Approved 10/11/02
THE BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF MARYLAND
MINUTES OF THE MEETING
August 23, 2002
Salisbury University
EXECUTIVE SESSIONS
Vice Chairman Larson moved, Regent Wood seconded and the
Board of Regents voted unanimously to convene in closed and
Executive Session on Friday, August 23, 2002, at Salisbury
University beginning at 8:30 a.m. Those present were: Vice
Chairman Larson, Regents Billingsley, Canter, Finan,
Florestano, Houghton, Hoyer, Johnson, Josey, Kendall,
Marcus, Mister, Nevins, Rosapepe, Tydings, Wood. The Board
of Regents reviewed items on the agenda that were exempted
under the Open Meetings Act for consideration in closed and
executive session. The meeting adjourned at 9:00 a.m.
Vice Chairman Larson moved, Regent Wood seconded and the
Board of Regents voted unanimously to convene in closed and
Executive Session with Chancellor's Council on Friday,
August 23, 2002, at Salisbury University beginning at 11:20
a.m. Those present were: Vice Chairman Larson, Regents
Billingsley, Canter, Finan, Florestano, Houghton, Hoyer,
Johnson, Josey, Kendall, Marcus, Mister, Nevins, Rosapepe,
Tydings, Wood, Chancellor Kirwan, Vice Chancellors Martin
and Vivona; Interim Vice Chancellor Boesch, Ms. Dawna Cobb
from the Attorney General's Office, Presidents Bogomolny,
Burnett, Dudley-Eshbach, Heeger, Hrabowski, Lowe, Mote,
Ramsay, Thompson, Interim President Jones, Vice President
Bruszewski (FSU), Mr. Lauer (UMBI), Dr. Parker (CUSF), Mr.
Hill (CUSS), Mr. Patton (USSC), Mr. Ross and Ms. Ryan. The
Board of Regents reviewed items on the agenda that were
exempted under the Open Meetings Act for consideration in
closed and executive session. The meeting adjourned at
1:20 p.m.
Vice Chairman Larson moved, Regent Wood seconded and the
Board of Regents voted unanimously to convene in closed and
Executive Session with the Chancellor on Friday, August 23,
2002, at Salisbury University beginning at 2:00 p.m.. Those
present were: Vice Chairman Larson, Regents Billingsley,
Canter, Finan, Florestano, Houghton, Hoyer, Johnson, Josey,
Kendall, Marcus, Mister, Nevins, Rosapepe, Tydings, Wood,
Chancellor Kirwan, Vice Chancellors Martin and Vivona;
Interim Vice Chancellor Boesch, Ms. Dawna Cobb from the
Attorney General's Office and Ms. Ryan. The Board of Regents
reviewed items on the agenda that were exempted under the
Open Meetings Act for consideration in closed and executive
session. The meeting adjourned at 3:30 p.m.
Minutes of the sessions are attached.
PUBLIC SESSION:
Call to Order, Welcome and Remarks from the Host Institution
Vice Chairman Larson called the public meeting of the Board
of Regents of the University System of Maryland to order at
9:06 a.m. on Friday, August 23, 2002 at Salisbury
University. Those present were: Vice Chairman Larson,
Regents Billingsley, Canter, Finan, Florestano, Houghton,
Hoyer, Johnson, Josey, Kendall, Marcus, Mister, Nevins,
Rosapepe, Tydings, Wood, Chancellor Kirwan, Vice Chancellors
Martin and Vivona; Interim Vice Chancellor Boesch, Ms. Dawna
Cobb from the Attorney General's Office, Presidents
Bogomolny, Burnett, Dudley-Eshbach, Heeger, Hrabowski, Lowe,
Mote, Ramsay, Thompson, Interim President Jones, Vice
President Bruszewski (FSU), Mr. Lauer (UMBI), Dr. Parker
(CUSF), Mr. Hill (CUSS), Mr. Patton (USSC), Mr. Ross and Ms.
Ryan, USM staff members, members of the press and other
observers.
A. An official welcome and an overview of Salisbury
University were presented by President Dudley-Eshbach.
Three students: Rochelle Clark, finance international
business; Matt Anderson, senior biology major; April
Callaway, math/secondary education/premed track gave
overviews of their experience as students at SU.
Ms. Barrie Tilghman, mayor of Salisbury, presented
concerns about the problems of student behavior and
student housing. She stated that the city and
university have been working together to help decrease
the behavior problem. There is also great concern about
the lack of housing at SU causing many students to live
off campus. Some students cause disruptions within the
city communities. Mayor Tilghman said that it is
imperative that the USM leadership address the housing
issue.
B. Committee of Whole
1. The minutes of July 10, 2002 meeting of the Board of
Regents were unanimously approved.
2. Dr. Kirwan presented his first report as Chancellor to
the Board. Full text on file with the minutes as well
as on the USM web site.
