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2006-10-26 Agenda AGENDA MEETING OF THE UTAH STATE BOARD OF REGENTS October 26, 2006 Utah State Board of Regents Office of the Commissioner of Higher Education Board of Regents Building, The Gateway 60 South 400 West Salt Lake City, Utah 84101-1284 STATE BOARD OF REGENTS MEETING OCTOBER 26, 2006 REGENTS’ OFFICES, SALT LAKE CITY, UTAH Agenda 9:00 a.m. - COMMITTEE OF THE WHOLE 10:00 a.m. (Large Board Room, Lobby Level) 1. Welcome and Overview 2. Resolution in Memory of Former Regent Jay Dee Harris 3. 2007-2008 USHE Budget Request (including Utah Education Network) Tab A 4. State Building Board’s Final Recommendations on Capital Projects Tab B 10:00 a.m. - 11:00 a.m. MEETINGS OF BOARD COMMITTEES ACADEMIC (PROGRAMS) COMMITTEE Commissioner’s Board Room, 5th Floor ACTION: 1. University of Utah – Master of Health Care Administration Tab C 2. Utah State University – Master of Science Degree in Computer Engineering Tab D INFORMATION: 3. Information Calendar, Programs Committee Tab E A. University of Utah i. Jazz Studies Track in Master of Music Degree ii. Interdisciplinary Graduate Certificate in Historic Preservation B. Southern Utah University – Program Name Change C. Salt Lake Community College – Organization Changes in the School of Business 4. University of Utah – Graduate Council Reviews Tab F FINANCE AND FACILITIES COMMITTEE Large Board Room, Lobby Level ACTION: 1. Proposed Revisions to Policies R926, Use of Office-Owned IT Resources, and R927, Tab G Use and Security of Property 2. Approval of First-Tier Tuition Range for 2007-2008 Tab H 3. Utah State University – Proposed Institutional Investment Policy Tab I 4. Weber State University – Approving Resolution, Refunding of 2001 and 2005 Bonds Tab J 5. Utah Valley State College – Property Purchase Tab K 6. Utah Valley State College – Lease-Purchase of Building Tab L 7. Salt Lake Community College – Lease of Space in Downtown Salt Lake City Tab M 2 CONSENT: 8. Consent Calendar, Finance Committee Tab N A. UofU and USU – Capital Facilities Delegation Reports B. USHE – Proposed Revisions to Policy R506, Inventory of Budget-Related and Self- Supporting Courses INFORMATION/DISCUSSION: 9. USHE – Fall 2006 Enrollment Report Tab O 10. USHE – Annual Report on Leased Space Tab P 11. USHE – Annual Report on Institutional Residences Tab Q 12. University of Utah – Follow-up Report on University Hospital Revenue Bond Sale Tab R 13. UHEAA Update Tab S STRATEGIC PLANNING AND COMMUNICATIONS COMMITTEE Small Board Room, Lobby Level ACTION: 1. USHE – Legislative Priorities Tab T INFORMATION: 2. Report of National Commission on the Future of Higher Education Tab U 3. Report on Joint Legislative Meeting, September 21, 2006 Tab V 4. Report of Task Force on Minority and Disadvantaged Students Tab W 5. Legislative Outreach 11:00 a.m. - COMMITTEE OF THE WHOLE 12:00 noon Large Board Room, Lobby Level 1. Update on the Utah Science Center/The Leonardo 2. Reports of Board Committees 3. College of Eastern Utah/Southeast ATC Collaboration Study Tab X 4. Outline of Study Parameters for SLCC/SLTATC, SUU/SWATC, and DSC/DXATC Tab Y 5. General Consent Calendar Tab Z 6. Report of the Commissioner 7. Report of the Chair 12:00 noon - LUNCHEON MEETINGS 1:30 p.m. (Buffet outside Board Rooms, Lobby Level) STATE BOARD OF REGENTS – EXECUTIVE SESSION 4th Floor Executive Conference Room Chief Academic Officers – Library, 5th Floor Legislative Liaisons – EdNet Room, 5th Floor Others – Commissioner’s Board Room, 5th Floor 3 ~~~~~~~~~~~~~ Projected times for the various meetings are estimates only. The Board Chair retains the right to take action at any time. In compliance with the Americans with Disabilities Act, individuals needing special accommodations (including auxiliary communicative aids and services) during this meeting should notify ADA Coordinator, 60 South 400 West, Salt Lake City, UT 84180 (801-321-7124), at least three working days prior to the meeting. TDD # 801-321-7130. October 18, 2006 MEMORANDUM TO: State Board of Regents FROM: Richard E. Kendell SUBJECT: USHE – 2007-2008 USHE Budget Request (including Utah Education Network) Statute requires the State Board of Regents to “recommend a combined appropriated for the operating budgets of higher education institutions for inclusion in the state appropriations act” (UCA 53B-7- 101(1)). The attached budget recommendation focuses on the themes established by the Regents during the July planning meeting, Completion, Participation, and Preparation. The prioritized categories as identified in the request represent an “equitable distribution of funds among the respective institutions in accordance with the aims and objectives of the statewide master plan for higher education” in a manner that we believe the Legislature can fund that is “consistent with the financial ability of the state” (UCA 53B- 7-101(3)). The FY 2008 Budget recommendation seeks a compensation plan equivalent to that of