at 12:30 p.m.

The Board of Regents and the Chancellor reviewed items on the
agenda that were exempted under the Open Meetings Act for
consideration in closed and executive session on August 
25, 2000, at the Shady Grove Center, Rockville, MD 
beginning at 12:30 p.m. Those present were: Chairman 
Chapman, Regents Finan, Gonzales, Houghton, Hoyer, 
Josey, Kendall, Larson, Nevins, Oxendine, Tydings, 
and Wood, Chancellor Langenberg, Vice Chancellor 
Vivona, Assistant Attorney General Anderson, and 
Ms. Ryan. The meeting adjourned at 12:55 p.m.
Action Items:

     A.   Approval of Proposed Advisory Board for USM 
          Universities of Shady Grove
     B.   University of Maryland, Baltimore County: 
          Acquisition of 5445 Wilkens Avenue
     C.   University of Maryland, Baltimore County: 
          Approval of UMBC Research Park Corporation Board
     D.   University of Maryland University College: Lease 
          at P.G. Metro Center

Information Item:
     A.   Report on Business Entities and Other Related 
          Entities and Activities


Chairman Chapman announced that since of the length of 
time taken in the Executive Session and there not being 
any items on the agenda for action that Executive Session
with Chancellor's Council be canceled.


PUBLIC SESSION

I.   Call to Order, Welcome and Remarks from the Host 
     Institution
     The public meeting of the Board of Regents of the 
     University System  of Maryland was called to order 
     by Chairman  Chapman on Friday, August 25, 2000 at 
     the University System of Maryland Shady Grove Center,
     Rockville, MD, beginning at 1:25  p.m. Those present
     were: Chairman Chapman, Regents Finan, Gonzales, 
     Houghton, Hoyer, Josey, Kendall, Larson, Nevins, 
     Oxendine, Tydings, and Wood.
     
     Dr. Gertrude Eaton, Acting Executive Director of the USM
     Shady Grove Center, welcomed members of the Board of 
     Regents and guests. Dr. Eaton presented an overview of
     the new Universities of Shady Grove which will begin 
     day-time undergraduate classes for Fall 2000. The 
     USM Universities of Shady Grove will provide full- 
     or part-time classes in General and Liberal Studies, 
     Psychology, Nursing and  Early Childhood/Special 
     Education in 2000 in conjunction with the 11 USM 
     degree-granting institutions. In the Fall of 2001,
     classes in Accounting, General Business, International
     Business,  Marketing, Information Systems, Hotel and
     Restaurant Management, Social Work and Special
     Education/Elementary and Secondary Education will be 
     added.
     Dr. Eaton announced the Board approval for the formation
     of an  Advisory Board for the Shady Grove Center and 
     introduced several members of the Shady Grove Steering 
     Committee:  Dr. Charlene  Nunley, President of Montgomery
     College, Earle Palmer Brown, Gene Counihan, and Vice 
     Chancellors Vivona and Middleton.
     
     Regents Chapman and Larson congratulated Dr. Eaton on the
     successful implementation of the program.

II.  Committee of the Whole

     A. Chairman Chapman requested that the Board of Regents 
        approve the minutes of, and ratify the actions taken 
        at, the July 7, 2000 meeting; moved by Regent Nevins, 
        seconded by Regent Hoyer and unanimously approved.

III. Reports of Standing Committees

     A. Council of University System Presidents
            President Catherine Gira thanked the Board on 
            behalf of all of the Presidents for the success 
            in obtaining resources; the institutions are 
            enjoying the largess;
            
            Presidents are eager to assist with the development 
            of the OCR Agreement;
            
            Conversion of Contingent II employees to full 
            employment - is a very good thing but will have 
            a different impact on each campus;
            
            Praised the Chancellor and USM for their work during
            the year.

     B. Council of University System Faculty
            Dr. William Chapin, CUSF Chair, stated they will be
            working on the following issues for the coming year:

            Shared Governance - thanked the regents for their 
            support of the new policy;

            Faculty Grievance Procedures

            Salary compaction and catch-up

            New Excellence

      C. Council of University System Staff
         Mr. Larry Lauer, CUSS Chair, presented the proposed
         2000-01 agenda:
            Follow-up the proposed USM System training and 
            development programs;

            Work with USM and BOR to revise policy on 
            Contingent Employees to provide, at a minimum, 
            health care benefits for all staff who work 
            full-time;

            Revise and refine the award process for the 
            Regent's University Staff Awards;

            Propose modifications to the nonexempt pay program
            that provides flexibility that allows USM to 
            recognize all individuals who exceed expectations;

            Review the current PMP process and provide 
            suggestions for simplified evaluation; on-line 
            forms, standards, etc;

            Lobby for increased resources for USM Personnel 
            Office so current programs can be implemented and 
            evaluated;

            Shared Governance;

            Collective Bargaining.