Items 3 and 4 taken together:
3. Board Meeting Schedule Change
4. Proposed Bylaw Change
Vice Chairman Larson motioned for approval of
Items 3 and 4 - changing the date of the Annual
Meeting of the Board of Regents from July to
September. Moved by Regent Rosapape; seconded by
Regent Josey and unanimously approved.
5. Updated List of Meeting Information - a revised list of
meeting dates was provided as an information item.
6. Update List of BOR Standing Committees - a revised list
of Standing Committee membership was provided as an
information item.
C. Report of Finance Committee
Regent Nevins presented a report from the Finance
Committee on August 22, 2002.
Items 1 and 2 taken together:
1. USM: Fiscal year 2004 Schedule of Tuition and Mandatory
Fees
2. USM FY 2004-2008 Tuition Plan
Regent Nevins stated that there will be a 4% tuition
increase for in-state at all campuses except Coppin,
which will be 3%. Out of state tuition increase will
range from 2-6%. Depending on the year's budget
situation, there could be a mid-year tuition
adjustment but it is hoped that we will be able to
hold the line on tuition. Regent Nevins stated that
the Finance Committee asked the Chancellor, who has
agreed, to appoint task force to study the whole
issue of tuition and fees to include members of
numerous constituency groups represented by the
campuses. The task force will report back to the
Board in the winter or early spring so that the
Board may incorporate its findings into the decision
making process for making final tuition decisions
for FY 2004.
Regent Nevins moved to approve items 1 and 2;
seconded by Regent Tydings.
Discussion:
Regent Florestano stated that there had been
discussion in the Finance Committee meeting
regarding the concerns that have been raised by the
Maryland Prepaid Tuition Program regard the tuition
increases. It was agreed that the Board would
consult with the Prepaid Tuition Board and report
back to the Board.
Regent Wood asked whether the Board would consider
having a liaison from the new task force to the Md.
Prepaid Tuition Board to help assist communications
between the two groups. Regent Nevins agreed.
Items 1 and 2 unanimously approved
3. Four Year Tuition Plan Analysis was presented for
information only.
4. USM Fiscal Year 2004 Operating Budget Request. Vice
Chancellor Vivona presented an overview of the FY 2004
operating budget request.
· The USM long-term budget is not strong for at least the
next 2 years with the decline of revenue collections and new
expenses the State will fund for Medicaid and other social
services as well as the Thornton Commission.
· Our USM budget will be about $3 billion dollars - up 1
billion in the last 5 years - bringing the Funding
Guidelines to 81%. On the positive side research growth is
up 27% to $115 million which brings it to a 45% four-year
increase.
· Financial aid: USM prepared a study of Financial Aid
which MHEC will ask the other segments of higher education
to duplicate. We found that 69% of resident undergraduate
students are on some sort of financial aid including loans.
We also found the link between aid and persistence. If aid
is present, retention increases. If the aid is present in
the form of indebtedness, persistence declines.
· Another issue is over the last four years we have built
or renovated 48 buildings which have to be supported from
the operating budget.
· The Separate List Request will be approved at the next
Board meeting. The current budget request is inadequate to
meet our mandatory cost increases. The objective is to get
as much as possible into the operating budget and work on
distributions later. It's conceivable that the growth will
be zero as was last year's.
· It is important to see how we are doing within the
framework of the governance architecture. In the past we
did not compete very well nationally. We have installed
within the funding guideline, a peer performance mechanism.
There are institution-specific indicators that meet the
character of each institution. We are above the peer
average in 68% of the cases. We have made a tremendous
amount of progress over the last three years.
· Workforce development - Maryland is the only state in
the last three years to be in the top five largely because
of workforce development. The workforce development level
is now ranked #1 and the USM has played a large role in
achieving this status.
· Financial stewardship has grown the fund balance by 90%
- closing this year at $270M which has fueled ability to do
public/private partnerships.
· Assuring Access: baby boom echo -We have honored our
commitment to grow in terms of students. We were at 80,000
FTEs; we are now at 93,000 FTEs - a 16% increase. We have
seen the effect of that increase on the quality of the
funding guideline. We were at 91%. There will an increase
in demand for student placements regardless of future
declines in population.
Regent Nevins stated that the Regents:
1 are committed to increase need based financial aide;
2 will reduce or eliminate "mandates" that are placed on
us for spending so we can have flexibility to decide on
how the funds will be spent.
3 need to analyze how to balance the need for enrollment
growth with the limited dollars that are available.
Regent Josey commented on the workforce development
ranking. We need to stress this with legislators.
