Maryland's Public System of Higher Education

Approved as amended February 18, 2005

Chairman Kendall moved, Regent Nevins seconded and the Board of Regents voted unanimously to convene in Closed and Executive Session with the Chancellor on Friday, December 10, 2004, 12:10 p.m. and adjourned at 1:02 p.m. at UMBC. Those present were: Chairman Kendall, Regents Acosta, Finan, Florestano, Gill, Horine, Houghton, Hug, Johnson, Mandel, Mitchell, Nevins, Pettit, Pevenstein, Rosapepe, and Tydings, Chancellor Kirwan, Vice Chancellors Vivona and Goldstein, Mr. Sansbury, Mr. Page, Ms. Ryan, Assistant Attorney Generals Cobb and Goedert. The Board of Regents reviewed items on the agenda that were exempted under the Open Meetings Act for consideration in closed and executive session.

Regent Florestano reported that an item originally on the agenda for the Committee on Education Policy to amend the human relations code at UMCP was withdrawn because of an opinion by the Attorney General that the amendment was unnecessary because the language in the code already protected the class of individual the amendment was intended to address.

Regent Nevins presented three items involving property acquisition or disposition - one for UMCP, two for UMUC. All three items were approved; Regent Mitchell abstained.

The Board accepted the Finance Committee recommendation to authorize the Chancellor and Vice Chancellor to proceed in exploring potential new arrangements for the PeopleSoft agreement.

The Board approved (with one negative vote) a new coalition bargaining agreement for non-exempt employees. The coalition comprises eight institutions.

A. Chairman Kendall called the meeting of the University System of Maryland Board of Regents to order at 9:08 a.m. on Friday, December 10, 2004 at UMBC. Those in attendance were: Chairman Kendall, Regents Acosta, Finan, Florestano, Gill, Horine, Houghton, Hug, Johnson, Mandel, Mitchell, Nevins, Pettit, Pevenstein, Rosapepe, and Tydings, Chancellor Kirwan, Vice Chancellors Goldstein, and Vivona, Ms. Ryan, Assistant Attorney Generals Cobb and Goedert; Presidents Bogomolny, Caret, Dudley-Eshbach, Gira, Heeger, Hrabowski, Hunter-Cevera, Lowe, Mote, and Thompson; Vice Presidents Wilson (UMCES), Orlin (UMB), Holden (UMES) and Mitchell (SU), Ms Ryan, members of the press and others.

B. President Hrabowski welcomed members of the Board of Regents, Presidents and other guests to UMBC. He then presented three students and a faculty member who briefly shared their experiences at UMBC. They were Aaron Rawlby, an English major; Amanda DeFore, Biochemistry major and a Meyerhoff Scholarship Program and Howard Hughes Medical Institute Scholarship; Aaron Murkey, Political Science and Sondheim Public Affairs Scholar; and Dr. Anne Spence, Engineering Education.

C. 1. Regent Kendall and Chancellor Kirwan presented the 2004 Board of Regents Staff Awards to:

Kathy Sutphin, UMBC - Exceptional Contribution to the Institution (exempt)

Elizabeth L. Shearn, Ph.D., UMCP, Outstanding Service to Students (exempt)

Marsha Guenzler-Stevens, Ph.D., UMCP, Extraordinary Public Service to The University of Greater Community (exempt)

Wallace J. Beery, FSU, Outstanding Service to Students (non-exempt)

Priscilla L. Redding, UMES, Exceptional Contribution to the Institution (non-exempt)

Patricia Musick, UMUC, Extraordinary Public Service to the University of Greater Community (Non-exempt)

Items 2 and 3: Regent Kendall moved for the approval of the minutes of the October 22, 2004 and November 19, 2004 meetings of the Board of Regents; seconded by Regent Nevins and unanimously approved

. 4. Chancellor's Report - Full report is on file with the minutes as well as on the USM website. Chancellor Kirwan discussed:

• Budget and Tuition
• Financial Aid Report
• Effectiveness and Efficiency Project
• MHEC State Plan

