University Faculty Senate Proceedings of the Spring 2003 Plenary Cornell University ________________________________________ Friday Plenary Session President Hildreth: I would like to call this meeting to order. I managed to walk off this morning and leave my gavel in the car; so, we’ll have to use knuckles, I guess. Marvin’s volunteered to whistle, but I said, “That’s okay, Marvin.” Anyway, it’s my pleasure this morning to introduce our host senator from Cornell, William Sonnenstuhl, who’s going to give us our welcome. William Sonnenstuhl: Good morning. It’s a pleasure to have all of you here, and I want to extend a very warm welcome on behalf of not only the SUNY senators here on the Cornell campus, but for all of our colleagues across the campus. We had hoped that we would have some nicer weather for you so that you could really see our beautiful campus. Nonetheless we are giving you the full treatment because this is the sort of weather you can very often expect in Ithaca this time of year. In April, it’s often mud season. We do hope that even though you have a short visit here, that you have a very pleasurable one. We have a wonderful faculty, many wonderful students, and I know that many of you have colleagues here on the Cornell campus, both in the contract colleges and also in the endowed colleges. I hope that you’ll find some opportunities to visit with them and speak with them. I also hope that you may find some opportunities to visit Ithaca itself. There’s some information in your packets about our wonderful city -- we’re very proud of it -- and the reality is that when we have gorgeous weather here, it is one of the most beautiful campuses and places to live, I think, in New York State. In fact, when I used to live downtown I used to walk down the hill every day and say what a wonderful place it was and how lucky I was to live here. So, I hope you have a chance at least to sample some of them. Let me say also that we are the land grant college for the state of New York and we are very, very proud of that status. That does mean that we all follow those three missions that are very sacred to us in terms of research, education, and outreach, whether we’re on the endowed side of the University or the contract side of the University. And, I think that we’ve been very, very fortunate in terms of the leadership we’ve had where we’ve had a president who’s exemplified all of those things. Hunter Rawlings, the president of the University, continues to teach undergraduate students, which I think is something wonderful. He has really developed a research scholars program for the undergraduates, so that many of us on the faculty are privileged to have wonderful undergraduate students working with us doing research. He has pushed all of us to think about our research and how it extends to the citizens in New York State and all around the world, increasingly. So, we’re very fortunate to have that. Finally, let me say that, just in terms of logistics, that a number of you have asked me about getting the Statler this evening. Hopefully the weather will clear, but I’m not confident of that. I know that Claudia Strednick has arranged for a walking tour for those of you who would like to walk over there, take a leisurely gait and see some of our beautiful campus. I would encourage you, if you have some time, to visit our arts quad, which is the oldest part of Cornell. It’s a beautiful place. Also visit the Mann library, which is a new wonderful state-of-the-art library. It’s a beautiful campus and I do hope that you have a chance to do that. That said, if you don’t want to go on the walking tour, you could walk to the Statler Hotel from here in about ten minutes. Also, we’re encouraging people to carpool to go over there. There will also be some bus transportation over there. So, you should have plenty of opportunities to get there. Finally -- I don’t know whether she’s here -- I would like to extend a very warm “thank you” to Claudia Strednick. She’s worked very diligently to make sure that this function happened, and I think it’s going to be a wonderful couple of days. So I wanted to say, “Thank you,” to Claudia and thank you for coming; and if there’s anything we can do, let us know. And now it is my pleasure to introduce the President of Cornell, Hunter Rawlings. President Rawlings: Thank you very much, Joe, and welcome to everyone. We’re delighted to have you here for this weekend, and I hope that your discussions are provocative and productive. I’m sure they will be. We’re delighted to have you on our campus, as Bill said, because Cornell is the land grant university for New York State, and we take that responsibility with the utmost seriousness. We also very much enjoy our relationship with your institutions, and we look forward to even more articulation with you in the future because that’s an important part of our responsibility. I know that the relationships we have already built are very strong, and we’re intent on building stronger ones into the future, as well. So, I think it’s a very good time for that level of coordination, cooperation and colleagueship. We at Cornell are committed to that, and we hope that we will have even richer relationships in the future. It’s a pleasure especially to welcome you here during what I know is a difficult time worldwide, as well as for the United States of America; but I’m pleased that all of you could make it at this time. I’m delighted to see the attendance. I think that while all of us have been keeping an eye on the television screens, things seem to be going better now, and I’m glad that you’ll be able to conduct your conference at a time when things are clearly getting more positive. On this campus, we have a large number of international students, many of them from the Middle East, and we spent a good deal of time in the last couple of years, but especially in the last few weeks, working closely with them to ensure that they feel comfortable and safe on the campus. I’m sure you all do the same thing on your campuses. At the same time, we’re also making sure that all of those who serve in the armed services or in the reserves feel that this is a good time for them, as well, and that they have support on this campus. Also, I’m happy to say and happy to report that thus far, at any rate, the Cornell campus has been extremely mature in the way it has gone about its work over these last few weeks. I’m especially pleased with how much the faculty is reaching out to our students in terms of teach-ins and other means of bringing their expertise to students at a time like this, when they most need it. A number of our students have, in fact, sought out the help of the faculty during this time. We, like you, certainly do have experts on the faculty who can assist a great deal because they have special forms of knowledge that are helpful to students at this time. I’d also like to say how much I respect the work that is done by a number of faculty members in our contract colleges because they do indeed carry out, as Bill said, three responsibilities at Cornell: the responsibilities of research, education, and outreach, and all of its dimensions, including the highly organized extension programs that Cornell’s been operating for a long period of time. As some of you may be aware, in the past two years, we have done an all- university-wide study of our land grant mission at Cornell to re-affirm that mission and also to see if there aren’t some ways we can update it. We can find new ways of doing old business and also seek out new businesses, so to speak, for our land grant colleges. While I’m saying that, I also want to emphasize that Cornell itself is a land grant university, as Bill pointed out, so it’s not simply a matter of the faculty in those four contract colleges carrying out the land grant mission, but there are also faculty members in our endowed colleges who take that as part of their responsibility. I might underline the fact that in recent months the College of Engineering has begun to focus a great deal more on the kinds of outreach it does because it has a lot to offer, especially at a time when the relationships between research universities and industry are especially important. I’m happy to say that technology transfer is going forward very, very well now on this campus. One of the very nice indicators of that is when you arrive at the Tompkins airport, which I know some of you have, you will see spread out in front of you the Cornell business and research park, which is where we have a number of spin-off companies -- over eighty -- that have developed in the last few years and are now driving employment in this county. That’s a very nice result of first-rate research being done in Cornell laboratories, and we expect to see a lot more of that in the future. Our three representatives to the State University of New York Faculty Senate, Jennifer Wilkins, David Brown and Bill Sonnenstuhl, whom you just heard from, carry out key parts of that mission. Dr. Wilkins is a senior extension associate and one of the developers of the northeast regional food guide, an educational tool to help consumers in our region improve their diets while eating more locally grown and processed foods. We’re very bullish on New York products, whether they happen to be wines from the Finger Lakes in our vicinity or on other foods grown here. Increasingly, I’ve noticed at Cornell receptions much more emphasis on New York State products; and I think that’s a very, very happy outcome. Professor Brown is a professor of rural sociology, as I think many of you know, whose research and teaching include investigations of migration and urbanization in the U.S. and in post-socialist central Europe. Those migratory patterns, you might say, are of great interest to social scientists, and that’s an important part of the work being done here at Cornell. Professor Sonnenstuhl is an associate professor of organizational behavior and extension in our School of Industrial and Labor Relations with a focus on substance abuse in the workplace. We have a great deal of expertise on the workplace, and whether it’s our labor economists or our human resources experts or professors like Dr. Sonnenstuhl, you will see a whole lot of emphasis now at Cornell on the nature of the workplace and how to improve it. I’m very pleased about that because I think it’s an increasingly important aspect, not only of the work that we do, but of the work all of us do in order to ensure that the workplace is better understood and better researched. The outcomes then will be better in the longer term. So, the ILR School has, I think, acquired a very strong reputation in this dimension. I’m proud of that because it’s an important aspect of our land grant mission. As you all know, I think, Cornell is a private university, but it does have contracts with the State of New York, and those contracts have been in place for a very long period of time. They’re important to us, and our relationship with the State University is important to us. I think it gives us the kind of integration and synergy that’s really needed at a time of tight budgets. We all know that this is a difficult time in this state; it’s a difficult time in almost all of the fifty U.S. states. None of us, I think, should feel “down at the mouth” about that. That’s something we go through cyclically. We’re certainly in the middle of a difficult downturn now, but I think if we can develop better means of developing this sort of synergy that we’re seeing in the State University and with Cornell, we’re going to be better off for that. So, at Cornell, at any rate, we want to offer as much assistance and colleagueship and partnership as we possibly can to make the best of the resources that New York State has and to ensure that in the future we really are getting the best possible return on our educational investment. While we are extremely strong partners with the State University in all of its dimensions, we hope that this will be an increasingly important aspect of our relationship into the future. I wish you a very, very successful conference. I know that the work that you do is extremely important, and I thank you for coming to Cornell this weekend. I was looking at our CGLs over on the right side… I’d like to welcome you to Cornell. It’s good to see you again and I want to remind you that this is our spring plenary. Maybe if we say spring plenary often enough, something will change outside. In fact, it’s our 134th spring plenary. And it is the 50th anniversary of the faculty senate. The first meeting occurred in 1953 at the Dewitt Clinton Hotel in Albany. According to the minutes of the first meeting, the first order of business was to read the resolution that was approved by the Board of Trustees in April of ‘53 that created the Senate. I made a trip to the warehouse, which was an interesting experience, and I have the minutes from that first meeting. We’ll be reading some more excerpts from those later on tonight. We’re going to have a little bit of a celebration tonight following our dinner, so I think that we’ll be able to enjoy that. And, as part of that celebration, I’ve invited former Presidents: Aceto, Flynn, Markoe and Chen, and they’re each going to be saying a few words about some of the issues and activities that occurred during their tenure. This is Carol Colby’s last Senate Plenary meeting. And we’re going to honor her tonight as well. One of the things we’re working on is this little book that we have that we started last night in the Executive Committee. If you want to pass it around, I thought it might be nice if you could maybe express your good wishes for Carol and her retirement. I think it would be something that she would enjoy. Thanks are in order because this is a time of tight budgets, and you can’t always assume that when a person retires that you have the opportunity to fill that position. But we have our Senator, Dick Miller, who has supported us and we’re going to be able to fill that position one hundred percent. I just wanted to publicly thank him for that. I want to give a special welcome to our Senator, Norm Goodman, who’s back. Some of you may remember that he was unable to make our last meeting. He gave the excuse that it was