state employees, additional funds to help retain key faculty and staff members, funding to support key infrastructure needs of building operation and maintenance, utility rate increases, institutional key budget priorities and partnerships, a continued commitment to the role of Higher Education in workforce development, and appropriations to enhance student success through additional financial aid opportunities. The request asks for $47.2 million in ongoing funds beyond the compensation package and an additional $13.3 million in one-time funding for critical needs. Attachment One provides the detailed USHE request. In addition to the USHE budget requests, Regents are being provided with a copy of the Utah Education Network budget request (Attachment Two) and will receive a draft copy of the Utah College of Applied Technology 2007-2008 Budget Request the day of the meeting. Staff and institutional representatives will be available to answer questions. State Board of Regents October 18, 2006 Page 2 Recommendation The Commissioner recommends approval of the FY 2008 budget recommendation. Richard E. Kendell Commissioner of Higher Education REK/MHS/KLH Attachments DRAFT Utah System of Higher Education Operating Budget Request Summary (Tax Funds Only) FY 2007-08 and FY 2006-07 Supplemental Revised October 17, 2006 ESTIMATED FY 2007-08 STATE TAX FUNDS ADJUSTED BASE BUDGET $ 650,300,600 New Ongoing Funding Base Compensation + $47,207,600 A. Base Budget (Compensation and Mandated Costs) 21,673,200 + Base Compensation B. Participation and Completion 25,096,900 C. Preparation 437,500 Ongoing Funds Base Budget Percentage Increase 7.3% One-Time Funding $10,500,000 Supplemental Funding $2,805,900 Notes: A 3% compensation package increase (including 9.5% for Health insurance Rates, 4% for Dental and 0% for Retirement) would require $20,164,500 in additional new tax funds. This represents an additional 3.1% increase in base budget funding (10.4% total) The 3% package would require a first tier tuition increase of approximately 3.5% to cover the institutions' share of compensation 1 DRAFT Utah System of Higher Education Estimated Operating Budget Request Summary (Tax Funds Only) Revised FY 2007-08 and FY 2006-07 Supplemental October 17, 2006 ESTIMATED FY 2007-08 STATE TAX FUNDS ADJUSTED BASE BUDGET $ 650,300,600 USHE BUDGET PRIORITIES $47,207,600 Basic Budget 1. Compensation Base Compensation + $7,498,900 (1) A. Equivalent State Employee Compensation Package TBD 7,498,900 B. Salary Retention Funds 7,498,900 2. Mandated Costs 14,174,300 A. Utility Rate Increases 8,738,800 B. IT Software Licensing Costs 900,000 C. Database and Disaster Recovery Management 464,100 D. O&M Requests for State and Non State Funded Projects (Currently On Line) 1,133,200 E. O&M Requests for State and Non State Funded Projects (Online for 2007-08) 357,000 F. Hearing Impaired Student Translators 1,939,200 G. Academic Library Consortium 642,000 Participation and Completion 3. Focused Participation Rate Increases 3,359,400 A. Student Financial Aid (1) Need Based Student Aid - (UCOPE) 3,149,100 (2) Mandated Federal Aid State Match 210,300 4. Institutional Priorities and Partnerships 15,500,000 A. Priorities 10,500,000 B. Partnerships 5,000,000 5. Workforce Development 6,237,500 A. Engineering & Computer Science Initiative 5,045,200 B. Nursing (2) 500,000 C. T.H. Bell 692,300 Preparation 6. Student Support and Success 437,500 A. New Century Scholarships 437,500 ONE-TIME INCREASES $10,500,000 1. A. Engineering, Computer Science, and Scientific Equipment 4,000,000 $10,500,000 B. IT Equipment - Network Infrastructure 3,000,000 C. IT Equipment - Disaster Recovery 1,000,000 D. CTE Equipment 1,000,000 E. Utah State Scholar Initiative 500,000 F. Library Enhancements & Acquisitions 1,000,000 SUPPLEMENTAL INCREASES $2,805,900 1. A. New Century Scholarship 130,100 $2,805,900 B. SLCC 2006-07 O&M Budget Correction 325,000 C. Utility Rate Increases 2,250,800 D. Database and Disaster Recovery Management 100,000 REQUEST SUMMARY USHE Budget Priorities $47,207,600 USHE Priorities Request Percent Increase 7.3% One-time Increases $10,500,000 Supplemental Increases $2,805,900 Notes: UEN & UCAT Budgets are considered separately from the USHE budget. (1) 1% Tax Funds: Salary & Wages $4,049,900; Salary Related Benefits $819,500; Health $567,300; Dental $44,700; State Retirement $134,600 (2) Nursing Request is a conversion of one time to ongoing funding. 2 DRAFT Utah System of Higher Education Estimated Operating Budget Request Summary (Tax Funds Only) Revised FY 2007-08 and FY 2006-07 Supplemental October 17, 2006 ESTIMATED FY 2007-08 STATE TAX FUNDS ADJUSTED BASE BUDGET $ 650,300,600 USHE BUDGET PRIORITIES $47,207,600 Basic Budget 1. Compensation Base Compensation + $7,498,900 (1) A. Equivalent State Employee Compensation Package TBD 7,498,900 B. Salary Retention Funds 7,498,900 1. University of Utah 2,923,800 2.
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