University System of Maryland Board of Regents

  June 22, 2007

Minutes of the Public Session

A.  Chairman Kendall called the meeting of the University System of Maryland Board of Regents to order at 8:35 a.m. on Friday, June 22, 2007 at Orem Alumni Hall, Samuel Riggs IV Alumni Center on the campus of University of Maryland, College Park. Those in attendance were:  Chairman Kendall, Regents Finan, Florestano, Gill, Gossett, Heidemann, Hoffman, Johnson, Kelly, Mandel, McMillen, Mitchell, Nevins, Pettit, Pevenstein, Shea; Chancellor Kirwan, Vice Chancellors Goldstein, Vivona and Raley; Assistant Attorneys General Goedert and Short; USM Presidents Aldridge, Boesch, Burnim, Caret, Gilbralter, Gregory (Interim President), Hrabowski, Hunter-Cevera, Mote, Ramsay, Thompson, and other institutional representatives; Ms. Ryan; Ms. Doyle, USM Staff; members of the press and others.

B.  Dr. Mote welcomed the Regents and others to the campus and gave a presentation that highlighted the activities and the economic impact of MITech.

C.  Committee of the Whole

     1. The minutes were unanimously approved. (Moved by Chairman Kendall, seconded by Regent Heidemann;
         unanimously approved).

     2. The meeting schedule for 2007-2008 was approved.  (Moved by Chairman Kendall, seconded by Regent Patricia Florestano;
         unanimously approved).

     3. Chairman Kendall recognized the service of the outgoing regents: Regents Brady, Finan, Heidemann, Krongard, and Riley
         and reported that they were provided with resolutions expressing the gratitude of the board and honoring their dedication
         and contribution to the University System of Maryland.  

          (A copy of the resolutions will be filed with the minutes of the board meeting)

     4. Regent Mitchell provided the report of the Nominating Committee which consisted of Regents Mandel, Mitchell
         and Florestano.  The Committee recommended the following regents as officers of the board for FY 2008:    

Chairman:                    Clifford M. Kendall
Vice Chairman:              Orlan M. Johnson
Treasurer:                     Robert L. Pevenstein
Assistant Treasurer:       Patricia S. Florestano
Secretary:                     James L. Shea
Assistant Secretary:        R. Michael Gill

          (Moved by Regent Mitchell, seconded by Regent Finan; unanimously approved).

      5. Chancellor's Annual Report.  Chancellor Kirwan presented the key highlights of his fifth annual report to the Board.  The
          Chancellor noted that the report includes stories of partnership, success, and achievement and that every USM entity
          is cited in this report.  He also acknowledged the important role of the Board of Regents in the successes of this past
          year.  He noted the changes in leadership, both in Annapolis, on our campuses, and on the Board.  He welcomed
          the new regents, Barry P. Gossett, The Hon. C. Thomas McMillen, The Hon. Roger L. Richardson, James L. Shea,
          Thomas G. Slater and Student Regent Richard Scott.

Chancellor Kirwan provided brief comments on three key areas: success in Annapolis, progress toward the goals articulated in the Strategic Plan, and potential for additional progress going forward.  He reported that USM fared very well in the FY 2008 budget, particularly given the tightness of funds, with $83 million increase in state support for our operating budget and $172 million in our capital budget.  Unfortunately, USM, and state agencies now expect a decrease in the recently approved levels of state support due to the state's structural deficit.  However, USM initiatives in cost cutting, cost containment, cost avoidance, and accountability allows us to address these challenges from a position of genuine strength.

Chancellor Kirwan also pointed out the ongoing challenges USM faces, including the need for a long-term funding plan tied to enrollment growth, the next steps in our E&E initiative, and the need to accelerate progress in our $1.7-billion private fund-raising campaign. He discussed the importance of the State Commission to Develop the Maryland Model for Funding Higher Education to find long-term solutions to the issue of higher education funding and develop a funding model to address those issues; 4) Addressing the state's workforce and health-care needs; and 5) Identifying new resources and practicing exemplary stewardship.