for medical reasons. I did check into it and he really did have a legitimate reason; so he’s back. (Male voice in background: ”Norman wanted you to stay away so he could have the floor to himself. We tried that; it didn’t work.”) But in case you think he might have mellowed, I can assure you, he hasn’t. He was in perfect form for six hours last night, and I think you can see that he’s in that same form today. I spoke with Jim Varner, who is our co-chair of our Graduate Committee, and you know he’s had some medical problems as well. I spoke with him two days ago and he’s doing fine. He said he couldn’t be here today, but that he did actually teach a class last week. So, he’s coming along well and expects to be fully back very shortly. Well, we do have a full agenda so I want to move on. Just kind of indicate that during each Senate Plenary meeting, one of the things that I try to do is present you with the major news and issues that are going on in the Faculty Senate and in the system as a whole. The idea is that you can take notes on these and report back to your campuses. The campuses react and you report back to us and complete this whole circle of communication, which I think that the Senate is about and should be about. I just wanted to call your attention to several handouts. I noticed that Carol put some of them on your table, but if you didn’t happen to get those, you probably should. We have some copies of the Governance’s handbook that was done a few years ago. Some parts are not valid now, but most of it is. I’ve had several calls for that over the years, and that’s one of the happy by-products of the trip to the warehouse. I’ve found another carton of those, so we brought them for you. Also, the same thing is true in terms of the publications on assessment. Assessment is going to be a topic that we’re going to be talking about later on today, and I thought you would enjoy seeing some past Senate publications on that issue. So let me talk to you about some of the current Senate initiatives. The first is the art exhibitions. As you remember, in the fall we had a SUNY student art exhibition at State University Plaza. We had nineteen campuses participate and eighty-five works, and we were able to produce a catalog. We’ve done the same thing for the spring with eighty works from across the system. We’re going to be having a reception for that April 11th. We also have a series of art faculty exhibits. The first one was by Geneseo; the second one is scheduled for Oswego. They’re running for two months apiece and they’re being held in the gallery section of the first floor hallway. And then this summer, we’re going to be having a “Best of SUNY” student exhibition that is going to take the best work from both the fall and the spring exhibitions and present that. And from that “Best Of” show we’re going to be awarding three one thousand dollar ($1,000) scholarships. I should say Chancellor King is going to be awarding that. Of course, this couldn’t happen without Chancellor King’s support, and I very much appreciate of that support. I’m also very appreciative of all the campuses that have spent the time and energy to support the exhibition in the way that they have. They basically were able to transport the work and pick it up, and there was no charge to the system or to the Senate for doing that. It’s been an experience that has really been meaningful to me and I hope that you have had a chance to see some of those. We had a report last night on the Senate’s student transfer initiative. We have a task force that’s done research, and we’ve researched transfer plans from the states of Florida, Maryland, Arizona, California, Georgia, and North Carolina. The research did yield some ideas that we put into a draft which was presented to the executive committee last night. But, I think it’s fair to say that the executive committee didn’t give it a green light. So we’re going to go back to the task force with the suggestions that they gave us, and we will report on that in the future. One thing is that we’re not going to go forward with anything like this until we have the support of this group; but we’re working and we’ll continue to work, and we’ll continue to report. There’s been mention made of the budget. I just wanted to make a couple of points, and then I’m not going to go into any detail. We’re going to have Brian Stenson here later on today, and he will be the person to give you the detail of it. But let me give you some points that I think ought to go into your notes to report to your campuses. First of all, the current budget deficit for New York State is approximately 11.5 billion dollars. I’ve had that described as the worst budget deficit or fiscal crisis in the history of New York State. So it’s pretty serious stuff. In response to this, Governor Pataki has forced a cut to SUNY’s budget by $184 million. And then the Board of Trustees proposed a tuition increase of twelve hundred dollars to offset that 184 million dollar cut. However, I’ve been talking with the legislature, and the word I’m getting back from those people is that the increase is probably going to be reduced to something around $900. In my lobbying trips to the chair of the assembly’s Higher Education Committee, that’s Ron Canastrari, and to the chair of the Senate’s Higher Education Committee, Ken Lavalle, I lobbied that however you want to restore that $184 million, that the reserves have been spent and every additional cut is going to show up in some form of action that is going to reduce the quality of the University. They were both supportive, although I got the verbal exchange from Laval’s office that they would try to make up the loss in revenue that a $900 dollar tuition increase would produce. I didn’t get the same assurance from the assembly. In terms of people that I’ve talked to, they’ve said that the Legislature doesn’t have the money to put anything back. So, it’s a troublesome situation. I’ve also asked for TAP to be restored, and there is a bill that is active that was written by Eddie Sullivan when he was in office to have the President of the Faculty Senate be a regular member of the Board of Trustees. And, of course, I did lobby in favor of that. My reasoning was that we need to have another voice of diversity on that Board, and that seemed to be well received by them. We’ve been asked to come back to talk more with the Chief of Staff for Senator Laval. I presented our Rational Fiscal Policy to each of the chairs during my visit, and Laval’s is interested in that; so we’re going back and talking about that policy. My message was not to take a part of it, but to look at the whole package. All of those recommendations are interdependent, and I’m going to do what I can to see that that, in fact, happens. Let me move on and talk to you about some of the system activities. The first I want to mention is the Provost Advisory Council on general education. Norm Goodman gave a report on that last night. The first meeting was held March 26th. Procedures were developed to process campus guidelines as they’re received, as well as to process course additions for general education. I think that they’re going to be done electronically, which I think is good. The acronym for this is [T1]Ac G. Ac G is going to start to review the assisting learning outcomes for each content area, and that review will involve campus faculty in the process. There’s a SUNY general education conference planned for April 24th and 25th in Syracuse, and as of March 26th there are seventy pre-registrants from thirty-five campuses. There’s a nursing initiative, and there’s going to be a meeting on April 9th of nursing deans and directors to discuss the nursing shortage and what SUNY’s strategy or role should be in that initiative. There’s a faculty development initiative. Provost has created an advisory task force on faculty development. The third meeting was held on March 26th at Duchess Community College. There was a questionnaire that the group developed earlier that was sent to campuses. I hope that you are familiar with that. The responses were reviewed by the committee during this meeting, and we were able to start to get some major ideas from the responses. We’re going to eventually be making a report that’s going to basically focus on best practices in faculty development and teaching research service, as well as promotion and tenure, as well as awards and recognition. It’s my sense from working in the group that it’s an area that needs this kind of research and effort. I have hopes that what we’ll produce will be useful to everyone One thing that’s been made perfectly clear is that there are not going to be any directives that come out of this. It’s simply going to be to kind of share what for this group seems to be a good way to go about doing these things. Hopefully, it will have some positive effects. Let me talk a little bit about the SUNY Assessment Initiative. There is a general education review group, GEAR, which is just about one hundred perfect teaching faculty. It has received and reviewed the assessment plans of virtually all of the campuses, which will be fifty-seven. Not all of the sixty-four campuses, for one reason or another, have the undergraduate general education program. At the present time, forty plans out of fifty-seven have been approved. The GEAR group is planning a Best Practices and Assessment conference for next fall. The date has been set: it’s November 13th and 14th at the Crown Plaza in Albany. Each campus is going to be invited to send members of the faculty, professional staff and administration who play a key role in the campus-based assessment process. Call for presentations have been sent to each campus. If you haven’t seen it and you need to see one, just send me an email and we’ll make sure that you get it. Let me talk to you a little bit about the new vision and teacher education. You’ll recall that that is a program which increases the content for both elementary and secondary education students. The key features are that it now requires eighteen upper division hours for elementary ed majors, and it requires that secondary ed teachers have a major in the discipline that they are going to teach. So, a campus implementation report is going to be due in the Provost office on June 1st. From what I’ve been hearing, that’s been coming along rather well. There have been problems in terms of various aspects of it, but I haven’t heard a great deal about problems. As part of that initiative, there is a teacher education transfer template. There has been a problem getting agreement on all of the courses in that template. There was a meeting last Friday, and that still didn’t resolve it, so that’s a continuing issue, but they’re continuing to work on it. The enrollment planning process has been approved for 2003-2004. Overall, the plan calls for 2% funded enrollment growth. It breaks out to 1.6% growth for the doctoral institutions, 1.2% for the comprehensive colleges, and 7% for the technology colleges. I don’t fully understand that process, and I thought, “Well, it might be useful to have an explanation of it,” so I’ve asked Joe De Filippo to come and give us a presentation on that so that maybe we could have a better understanding of it. Now let me move on to some issues of concern. We talked about these last night in the executive committee. The first is the Global Education Networks American History course. You will recall the discussion we had during the Alfred Plenary meeting in which we basically said that we don’t want SUNY to participate in this. I mean, that was the sense of it. So, last week, surprise, surprise, there were full-page ads advertising a GEN American History course in most of our newspapers. I brought Potsdam’s and several people of the Executive Committee brought theirs. Basically what it’s advertising is saying that through Hudson Valley Community College, students can take this course. And then they talked about the quality of the course, and they talked about the fact that it would be three credits and that it would satisfy the general education requirement for history, and that it would transfer into the college in which the ad appeared. So, if you haven’t seen it on your campus, I urge you to go back and look a couple of weeks back. I think that you’ll probably find this full-page ad. This was alarming to a large number of us, so we looked into it. First of all, we went and spoke with the Provost about this. He didn’t have any knowledge of it. It’s not going through the SUNY learning network. He found out about it just recently. Ben started to do some more research in terms of Hudson Valley. He made a call to Hudson Valley and asked about the course. He found out that there are going to be two six-week sections and one twelve-week section starting in May. It’s a Hudson Valley course taught with a Hudson Valley instructor, and the GEN Involvement was described as a course ‘cartridge’. I went on to ask what that was and it was explained, “Well, it’s like an electronic textbook.” The class size was twenty-five per section. I then had another faculty friend call and ask some more questions so that we had the name of the instructor and so forth. We had a long discussion about it in the Executive Committee trying to find out what type of action we should take, and one of the things that we discovered is that this new technology doesn’t make it so easy to work with the older ways that we would approach a curricular issue like this. So, it was decided that we needed to go through the faculty council and have some more discussions with Hudson Valley because this thing is being offered on Hudson Valley’s server. And, we need to talk about this with the Union, and then we will report back. I think it’s fair to summarize the Executive Committee’s reaction as being unhappy with this and that we’re going to be looking into it. We’re unable to arrive at a course of action that seemed to be appropriate, so we need to do some more work. If you have some ideas please share them. University-wide assessment is an issue that everyone is concerned with, and the Executive Committee discussed it at some length last night. We have that on the agenda today, so I’ll save my remarks until that time and then we’ll