Minutes of March 14, 2002 Meeting
The meeting convened at 10:07 a.m. in room 817 Cathedral of
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
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
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.