In his concluding remarks, Chancellor Kirwan emphasized that the activities of the past year demonstrate the remarkable impact the University System of Maryland and its institutions are having on the state's economy and its quality of life.   Maryland is emerging as a leader in the knowledge-based economy of the 21st century and USM institutions are at the forefront in helping the state address its challenges with workforce development, K-12 education, healthcare delivery, and the environment.   He noted that USM has received national recognition in its efforts to contain costs through E& E, moderate tuition increases, expand enrollment capacity, and increase need-based financial aid, while simultaneously enhancing quality.  Further, research discoveries coming from USM institutions and ever expanding partnerships with the private sector are helping to place Maryland at the leading edge in the bio-tech, nano-tech, and info-tech arenas. 

Finally, Chancellor Kirwan noted the state's dire fiscal situation and the challenge to provide the needed investment in USM institutions to continue its momentum.   He reported that it is fortunate that the Commission to Develop the Maryland Model for Funding Higher Education has begun its work and expressed hope that recommendations coming from the commission will help develop a stable and robust funding mechanism required to build a truly distinguished system of colleges and universities and assure Maryland's economic leadership and high quality of life in the decades to come.

(A copy of the Chancellor's complete report is on file with the minutes.)

D. Report of Councils

1.  President Thompson, chair of CUSP presented the report of the council.  She reported that the presidents addressed a number of issues this year including the Commission to Develop the Maryland Model for Funding Higher Education; a USM "Green" Initiative; campus safety and security; financial aid and student loan practices and policies; personnel benefits; enrollment funding and planning; budget reductions; and capital planning were among the topics at their meetings.  Dr. Thompson also reported that the presidents found that the individual meetings between the presidents and the regents were very beneficial. 

2.  Dr. David Parker, chair of CUSF, presented the report of the Council of University System Faculty.  Dr. Parker reported that this was his final report to the Regents for the year as chair of CUSF and welcomed Dr. John Collins, from UMBI and the chair for the coming year.  Dr. Parker stated that CUSF was pleased with the recent actions by the Board to provide all full-time contractual faculty members with access to health insurance and to address retirement benefits for this same faculty.  However, he noted that there still remain a number of faculty who will not have access to health or retirement benefits and that this issue is of continuing concern to CUSF.   

3.  Mr. Larry Lauer, chair of CUSS, presented the report of the Council of University System Staff.  Mr. Lauer reported that CUSS is interested in setting up a workgroup to evaluate the reestablishment of extra merit awards for non-exempt staff.  In addition, CUSS has contacted the State benefits office regarding the lack of dental service providers under HMO plans.  Mr. Lauer also commented on CUSS concerns regarding the possible impact of the upcoming budget shortfall of the state and the deterioration in the USM shared governance system for staff.

4.  Mr. Devin Ellis presented the report of University System of Student Council.  Mr. Ellis reported on the new executive board of the USMSC, the new student commissioner serving on MHEC's board, expressed thanks to the outgoing student regent, Caitlin Heidemann and welcomed the new USM Regent, Richard Scott.   He also noted some organizational changes to the USMSC.  Agenda items for the 2007-08 academic year include the following issues:  accountability in public higher education, support for the President's Promise initiative, impact of mandating health insurance for students, study of shared governance, and state legislative initiatives.  Mr. Ellis also reported that USMSC was pleased with the work of the Attorney General's Proposed Code of Conduct related to student lending and provided comment on the work of the Commission to Develop the Maryland Model for Funding of Higher Education.

E.  Request to Address the Board.  Mr. Arnold Jolivet addressed the BOR regarding the issue of the award of minority contracts by the University of Maryland Medical System (UMMS).  Chairman Kendall and Regent Pevenstein noted that the USM BOR does not have jurisdiction over UMMS.

F.  Education Policy Committee                                           

1. Regent Florestano reported on the establishment of University of Maryland School of Public Health.  The importance of a school of public health in the Mid-Atlantic region was noted as well as the opportunities provided by an accredited School of Public Health for research, service, and traineeships funding available through NIH and CDC.  It was also pointed out that the necessary organizational and academic structures to accommodate accreditation standards already exist within the College and the campus is building on an already existing accredited graduate program in public health.  (Regent Florestano moved approval; seconded by Regent Hoffman, unanimously approved).