get into that discussion fully. Another issue that I’m very concerned about is rethinking SUNY. Back in early meeting this spring, the Board of Trustees Chair, Tom Egan, announced that the Board would begin work on rethinking SUNY, too. He appointed Trustees Randy Daniels and Ed Cox, and also he went to John Crane and to Cortland President Judd Taylor to work on this group that’s going to be charged with looking at ways that SUNY and system can increase efficiency. One outcome of this has been like a survey, referred to as the Crane-Taylor survey, that’s been sent to various offices in system administration. Most people are uncomfortable with it. I haven’t seen the entire survey, but I have seen a question or two, and one question that stuck in my mind went something like this, “What are you doing to improve faculty efficiency on the campuses?” And then there was a forced choice with contact hours, credit hours…that’s what I remember of it. I’ve also heard that the thing goes into some very detailed questions, as detailed as asking them to put down the mileage on the campus cars from each campus. That type of thing. So as I continue to learn more about it, I’ll report back to you; but I’m very concerned. Let me end there and simply conclude by saying how much I appreciate the opportunity to serve you as President. I try to show that appreciation in terms of the way I conduct myself every day. As I’ve mentioned at every plenary meeting, I use four guiding principles: communication, consultation, respect, and quality. I just wanted to thank you once again for the opportunity. That concludes my report. If you have some questions, I would be pleased to answer them. Jim McElwaine: ‘Morning, colleagues. It’s time for roll call. Interval The Executive Committee met last night. You’ve already received an extremely detailed report from Joe Hildreth, who makes my job very easy. Thank you, Joe. We would re-announce there is a general education conference coming up the 24th and the 25th followed by a general education assessment conference, which will be November 13th and 14th, and there will be an assessment conference on the general education assessment con…no, I’m just kidding! The Executive Committee did consider a motion last night that these conferences that involve curricula be sponsored entirely or in part by the University Faculty Senate. That motion was moved, seconded, passed without dissent. Standing committees’ reports were received from the Awards Committee, the Governance Committee, Operations, Student Life, the Undergraduate Committee and the CGL Representative Liaison. No reports from the remaining two committees: Graduate and Public Information. There was a suggestion that Rethinking SUNY II should be called Re-Rethinking SUNY. That was also not addressed. There was a report from Norman Goodman on ACGE, surfacing once again. And, other than that, Joe has pretty much nailed all the details for you. Comments, no? Back to the boss. Joe Hildreth: Thank you, Jim. In my opening remarks, I failed to recognize our Parliamentarian for this meeting, Ed Alfonsin, could not make it, and Danny Malone was nice enough to offer his services, and I’d like to welcome you, Danny. Thank you for being here. I just wanted to make the remark that I’m happy to be here, and I also want to take the time to request that Anne Donnelly explain to her husband that my raincoat is outside and she can explain why I say that. Okay, I think we need to move on to the next order of business here, and that would be the elections and Peter Nickerson, I’ll turn the floor over to you. Peter: …bylaws at the last meeting. We have two candidates. The nominations were closed and the statements were sent out, and you had them in your packet. So, we’re ready to do the election. At the election, only the Senators or their alternates can vote. Gail Hagenah has agreed to help me and if any of the Senators do not have ballots, could you please raise your hand - senators or their alternates? So, if you please fill those in, we’ll collect them. Do we have everybody’s ballot now? The election has now concluded, and we will do the tally. We are very pleased to have the answer. We’d like to congratulate Joe Hildreth on his reelection as President. Joe Hildreth: Well I want to thank you and I also want to thank Carl Wiezalis. When I heard that Carl Wiezalis was running against me, my initial thought was, “Oh no,” because he’s such a good guy. I’ve known Carl since my initial involvement with the Senate and we both came as campus governance leaders. He’s a very good guy so I just want to tell you that I feel especially pleased that I was able to win this election with someone like Carl running against me. Now I guess we need to move on. Our next order of business is to go to our sharing of concerns by sector. We have some breakout rooms for you. It’s on this pink sheet that’s in your folder, and let me just go over these. The University Centers will be meeting in Multipurpose Room C. The SUNY Colleges, that would be the Comprehensive Colleges are Multipurpose Room C. I wonder if that room is divided. The Health Science Center is 306C, Agriculture and Technology is 306 A, and the Specialized Colleges are 306 B. The Campus Governance Leaders are in Multipurpose Room A and B. We’ve got a discussion on the convener situation for the campus governance leaders, and I’m going to say a couple of words to you. Then I will go to Multipurpose Room C, and I will make sure that that is accommodating your needs. We will have until 11:15 for this. Remember that we’re going to be having an election for the 2003-2004 Executive Committee when you come back. Normally, you decide during these discussions as to who your representative will be. And while there can be an election between two people, correct me if I’m wrong, it’s tradition that people come in and have one nomination and that will be the person who will represent your sector in the Executive Committee for the coming year. So, these will be important decisions. See you back here at 11:15, and I hope that this Multipurpose Room C has enough Multipurposes to work! INTERVAL __________________________________________________ Today we’re going to have the reports by sector, and following those reports we’re going to have the election for the 2003-2004 Executive Committee. Now basically the way that’s going to work in most cases is that we will call for a nomination during the election section of our agenda. If there’s only one nomination, I’ll ask if there are any objections. Then, if we have none, we’ll ask the secretary to cast one unanimous ballot. We won’t be required to vote, but that will put it on the record. So, that’s the way we’ll do it. We’ll go through and we’ll have the election, which means that you’ll come up and give me the nomination. We’ll have the secretary cast one unanimous ballot in most cases, and that will certify the election, and we’ll have it on the official record. And then it’s lunch. So, if we could have the representative for the University Centers, I believe that would be Pete Knuepfer. Pete: The University Centers agreed some time ago that they would ask a particular member to be on the Executive Committee for two years running. I am completing my first year on the Executive Committee, and so keeping with that, the Centers have re-nominated me for another year to torment Joe. President Hildreth: Are there any additional nominations from the floor? Alright, Mr. Secretary, I believe that it is now appropriate for me to now ask you to cast one unanimous vote for Pete Knuepfer to be the representative on the Executive Committee for the 2003-2004 year. Comprehensive colleges? Tim Phillips: As I was the only nomination amongst the Comprehensive Colleges, I am the nominee: Tim Phillips, Cortland. President Hildreth: Health Science Centers? Peter. Peter Nickerson: We do have a nominee. It’s George Tortora from Stony Brook. President Hildreth: Additional nominations from the floor? Mr. Secretary, you’ll cast that ballot? The Technology Colleges? Jeff? Jeff: Against my better judgment, I’ve decided to accept the nomination of the Colleges of Technology, and I’ll continue on into a second year if they’ll let me. President Hildreth: This is your last chance to do something about Jeff before he’s confirmed. Are there any more nominations? Alright, seeing none I’m going to instruct the secretary to cast that ballot. Let’s see, we need to have the Specialized Colleges. Kathleen? Kathleen: I’ve been nominated for a second term, so I accept the nomination. President Hildreth: Nominations from the floor? Alright. Campus governance leaders. Now, this is not in our bylaws, but do we have someone to speak for the campus governance leaders? Ken O: The campus governance leaders have adopted a process that will yield a new convener shortly. President Hildreth: But, it hasn’t occurred yet. KO: It has not occurred yet, and so until it occurs, I will be acting as the convener. President Hildreth: But it will occur this plenary, won’t it? Or not? KO: No. President Hildreth: It won’t. KO: No. It will be similar to the last process, which will involve email nominations and ballots, and it will be done within four weeks. We do have two nominations. ???: …recommendation of the committee to set that up. So that we can make sure that all the CGL, if they weren’t here, could be there. President Hildreth: All right, that’s fine, and then Ken, you’ll be making the report later on this afternoon? Ken: Yes, I will. President Hildreth: Okay. I believe that takes us through the election of the Executive Committee, and we got through that quickly. I have some announcements here. We are scheduled for a walking tour of the campus from 5:30 to 6:15 this afternoon, and there was a question to see how many people would be interested, given the weather. Could I see a show of hands of the people who would like to go on a walking tour? We do have the people here to conduct that. Okay, good. That will take place at 5:30 and we’ll give you instructions when the meeting breaks up as to where you should meet. I see a note that you’ll meet on the first level. I have an announcement about carpooling to the Statler Hotel from the meeting location. We have drivers: Bill Coles, Judith Adams-Volpe, and Marilyn Kramer will be riding with Bill Coles. If you need to make some additional arrangements, go ahead and do that, but I did want… Man: Is there a parking place at the Statler where we can park? President Hildreth: Jim, would you get Claudia to come in here so that I could ask her a question about that? And then Sue Bastable, Anne Donnelly, and Angela Hower will be your riders. Claudia, what about parking at the Statler tonight? (Claudia speaks away from the microphone.) President Hildreth: And actually Carol has identified for me those six people…this is what Carol’s like. Every time I walk into the office I’ve got this three-page list of things that she wants me to do, and this is a perfect example of it. So those people to go with Claudia are: Melissa Brown, John Cross, Ellen Fitzpatrick, Martin Haybower Burlmont, Ken O’Brien. Dan Murphy is also going to be a driver, and his passengers will be Ed O’Shea, John Taylor, and Karen Spellacy. If you don’t find your name there and you need a ride, let Carol know and we’ll work that out. (talking in background) And then I wanted to mention on Saturday that the parking is not going to be the same as Friday, but see the Driving to Ithaca sheet for directions on that. And with that, I believe that we can break for lunch. I believe that lunch is going to be served in the same room that we had breakfast in this morning. I will point out to you that we will begin our afternoon plenary session at one o’clock. So, have a good lunch. President Hildreth: Now we have, due to the weather, a change and then we have another change that we want to announce. We are not going to be able to have the presentation on using the website due to weather and the Operations Committee felt that it would be better to just go ahead and summarize what they were going to do during their report on Saturday. So we have that time. So what I think will be useful then would be to move up our discussion on University Wide Assessment. So we will have that discussion and it will be begin at approximately 3:30 and we can let that go for an hour or so. That will give us a little bit of time if we need it. Then we will try to break immediately following that discussion, let’s say that might be around 4:45 and have our group picture then. So that might mean that there might need to be some changes made in terms of going back to the hotel and transportation, etc., etc. So I have a sheet here and if you would like to go back earlier to the Statler, if you’d sign up we’ll try to see that you have transportation and then we will still have our reception at 6:15 which will be back on campus. So let me pass this around so that those of you who need transportation can sign it. ???: Joe, what’s happening with the walking tour? President Hildreth: The walking tour is on. Let’s see. Is Brian here? So, now it’s my pleasure to introduce the vice-chancellor for Finance and Business, Brian Stenson. He’s going to give us a budget report, and he’s the one who can give you the insights and the detail and the perspective that I was unable to give this morning. Brian? Brian Stenson: I think I might be able to give you some perspective; I don’t know if I can give you any detail. Good afternoon. Thanks for inviting me here today. I genuinely mean it, it’s a great pleasure to be out of Albany for a day, even on a gloomy day. I think they call this “Ithicating” here at Cornell. I’m not making that up. I think it’s part of the local lore. I think I’ve mentioned this before to you folks, but there’s rarely any good time to talk about fiscal matters in New York State. I don’t mean in terms of the substance; it’s the timing. Even if you can get past the usually downbeat subject matter, the timing just never seems to be right. It’s either well before any real developments or well after them. So, we are either rehashing old news of sitting around speculating on events that are yet to happen. So everything really is conjecture. But I’ll try to give you some of my