Minutes of September 30, 1996 Meeting
The meeting convened at 2:06 p.m. in room 817 Cathedral of
UPBC members present were: James Cassing, Richard Colwell, James
DeAngelis, Thomas Detre, Ingrid Glasco, James Maher, Josephine Olson,
Richard Pratt, Arthur Ramicone, Ellen Beam Rudy, Peter Shane, Alec
Stewart, Susan Whitney, Bruce Williams, and Philip Wion. Also present
were: Jeffrey Liebmann, William Madden, Jeffrey Masnick, and Robert Pack.
UPBC members not present were: Mary Ann Barber, Toni Carbo, Jerome
Cochran, Brian Hart, Keith McDuffie, Linda Messineo, Margaret Rechter,
Jeffrey Romoff, Michael Stuckart, and Brian Ulery.
Approval of Minutes and Report of the Chair
The minutes of the September 12, 1996 UPBC meeting were approved.
Maher reported that the FY 1998 budget request had been sent to the
Commonwealth and that the FY 1998 capital request to the Commonwealth is
under review. Pack added that the contents of the Commonwealth capital
request are consistent with the draft Report of the Capital Projects
Committee, focussing on renovations and deferred maintenance and including
several specific high priority projects.
Update of Long-Range Parameters Subgroup Activities
Cassing reported that the subgroup is identifying a base
institutional budget model with steady-state assumptions on a variety of
parameters into future years. This model will then be used to examine
various financial scenarios and their implications. In response to
Shane's question, Cassing replied that student demographics will be
examined over time, among other factors.
Action on the Proposal to Establish a Separate Department of Statistics
Maher discussed the proposal advanced by the Faculty of Arts and
Sciences to split the Department of Mathematics and Statistics into two
separate departments. He explained that FAS has committed to handling
budgetary implications of this necessary action in taking responsibility
for supplying instruction for all statistics course needs of programs.
Detre stressed the importance of a separate Department of Statistics in
obtaining external funding. Rudy moved that the UPBC recommend approval
of the proposal to establish a separate Department of Statistics in FAS.
Detre seconded. The motion was approved unanimously.
Discussion of FY 1998 Budget Parameters
Rudy raised several questions being discussed by the FY 1998
Parameters Subgroup and asked for input from the full Committee. The
first issue dealt with the continued uncertainty concerning employment
levels and the need to make early decisions regarding faculty and
administrative hiring. Maher emphasized that a review of administrative
processes is under way that may indicate ways to centralize certain
functions more effectively. He stressed that efforts will continue to
protect those positions directly supporting instructional delivery and
Wion suggested that consideration should be given to hiring
faculty for FY 1998 conservatively, thus giving the institution more
flexibility to defer hires or terminate searches for vacant positions.
Rudy suggested informing the deans about the possible choices they have
for the coming year relative to the impact of potential budget reductions.
Maher agreed to communicate with the deans on this issue. Detre agreed
that planning should proceed on the assumption that further cost reduction
efforts may be necessary, suggesting that recruitment for non-essential
positions be delayed when possible.
A second question involved the treatment of space costs. Maher
discussed the need to change the budgetary system to make the cost of
space transparent to a unit by placing the real cost of space within
units' budgets. He suggested the need to revise space policies to better
rationalize the use of space. Wion indicated that changes in the way
space is budgeted might have an impact on the attribution methodology,
which currently attributes operating and maintenance costs according to
the variable costs of operating and maintaining space in different
buildings, but attributes capital costs (interest and depreciation) for
space at the Pittsburgh Campus on the basis of a flat average cost per
square foot used.
The meeting adjourned at 3:36 p.m.