            Recognized Jennifer Berkman for her work as the
            Regent's Representative.

            Regent Hoyer asked for a definition of Contingent
            I and Contingent II employees. Mr. Lauer explained 
            that Contingent I is an employee who is very 
            temporary who usually work for 6 months or less 
            (usually  seasonal employees ); Contingent II 
            employee is full-time, employed over six months.
            CUSS is concerned about the long term Contingent II 
            employee that was hired without a State PIN line 
            which does not provide for benefits.

            Regent Hoyer asked how many Contingent employees 
            with more than 6 months service duration do we have
            in the System? Mr. Lauer stated that about 4700  
            contingent employees, of which only about 1400 
            don't have coverage.
          
            Mr. Lauer will send Regent Hoyer a copy of the CUSS
            report that was submitted in May.
          
            Regent Nevins: The budget that is to be presented at
            this meeting does include money for benefits for all
            such employees who have been with the System for two
            years or more.
          
            Regent Hoyer: Is that full benefits - retirement
            included?
          
            Regent Nevins:  Yes
          
      D. University System Student Council
          
         Mr. Saleem Rasheed, USSC Chair, stated that the theme
         for the year will be "Commitment to Service" exceeding
         ordinary expectations as we strive to increase the
         standards of student services on our respective
         campuses. The group will be working on the following
         areas for 2000-01:
              Financial Aid Practices
              Academic Advising
              Student Faculty Evaluations
              Shared Governance
              Student Rights and Responsibilities

IV.  Committee on Advancement - no report

V.   Committee on Audit - no report

VI.  Committee on Education Policy

     Regent Gonzales reported on the August 22, 2000 meeting 
     of the Committee.

     A.   New Program Proposals:
          1.    SSU - MS in Social Work
          2.   SSU - BA in Theatre Arts
          3.   UMB Doctoral of Physical Therapy (DPT)
          4.   UMUC, M.Ed. with Specialization in Instructional
               Technology
          
          Regent Gonzales requested that the four new program
          proposals be approved as a group; moved by Regent
          Hoyer, seconded by Regent Wood and unanimously
          approved.
     
     B.   Format for Reports on Technological Fluency
     
          Regent Gonzales moved approval of the format of 
          reports on technological fluency in principle with 
          the criteria indicated in the proposed format to 
          serve as guidelines to the campuses in addressing 
          technological fluency and further recommend that 
          the Office of Academic Affairs in conjunctions 
          with the Academic Affairs Advisory Committee 
          devolve a flexible reporting format to be
          brought back to the Committee and then in turn
          to the Board in September. Seconded by Regent 
          Tydings and unanimously approved.
          
          Regent Wood complimented the Education Policy 
          Committee and  Regent Gonzales for finalizing 
          this technology fluency statement. It interfaces
          very well with the BOR's  Minimum  Information 
          Technology Sandards and together they will make a 
          real difference to the System.
          
     C.   USM Policy on Shared Governance

          Regent Gonzales moved the approval of the USM Policy
          on Shared Governance as distributed today, seconded by
          Regent Oxendine.
          
          Discussion:    Regent Gonzales pointed out the
          differences between the policy handed out and voted
          on today and the policy that was in the Regent's 
          packet:
          
          Page  2, III Practice, Paragraph B: parts of this
          policy apply to the institution as a whole and other
          parts apply to the respective subunits (departments).
          Paragraph B was intended to apply to the institution 
          as a  whole - so the 75% requirement was intended to 
          be a requirement applied to the governance body as a 
          whole of the institution not necessarily to the 
          respective subunits.. The difference in the amended 
          proposal is the new sentence that makes it clear that
          this percentage shall not apply to Paragraph G.
          
          III,  Paragraph  K, III: Faculty, staff and students
          expressing their opinions on shared governance matters
          will have protection from retaliation as provided by
          the first amendment of the US Constitution. 
          Acknowledging that we all have the rights of the
          Constitution, it was concluded that some may construe
          this to mean more than was intended.  New paragraph K
          was adopted which is more specific. All constituencies
          were comfortable with the language.
          