perspective after following this process for too many decades. We can have a conversation about where we go from here. The Executive budget details are well known, so I’m not going to hash over that in much detail, although I do want to talk a little bit about the major issue facing our budget and that’s the impact and the prospects for the Executive budget recommendation that would reduce state support by a significant amount and increase tuition revenue by a like amount. I’ll get into that in a second. But first I’m going to give you an update on where things stand today on the state budget. I did not get a chance to look at the Times Union this morning, so who knows, everything could be settled, for all I know. Unlikely, but it’s possible. Especially now that we’re nineteen years in a row late. The interesting thing is that this year, especially this year, you can see the relationship between the budget of a given state fiscal year and the next fiscal year. If you follow it a little bit, and with any luck I can help illuminate that a bit today. You see how one year really affects the outcome of the following year, and you’ll see what that means for the content of the state budget; but it’s interesting to look at. It’s probably a consuming interest only for budget geeks like myself and Pete Pillegi, who’s down here, but it should be of at least mild interest to everybody here who relies to some extent on state funding. As you know, the post state budget was released by the governor in January, and it was constructed in the context of a huge gap facing New York State for the fiscal year that ended March 31, 2003, which is the ‘02-‘03 fiscal year in the one that started. The year we’re in now is ‘03-‘04. In that gap is the result of mainly revenue losses reflecting the real slowdown in the economy nationwide, and particularly in New York and our state that, as you know, was especially hard-hit by the events of September 11th. That really devastated the economic base of the city and the financial services industry and a lot of the allied industries down there. It just shook consumer confidence right to the core. So we’re really facing a double whammy in New York State and in many of the local governments in New York State. There are also sharp spending increases in the state budget for pension contributions, again relating back to the economic slowdown in the stock market. Health insurance costs are rising. Health care costs, like in Medicaid, are skyrocketing. School aid, all those kinds of programs, are rising in spending next year, many of them following commitments that were made last year during an election year budget negotiation. So the chickens are coming home to roost in the 2003-2004 fiscal year. When the state budget was released by the governor, receipts were projected to decline in the prior year from earlier projections and again in the year we’re in now, from ‘02-’03, and the loss of non-recurring revenues that were available to fund spending in ’02-03 are gone. Those revenues are gone so that the State has this baseline budget imbalance. Last year, for the year that just ended, the governor had predicted a 2.2 billion dollar budget deficit, and he predicted a 9.3 billion dollar deficit for the year we’re just starting. That’s really a baseline gap and that’s the difference between what their receipts would normally achieve without any change to tax structures, given the economic forecast and what the spending commitments would require. So, it’s a baseline gap. In this case, the spending line is going up sharply, and the revenue line is actually declining. So, you have this 9.3 billion dollar budget gap. There was a projection of about eleven and a half billion dollars of deficit over the two years. The governor proposed a combination of actions that were mainly spending reductions and more one-time revenues to close this budget gap. Funding is being reduced for virtually every state agency and state program with the exception of public safety kinds of programs. But it includes cuts in school aid and Medicaid and most state agencies. State support for SUNY operating colleges and state operating and statutory college and the community colleges is being reduced year over year. There’s also a heavy reliance on one-time actions in the executive budget. These were proposed as a bridge, really, until the economics strengthened, in that the normal state tax structure would start to generate more state revenues as a bridge to get to better economic times, while they achieved technical budget balance in ’03-’04. The largest element really is the securitization of tobacco settlement monies that the state, as other states, are getting a stream of revenues from the tobacco companies that the governor proposed borrowing be done in anticipation of those revenues. So you discount that and get upfront money in exchange for a dedicated stream of these payments over twenty or thirty years. I’d call this the mother of all one-shots. It would have generated about 3.8 billion dollars of receipts in ’02-’03 and ’03-’04 in exchange for giving up multiples of that over the next twenty or thirty years. The State Controller estimates that there’s a significant number of one-shots over and above the 3.8 billion dollars, but it’s anybody’s guess what’s a one-shot and what’s not really. It’s sort of a technical doublespeak kind of language. So that’s the general architecture of the Executive Budget. I want to give you a sense now of where we are in the process. The year ended Monday night, as I indicated, at midnight. I did that too many years when I was in the Division of the Budget. Sometimes it didn’t end until 4 o’clock in the morning. But I want to tell you a little bit about what happened here. There was no agreement on an overall plan to achieve a balanced budget in the year just ended. As I indicated, the Governor wanted to use some of the Tobacco bond money in ’02-’03, but that did not happen. There was no agreement on how to do that. Assembly speaker Silver opposed the Governor’s plan because a lot of those tobacco monies have been promised or dedicated to other programs, particularly public health programs. He was concerned that using them now for balancing the budget would jeopardize the level of funding for those programs that are near and dear to the speaker’s heart. So, that money was not made available. Senator Bruno has proposed a highbred of the two plans. Compared to what the governor has recommended that the securitization of tobacco and the assembly speaker has recommended more of a conventional borrowing program. Senator Bruno suggested a highbred of those two ideas. You have to remember that New York State operates on a strictly cash basis of accounting. They report on an accrual basis, but they operate and manage and budget on a cash basis. So without that tobacco money, the Division of the Budget had to turn to good old-fashioned cash gimmicks to balance last year’s budget. They did that by slowing down the actual disbursement of money. The reports are not quite in yet, but sketchy information that’s been leaked showed that school aid payments totaling 1.3 billion dollars were delayed from March into either the April, May, or June months. The thinking there is that as long as the money came to school districts in the current school year, which ends the same time as our fiscal year, June 30th, it didn’t matter. So they delayed 1.3 billion of school aid payments to help close last year’s budget gap. Clearly there will be implications for certain school districts. Some of them may have to borrow money to make up from that lost revenue from the State. One of the traditional techniques that the State has used in the past years -- I’m not sure if they used it this year -- was to delay the payment of tax refunds. So, if anybody had plans to use their tax refund to buy a new car, you may have been disappointed. They’re being held somewhere in a filing cabinet, waiting for better times. The culmination of these actions, obviously, is not to save money but just to delay the spending. So the school aid has to be paid in April, May, and June. That’s not part of the Governor’s recommendation, to cut those payments, but it has to be paid in April, May, and June and those tax refunds would have to be paid some time or another. Probably in April, May, and June. So the State’s cash situation in April and May is really in difficult shape right now. They will probably run out of cash in May, unless some extraordinary event happens, whether they issue the Tobacco bonds or do some good old-fashioned cash flow borrowing that they’ve tried not to do in the past eight or ten years. In normal times, April, May, and June is when the State would generate a lot of tax revenues from your tax payments, but these are not normal times and they won’t get nearly as much money as they would normally or even what they had planned on when they put the budget together this year. So there’s a real cash crunch coming for the State of New York. We were concerned that this would affect our payment of aid to community colleges. It has had no effect at all on the State operated colleges, but there was a delay in payments for the community colleges in the State SUNY system. But those payments were delayed only a few weeks. The payments were actually made in late March, compared to a late February or early March. So it was just a small blip, and we were lucky there. Back to the overall State budget, on a strictly cash basis the State closed last year’s budget in balance. The actual cash receipts equaled actual cash disbursements. But if you look at this over a two-year basis, all of that 11.5 billion dollar budget gap sits squarely in the ’03-’04 fiscal year. How are they going to close it? We don’t know yet, but there is some good news and there is some bad news. First, the good news is that the Legislature and the Governor have agreed on a revenue estimate for next year. This is sort of a monumental event this early in the year. Obviously, at some point when they negotiate a budget, they have to agree on a revenue estimate; but they did it in early March, probably the earliest such agreement in recorded history. It’s part of a process that was called Consensus Revenue Forecasting. It was statutorily mandated, I think, back in 1996, to have sort of a forced conference or conclave where the Governor and the Houses of the Legislature get together, share revenue estimates, and agree on a consensus forecast with economics and revenue for the state. And this is the first year that that’s happened before April 1st. But this agreement covers only tax revenues. That’s what can be collected by the state from income tax, sales tax, corporate income tax and so on, the broad based taxes. Unfortunately, the number was not much different than what the Governor had projected. So there’s not a lot of new money being found as part of that process. But they have the agreement on that and that’s the bulk of the State’s recurring revenue base. The main part of it that is always used in terms of negotiating in an active budget is what they call avails. The tobacco securitization money is an avail, but there are others. There’s always talk about selling state assets, relieving agencies of surplus funds and balances, taking that off their hands so they don’t have to worry about it, spinning up or accelerating the receipt of monies. Actually, businesses for a long time had to make estimated prepayments of their quarterly sales tax, so they’d have to estimate how much sales tax they’d collect in a two or three week period at the end of the month and estimate that and pay it early to the State before they collected it. That went over big, too. I just want to talk a little bit about the tobacco money. On paper that transaction is still possible, but there’s no agreement on how to do it, how much to do, how to structure the money and the bonds that would be issued. And, there’s also some further complication. I don’t know if anyone saw the paper this week, but the actual stream of revenue that the State is going to collect is in some jeopardy. Phillip Morris has been hit with, I think, a ten billion dollar settlement that might imperil the company’s ability to make these payments. So, the very revenue stream on which the State budget is predicated now for this next year is at some risk. If that doesn’t happen, they’ll become extremely creative in finding alternative revenues. So, we have to watch that closely. I would encourage everybody to keep an eye on that one. That’s going to be a very significant idea. The other major revenue source that people will have to talk about, I think, is involving changes to the State’s tax structure and revenue structure. Not just taking some balances here and there but to look at some of the broader based taxes, closing loopholes, and so on. The Business Council has issued a series of alerts to their members warning them about secret behind-closed-doors discussions to close corporate loopholes, imposing a temporary personal income tax surcharge and so on as a way to generate the monies that people think they need for this state. You can imagine how receptive the Business Council is to that idea. They weren’t all that hot on it. But, that’s going to be an interesting area to watch. You really should watch that debate carefully. How that’s resolved will determine whether the State closes this next year’s budget gap in a way that is structurally sound or really just pushes off the problem for many years or just one year. That’ll have a direct impact on the budgets that the State will have to enact in ’04-’05 and ’05-’06 and therefore another impact on our budget in that year. So there are all these other ideas being floated in Albany, but all of the discussion has really been speculation by affected lobbyists. Very little in the way of incremental or sequential decision-making. It’s not at all like the federal system where they do one budget bill and then move on to the next budget bill. There’s no precise agreement yet on how the money will be spent that they haven’t quite figured out how to raise yet. We know from public statements that the legislature’s priorities are school aid, and the Governor recommended about $1.3 billion