Minutes of February 16, 1998 Meeting
The meeting convened at 2:02 p.m. in room 817 Cathedral of
UPBC members present were: Mary Ann Barber, Toni Carbo, James
Cassing, Jerome Cochran, Richard Colwell, Ingrid Glasco, Van Beck Hall,
Brian Hart, Gordon MacLeod, James Maher, Richard Pratt, Arthur Ramicone,
Ellen Beam Rudy, Michael Stuckart, Alyson Wallach, Susan Whitney, Bruce
Williams, and Philip Wion. Also present were: Margaret Duronio, Ann
Dykstra, Jeffrey Liebmann, Carol Neuner, William Madden, and Robert Pack.
UPBC members not present were: Thomas Detre, Deborah Friedman,
Josephine Olson, Margaret Rechter, Peter Shane, and Alec Stewart.
Approval of the Minutes and Report of the Chair
The minutes of the December 11, 1997 UPBC meeting were approved.
Maher provided an update on the progress of ongoing capital projects,
reporting that the University is currently developing a process for
securing necessary agreements with the City of Pittsburgh. He added that
the recent commitment of funds from the Commonwealth will permit the
University to significantly reduce previously projected debt service in
future years. Hall asked about the relevance of the City's previous
participation in the University's Master Plan several years ago. Cochran
replied that the City's approval of the Master Plan was conditional on a
yet-to-be-completed student housing plan and a traffic and parking plan.
Update on the Governor's Recommended Commonwealth FY 1999 Budget
Dykstra summarized the highlights of the Governor's recommendation
for the FY 1999 budget of the Commonwealth of Pennsylvania. The budget
includes a 3.25% increase across all major line items for the University,
as well as for the other state-related institutions, the institutions in
the state system of higher education, and the community colleges. She
added that $1.468 million in previous special projects funding was rolled
into the Education and General line item before the recommended increase.
Dykstra reported that the Governor has recommended continued funding for
the Link to Learn program ($7 million), and has recommended other special
-- higher education equipment grants ($6 million) of which the University
could get approximately $425,000;
-- engineering equipment grants ($1 million) of which the University could
get approximately $90,000);
-- targeted economic development strategies ($2 million), designated to
help increase collaborative efforts to commercialize
-- technology communities funding ($2 million).
She reported that the Governor's budget message emphasized
economic development, global competitiveness, and workforce development.
In other portions of the budget, the Governor recommended a 7% increase to
PHEAA grants, a 3.25% increase to assistance grants available to private
colleges and universities, and a 3.5% increase to basic education.
Update on the Activities of the Parameters Subcommittee
Rudy summarized the financial impacts of incremental changes in
planning and budgeting parameters and the Subcommittee's current estimates
of the impacts of present assumptions on the FY 1999 budget. For example,
the Governor's proposed increase in University's Commonwealth
appropriation would result in a $4.5 million increase in institutional
revenues, while a 3.0% increase in employee salaries would incur an
additional expenditure of $8.0 million. Certain new expenditures will
occur in FY 1999, due to external circumstances or previous planning
decisions, such as an approximate increase of $5.1 million in fringe
benefit costs, and an additional expenditure of approximately $2.4 million
for debt service related to capital projects. Ramicone added that these
estimates will be refined in the coming months. He then detailed the
mechanism by which funds related to the salaries of faculty participating
in the retirement plan will be handled. Maher added that the Provost's
Office has reached agreement with several units regarding target faculty
sizes and that, for those units, new faculty searches will be authorized
when consistent with the established target. He added that funds will be
reallocated among schools in accordance with institutional priorities.
Update on the Activities of the Attribution Methodology Subcommittee
Wion reported that the latest version of the Revenue and Cost
Attribution Methodology and Study would be completed soon. He gave an
overview of the format of the report and reviewed sample pages with the
Members requested that an update report from the Department of
Athletics be placed on an upcoming UPBC agenda, as well as reports from
the Senior Vice Chancellors on the planning and budgeting processes within
The meeting adjourned at 3:19 p.m.