Regent Tydings asked the Chancellor about the budget cuts at the institutions before the E&E initiatives were begun. The Chancellor said there are two things to keep in mind: (1) we absorbed cuts of $120M to the budget and, in addition absorbed mandated increases for fuel and utilities, health care benefits and other items that total about $100M in the last three years. In just those two items, somewhere between $220-250M; accomplished through cuts to budgets and relatively high tuition increases. In looking at the total, the breakdown is something like 62% of the $220-250M was through reduction of expenditures; 38% was covered by increased tuition. (2) The State also has efficiency expectation of all entities through DBM. Each year we have to document activities on the campuses that both reduce costs and produce new non-State, non-tuition revenue. That figure is about $60M each year; this is an on-going activity.

The Chancellor also added that there have been two years with no salary increase for faculty and staff; this year 2.5% merit and flat cola of $725 for all state employees.

Regent Tydings expressed concern about the effect of reductions on retaining key faculty at the research institutions. President Mote responded that UMCP is concerned and gave some specific examples.

President Hrabowski echoed President Mote's concerns and stated that there is a balancing act for the campuses. On one hand, we want to talk about the loss of faculty. As faculty build national reputations, they are sought after and if we don't have the funding to retain them, it is a loss of investment. The challenge is to balance E&E initiatives with this potential loss.

Regent Rosapepe responded by saying E&E is not just about budget cuts. E&E is not an excuse for the state to not come up with adequate funding. Regent Kendall said that E&E is not just about budget cuts but about making a good System better in difficult times.

President Lowe reminded the Board of the faculty needs at the comprehensive universities, which are the institutions that will handle the enrollment surge over the next few years.

Regent Rosapepe brought up an incident that happened in a residential area of College Park. Several student houses sponsored a huge party that brought hundreds of students into the residential community. Police were called and broke up the party. The students did write an apology to the neighbors. There is concern that there is not enough campus housing so that students must live off campus.

President Mote said he deeply regretted the incident. UMCP Vice President Clement stated that the campus has added 2500 beds to the campus; 1000 more will come in the Fall; additional housing is being constructed at Prince George's Plaza to help with the problem. The towns of Salisbury and Frostburg have capped the number of houses that can be turned into group houses. The City and County need to be the ones to address this problem.

UMBC student Rachel McMullin asked the following: " How are you going to keep the tuition competitive." Regent Kendall stated that the state is not the primary source of income; contracts and grants and tuition are the primary source of income for the campuses. It's not a simple question that we have an answer for.

D. Report of the Councils

1. Dr. Robert Bogomolny presented the report of the Council of University System Presidents stating that increase in salaries for faculty is a major issue for each of the presidents. The institutions won't be able to meet their missions without good faculty.
2. Dr. Martha Siegel presented the report of the Council of University System Faculty. Undergraduate Research Days will be held in Annapolis on March 1, 2, 3, 2005. There is concern regarding the benefits open enrollment scheduled from July 1-July 30 as if affects the 9/10 month employees.
3. Mr. William Crockett, chair of the Council of University System Staff presented his report. Topics of interest have been constitutional bylaws, shared governance; state employee benefits.
4. Mr. Nicholas Aragon presented the report of the University System Student Council. The Annual Annapolis 101 will be held on Tuesday, January 18 in Annapolis. The Student Regent selections will be forwarded to the USM Office prior to the holidays.

E. Regent Florestano presented the report of the Education Policy Committee.

1. The minutes of the October 16, 2004 meeting were accepted.

1. New Program proposals

1. UB/TU Master of Business Administration. Regent Florestano moved for approval; seconded by Regent Mitchell and unanimously approved.
2. UMCP: Master of Engineering and Public Policy. Regent Florestano moved for approval; seconded by Regent Mitchell and unanimously approved.
3. UMUC: Global Master of Business Administration. Regent Florestano moved for approval; seconded by Regent Kendall and unanimously approved.
4. UMUC: Master of Science in Financial Management. Regent Florestano moved for approval; seconded by Regent Nevins and unanimously approved.