of actual reductions next year in school aid. They want to restore that. There’s a lot of interest in restoring that because that has a direct impact on local property taxes, and there is all sorts of anxiety at the local level about that. I’m sure you’ve seen that. There’s a lot of interest in restoring the proposed healthcare cuts, Medicaid cuts, and TAP. TAP is high on everyone’s list to restore. There seems to be some interest in restoring at least some of the community college cut. But again, we don’t know yet. There’s been a budget bulletin release by the State Budget Division. That has actually made the papers, and you can see some of the aftermath of that. To keep the pressure on lawmakers and to help generate budget savings in the year, DOB (Division of the Budget) released a bulletin asking all agencies to stop capital projects, to slow down spending, and eliminate anything that’s unnecessary. These emergency measures were designed to generate savings, but also really to pressure the Legislature to act now on the State Budget. The way they expect to do that is by stopping the capital projects. It’s not exactly clear what that will mean, specifically for us, but there’s an intent there to really cut back. We enjoy as a University a pretty significant degree of budget and fiscal autonomy from the State, so the Budget bulletin doesn’t technically apply to us. But we were asked to do what we can to comply with the spirit of the bulletin, and I think that we are. From my perspective, it’s a good idea. We need to do as much as we can here for a couple of reasons. First, we don’t know the ultimate outcome of this year’s budget. We don’t know what’s going to happen, but it would be prudent to identify and generate savings to the extent that we possibly can. Regardless of how this year’s budget for SUNY comes out, we do still have a structural imbalance in our operating budget. There are built-in salary increases that would raise the level of spending and certain other things, inflation and so on, over the level of funding that was recommended in terms of aggregate amounts by the Governor. So even if we get exactly what the Governor recommended to us in aggregate terms, forget about the nips of tuition and state support for a minute; our spending needs will exceed that amount. We don’t have a significant salary increase or collective bargaining budget issue next year. That’s probably fortunate for the University, but unfortunate for everybody in this room. In addition, the year that we’re in now, campuses balanced their budget, again we did not get funding for collective bargaining and certain other things but the campuses in many areas balance this year’s budget by using campus reserves, and not a lot of that remains. And finally, the Consensus Forecast indicates that the State is going to be in this soup for at least another year and probably two years or three years. So the long-range budget projections for this state are not very rosy, and ours are just as bleak to the extent we rely on State support. Let me talk a little bit about this bulletin and what our general position is on it. On personnel issues we’re going to continue the guidance that we’ve already given campuses regarding the retirement incentive. In that exercise, we did not place extraordinary controls on campus hiring for faculty who vacated their positions; and we’re not doing that now, either. We’re just urging campuses to be cautious and make sure that decisions on refilling any position, even the faculty, is well thought out and is part of the overall strategic thinking. For non-faculty positions, we really urge campuses to be extremely restrained in rehiring and try to keep non-faculty hiring to the areas that are truly critical, whether it’s health and safety positions that might generate revenue, such as development or help identify cost savings. The bulletin also called on us to control our non-personal service spending. So we asked campuses to review and limit as many of these areas as they could, including travel, the use of consultants, conferences, publications, purchases and so on. We have not established targets for the campuses. We’re actually more interested in the budget control processes that the campuses are using, so we’re going to ask campuses to let us know how they are doing on a monthly basis, but again, not shooting for a budget target and certainly did not impose staffing targets at all. We’re interested more in how campuses are managing this, what kind of changes they’re making, and how they go about things as opposed to achieving a dollar amount. We turn now to the budget outlook for State University for the year ahead. We will start with just the context of the Executive budget. I indicated before that the budget really reduces the level of support for many, many state programs and agencies. In that context, I think that SUNY faired pretty well. We worked closely with the administration over the past year or so to explain our needs and drive home the fact that in our opinion SUNY was not treated as well as others were when the State had a lot of money to spend. We looked at the amount of avails, the additional amount of money that was available to the Legislature each year when they enacted the Budget, and found that we didn’t participate as equal partners in that. We didn’t participate as junior partners in that, either. I don’t have to tell you… So the Governor, I think, and the Budget Division recognized that we were not well positioned to take another hit on our budget because of the built-in cost increases that we’re facing and the fact that we were pretty thin already. Our level of funding was reduced in real terms over what it had been before. So he recommended the reduction of State support that he was forced to recommend, but he recommended that we be authorized to raise tuition and generate an equal amount of campus revenue. To fill that hole up, we believe that a $1200 increase is necessary. That’s a $1200 increase on resident undergraduate tuitions. We’ve been working with the Presidents under Dick Miller’s leadership to work our other tuition increases for all the other categories in the tuition schedule. By that I mean all of the non-resident tuition rates, and the graduate and professional school tuition increases. Our strong advocacy message is that we need the full $1200 to balance our budget. First we want to make sure that how we allocate the money next year in our budget process does not severely disadvantage campuses or any particular campus. As you probably know, I think from some of our past discussions on budget allocation, the degree to which campuses depend on State support versus tuition is all over the lot. Some campuses rely very, very heavily on State support and other campuses do not. It’s much more of an even split. These are the high-cost programs and high-cost campuses. Second, I go back to the built-in structural budget gap I was talking about before. The level of spending that we would have next year will exceed the level of spending recommended in total or aggregate terms by the Governor. So we already have this thing and if we have to live with a lower level of tuition support that’s not made up with State support, then we’ll have an even bigger imbalance between our receipts and our spending requirements in the following year. These are the same old issues. It’s collective bargaining, it’s inflation, and it’s new spending for the enrollment growth that we have, even though that pretty modest this year. Other mandates that are not funded, whether it’s teacher education and even HIPPA. All along the line there are pressures on the campus budgets and if we get an absolute reduction in the overall level of support or the level of funding in the operating budget, then that makes those problems magnified. AS I mentioned before, many campuses used up their campus reserves in balancing this year’s budget. So our real point is that if the overall size of the budget is reduced, our situation in terms of budget outlook next year would be disadvantaged. We’re looking at ways to manage this challenge in the year ahead. I can report that there is no plan now to make wholesale changes to the so-called BAP (Budget Allocation Process). We’re not going to completely rewrite the thing. First, it’s too late and second we’re arguing that this is not the year to do it because of the significant disruption in the components of the funding. But we are looking at ways to ameliorate the impact of the State support reduction on the campus. Planning to consider more substantive actions for discussion in future years. Not starting in ’03-’04, but in future years. I would hope that we could replicate the spirit of cooperation we have with the campuses. We have regular, modest tuition increases that would be available for everyone to use in terms of planning and decisions, including campuses and students and families. There’s no clear indication on what the Legislature is going to do on that. I think we’re making some progress. Some of the legislators that we’ve been talking to are getting increasingly comfortable with the idea of modest regular increases. When you show them the numbers, our peer or competitor states, especially those in the northeast, had raised tuition modestly every year for seven years in a row, and we haven’t. So as a result, we have this huge upside room that makes the budget folks say, “Well, let’s raise it by twelve hundred bucks.” It just makes a significant reduction of state support all the easier to swallow. As you probably know, the state education law currently prohibits us from changing the tuition schedule until the state budget is enacted. That really has caused some difficulties. We haven’t faced this situation in about eight or nine years, but we have increased professional school tuition rates and we have to do that on a contingent basis. So we have this very inelegant process where the Board might make a contingent or conditional tuition increase that’s effective only when the state budget passes. Those tuition increases were really not designed to achieve budget balance at any particular campus; but they were used to help provide additional revenues to invest in the programs that benefited. So the University of Buffalo raised the tuition rate for the pharmacy (the Pharm. D.) program, the law program, and physical therapy. We think there are some good results as a consequence of that. I think that the real obstacle to an effective tuition policy is the requirement that the monies be appropriated. We could raise all the tuition rates we want and not be able to spend the money unless the legislature in the enacted budget included some provision for us to spend that money. They’d have to provide an increased appropriation for us. Short of some radical shift in State policy here, which I don’t think will happen in our lifetimes, we will have to rely on a mutual trust with the legislature. As I said, I think we’re moving to develop that level of trust. Let me talk a bit about timing. Timing is always dicey when we talk about tuition increases. Students right now, as we sit here, are making their college decisions for next year and we really don’t know what the tuition rate is going to be next year. We’ve developed some different scenarios for decision-making that cover the various possibilities. I think that the most sobering possibility is that there will not be a State budget with a provision for tuition until after the close of the fall semester. As I said before, the State of New York operates as a cash basis, and they can just go on with the emergency bills, what the Feds call Continuing Resolutions. As we sit here now I don’t think that’s likely. There was some talk early on that no budget would be the outcome. You should understand that that no budget scenario was probably the dream scenario for the State Budget division. That allows them to fund things that are low level, cut back on all the discretionary kinds of things that agencies would do. They can structure the level of emergency appropriations to be barely at subsistence level, and it just holds down spending in the year. So, from the Division of the Budget standpoint, they just rub their hands and smile at the thought of that. But I don’t think that that is going to happen this year. The latest we’ve ever gone in terms of waiting for a final resolution was October a couple years ago. That was the year of the so-called bare bones budget. We’ve been taking every opportunity to make the Legislature aware of the awful implications of the very late budget for us. If the tuition rate were not able to be increased, for example until January 2nd, that would preclude us from going back in charging the rates back to the fall. When we had the late budget that was finally deemed official in October, the Board of Trustees then enacted a resolution raising the tuition rates of those programs that I mentioned; the professional program of Buffalo and Stony Brook. But we were able to increase them mid-semester. We didn’t collect the money until the spring bill, but we increased them officially in mid-semester and we had been out and did a very public outreach program to the affected students. So they knew even back in May that we were raising tuition rates, and we told them again in August and September when classes started that those rates were going to be increased. So we got a little bit of pushback on that, but not much because we’re dealing with graduate students, not a hundred thousand or so undergraduates. So it might be a bit of a different scale. But we believe if it happened in mid-semester, we could go back and increase the tuition rate retroactively. But I’m personally optimistic that the state budget will be done by June this year. A couple of things that are going on this year is that they enact the legislation that expires in the end of June. The rent control laws expire at the end of June, and that’s a huge issue for Speaker Silver’s district. So that’s a way to force serious negotiations. There are a couple of other things that are going on this year that end in June that will force everybody to the bargaining table and look at these thinks altogether, finish off that package of legislation, and