Minutes of February 16, 2004 Meeting
The meeting convened at 2:00 p.m. in room 817 Cathedral of
UPBC members present were: James Alexander, Frank Cassell, Jerome
Cochran, Richard Colwell, N. John Cooper, David DeJong, Christine
Dollaghan, Gerald Holder, Lindsay Howard, James Maher, Linda Marts,
Maureen McClure, Carol Neuner, Mary Ann Peterson, Arthur Ramicone, and
Philip Wion. Also present were: Jeffrey Liebmann, Jeffrey Masnick,
Charles McLaughlin, and Robert Pack.
UPBC members not present were: Nicholas Bircher, Liz Culliton,
Jacqueline Dunbar-Jacob, Ronald Hoelzeman, Arthur Levine, Michael
Stuckart, Evelyn Talbott, Stephen Wisniewski, and Thomas Wolf.
Approval of Minutes and Report of the Chair
The minutes of the November 13, 2003 UPBC meeting was approved.
Maher discussed the ongoing work of the ad hoc Subcommittee on Strategic
Issues, stating that he would be giving the group a presentation on the
University's strategic planning.
Discussion of the Commonwealth FY 2005 Budget
McLaughlin presented a summary of the University's $184.5 million
appropriation request for FY 2005. This figure represents an increase of
$6 million over the original appropriation approved for the University in
FY 2003. In that year, however, the University actually only received
$173 of the approved amount. The Governor's recommended FY 2005 budget
includes a 2.5% increase in the Educational and General budgets of the
University, Penn State, and Temple and no funding for special line items.
McLaughlin indicated that revenue estimates for the state are up this
year, although efforts to approve gambling in the state are still in
discussion. McLaughlin also indicated that while other states have used
tobacco settlement funds to balance their budgets, Pennsylvania has not
resorted to this strategy.
Wion reported that the Attribution Subcommittee had met several
times to streamline the methodology to make it simpler to produce. The
new methodology will not use a step-down of support unit costs, and will
shift some traceable and some assignable costs to the general cost
category, as being too small to affect the analysis. More precise drivers
will be used, as well.
In response to a question, Cochran reported that the University is
working on its health insurance contract for next year. Cochran added
that he will soon present a report to the Committee on the impact of
current health benefits for faculty retirees on the University's future
budgets and the impact of changes to those policies. Maher indicated that
projected changes, which are not expected to be immediate, will be humane
and even generous compared to national norms without the potentially
staggering financial commitments.
The meeting adjourned at 2:40 p.m.