2. New Academic Program Approvals

a. New academic approval for a Master of Health Administration at University of Maryland, College Park (Regent Florestano moved approval; seconded by Regent Mitchell; unanimously approved.)

b. New academic approval for a Ph.D. in Health Services at University of Maryland, College Park (Regent Florestano moved approval; seconded by Regent Mitchell; unanimously approved.)

c.  New academic approval for a Ph.D. in Epidemiology at University of Maryland, College Park (Regent Florestano moved approval; seconded by Regent Mitchell; unanimously approved.)

d.  New academic approval for a Ph.D. in Maternal and Child Health at University of Maryland, College Park (Regent Florestano moved approval; seconded by Regent; unanimously approved.)

e.  New academic approval for a MS Molecular Medicine at University of Maryland, Baltimore Regent Florestano moved approval; seconded by Regent Pevenstein; unanimously approved.)

f.   New academic approval for a BA in Physics Education at University of Maryland, Baltimore County (Regent Florestano moved approval; seconded by Regent Mitchell; unanimously approved.)

g.  New academic approval for a MS in Systems Engineering at University of Maryland, Baltimore County (Regent Florestano moved approval; seconded by Regent Pettit; unanimously approved.)

h.  New academic approval for a BS in Engineering at University of Maryland Eastern Shore (Regent Florestano moved approval; seconded by Regent Johnson; unanimously approved.)

2. K-16 Update - Regent Florestano provided an update on the work of the PreK-16 Leadership Council and USM grant-funded K-16 partnerships, and discussed the Regent's STEM Initiative and the NSF-funded projects.

3. Annual Report on Intercollegiate Athletics

a.  Institutional Reports to the Board of Regents for AY 2005-2006. Regent Florestano reported on the annual reports on intercollegiate athletics: (1) institutional reports that are submitted in compliance with the USM Policy on Reports on Intercollegiate Athletics (V-2.10) by the eight institutions that have intercollegiate athletics programs, and (2) a report on the NCAA Academic Progress Rates of the five Division I institutions in the System.  The discussion of the institutional reports to the Board focused in large part on the fiscal integrity of the athletic programs as well as the need to have intercollegiate athletics programs that are self-supporting and to use reporting formats that provide for clear programmatic accountability. 

b.  NCAA Division I Academic Progress Rates for AY 2005-2006.  Regent Florestano reported on the NCAA Division I APRs and noted that two USM teams this year received occasion-one penalties (public warnings) and will be subject to additional historical penalties if they do not meet the historical-penalty review at any time within the next three years.  Additionally, several other USM teams are "on the bubble" and may lose scholarships in the future if    their teams' APRs do not improve by this time next year.  A number of regents expressed concern over the APR rates and institutions have been asked to provide information on steps are being taken to improve the academic standing of their student athletes and thereby to avoid NCAA penalties in the future. It was also noted that a number of USM intercollegiate athletic teams received public recognition awards from the NCAA for being in the top 10% of teams nationally in terms of their APR. 

4.  Minority Achievement Status Report.  Regent Florestano reported on the status of institutional minority achievement plans and actions for the academic years 2003-2004 through 2005-2006.  While data in the current report indicate progress in several areas across institutions, that data also demonstrate the urgent need for institutions to continue the development and implementation of recommendations as well as modification and evaluation of actions that will contribute to sustaining the academic achievement of minority students.

5.  Retention and Graduation Rates of First-time, Full-time, Degree-Seeking Undergraduates.  Regent Florestano reported that the Committee heard a report on the retention and graduation patterns of first-time, full-time, degree-seeking students system-wide and at the individual institutions.  For the first time, retention and graduation rates for Pell Grant first-time, full-time, degree-seeking students are provided in addition to these rates for all students and for African Americans.  Overall, USM institutions are enrolling more students, retaining a greater number, and graduating more students.  African-American freshman enrollment at USM institutions has doubled since the 1989 cohort (Fall 2005: 3,612).  However, institutional commitment to improving African-American retention and graduation needs to continue in order to narrow the sixth-year graduation achievement gap between African Americans and all students.  Approximately 20 percent of the freshman class received a Pell Grant to support their first year of college.  Overall, there is a three percentage point gap in second-year retention rates and a nine percentage point gap in six-year graduation rates between Pell Grant recipients and all students. 