finish off the State budget. So I’m optimistic that the State budget will be done by June, if only because the longer you go in the year, the more likely it is that you won’t have any more money; and there’s no percentage in sitting around dividing the same amount of money. If there’s any sort of additional revenue weakness in the State budget, then that’s even more incentive to get it done and get out of town. Let me wrap up at the risk of completely ruining your weekend. Before I take your questions…that’s pretty close, probably. But it’s not bad. I think if we can get the $1200, and I think there are increasing signs that the Legislature is understanding, at least, of the notion that we need $1200, and I think increasingly likely to support that. There have been other numbers tossed around as a potential outcome, and I think that those numbers are three digits in total. $800 or $900 is the number that you might have heard as another likely scenario. Those of us who sit there and watch this day-to-day knowing the demands on the State and knowing the limited resources are not optimistic that if the tuition rate were rolled back that the State would replace that with State support. We don’t think that’s going to happen. So we’ve been pushing for the $1200, and we think that it’s more likely now to happen. But on a brighter note, I want to let you know that from the vantage point of system administration, I think it’s clear that we’re in a far stronger position than we were a few years ago, if you look at almost everything but budgets. Our general financial condition is stronger. We don’t have as many campuses that have severe long-term financial problems as we did just four years ago. Our academic programs are stronger, we have a more selective admissions process. Incoming students are getting stronger and stronger and more selective each year. The fundraising is up. We have a renewed attention on fundraising and you can see the results on that. The Governor’s proposed the second five-year capital plan that will help make needed investments in our infrastructure, and the demographics are strong, which was not the case the last time we had the major tuition increase back in 1995. We’re still on an upswing here in terms of the high school graduating class. All of those arrows are pointing in the right direction, I think. Even if we have a significant tuition increase, $900 or even $1200, I think that we’ll be in a much better position to absorb that and move on. Even with a $1200 increase, SUNY will remain a great value in most cases compared to our public competitors and I think that it will remain very attractive to thousands of great students and thousands of dedicated faculty like you. So at that point I’ll stop and see if I can answer any questions you may have. Jim McElwaine: I’m Jim McElwaine from Purchase College. You mentioned something about stopping capital projects. Does that mean SUCF projects or how do you see that impacting of SUCF? Brian Stenson: We’re not sure how…in theory, technically it doesn’t apply to us. That’s our position. But we’re working with DOB to try to find out exactly what they mean. The way it was originally explained to me is that projects that were in a particular stage of construction, not the design stage but the construction stage, you could have a contract within that stage. So if you were already in the construction stage and you’ve already issued a plumbing contract and a HVAC contract, you could do masonry and heating and so on. But you could not advance a project from design to construction. That’s their opening position, and we’re continuing to dance with them on that. So there isn’t any real specific guidance yet but that’s the general intent of what they want. Marvin LaHood (Buffalo College): Brian, I’m going to ask the question that I asked before because I think that it would be interesting for the Senate. In this “Rethinking SUNY II,” there is this talk about efficiencies and so forth; and invariably in the last decade that efficiency has always been aimed at us. So we’ve had this diminution of full-time faculty lines and all that sort of thing. Is there going to be also some look at the efficiency of the administrative structure? I don’t mean system, but I mean the administrations of the various units. Brian Stenson: We’ve received several data requests from the folks doing the study. We actually added them all up and there are approximately 208 specific data requests. A large number of them speak directly to efficiency, and I’m not even sure if any of them speak to traditional faculty productivity, you’d be glad to know. But a lot of the questions look directly at staffing patterns, percentage of the budget end in this, and the work force that are in so-called administrative or overhead kinds of functions. There will be many of these questions that we will be trying to answer with them, comparing a lot of our benchmarks to CUNY and other state schools. There is a whole range of questions that speak to that issue. Tim Phillips (Cortland): Brian, you mentioned future year budget scenarios. I’m sure that you guys have developed multi-year budgets. What if we have a really bad situation? Could you just elaborate on what really might happen in an 11.5 billion dollar deficit scenario? Brian Stenson: If you’re talking about the following years, once a year DOB does a multi-year budget projection, and that’s done only to accompany the executive budget. That rapidly becomes out-of-date. If you look back at the past years, you cannot find a set of updated out-year projections following the enactment of the State budget. DOB has put out a set of out-year budget projections. They go two years out from the budget year so they’ll cover ’04-’05 and ’05-‘06. It’s in a very obscure place in one of the three budget documents, so I’m probably the only one on this campus who could find it. I’m typically the only one in my office who looks at this stuff. But the budget outlook for those years all assume enactment of the proposals recommended by the Governor. The numbers for the out-years are not nearly as bad as they were for the ’03-’04 year with a nine billion dollar budget gap. I think that the rough amount of the budget gap projected for 2004-2005, for example, was in the three billion dollar range. Again that is assuming enactment of the Governor’s proposed cuts of about $1.2 or $1.3 billion in school aid, so that just ripples through. So it’s not terrible every year. Every year in almost everybody’s collective recollection, the enacted State budget would produce out-year budget projections that are worse than what was assumed by the Governor. And that’s just because of the nature of Albany and how they do a budget. They’ll add spending commitments. It was a tried and true technique done years ago, and I’m afraid that we might be tempted to slip back into this, of enacting a program in the year you’re in, particularly in budget year, and paying for it in the following year. Let me give you an example… particularly school aid. As I said before, it’s the same fiscal year as SUNY, which is July 1st to June 30th. What they would do was enact a school year increase, we’ll say $1 billion, and fund about two or three hundred million of that in the current state fiscal year and pay the remainder in the April, May, June period of the next state fiscal year, which came in this same school year. So in the year that you’re doing this budget, the school districts would have this billion dollar number coming in and they could use that in their local budget planning and it would be reflected in the budget that we all vote on as taxpayers. But it doesn’t come until the next state fiscal year. Well the next state fiscal year comes and then they have to somehow finance this. There are rolling problems like that. They also do the same thing with tax refunds. They would delay tax refunds historically from March to April. As I said, they operate on a cash basis, so they have this tremendous cash flow imbalance in April, May and June. So the amount of receipts that they are normally collecting doesn’t nearly cover the amount of spending. As a result the State used to do seasonal borrowing, or cash borrowing. So they would borrow money -- it got as high as 4.3 billion dollars every spring -- and paid it off every March. And then to pay that off, they accelerate the sales tax payments as I mentioned. It got to be a terrible, complicated kind of a thing that had an incredible cash flow imbalance. If you looked at a graph you’d see this huge bulge of receipts in January, February and March, and nothing in April, May, and June and vice versa. The spending was very top-heavy in April, May and June. It got to be very, very difficult. So there will be temptations, I’m afraid, this year to just delay and keep delaying the spending that was delayed from this past March to this April and do it next year as well. We should all watch to see how that happens. And that will make next year’s outlook worse. You can’t speculate on it now; who knows what’s going to happen, but that’s the general State outlook. Most of us believe that if the State is faced with another difficult budget year next year, it could be because of these things; or if they balance this year’s budget by really using a tremendous amount of one-shots, then the State will have a really significant problem. Maybe six or seven billion dollars in ’04-’05. Most of us believe that the State will be very reluctant to propose another tuition increase to the magnitude that we are talking about this year. So I would not suspect that in two years another $1200 tuition increase is in the cards. You don’t know. Never say never. I think that a lot of it will depend on what’s going on in other states. If other states, and they typically act before us, if they bite the bullet and do big tuition increases, maybe mid-year and one for next year maybe then we’ll do another tuition increase. But if that happens…we’ve got the election year coming up next year. It’s just another complication we have to think about and that makes it inevitable that every time we try to do long-term budget scenario plans, we throw up our hands. You can identify some extremes and at some point we would want to identify what if Scenario A happens versus Scenario C. But Scenario C you don’t like to think about. Vince Aceto (Albany): I’d like to go back to the Rethinking SUNY questions, Brian. Back in 1995, you may recall that the original Rethinking SUNY took place within a four-month period and there was a tremendous amount of involvement and engagement of administrators, presidents, the University Faculty Senate. We shadowed all of the committees of the Board of Trustees, and we solicited comments from faculty across the system. We had over a thousand responses which we organized and then presented to the Board. We had, I think, a rather significant role in helping to shape and define what the Rethinking document would look like. Is that going to happen this time? This sounds like it’s kind of tightly operated within a small group of people, and we’re going to all feel the impact of that. It just seems to me that in the spirit of active involvement of the Faculty Senate in the affairs of the University that we should have a voice there. Brian Stenson: There are a couple of things that are different about this exercise. First, Rethinking SUNY was mandated by the legislature, and the Trustees were directed to report to Rethinking SUNY and identify specific topics and recommendations. This is an administrative…at their own discretion that the Trustees have launched this effort. So far it’s been focused on collecting data to enable the Trustees to have a body of information that they could then use to go forward. At that point, you probably would want broader involvement following your question, but I don’t know the direction that that second step will take or when it will happen. Maybe Dick could elaborate on that a little bit. Dick Miller: I just would elaborate that while there may be a question or two out of the 204 that are directed at issues like faculty productivity, the overwhelming focus of the survey or of this project by direction, if you go back to the language of the Board when it was adopted, if you will, and into the way it’s being conducted, it’s being aimed at the administration, mostly in Albany, but also at the campuses and aimed at campus level best practice benchmarking of cost activities in the administrative and what I would call overhead areas. There was no intention by design that it get into faculty things, but part of the process is that they are going back to Rethinking SUNY I, looking at all of the recommendations that were made in Rethinking SUNY I, whether they were enacted or not, if not, why not, type thinking. So you have nothing to fear from us on that. And the “us” does not include Brian and me. Vince Aceto: We’d be in real trouble if it did. No, my comment goes beyond simply academic matters. I can recall when the RAM (Resource Allocation Model) was being developed. It took us a year and a half to finally get a faculty member on that group. Now admittedly you can say that that didn’t deal with specific academic issues, but it deals with the affairs of the University and if you look collectively at our faculty, we have expertise and skills in areas of finance and budgeting which I think probably exceed those of the Board of Trustees. Miller: That may be, and I think that you ought to point that out to the Board of Trustees. The Board of Trustees, not the administration of the University, has designed Rethinking SUNY II. Brian Stenson: The other thing that I would just mention on Dick’s comment is that the people who are doing this are looking not just at Rethinking SUNY I, but all of the other various studies both internal and external that have occurred. Most of those, as you know, have been focused on system administration. David Carson (Buffalo State): I just have a very basic question. Does the money from a tuition increase go directly into the SUNY operational budget, does it go to the individual campus where it was raised? Does it go into the State’s general fund? Where does the money go? Brian Stenson: Mechanically it’s raised at the