Minutes of February 4, 1999 Meeting

	The meeting convened at 10:03 a.m. in room 817 Cathedral of

	UPBC members present were: Carolyn Ban, Mary Ann Barber, Frank
Cassell, Jerome Cochran, Joel Cornfeld, James Maher, George Mongell, Carol
Neuner, Josephine Olson, Richard Pratt, Ellen Beam Rudy, Michael Stuckart,
Bruce Williams, and Philip Wion. Also present were: Ann Dykstra, Jeffrey
Liebmann, and Linda Marts.
	UPBC members not present were: James Cassing, Richard Colwell,
Ingrid Glasco, Van Beck Hall, Nathan Hershey, Arthur Levine, Arthur
Ramicone, Margaret Rechter, Alec Stewart, and Susan Whitney.

Approval of the Minutes and Report of the Chair

	The minutes of the January 7, 1999 UPBC meeting were approved.
Maher provided general comments on issues related to the discussion of
revising the University's salary policy.  He pointed out that opinions are
divided on the value of merit increases and that their effectiveness
varies depending on the institution and the types of employees involved.
He emphasized that, in all but one year in recent times, most employees at
the University have received some merit increase.  In 1998-99, the
percentage of employees who did not receive a merit increase was very low
and approximately two-thirds of all employees received increases between
the cost of living increase and the total increase in the salary increase
pool (from 1.7% to 3.0%).  Maher added that one of the primary objections
to the current policy held by some faculty is its inadequate emphasis on
	Maher went on to discuss the University's difficulties competing
for faculty nationally, either through initial recruitment or through
retention of current faculty.  He argued that the University's use of
indexed cost of living increases has led to salary levels far below
national norms in certain schools and disciplines.  Maher specifically
cited areas such as Biological Sciences, Chemistry, Engineering, and
Business where salary market issues are problematic.  He stated that the
University could make itself less of a target for competing institutions
if market and equity salary funds were more available.  Maher recognized
that the role of the deans changes depending on where such funds reside.
Wion responded that the current policy offers the framework for such
flexibility, but that more communication explaining the policy and its
outcomes might be needed.

Report on the Governor's Proposed Commonwealth Budget for FY 2000

	Dykstra reported that the Governor's proposed FY 2000 Commonwealth
budget includes a 2.5% increase for most higher education line items,
including the Educational and General appropriation to the University.
This increase does not match the 2.9% overall increase proposed for the FY
2000 budget.  Funds for the new initiatives requested by the University in
its appropriation request were not included in the budget.  In fact,
Dykstra reported that the budget included little new money for higher
education, with the exception of some financial aid support.  Two proposed
initiatives with possible implications for the University include the
Sci-Tech Scholarship Programs ($49 million over the next three years) and
the Pennsylvania Technology Investment Authority ($18.2 million).  She
explained that the University's appropriation hearings would take place on
February 23 and 24.

	The meeting adjourned at 11:47 a.m.