Minutes of March 14, 2002 Meeting

	The meeting convened at 10:07 a.m. in room 817 Cathedral of 
Learning.

	UPBC members present were: Tammeka Beattie, Clifford Brubaker, 
Frank Cassell, James Cassing, Jerome Cochran, Richard Colwell, N. John 
Cooper, Christine Dollaghan,  Attilio Favorini, Christopher Happ, Gerald 
Holder, James Maher, Barbara Mowery, Arthur Ramicone, Christopher Riegel, 
Debora Rougeux, Michael Stuckart, Philip Wion, and Stephen Wisniewski.  
Also present were: Jeffrey Liebmann, Jeffrey Masnick, and Robert Pack.
	UPBC members not present were: Jeffrey Alex, Mary Ann Barber, 
Arthur Levine, Richard Pratt, Evelyn Talbott, and Thomas Wolf.

Report of the Chair and Approval of Minutes

	The minutes of the February 11, 2002 meeting were approved.  
Provost Maher emphasized the importance of planning and budgeting 
parameters for the coming year and the need to begin thinking about next 
year, when the health insurance plan for University employees must be 
renegotiated.

Discussion of University Employee Health Insurance Costs

	Cochran reported that the University's health insurance plan is 
nearing the end of the second year of a three-year contract.  He stated 
that the University negotiated a very good contract, which has resulted in 
significant cost savings for the University.  The challenge to the 
discussion of FY 2004 planning and budgeting parameters will be the 
upcoming renegotiation of that contract, which is unlikely to be as 
favorable to the University.  He cited aspects of the University's 
contract that are somewhat unique, including: a sophisticated population 
that is more likely to make use of Oakland facilities; a high amount of 
prescription drug usage; and significantly higher use of behavioral health 
services.
	Cochran stated that two ways to address the impact of this 
parameter are to examine the design of the insurance plan (services 
offered, deductibles, and co-pays) and to increase the cost sharing by 
employees.  He added that some of these issues are already being reviewed.  
In response to questions, Cochran stated that UPMC is the only insurance 
provider currently able to cost-effectively meet the University's needs.

Discussion of FY 2003 Planning and Budgeting Parameters

	Ramicone discussed the initial FY 2003 planning and budgeting 
parameters being used to initiate discussion in the Parameters 
Subcommittee.  With the Governor's proposed 5% reduction of the 
University's appropriation, these initial parameters produce a significant 
FY 2003 projected deficit that must be resolved.  Maher cited the 
University's careful efforts to reallocate resources and reduce costs in 
recent years.  In spite of these efforts and the coming successful 
conclusion to the capital campaign, tuition must clearly increase in FY 
2003.  He discussed the steady decline in the Commonwealth's share of the 
Educational and General revenues of the University, from 38% several 
decades ago to less than 15% today.  He indicated that this statistic 
reflects a broader trends across public higher education.

	The meeting adjourned at 11:15 a.m.