campus, collected at the campus, and it’s swept regularly and comes into the State of New York, but it’s in the SUNY account. And then we keep track of it all so that we know how much tuition comes in from all the different buckets, not just tuition but fees and dorms and everything else. Then we send it back to the campus on their account. The revenue that is generated is part of the core operating budget allocation that’s given by the Trustees as part of the BAP. It goes right back to the campus. David: But it stays SUNY money, it’s not made available to other… Brian Stenson: Correct. David: Okay, thank you. Richard Eckerd (alternate, Binghamton): Actually that was my first question, whether the money is coming back to the campuses and whether it’s coming back in a proportionate way. The second question is probably very naïve, is whether anyone at the levels of the legislature is considering any kind of a tax increase. Brian Stenson: I think, yes, that is on the table and I don’t know how serious it is. There’s a lot of talk about loophole closures which are really tax increases, and there is the idea that’s been floated pretty aggressively by certain interest groups, and I think that the Fiscal Policy Institute is one of them, that would have a temporary income tax surcharge. From their standpoint, a temporary surcharge, say three years. That provides a much better bridge to the economic rebound that people are looking for, and it doesn’t use the one-time money up. So, yes, there is a lot of talk about it; but, typical in Albany, all that talk is either out in the public domain by the interest groups, or it’s behind closed doors by staff. The phrase is “no fingerprints.” If they could figure out a way to do a tax increase like that that had some sense of fairness in it in a way that doesn’t disadvantage particular members or particular houses, I think they would do it. That same principle applies to prior years when we were talking about even small tuition increases. If they could figure out a way, you’d think they could, intelligent people, to let us raise tuition but without having Speaker Silver’s face plastered on tuition increase posters, they would do it. I make up Speaker Silver as one example. It could be Senator Bruno or Sonnenstuhl, it doesn’t matter. They don’t want to be associated with it, but they recognize that it needed to be done, at least in terms of tuition, but it was impossible. No one would go first. Norman Goodman (Stony Brook): Brian, I had just an informational question to clarify something you said, but I want to pick up on the discussion with Vince and you and Dick Miller. In addition to the point that Vince was making about the expertise that we have among the faculty, there is something else to consider, Dick and Brian, and that is that the administration changes that you are talking about is possible for efficiency have an effect on the faculty and in some respects, is the faculty and staff who are in a better position to tell you what those effects are likely to be than the administrators thinking about those. That’s something that I think you need to consider, both at the campus level and certainly at the system level. Dick Miller: I just want to make it real clear, if I hadn’t before, that we’re not driving the string, and I think that if the faculty has an interest that it might ask Tim to speak with Judd Taylor, who has been drafted to represent the presidents in this process which I find to be a comforting thing because I think he’s one of our most effective presidents. I think that expressing the Faculty Senate’s interest in the project to the Chancellor and through Judd through Tim would be a good idea. Norman Goodman: I think that’s fine, but I do, Dick, give you and Brian some credit for having some influence in this, too, so your good offices would be helpful as well. Brian Stenson: What we’re doing in sort of a quiet way is that we work through all of the data requests that we’re preparing and we’re finding things that don’t make sense or something else that they may want to look at. Norman Goodman: But again, what I’m suggesting and what I think that Vince is suggesting, is that in addition to your members from system administration and your presidents that there is valuable input that faculty could provide to this whole process it ought to be considered. The simple factual question was when you talk about the rational tuition policy, something this body has considered quite consistently and actually recommended an indexing mechanism. But if I understood you correctly that can’t be done automatically since the legislature would have to prove it year by year? Brian Stenson: Not the tuition increase. We could raise tuition every year by, let’s say, $200. We can’t spend the money unless the legislature makes an accommodation in the budget for it. Norman Goodman: That’s one and the same thing is that you can do what you want but… Brian Stenson: Yes, I know. There are ways around that, and one is that you would need a radical change in the State Budget policy and framework to allow us to do this independent of the Legislature and that’s not going to happen. That’s the way it is in other states, but in our state we need that appropriation level. What we would need to do is just work on them and try to come up with some accommodation or an agreement with the Legislature that we would do these modest tuition increases regularly; and in exchange for that, they would give us the appropriation, and this would not be seen as a substitute for State support. Norman Goodman: Do you have any hope that that will work? Because it speaks directly to your point a minute ago that under that condition, nobody could finger anybody else for that tuition increase. Brian Stenson: I think that helps a little bit. I think that if there is this small increase…the problem is that in the past years, we’ve always had giant tuition increases. It turns into a political battle, but if you had a tuition increase of the kind that our other peers do, then it’s more sellable and people can point to other states, and this is just normal stuff. It helps SUNY pay for initiatives and enhancements, and it’s not just substituting for State support. I think in that context, it helps Legislature get comfortable with it. Dan Murphy (Utica-Rome): Brian, are you aware that in 7-9 months from now, an initiative for the largest academic fundraising development in U.S. history run by SUNY? Brian Stenson: There are finishing touches being put on a new fundraising campaign. Dan: …massive campaign. My question is what is the prospect list for such an initiative? If they’re going to start vacuuming the change out of the couches of all the donors on the local campuses statewide, and they do succeed in raising $3 billion, or whatever it is, then how is it going to get allocated back? And I don’t know where these conversations are taking place. Brian Stenson: The whole intent of the fundraising campaign will be to build any efforts of the fundraising campaigns of the campuses now. There is no intent to raise this money centrally and then dole this out. I think that it’s still a matter of campus responsibility. We’ve hired Michael Luck and the research foundation with SUNY, and he’s really serving in his terms as a coach, cheerleader, and a technical expert because of his broad experience in that. But it really will be a campus responsibility. There might be some situation where…let’s use an example of companies that do business across the SUNY system that might be interested in doing something SUNY-wide that then would benefit the campuses. For example, IBM might say, “Let’s give a million dollars, and let’s have that dedicated to financial aid for students in the IT field.” We don’t educate students. The areas that I believe they’ll focus on and try to structure the fundraising goals around would be financial aid, faculty development and something else…I can’t remember what it is. Joe, could I suggest that we shoot the messenger? I was glad to see that the podium was near the door. Male Voice: (too faint to hear) …There was a reference made earlier about some sort of adjustment this year. If we ended up having winners and losers because of the bad formula and because of the fact that different campuses are not as reliant on tuition in the same way. If we get that $1200, what’s going to be the impact across the system? Is it going to be the equivalent of having a flat budget or would it be the equivalent of having a 1% deficit, or will some campuses actually be winners? Brian Stenson: Well, there are two levels of the answer. Some of the outcome will depend on what we do with the other tuition rates in the schedule, such as the non-residents and the professional programs. But having said that, there are two levels. One is that we believe that if we do the tuition increase, starting with kicking off the $1200 and then have higher rates in other parts of the schedule, on an aggregate system-wide basis we would be flat. Individual campuses, obviously, would differ and that relative flatness is a composite of some ups and some downs. That’s what I meant in terms of looking at that to make adjustments and to really mitigate the worst impacts of both positive and negative. Being a budget person and a little bit tuned in to some of the politics there, in this environment where we are closing mental health institutions and stopping capital projects, it’s hard for me to believe that we will have an allocation that will have, for example, an 18% budget increase to Potsdam. It would be hard for me to envision that, as much as Potsdam may deserve it. There are big winners and big losers in a situation like that and if you think about it, that means that the framework on which the BAP was initiated five years ago has changed. We have a change in the mix of State support and tuition. Ideally we would have had small tuition increases each year and State support increases, and we’d still be in a relative state of harmony between the two. That didn’t happen. Occasionally we got some State support increases, mainly just to pay for salary increases, and no tuition increases, so we are in some ways a little out of kilter. So we’ll be looking to make those kinds of adjustments. I can’t tell you if they will be one-time adjustments or permanent adjustments. Maybe you will remember that when we implemented the new BAP, we recognized that there would be a dislocation between the distributions under the old formula and the new formula. We had a three-year phase-in to avoid the same kind of dislocation. A severe disruption in this environment is not in anybody’s interest. (male voice too faint to hear) Marvin LaHood: I just wanted to say that Brian has come to us year after year, plenary after plenary, and given us about as straight talk as I have ever heard. I think that we owe him a great debt of gratitude. (applause) Brian Stenson: Thank you. I’ll keep doing it until you disinvite me. We’ll have heart medicine when that is the case. Runi Mukherji (Oid Westbury): You may have already given us this number, but I just wanted to ask again. With the $1200 increase, the budget will be flat you just said. What would that mean in real-term decrease in terms of need? Brian Stenson: Last year we estimated that it was approximately $100 million of unfunded cost last year, mainly collective bargaining, which was about sixty- five last year. I think that the numbers for the year ahead are much, much lower, maybe in the range from $40-50 million. Runi: So it was about 5% last year and will be about 2-3% this year? Brian Stenson: Yes. In that range. I didn’t bring that number with me and I’m getting too old to keep that number in my head. But it’s in the range, so it’s better than last year. The problem is that we used a lot of reserves up last year to balance that budget. President Hildreth: Thank you very much, Brian. We appreciate it. Brian Stenson: You’re welcome. President Hildreth: You know, a lot of times when I am talking to Brian, you may have the same experience or it may just be me, a lot of times he is going so quickly over these concepts and terms that are flowing off his tongue without any effort whatsoever that I feel like I am trying to listen to a foreign speaker and I am trying to remember college German, and it’s like I know the word but I can’t quite get it. It isn’t until some time afterwards that the meaning starts to sink in. Brian Stenson: Next time say, “Go over that again and switch to English.” President Hildreth: Anyway, I think it was great. Thank you very much. Now our next speaker is Joe DeFillipo. Joe is Assistant Provost in the Provost‘s office and he is in charge of program review and planning. He’s going to be speaking to us about the program planning process, and I think that that is something that would be useful for us all to know a little bit more about. Joe? Joe D.: I thought I was going at three. President Hildreth: Did I do something again? (discussion and laughter among audience) President Hildreth: No, you can go sit down. Let’s see, I’m going to come up with an excuse here. It’s like I need these glasses for distance vision but I don’t need them for close up reading. So I guess that that is going to have to be the best excuse that I can come up with. I’m sorry. Our next agenda item is the sector reports. So we’ll try to have the leaders of the sector meetings come up and give your reports. For that, we normally would have Chancellor King here, but we don’t have him here today. So we have Senator Miller here. However Senator Miller is not necessarily convinced that he wants to pretend to be Chancellor King, but he might on occasion feel the need to respond. So I guess that will be the way that we will try to work this. So why don’t we start with the University Center’s sector report? University Centers Chair: All right, I’m sure that everybody will have something to say about budgets, so I just want to emphasize a few points that we discussed related to budgets and then a few other things that we talked about around the table. First of all, we discussed budget consultation on campuses and by going around the table we realized that each of our campuses has a mechanism in place for faculty to be involved in