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Dockets for March 15, 1974

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Dockets for March 15, 1974 Attachment No. 1 For approval, see Page -8 . 2227 CHANCELLOR'S WCKET NO. 70 THF, UNIVERSITY OF TEXAS SYSTEM Office of the Chancellor February 15, 1974 TO THE HONORABLE BOARD OF REGENTS OF THE UNIVERSITY OF TEXAS SYSTEM Mrs. Johnson and Gentlemen: The dockets recommended by the Chief Administrative Officers concerned and prepared by the component institutions listed below are herewith submitted with my recommendation for ratification or approval, as appropriate, at the meeting of the Board of Regents on March 15, 1974. The budget changes included in these dockets have been approved by me and are herewith submitted as a report to the Board of Regents. The University of Texas at Arlington (Pages AR-1 through AR-15) The University of Texas at Austin (Pages A-1 through A-95) The University of Texas at Dallas (Pages D-1 through D-12) The University of Texas at El Paso (Pages EP-1 through EP-10) The University of Texas of the Permian Basin (Pages PB-1 through PB-3) The University of Texas at San Antonio (Pages SA-1 through SA-9) The University of Texas Health Science Center at Dallas (Pages HD- 1 through HD- 17) The University of Texas Medical Branch at Galveston (Pages G-1 through 6-21) The University of Texas Health Science Center at Houston (Pages HH-1 through HH-11) The University of Texas Health Science Center at San Antonio (Pages HS-1 through HS-10) The University of Texas System Cancer Center (Pages CC-1 through CC-16) The University of Texas System School of Nursing (Pages N-1 through N-5) On the following pages, C-2 through C-8, are U. T. System and Institutional items which I also recommend for the Board's ratification or approval, as appropriate, including my report of budget changes. Sincerely, Charles A. LeMaistre, M.D. / Chancellor -TIIE UNIVERSI'I'Y OF Tr.:xAs SYSTEM ADMT.NISTMTION --BOARD OF KEGENTS MEliTTNG - MARC11 15. 1974 <EDUCTION IN UNEMPJ,OYMENT COMPENSATION INSURANCE FUND ASSESSMENT RATE It is recommended that the present Unemployment Compensation Insurance Fund hssessment Rate of one percent (1%) be reduced to the rate of two tenths of one percent (.2%) effective January 1, 1974. Based on present estimates, a continuous application of one percent (1%) to salaries and wages up to $4,200 per employee per year through August 31, 1974, would result in a balance in the Unemployment Compensation Insurance Fund which would exceed the ceiling amount approved by HEW-OGAP. The ceiling amount is set forth in the Regents' Rules and Regulations to be $1,755,000. It now appears that a reduction in the assessment rate would be required at an earlier date than September 1, 1974, to prevent exceeding the maximum amount and to avoid subsequent rate fluctuations in the future. And, based on a substantially low loss experi- ence, an assessment rate reduction to two tenths of one percent (.2%) effective January 1, 1974, would allow the Unemployment Compensation Insurance Fund to remain below the maximum amount and well above the minimum balance requirement. INCREASE IN WORKMEN'S COMPENSATION INSURANCE FUND ASSESSMENT RATE R* It is recommended that the Workmen's Compensation In-surance Fund Assessment Rate be increased from the present $.25 per $100.00 of payroll (.0025) to $.35 per $100.00 of payroll (.0035) effective September 1, 1974. This fiscal year Workmen's Compensation Insurance claims have increased by approximately 40%. The amended W.C.I. bill requires covering employees. It is therefore appropriate to increase the Workmen's Compensation Insurance Fund Balance to a minimum of $2,000,000 as a reserve for contingent liabilities. The 1972-73 W.C.I. fiscal report indicated increasing number of claims and higher costs of settlements. A significant increase in the death benefits increases our liabilities, and commercial rates have recently risen more than 25%. DEFERRED COMPENSATION PROGRAM The 63rd Legislature, Regular Session, passed Senate Bill 872 which authorized all State agencies, including institutions of higher education, to set up a Deferred Compensation Program for all employees. This Act also authorizes the State Comptroller of Public Accounts to be the Administrator of the Program. As Administrator, the State Comptroller is responsible for approval of all life insurance companies which meet prescribed specifications. In addition, he has negotiated a Master Agreement that must be signed by the insurance company if approved by the State Comptroller. Senate Bill 872 gives all State employees who wish to do so the right to sign a salary reduction agreement ~ghichauthorizes the insurance company to sell (1) life insurance, (2) fixed annuities, (3) variable annuities, and (4) Mutual Funds. A choice of these four investment plans must be made by each employee who desires to participate, and in so doing, the employee is deferring part of the