Minutes of May 4, 1998 Meeting


	The meeting convened at 2:04 p.m. in room 817 Cathedral of
Learning.

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

Approval of the Minutes and Report of the Chair

	The minutes of the April 16, 1998 UPBC meeting were approved.
Maher summarized a proposal to create a new Department of Bioengineering
within the School of Engineering.  He explained that the proposal has been
evolving for some years and was the result of excellent planning.  He
added that the proposal reflects the School's commitment to funding
theadministrative costs of the new department internally, through a
reduction of other administrative costs.  Maher indicated that the only
University support being provided are required matching funds for the
program's $3 million grant from the Whitaker Foundation.  Carbo moved that
the UPBC endorse the proposal.  Colwell seconded.  The motion was approved
unanimously.

Discussion of FY 1999 Planning and Budgeting Parameters

	Rudy presented the FY 1999 planing and budgeting parameters
recommended by the UPBC Parameters Subcommittee including:

-- 4% tuition rate increase;
-- 4% financial aid increase;
-- 3.25% Commonwealth appropriation increase;
-- 3% compensation increase (with no cut in the compensation base);
-- $900,000 increase in the Research Development Fund;
-- $500,000 increase to student life enhancements; and
-- $500,000 increase in academic program initiatives.

She then provided details on the impacts of the recommended parameters on
FY 1999 budgeted revenues and expenditures.  Rudy moved that the UPBC
approve the FY 1999 parameters  as developed by the Parameters
Subcommittee for transmittal to the Chancellor.  Hall seconded.
	Wion noted that the process of developing University planning and
budgeting parameters has matured and that the tight and responsible nature
of the data promotes a strong degree of confidence.  Maher noted that the
recommended parameters will continue the University's recent timely
investments in student life enhancements and physical plant maintenance
and improvement.  He added that, in addition to this resolute problem
solving approach, the faculty retirement plan will help the University
make needed budgetary adjustments in the future.
	Carbo requested an update on library facilities at some future
UPBC meeting.  Wion noted that the proposed $350,000 increase in library
acquisitions would only help defray the increased cost of serials.  Rudy
commented that the timely passage of the Commonwealth budget facilitated
the development of FY 1999 parameters.  In response to Pratt's question,
Maher explained that the timing of salary increases is tied to the
approval of the University's budget at the June Board of Trustees meeting.
The motion was approved unanimously.

Update on Planning and Budgeting in the Provost's Area

	Maher reported that the Provost's Area Planning and Budgeting
Committee has reviewed the planning submissions of the units reporting to
the Provost and submitted its comments in a meeting with him.  He added
that these comments will be provided to each unit as part of the Provost's
report to each Dean, Director, or regional campus President.  He commended
the conscientious work of the Committee and explained that minutes of the
meeting will be forthcoming.

Matters Arising

	Wion discussed a recommendation of the Senate Budget Policies
Committee that, if approved, the 3% salary increase for faculty for FY
1999 be apportioned as follows:

-- 1.7% for maintenance of real salary for satisfactory performance;
-- 1.0% for merit; and
-- 0.3% for market and equity adjustments.

Wion moved that the UPBC adopt the SBPC recommendation for transmittal to
the Chancellor.  Pratt seconded (Hart emphasized that the recommendation
would not apply to staff and that the Staff Association Council may likely
make a somewhat different recommendation).
	Hall suggested that consideration be given to increasing the
market and equity components.  Rudy expressed concern that rewarding
satisfactory performance creates an environment that is inconsistent with
the University's commitment to elevating the quality of the student body.
She advocated the creation of a "culture of merit" by reducing the
maintenance of real salary component.  Pratt responded that the
recommendation was consistent with the existing University salary policy.
Carbo noted that the existing policy leaves units with too little money to
reward merit, fund promotions, and hire new faculty.  Wion replied that
failure to maintain the real value of salaries for satisfactory
performance also has a downside.  Olson added that a problem with that
approach is that the measurement of what is "satisfactory" places nearly
everyone at or above the level of what is considered satisfactory
performance.
	Maher suggested that the coming year offers an opportunity to
rethink the current salary policy.  He noted that the policy benchmarks
Pittsburgh Campus faculty as a whole, but fails to account for market
impacts by unit.  He added that every public effort to fully index any
measure eventually collapses and that the current policy commits the
University to full indexing.  Maher offered a friendly amendment to the
motion that its passage be contingent on the formation in the coming year
of a subcommittee of the UPBC to improve the University salary policy.
The amended motion was approved by a vote of 8 to 3 (with one abstention).

	The meeting adjourned at 3:35 p.m.