OHIO UNIVERSITY April 24, 1992 TO: *Those Listed Below Alan H. Geiger
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OHIO UNIVERSITY ATHENS, OHIO 45701 BOARD OF TRUSTEES April 24, 1992 TO: Those listed below FROM: Alan H. Geiger, Secretary, Board of Trustees SUBJECT: Minutes of the April 4, 1992, Meeting of the Board Enclosed for your file is a copy of the April 4, 1992, minutes. This draft will be presented for approval at the next stated meeting of the Board. Please place a Board retreat on your calendars for Saturday, December 5, and Sunday, December 6, 1992, in Columbus. More information on this retreat will be forthcoming. AHG :kd Enclosure Chairman and Members of the Board Mr. Rosa Ms. Turoczy Dr. Bandy-Hedden Dr. Ping Dr. Bruning Dr. Bryant Dr. Chesnut Mr. Ellis Dr. Geiger Mr. Kennard (2) Dr. North Mr. Rudy Dr. Turnage Mr. Burns Mr. Kotowski Archivist (2) Regional Campus Deans Chairs of the Senates Chairs, Regional Coordinating Council MINUTES OF THE MEETING OF THE BOARD OF TRUSTEES OF OHIO UNIVERSITY 10:00 a.m., Saturday, April 4, 1992 Board Room, McGuffey Hall Ohio University, Athens, Ohio EXECUTIVE SESSION On a motion by Mr. Schey and a second by Mr. Hodson, the Ohio University Board of Trustees resolved to hold executive sessions previously scheduled for April 3 and 4, 1992, to consider legal matters under Section 121.22(G) (3) of the Ohio Revised Code (0.R.C.), and personnel matters under Section 121.22(G) (4) O.R.C., this 3rd day of April, 1992. On a roll call vote all members present, namely; Chairman Strafford, Mrs. Eufinger, Ms. Grasselli, Mr. Hodson, Mr. Konneker, Mr. Leonard, and Mr. Schey voted aye. This constituted a quorum. The Friday session was recessed at noon and members reconvened at 9:00 a.m. on Saturday morning to continue the Executive Session. Mr. Campbell joined the Saturday session. President Ping briefed members on the Fraternal Order of Police • request to begin labor negotiations on behalf of University security officers. He noted this negotiation was based upon a recent ruling by the State Employee Relations Board. Matters of Trustee liability were discussed, including the issue of legal representation. A recent opinion of the State Attorney. General involving eligibility to be appointed to public office was reviewed. The President presented a review of the procedures utilized in the negotiation of University related patents and licenses involving research effort and cited potential outcomes from such activities. I. ROLL CALL Eight members were present, namely; Chairman J. Craig Strafford, M.D., Richard R. Campbell, Charlotte C. Eufinger, Jeanette G. Grasselli, Thomas S. Hodson, Wilfred R. Konneker, Paul R. Leonard, and Ralph E. Schey. This constituted a quorum. Trustee Dennis Heffernan was unable to attend. Student Trustees Matthew D. Rosa and Monica A. Turoczy were present. This was Mr. Rosa's last official meeting as a student trustee. bi President Charles J. Ping, and Secretary Alan H. Geiger were also present. Dr. Irene Bandy-Hedden, President of the Ohio University National Alumni Board of Directors, attended the meeting. II. APPROVAL OF THE MINUTES OF THE MEETING OF JANUARY 25, 1992 (previously distributed) Mrs. Eufinger moved approval of the minutes as distributed. Mr. Hodson seconded the motion. Approval was unanimous. III. COMMUNICATIONS, PETITIONS, AND MEMORIALS Secretary Geiger reported that the members of the Romeo Club of Ohio University had requested that Trustees consider naming or renaming University facilities in honor of outstanding African American alumni. The club is a service and education student organization. The Secretary noted that Trustee Chair Strafford has asked the Budget, Finance, and Physical Plant Committee to review and consider the request for future action. W. ANNOUNCEMENTS Secretary Geiger indicated there were no announcements. V. REPORTS Chairman Strafford invited President Ping to present persons for reports. He introduced G. Kenner Bush, Chair, Management for the Third Century Task Force. A. Management for the Third Century Task Force G. Kenner Bush Mr. Bush, publisher of The Athens Messenger and former University Trustee, noted the individuals involved with the Task Force and the time frame under which they were working. He noted their mandate was from a similar statewide task force and was to explore how quality and costs are linked and how to measure productivity. Mr. Bush reported preliminary findings on how well we compared economically, productively, and effectively with other similar institutions and cited numerous data with cost containment and effectiveness components. Given the nature of Mr. Bush's comments, a complete copy of the highlights of his report is included with • the minutes. Mr. Bush stated Ohio University rates high marks and is, in fact, providing cost efficient and quality education. He noted the committee is Just now embarking on final conclusions and recommendations and that they would welcome suggestions from Trustees. Trustee Hodson encouraged Trustees to carefully review preliminary findings and to help in defining appropriate productivity measures. Members thanked Mr. Bush for his good time and leadership of the Task Force. VI. UNFINISHED BUSINESS Secretary Geiger indicated there was no unfinished business. VII. NEW BUSINESS Chairman Strafford reported that Board Committees had, at their respective meetings, discussed matters being presented to the Board. Items for action where presented by the Committee Chairman or another committee member as designated. 