Minutes of May 29, 1997 Meeting



	The meeting convened at 10:06 a.m. in room 817 Cathedral of
Learning.

	UPBC members present were: Mary Ann Barber, Toni Carbo, Jerome
Cochran, Richard Colwell, James DeAngelis, James Maher, Richard Pratt,
Ellen Beam Rudy, Peter Shane, Alec Stewart, Bruce Williams, and Philip
Wion.  Also present were: Jeffrey Liebmann, Gordon MacLeod, William
Madden, Jeffrey Masnick, Carol Neuner, Robert Pack, and Kathy Tosh.
	UPBC members not present were: James Cassing, Justin DalMolin,
Thomas Detre, Deborah Friedman, Ingrid Glasco, Brian Hart, Keith McDuffie,
Josephine Olson, Arthur Ramicone, Margaret Rechter, Jeffrey Romoff,
Michael Stuckart, and Susan Whitney.

Report of the Chair

	Maher placed the discussion of the FY 1998 planning and budgeting
parameters in the context of recent strategic decisions and long-range
planning efforts.  He stressed the institutional emphasis on student
issues and student life improvements.  He expressed concern over impacts
that reductions in the base compensation budget will have on academic
units that have often already  reduced such budgets as much as possible
without endangering long-term effectiveness.

Discussion of FY 1998 Planning and Budgeting Parameters

	Rudy stressed the significant commitment to future investments in
the University already part of the proposed FY 1998 planning and budgeting
parameters, including technology enhancements, debt service on new and
renovated facilities, new programmatic initiatives, solutions to the "year
2000" problem, and preparations for the upcoming capital campaign.  Shane
pointed out the enormous potential for the future of the University and
recommended that the proposed reduction in the compensation base be
limited to 1.0%, whereas the Parameters Subcommittee had recommended a
1.5% reduction in the compensation base and a 3.0% increase in the
remaining base.
	Pratt presented background information developed subsequent to the
deliberations of the Senate Budget Policies Committee.  He discussed
various models of institutional budget assumptions in an attempt to
understand whether an annual reduction in the compensation budget was
something that the University could always include in planning and
budgeting parameters.  Pratt emphasized that his model assumed reaching a
steady state relative to regular faculty turnover.
	Maher emphasized that the University at present is not close to a
steady-state organizational environment, so that such modeling cannot take
account of the importance of positioning the institution for the future.
Maher also questioned the perception that average faculty salaries at the
University are relatively low, pointing out that the University's salaries
benchmark in the middle third of the Association of American Universities
(AAU) member institutions.
	Maher stressed the importance of improving the conditions of
part-time faculty employment, citing the general goals of the plan
submitted by the Faculty of Arts and Sciences.  Wion expressed concern
over the impression held by some in the University community that some
proposed actions are not consistent with current long-range strategies.
He suggested that the message many faculty perceive is that the University
still values research over teaching and that strategic initiatives are
being funded at the expense of employee salaries.  Maher emphasized that
recent efforts have consistently focused on improving undergraduate
education and student life.  He stated that tenure decisions are taking
faculty teaching dossiers into account.  He also cautioned that the
University cannot solve all of its problems in one year and that the
process must respect unit-level decision making if planning and budgeting
is to be effective.


	Shane moved that the UPBC amend the Parameters Subcommittee
recommended FY 1998 parameters to include a 1.0% reduction in the overall
compensation base and a 2.5% salary increase on the remaining base.
Colwell seconded.  The motion was approved by a vote of 8 to 3. Rudy moved
that the amended FY 1998 parameters be approved and forwarded to the
Chancellor.  Colwell seconded.  The motion was approved by a vote of 8 to
3.

	The meeting adjourned at 11:38 a.m.