1. Creation of the School for Health Professions at UMES. Regent Florestano moved for approval; seconded by Regent Nevins and unanimously approved.
2. Report of Statewide Task Force on Financial Aid. Regent Florestano presented an overview of the Task Force. The recommendations of the task force were to decrease student loan debt; direct institutions to establish a plan to allow for allocations of funds from tuition increases to implement more financial aid; increase the percent of tuition that goes into financial aid; establish a goal for institutions to reach at least the 75^th percentile of institutional peers and the average percent of need met; need based versus non-need based aid and what should the balance be; need to focus future efforts on need based aid, percent of need based aid needs to be increased; aid to Maryland community college transfer students; graduate and professional student financial aid; administrative processes - how do we improve what we are doing now; increasing financial aid funding; conduct a cost/benefit analysis of piloting the Miami University of Ohio tuition model at one of the USM institutions.

Regent Mandel stated that the Task Force has done a wonderful job. He suggested that symposia are needed so that everyone has the same information - bring people in from the Federal and State Governments to give information to the campus financial aid officers to educate them on various sources of financial aid. There is much aid that is not being taken advantage of now.

The Committee on Education Policy recommended that the Board endorse this report and that the Board charge the Chancellor to work with the institutions to establish a time line and plan to implement the recommendations paying particular concerns articulated by Gov. Mandel. The Board should also direct the USM office staff to review and revise as appropriate the current system policies on financial aid. Regent Florestano moved for approval; seconded by Regent Hug.

A discussion followed.

Regent Rosapepe asked how much all of the recommendations would cost if implemented.

Regent Florestano said there is no real way to put a figure on the costs.

Regent Rosapepe stated that he would recommend that one of the follow- ups would be for the Chancellor's Office to do a financial analysis to put a price tag on the recommendations.

Regent Florestano stated that she would add the financial analysis to the recommendations.

Regent Florestano moved the acceptance of the Financial Aid Task Force Report including the addition of the financial analysis. Unanimously accepted.

Full Report on file with minutes as well as the USM website.

3. Reports on Academic Advising. Reports on Academic Advising were presented to the Committee from UMCP and Salisbury University. Reports are presented as information only.
4. Results of Periodic Reviews of Academic Programs-presented as information only.
5. Report on workload of the USM Faculty presented as information only.

F. Finance Committee

Regent Nevins moved that items 1, 2, and 3 be placed on the consent agenda; seconded by Regent Rosapepe.

1. UMB: Procurement of Scientific Supplies and Equipment
2. TU: Dedication and Conveyance of Road Area to Baltimore.
3. UMCP: Increase Authorization to Construct the Biosciences Research Building

Items were unanimously approved.

4. Report on the Statewide Task Force on Financial Aid was presented to the Committee as an information item.

5. USM: Quarterly Review of Capital Improvement Projects information only

G. Report of the Workgroups

1. Regent Houghton presented the report of the first Capital Campaign Work Group meeting which was held on November 29, 2004. Minutes on file. The mission and charter of the work group were approved. Three presidents are serving as ex officio members of the work group. The work group will be looking for Regent support for fundraising with Regents directly involved with the capital campaign; there was a discussion of the upcoming seven year capital campaign and funding gaps between institutions. Institution campaign goals are due from each institution by the end of 2004.
2. Regent Kendall submitted the report of the E&E Work Group. The E&E report has been submitted and the reaction has been quite positive. There are seven major areas that have been identified. USM and officers of our institutions are preparing action plans and time lines to implement these plans. E&E will continue to accept suggestions on an on-going basis. The Work Group will be taking a look at the organization at nontraditional institutions. We will try to identify key elements that are dashboard indicators as to how we are doing as a system.

Regent Mitchell suggested the addition of student input to the E&E Work Group.

Regent Kendal said that E&E would consider the suggestion.

H. Adjournment: 12:00 p.m.