6.  Report on Financial Aid, 2000-2005.  Regent Florestano reported that the Committee heard a report on financial aid that is a result of the Board's December 2004 endorsement of the Report of the USM Financial Aid Task Force.  The report found that the USM is making positive progress on most of the Task Force recommendations.  The USM financial aid directors have been asked to explore the next steps in assuring that financial aid is administered as effectively and efficiently as possible to provide the greatest good for the students of the USM.

7.  Report on Program Actions Delegated to the Chancellor, 2006-2007.  Regent Florestano noted that the Committee received the annual report of program actions delegated to the Chancellor.  During the academic year 2006-2007, twenty-one certificates, concentrations and programs were approved for discontinuance.  Twenty-three new certificates and concentrations, five new departments, and ten name changes were also approved.  In addition, 18 new programs were approved by the Board.

G.  Finance Committee                                     

1.  FY 2009 Capital Budget Request; and FY 2009-2013 Capital Improvement Program Regent Pevenstein presented the FY 2009 Capital Budget Request; and FY 2009-2013 Capital Improvement Program. (Moved by Regent Pevenstein, seconded by Regent Florestano, unanimously approved).

2.  FY 2008 System Funded Construction Program Request.  Regent Pevenstein presented the FY 2008 System Funded Construction Program Request. (Moved by Regent Pevenstein, seconded by Regent Heidemann, unanimously approved).

3.  College Loan Code of Conduct.  Regent Pevenstein reported that the Finance Committee recommended that the BOR endorse the College Loan Code of Conduct and encourage institutions to adopt the Code and to continue to review their institutional practices, procedures, and policies to ensure they are in the best interest of students. (Moved by Regent Pevenstein, seconded by Regent Florestano, unanimously approved).

4.  FY 2008 Operating Budget Status. A report was provided on the status of the FY 2008 operating budget.  It is anticipated that the Governor will submit a revised FY 2008 budget to the Board of Public Works in July. 

5.  Financial Aid Report FY 2000 - FY 2005.  The report on this item was deferred to a later meeting of the Finance Committee.

6.  University System of Maryland:  Report on FY 2006 Procurement Contracts.  Regent Pevenstein reported that the Finance Committee reviewed the annual report on the FY 2006 procurement contracts.

7.  University System of Maryland:  Review of Capital Improvement Projects.  Regent Pevenstein reported that the Finance Committee reviewed the report on the status of USM capital improvement projects.

H.  Audit and Inst. Assessment Committee. 

Regent Gill reported on the work of the Committee, including a review of audit plans for the coming year and a meeting with the external auditors to discuss plans for FY 2008.   He thanked Dave Mosca for his leadership and the institutions for their cooperation in addressing various audit issues.  Regent Gill further noted the increased engagement of the presidents and top staff in the financial management of their institution.

I.  Effectiveness & Efficiency Workgroup. 

Regent Nevins reported that the E & E Work Group met on June 5th and heard reports on six Phase II Initiatives: plans for a Trimester Pilot at Towson University; the successful implementation of the UMCP "Freshman Connections" program; an update on the implementation of the Maryland Course Redesign Initiative; an update on the implementation of the Application Referral System; information on Classroom Utilization across the USM and in comparison to other systems; and an update on Dashboard Indicators. In addition, the working group discussed possibilities for Foundation funding of new residence halls.

J.  Capital Campaign Workgroup. 

Regent Kendall reported on the activities of the Capital Campaign Workgroup.  USM institutions raised $690 million as of May 31; 41% of the System's goal of $1.7 billion.  The Workgroup is focused on the development of meaningful benchmarks and peer comparisons in order to measure progress in building development programs and raising private support.  The USM foundation is undergoing a strategic planning process to identify key themes and imperatives for the Foundation.  The Workgroup also heard reports on the Commission to Develop a Maryland Model for  Funding Higher Education, STEM initiatives, and a change to the campaign counting policy.

It was moved and seconded at the end of the Public Session of the Board of Regents, to convene in executive session to consider executive function agenda items and items exempted from consideration under the state's Open Meeting Act, including consulting with counsel, confidential personnel matters, real estate transactions, and various Board administrative functions.  The Board is going into executive session under State Government Article Section 10-508.

The meeting adjourned at 11:10 a.m.