salary from current income taxes. The University of Texas System will be responsible for records maintenance, payroll deductions, and reporting the Deferred Compensation amounts to the insurance com- panies. Under the rules promulgated by the State Comptroller, The University of Texas System may nominate a company, except a mutual company, for participation in the plan by making available to the insurance company a copy of the contract specifications and advising the Administrator (State Comptroller) of this action together with a specific justification of the recommendation. The approval of participating com- panies is made solely by the State Comptroller. This program is being considered by the State Comptroller as an important part of the State career inccntive plan, and that it is a rifiht of the employee to have this 0pportuni.t~. It is reco~runcnded,therctore, that this aclditiol~al fringe bene- fit be offered to all enrployces of The University of Texas Systt-m. Lt is Lurther recon~mcnded that the System Acl~r~inistrationdevelop the administriltive and fiscal procedures for handling this program. TllE IJNIVEIGITY OF TEXAS SYSTEM A1)MJNXSTI'ATTON GRANTS, CONTIUGTS, AN11 AGREEMENTS (FEDERAL1 EOARD OF ItEGENTS MEETING - MARC11 15, 1974 1. Amendment No. 4 to National Science Foundation Grant GU-3764 awarding an additional Institutional Grant for Science in the amount of $21,000 to The University of Texas System Administration. Final determination of expenditures has not been made; however, it is anticipated that the major portion of the funds will be expended in Harris and Travis Counties. -Tllll UNIVEIISTTY --OF TEXAS SYS'1'EM ADNJNlSTRATION REPORT -OF AMI:NI)MENTS --TO TlIiC 1973-74 OPERATING DUDCT<T --BOARD OF RIIGENTS MEETING - MARC11 15, 1974 Source of Funds - Departmental Appropriations (Unless Otherwise Specified) Office of the Chancellor 1, Appoint Charles H. Perrone as Operations Officer effective January 1, 1974, at an annual salary rate of $17,000. (RBCB D-51) Office of the Comptroller 2. Appoint Thomas M. Grady as Assistant to the Comptroller effective January 1, 1974 at an annual salary rate of $20,000. Funds for this appointment were transferred from the System Administration Unallocated Account. (RBCII D-48, D-49) 3. Increase the annual salary rate of Ernest A. Hoffman, Jr., Assistant Comp- troller, from $26,500 to $27,600 effective January 1, 1974. (RBC# D-54) 4. Increase the annual salary rate of Frankie L. Jennings, System Auditor, from $18,500 to $19,440 effective January 1, 1974. (RBCB D-55) 5. Resign Charles H. Perrone, System Auditor at an annual salary rate of $15,000, effective December 31, 1973. Mr. Perrone was transferred to the Chancellor's Office (see Item 1.). (RBCB D-47) Office of Equal Opportunity 6. Transfer $5,800 to the Office of Equal Opportunity Maintenance and Operation account and $400 to the Travel account from the System Administration Unallo- cated Account. (RBCIi D-61) System Personnel Office 7. Transfer $3,000 to the Clerical Assistants account from the Administrative Salaries account to provide the additional funds needed for a part-time clerical employee. (RBC8 D-57) Special Services - Security Division 8. Resign George W. Carlson, Assistant to the Deputy chancellor at an annual salary rate of $25,000, effective December 31, 1973. (RBCIi D-60) Office of Investments, Trusts. and Lands 9. Transfer $14,400 to the Classified Salaries account from the Administrative Salaries account to provide funds needed for an additional Accountant I posi- tion and for routine promotions and salary increases for the classified staff. (RBCii D-62) Office of Facilities Planning and Construction 10. Appoint Chester E. Hurst as Construction Inspector effective January 1, 1974, at an annual salary rate of $12,000. (RBCik D-50) 11. Appoint Abraham A. Sanchez as Construction Inspector effective February 1, 1974, at an annual salary rate of $12,500. (RBCII D-58) 12. Increase the annual salary rate of John M. Davis, Jr., Architect and Planning Advisor, from $15,600 to $16,800 effective January 1, 1974. (RBC% D-52) 13. Increase the annual salary rate of William K. Bowne, Assistant, Furniture and Equipment Division, from $15,000 to $15,500 effective January 1, 1974. (RBCII D-53) 14. Grant a leave of absence without pay to Frank L. Whitington, Junior Construc- tion Inspector at an annual salary rate of $9,700 for the period February 26, 1974 through May 6, 1974. Mr. Whitingtor1 will be on active military duty at Fort Benning, Georgia, beginning February 7, and will be on military leave with pay for the period February 5 through February 25. (RBCI D-59) OTHER FISCAI; ITEMS 1. Transfcr of Funds Account Amount From: U. T. Austin 30-8815-9500 $ 545.96 -MdUJ9 r/l( System Administration -*- "3. To: U. T. Austin 30-3415-2615 $ 1,110.25 - System Administration 55-0210-0031 $ 77.50 55-0210-0051 537.71 55-0210-0150 b, 2,025.80 m,~o,~%:~~m~~..~.-=,.4 2.
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