          A  concern was raised before the meeting regarding 
          Item II,  Paragraph  E. Regent Gonzales stated that 
          the second  sentence was a new one since the Committee
          had met  in  June: "While some members of shared 
          governance bodies may be appointed, the substantial 
          majority should  be elected by the constituencies.  
          Such bodies should elect their own presiding 
          officers." Dr. Ramsay, of UM,B, has some concerns 
          about that sentence.
          
          Dr. Joann Boughman, Vice President UMB, represented 
          Dr. Ramsay and presented his concerns. Dr. Boughman 
          stated that it would be troublesome if the 
          interpretation  and if the intent is that in 
          principle  B, the second sentence is a requirement,
          not only at the institutional body level for all of
          the subunits as well. The concern would be eliminated
          if the sentence were eliminated or even the change 
          were made rather saying "such bodies" if it simply 
          said "institutional bodies should elect their 
          presiding officer."  "The single word change would 
          eliminate the concerns that have been expressed 
          by people on our campus and President Ramsay."
          
          Regent Gonzales:  The preference would be that the
          sentence be eliminated so there would be no 
          requirement that the presiding officers be elected 
          at any level. Is that correct?
          
          Dr. Boughman:  Yes, our concern is at the subunit
          level. To have the sentence read "institutional bodies
          should elect their own presiding officers" would
          address the concern.

          Regent Gonzales: To clarify, are you saying that
          shared governance bodies, say for the School of
          Medicine, would not be required to have their
          officers elected but could in fact be appointed?
          And the reason for that is because you believe 
          that the Medical School, for example, couldn't 
          operate its business side effectively if its 
          presiding officers were elected. Is that the 
          rationale?
          
          Dr. Boughman: That is the point of discussion as
          brought forward by the complex School of Medicine.
          There is a committee of whole or an assembly and 
          a council - in all other schools at least one if 
          not both of the bodies are presided by a chair or 
          some elected faculty member. The School of Medicine
          currently has a faculty assembly, the faculty 
          council is 62%  elected; several other members 
          include the department chairs
          
          Regent Gonzales: All of the other institutions and
          presidents are comfortable with it as is. I think 
          it is fair to say that Dr. Ramsay is not comfortable
          and not likely to get comfortable with it. I don't 
          think that will change.

          Additional discussion followed. Regent Gonzales 
          stated that this policy with the sentence contained
          was presented to the presidents and councils at the
          Chancellor's Council meeting on August 7 and no 
          dissent was voiced. Dr. Ramsay was present and had 
          voiced no objections.
          
          Regent Josey asked if the policy is approved, could
          this policy be later amended if Dr. Ramsay made a
          successful case or experience that he can document?
          
          Regent Chapman:  Yes
          
          The policy was unanimously approved.
          
          Regent Chapman congratulated the Committee and Regent
          Gonzales on their effort on the important effort.
          
          Regent Gonzales thanked all of the presidents, the
          Councils, Dr. Middleton, and the Chancellor who 
          worked for the entire year to bring this policy to 
          completion.
          
          Information Item:
          
          Tentative Agenda for FY 2000-2001.
          
VII. Committee on Finance

     Regent Nevins, Vice Chair of the Committee on Finance,
     reported on the meeting of the August 24, 2000 meeting of
     the Committee.

          Vice Chancellor Vivona gave an abbreviated Budget
          Presentation. USM has put in place the State Plan,
          a Strategic  Plan,  Managing for Results and 
          Performance and  Accountability Plans during FY 
          2000. USM will ask the  Governor for a total of $96M
          FY2002 Operating Budget (a  12%  increase) which
          will be allocated according to the funding 
          guidelines. This will take USM to 93% of the 
          funding guidelines.
          
          This budget increases the optional retirement up 
          over a two  year  period; Contingent II Employee 
          conversion  - over the next two years these 
          employees will be transitioned to regular status 
          to include all  benefits accorded USM employees.
          