Regent Tydings congratulated Vice Chancellor Vivona
on an excellent presentation of the budget. Regent
Tydings then suggested that we need to pull the
institutional Boards of Visitors and presidents
together in concert with the regents to organize to
create a plan to advocate to protect the gains made
in public higher education. Regent Florestano asked
that alumni be included
Regent Wood agreed with Regent Tydings suggestion
and that we have a theme: "Maintain the Momentum."
Regent Nevins: agreed and said that he and the
Chancellor had already discussed such an idea
essential to protect position of USM. Regent Larson
stated that it is important to have the general
public understand the linkage between work force
education job creation and recovery of the economy.
The key to economic recovery is job creation.
Regent Wood reminded the group of the "USM Economic
Impact Study" which stated that for every dollar the
state puts into the USM, $1.75 is generated in the
Maryland economy.
Chancellor Kirwan: "Regent Tydings, your Call to
Arms was inspirational and motivating. I will begin
a conversation with the presidents immediately about
how we can collectively organize to carry out the
mandate that you have described." He promised to
return to the Board with a strategy.
Regent Nevins moved approval of item # 4 -FY 2004
Operating Budget Request; seconded by Regent
Billingsley and unanimously approved.
With the concurrence of the Board, Regent Nevins moved
to place items 5-12 on a consent agenda; seconded by
Regent Rosapepe.
5. Extension of the Interim Board of Regents' Policy
Granting Tuition Remission Benefits to Morgan State
University'' and St. Mary's College'' Faculty, Staff and
their Dependent Children; and Baltimore City Community
College'' Faculty and Staff.
6. UMES: Construction/Equipment Funding for Murphy Hall
Anne.
7. UMES: Increasing in Funding Authorization for Coastal
Ecology Teaching and Research Laboratory
8. UMES: Increase in Funding Authorization for the Social
Science, Education and Health Sciences Building
9. UMCP: Change in Scope and Funding for Preinkert
Fieldhouse Modifications
10. UMCP: Change in Scope and Funding for Hornbake/McKeldin
Libraries Renovation
11. UMB: Cost Increase for Student Housing
12. SU: Public/Private Partnership for Student Housing
Discussion: Regent Rosapepe commented on the Salisbury
public/private partnership and noted that it is an
important project and that The Board has the
fundamental responsibility to provide students with
adequate places for them to live. It is incumbent on
the campuses to figure out how much housing that they
need and how to address it.
Regent Nevins noted that this is a complicated issue.
The state pays for academic buildings but not housing.
Those are generally done on a public/private
partnership basis; occasionally in a private/private
partnership which requires the cooperation local
governments.
Regent Rosapepe: the students pay for the housing
regardless if they live on or off campus. Mayors of
the communities want students in an environment that is
best for the students and best for the community. It's
an issue of campuses planning with the local
communities for locations and financing.
Regent Florestano requested some data that gives
Regents a sense of what is the norm for campuses - how
many of their students they house. What is a target?
What should be the ideal?
Items 5 through 12 unanimously approved.
Items 13/14 presented for information
13. Review of Capital Improvement Projects
14. Financial Data Report for the Fiscal Year Ended June
30, 2002
D. Committee on Audit - Regent Kendall reported that the
Committee met on August 21. The annual USM audit is
underway; enrollment audits have been completed with no
significant difficulties or problems found. Reviewed
internal audits by USM; most audits did have
recommendations. There has been good cooperation from
institutions. The Committee expressed a concern that there
is not enough staff at USM Internal Audit.
E. Committee on Technology: Regent Wood presented overview
of Digital Divide Initiative event at Bowie State University
in August which was attended by Lt. Governor Townsend and
Board Vice Chair Larson.
Regent Tydings and Vice Chairman Larson congratulated
Regent Wood on his efforts to make this program a
reality.
F. Admiral Larson welcomed new student regent Andrew
Canter who is a student at UMCP.
G. Reports of Advisory Council
1. Council of University System Presidents: President
Hrabowski thanked the Board for bringing Dr.
Kirwan back to Maryland as chancellor. The
presidents feel that a very positive tone is being
set to work collectively with the chancellor and
regents.
Regent Florestano congratulated Dr. Hrabowski on
his recent outstanding appearance on The Today
Show.
2. Council of University System Faculty: Dr. David Parker,
new chair of CUSF, stated that he is looking forward to
working with the Regents and CUSF during the coming year.
Regent Larson welcomed Dr. Parker and thanked Dr.
Chapin for his work on CUSF over the years.
3. Council of University System Staff: Mr. Joe Hill,
chair, reported that the CUSS had met in August;
elections have been completed. The CUSS is
recommending that the Board of Regents approve
the 8/31/01 draft Policy on Alcohol Abuse.
4. University System Student Council: Mr. Tyler Patton,
chair, said that some items of concern for the
Council are shared governance, better communications,
student housing and tuition and fees. He looks
forward to working with the Council and Regents
during the coming year.
G. No new business
H. Meeting adjourned at 11:10 a.m.