Minutes of February 16, 2004 Meeting

	The meeting convened at 2:00 p.m. in room 817 Cathedral of 
Learning.

	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.

Matters Arising

	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.