          Request for a one time appropriation to the Regent
          priority for Minimum Technology Standards, $40M
     
          Separate List Request:  $45M
     
     Action Items:
     A.   University System of Maryland:  Fiscal Year 2002 
          Schedule of Tuition and Mandatory Fees - Resident 
          increases are being held to a maximum of 4% change.
          Non-resident students are required to pay the full 
          cost of education, but this will be reviewed again
          in two years. The Finance Committee requests that 
          the Committee be assigned the task this year to do 
          a study and analysis for a new recommendation on 
          tuition and fee setting policies. Request to approve
          made by Regent Nevins; moved by Regent Chapman,
          seconded by Regent Josey.
     
          Regent Chapman requested that the Committee look at
          ways to affect a tuition reduction.
          
          Unanimously approved.
     
     B.   University System of Maryland: FY 2002-2006 Tuition 
          Plan - Request to approve made by Regent Nevins, 
          moved by Regent Chapman, seconded by Regent Josey and
          unanimously approved.

     C.   University System of Maryland: Fiscal Year 2002 
          Operating Budget Request of $2.6 Billion - an increase
          of $51M in general funds.

          Request to approve FY 2002 Operating Budget made by
          Regent Nevins; moved by Regent Chapman, seconded by
          Regent Oxendine and unanimously approved.
          
     D.   University System of Maryland: Separate List Request 
          of $45M in general funds - Request to approve made by
          Regent Nevins, moved by Regent Chapman, seconded by
          Regent Josey and unanimously approved.

     Information Items:
     
     A.   Four-Year Tuition Plan Analysis
     B.   Financial Data Report for the Year Ended 
          June 30, 2000
     C.   University of Maryland: Progress of Capital 
          Improvement Projects

VIII.     Technology Committee

     Regent Wood presented an overview of the Joint Chair's
     Report on the institutional responses to the Minimum IT
     Standards. The report includes what the institutions need
     in addition to the minimum standards to be competitive with
     their aspiration peers; the cost of each initiative; what
     existing revenue sources there are available at each campus;
     and implementation schedules for each campus.
     
     Regent Wood requested that the Regents approve the Report
     to the  Joint  Chairs;  moved by Regent  Chapman,  seconded
     by Regent Nevins and unanimously approved.
     
IX.  Organization and Compensation Committee - no report

X.   Chancellor's Report - Chancellor Langenberg reported on
        the following items:

       MHEC-OCR  Partnership Agreement should be reached by
        September 30, 2000.
       
        The USM Strategic Plan has been forwarded to the 
        Governor, General Assembly and MHEC and has been 
        favorably received;
       
        USM has been chosen to host the 2002 conference of the
        Society of Environmental Journalists which will be held
        in Baltimore;
         
        The USM office, working in collaboration with campus IT
        offices, has reached an agreement with four major 
        computer manufacturers (Apple, Gateway, Dell and IBM)
        whereby USM students, faculty and staff will be able 
        to purchase computers at a lower price on selected 
        computers than they can receive elsewhere.

XI.  New Business

     A.   Chairman Chapman read a news release into the minutes
          regarding a new vice chancellor position:

          "USM Board of Regents and Chancellor Discuss Issue of
          New Vice Chancellor Position
          
          The issue of the possible appointment of Lance
          Billingsley as a vice chancellor of the University
          System of Maryland (USM) was discussed today by the 
          USM Board of Regents. The Board met first in executive
          session and then with USM Chancellor Donald N.
          Langenberg to review the Chancellor's plan to appoint
          Mr. Billingsley, a USM regent, to an interim position
          as a USM vice Chancellor. It was noted Mr. Billingsley,
          who did not attend the meeting, had withdrawn his
          candidacy for such a position, and the Board concluded
          that such an appointment is no longer being considered.
          The Board instructed the Chancellor to submit any
          proposal to create a new vice chancellor position to
          the Board for its approval or disapproval.
          
          
          At the conclusion of the Board's deliberations, Board
          Chairman Nathan A. Chapman, Jr. said,  'The Board
          considered this plan to be an error in judgment on the
          part of both the Chancellor and Regent Billingsley.
          The Board and the Chancellor are in agreement that 
          future organizational plans of this type will be 
          submitted to the board for its review.'
          
          'In  retrospect, I should have consulted with the 
          Board about this matter,' said Chancellor Langenberg."
          The Board made both its concerns and expectations 
          very clear and I look forward to our collaborative 
          review of the USM Office's organizational structure 
          and needs."
     
     B.   Regent Nevins stated that the Towson Search Committee 
          was moving ahead on the search and an advertisement 
          for the position had appeared in the Chronicle of 
          Higher Education.



Adjourned 3:20 p.m.