63 • VB. NEW BUSINESS A. BUDGET, FINANCE, AND PHYSICAL PLANT COMMITTEE Committee Chair Eufinger reported the Committee met Friday to review matters to be presented to the Board of Trustees. fog Chairman Strafford presented and moved approval of the resolution. Ms. Grasselli seconded the motion. All agreed. PROGRAM PLANNING REPORT AND OUTLINE FOR 1992-93 BUDGET PLAN RESOLUTION 1992 -- 1220 WHEREAS, the Ohio University Board of Trustees has been granted the full power and authority on all matters relative to the administration of the University, NOW, THEREFORE, BE IT RESOLVED that the Board of Trustees receives the "Ohio University Program Planning Report, March, 1992" recommended by the President and approves the outline of the 1992-93 budget plan. BE IT FURTHER RESOLVED, that if the funding available from state subsidy and tuition should be different from the specific projections made in the "Ohio University Programming Planning Report, March 1992," or contingent upon a revision of the current state mandated fee cap, the President shall implement a fiscal plan which reflects the appropriate balance of revenue from state subsidy and tuition. AND BE IT ALSO FURTHER RESOLVED that if the total funding available from tuition, state subsidy, and other income should be significantly less than the projection included in the "Ohio University Program Planning Report, March, 1992," the President shall propose, for Board of Trustees review and action, an alternative fiscal plan which is commensurate with available revenue. 5 Ohio University Interoffice Communication March 20, 1992 TO: Charles J. Ping, President FROM: James L. Bruning, Provost SUBJECT: Planning Report Attached is the Ohio University Planning Report. The process which culminated in this series of recommendations regarding enrollments, income and expenditure projections, as well as options related to planning pool allocations, compensation increases, and fee changes began in September. Initial discussions focused on issues facing the institution and culminated in an addendum to the action agenda summarized in Appendix G. These and other topics will become the focus of further discussion as the University moves toward its third century. • The recommendations included in the report summarize the FY 1992-93 plans for the Athens General Programs, Regional Higher Education, and the College of Osteopathic Medicine. JB/jt Attachment • ,e-te•• • Ohio University Planning Report March 1992 To QUOTE THE American philosopher Yogi Berra, "its déjà vu all over again." Ten years ago, UPACs annual report began with these words, "During 1981-82 institutions of higher education in the State of Ohio experienced dramatic changes in state support which made orderly planning extremely difficult." The report goes on to summarize UPACs recommendations that were occasioned by a drop in state revenue and the corresponding state support to higher education. "As a result of these discussions, it was determined that (1) none of the recommendations for additional expenditures could be made, (2) all available University reserve funds would have to be utilized, plus (3) an additional underspending by all units at Ohio University would be necessary to meet the budgetary crisis." That sentence can equally well describe the budgeting processes of 1991-92. Two Years of Funding Reductions The problems facing Ohio University in planning for the 1992-93 fiscal year were compounded by the fact that the University experienced cuts in state funding two years in a row. In January, 1991, during the previous fiscal year, the Office of Budget and Management directed reductions for many state agencies, including higher education. Again this year the state, continuing to face a shortfall in revenue, imposed in January reductions in state support totalling $3.8 million for all of Ohio Universitys budget units. The effect of two years of reduced state support for Ohio University resulted in a drop of state support of $5.1 million. The reduction in state support during the current year took several forms. The first was a direct reduction in subsidy payments of 4 percent. The second was the reduction in support given for growth. Due to the limited funds appropriated, the Board of Regents was able to provide support for growth over 1990-91 enrollments at only 72 percent instead of 100 percent of earned subsidy. In January of this year the governors office announced that, due to a decline in state revenue, it would be necessary to introduce reductions in expenditures for all state agencies. The percentage of these cuts borne by higher education was greater than the share that state support for education represents within the state budget.