Minutes of December 11, 1997 Meeting

	The meeting convened at 10:07 a.m. in room 817 Cathedral of

	UPBC members present were: Toni Carbo, James Cassing, Jerome
Cochran, Richard Colwell, Deborah Friedman, Ingrid Glasco, Van Beck Hall,
Gordon MacLeod, James Maher, Josephine Olson, Richard Pratt, Alec Stewart,
Michael Stuckart, Susan Whitney, and Philip Wion.  Also present were:
Margaret Duronio, Lisa Janezic, Jeffrey Liebmann, Jeffrey Masnick, and
Robert Pack.
	UPBC members not present were: Mary Ann Barber, Justin DalMolin,
Thomas Detre, Brian Hart, Arthur Ramicone, Margaret Rechter, Ellen Beam
Rudy, Peter Shane, and Bruce Williams.

Approval of the Minutes and Report of the Chair

	The minutes of the November 18, 1997 UPBC meeting were approved.
Maher updated the Committee on the financial implications of the faculty
early retirement program.  He emphasized that the FY 1998 projected budget
surplus may only partially offset the program's expenditures and that
ultimate savings will not materialize until after FY 2000.  He added that
discussions are progressing with schools to identify target faculty sizes,
which will help guide the allocations of resources that come available
through the retirement program.
	Maher reported that the fall 1997 freshman class exceeded budgeted
projections, but that the target will remain at the same budgeted level
for fall 1998.  He emphasized the importance of student retention and
improving the overall freshman class profile.  In response to MacLeod's
question regarding class sizes in the health sciences, Maher replied that
class sizes in the health science schools are not projected to change
significantly in FY 1999.  Masnick responded to a question about the
membership and operation of the Planning and Budgeting Committee of the
Senior Vice Chancellor for the Health Sciences and the current
relationship with UPMC.  Maher supported a suggestion that the UPBC
receive annual updates on the operation of PBC's for those areas reporting
directly to the Chancellor.

Matters Arising

	Members requested an update on the status of FY 1998 capital
projects, which will be distributed before the next meeting.  Cochran
reported that discussions are progressing with the Governor's Office
regarding Commonwealth capital funds for the coming years.  Pack reported
that the University and Pennsylvania State University have agreed to
increase cooperation on the mutual development of academic programs in
Western Pennsylvania, particularly among the University's regional
campuses and those campuses of Penn State in the area.

	The meeting adjourned at 11:06 a.m.