discussions about budgets. At each of our campuses, those mechanisms basically aren’t being used this year for a variety of reasons. Realistically, it’s probably mostly due to the uncertainties that administrations are facing. But we sort of bring that to everyone’s attention in part as a matter of curiosity as to how much any of the other sectors and individual campuses are having an opportunity to have influence on the budgetary decisions on the discussion of responses to the budget uncertainties that the campuses face. In part, as the usual sort of thing that one always does at these sessions, which is to bitch about what you think is not going right on your campuses. So there’s that one. We, of course, have a good deal of concern that we expressed last time and continue to have a great deal of concern about whether there is going to be any recovery of increased tuition costs in the graduate students’ scholarship program. We don’t have a lot of optimism there, but we certainly want to be on record to say that it is absolutely essential to graduate programs that any increases in tuition costs be matched by increasing funds in those graduate scholarships to offset those costs, or else campuses are basically getting taxed almost doubly for the opportunity to increase tuition, because we don’t get those tuition dollars in the first place for those people. While we recognize that professional schools probably both need and ought to have differential tuition, we also just want to make a point that we think that if one were to even consider differential tuition by program within sort of the traditional areas of graduate education that is outside of professional schools, that that would be a bad idea. For example, any thought that there might be about differentiating tuition for an engineer versus a humanist or between a Masters and a Ph.D. student, we think that that would be a dangerous road to go down at all. On a somewhat different note, but still in a sense financial, we have a lot of concerns and worries about the issues that are coming up with respect to international students. This is obviously true not only at the graduate level, but at the undergraduate level, and it’s true for every campus in the system that has any international students. There is obviously a major increase in reporting requirements. There are a lot of other issues associated with the changes in the international student environment that have come down from the federal level. On a very practical level, there are changes in reporting requirement that are significant in terms of time and effort by the generally very small and outstanding staffs that we have at our campuses to work with international students and international student services; and we have a great deal of concern about how those groups are going to have the financial backing to basically do what is now instead of being a State level unfunded mandate, is a federal level unfunded mandate; and we have some concerns in those areas. Let’s see. I’m trying to decide which of the other items I actually want to bring up to everyone. Our understanding is that when honorary degrees are presented at the Universities, they are presented on behalf of the faculty and the Board of Trustees. They are, of course, approved by the Board of Trustees and we were having a discussion about to what extent do the faculty actually get involved in choosing, selecting, naming, vetting potential honorary degree recipients. Our sense around our table was “very little”. But these degrees are, in fact, being done on behalf of the faculty; and it’s against something else that we would encourage everyone to think about on their own campuses and maybe discuss within their governance structures. Just to put it on the record, rather than something that is necessarily of significance to everyone else around the table here, the four centers have Division I sports programs. There are, of course, issues that Division I sports programs have that fortunately, the rest of the folks who are still at Division III can safely ignore and we just sort of wanted to be on record to suggest that perhaps the directors of the Intercollegiate Athletics Boards at the various centers get together to talk about programs in common that they have and issues that they are facing. This might be very helpful to all of them. Finally, we were also discussing around the table the nature of our research offices at the centers and this would also certainly go beyond us. The question of how do these research offices work in terms of are they working by function, are they working by sort of a group or discipline within the campus, and how well are these research offices supporting the system-wide increased emphasis and pressure to develop external funds through external supported research; and is the organizational assistance helping or hindering faculty in their efforts to do this. So these are just some concerns, some of which are for ourselves, some of which are for all of us to think about. ???: Let me make a couple comments. We’re very aware of the graduate students’ scholarship funding stipend issue. Suffice to say, it is unlikely that there will be additional funds for stipends. We also are very involved with the discussions with your deans about differential tuition for programs such as engineering… (end of tape, tape change) , , , business administration, and we understand the dynamics there, but I think that we are getting different messages, perhaps from the faculty, than we’re getting from the deans on that. The process for honorary degrees, just so you know, is that the presidents recommend honorary degrees. The Provost has a committee that reviews them and passes them to the Trustees for their ultimate approval. There’s no reason why on the campus level there couldn’t be an agreement between the faculty and the President that they’re vetted locally first. Finally on Division I sports, the athletic directors do get together periodically. We facilitate their work with counsel on matters related to compliance. Each of them have just submitted a report in the last week on compliance activities because of concerns from the University of Georgia and otherwise. President Hildreth: Thank you. The Comprehensive Colleges? Tim? Tim Phillips: We also had budget issues and discussions related to that. I’m specifically talking about restructuring at the campus level. The hope that the governed structure and the faculty would be communicated with and consulted about campus spaced reorganization. A related issue was the sector reorganization that is proposed and whether or not this is consistent with the mission review that occurred. The idea behind mission review at least in part was to promote the regional diversity and we’re wondering if this new sector reorganization is consistent with that. There has been an example of a lack of consultation that was brought up by one of my colleagues that led to the closing of the grad program at Brockport in nursing, and not much consultation occurred there with the faculty or the governance structure. Also related to that, kind of an international issue, too, was the termination of an adjunct Iraqi professor at Oswego. No consultation and further problems with some of our colleagues there. Another big issue was system-wide assessment. Our group took a firm stand on that. We understand that there are going to be further discussions. We wanted to remind the Senate that there is a history here that the Faculty Senate has said, “No,” to system-wide assessment again and again. Our compromise was campus-spaced assessment that we’re engaged in now. We’ll see how that proceeds. We don’t want to be recalcitrant or anything, but we did want to make that point. And, we wonder why the Board of Trustees wants to push this now, during a fiscal crisis. It would be another unfunded mandate, and it borders on the irresponsible nature of those kinds of mandates. Another issue: Turnover and evaluation of administrators. Everyone at the table mentioned a great number of interim and acting deans and vice-presidents and people that only have six months or a year of experience. The lack of opportunity to evaluate these people, the fact that they turn over so fast and the regular evaluation procedure that would occur never gets the chance to occur because they are gone so fast. We understand that the governance’s committee is going to come out with a report, and we look forward to the results of that and, hopefully, some best practice. Best practices guidelines can be shared from that. Another issue is the great use of adjuncts at campuses. Fredonia, for example, has over forty percent of their classes taught by adjuncts now, which leaves a small number of full-time faculty to advise 100% of the students and handle all of the committee assignments. Of course, it is probably only going to get worse during this budget crisis. We know it’s a resource issue, but it also undermines the quality of the entire institution when we rely too heavily on adjuncts. Not to degrade adjuncts, we understand that many of them do a great job and are great faculty members, but they usually don’t carry the same kind of full-time commitment because they have other things to do. They teach at two colleges or some of the adjuncts I know teach at three campuses. So they really can’t make that same kind of commitment. A big issue for us, and it’s a difficult issue, is technology and the increased use of technology. Certainly the faculty at the comprehensive colleges embrace the use of technology in education and the proper use of it. But we are a little bit apprehensive about things like the global education network. One example is that if we have more and more of our students taking courses from different online delivery services, and the preparation, content, and rigor of the course is not controlled by SUNY faculty and then they have to graduate from our programs and take proficiency exams, and teacher’s ed, and things like that and they don’t score well, it will make our programs look like we are not doing a good job. Things also related to technology are electronic textbooks and the support from the different publishers there where students can go online and get assistance with say, a physics problem, from who knows who, whether or not they have the kind of training in physics to assist students. So there are a lot of related issues in the technology area. It’s a very difficult one and we know that it’s evolving and it’s going to happen, but it’s something that our group wanted to at least take note of. A last general area is articulation agreements, transfer credits, PACGE, ACGE, things like that. We’re wondering if we shouldn’t be more careful about exactly what courses should be accepted, in the General Ed area, for example, that are delivered by someone else besides SUNY, and whether or not they have been reviewed, whether or not the content and rigor of these courses and the learning outcomes are exactly what we defined in this whole Gen Ed process. We want to be cooperative in the whole articulation area. We appreciate the efforts by system and others to facilitate the transfer between SUNY schools and other schools to four-year and University Centers, etc., but we’re also worried that there may some other online delivery systems that may not be consistent with the kind of demands that the SUNY faculty have in that area. Dick Miller: I’ll just comment that the Chancellors at the Faculty Senate Committees report that Maureen chaired on local practices and budget-making sent it to the Presidents recommending it to them as a best practice, encouraging them to read it and follow it. We have not inspected them to find out if they are concurring. President Hildreth: For any of you that may not have a copy of that report, send me an email and I’ll be sure to send that out to you. You can give me your name and address here, and I think that will work; but it will be even better if you send it to the system office there. If you want to take it down, it’s hildrejo@sysadm.edu. I’m gun-shy after messing up the agenda as much as I have today, let me tell you that. Health Science Centers? Peter. Peter N: There’s been some reorganization of sectors at SUNY and Health Science is now reporting to the Doctoral Campuses area. We’re very fortunate, though, to have an expert from System Administration on the Health Sciences with us today. That was Peter Pilegi. Peter, thank you for coming all that long way from Albany. Your discussions with us were very, very helpful. Among other things we talked about budget, and especially the support in the budget for hospitals. This is a continuing issue and the legislature has addressed this in the past and, apparently, if the budget is passed as suggested, we’ll also have continuing support for the hospitals. Also, there is access to capital. This is absolutely essential for the operation of Health Science units, and that is still, we hope, in the budget. The flexibility for hospitals, for example the ability to contract our for services and then to have post-audit review. Right now that doesn’t happen. You have to contract out, and six months later maybe get the contract completed. We are certainly hoping that that was going to pass. You’ve heard mentioned today HIPPA regulations. This certainly is a very important issue for the Health Sciences. This is an unfunded mandate. What we’re talking about here is privacy and how the various private information about a patient or about anything else is used in education and yet not revealed. For example, suppose you go into an emergency room and see that a colleague’s wife is being admitted. Are you able to call the colleague and say, “Gee, you need to get down to the emergency room quickly, because your wife is here”? The answer is no, you can’t. These are regulations that have a spectrum, and it depends on how you apply them. They are either too much or too little. Certainly the ability to train students and faculty in regulations is absolutely essential, and we have talked about some of the ways that that is being done. Records. Now suppose that this had happened on our campus. In the school of Dental Medicine there was a flood that didn’t smell very good. What happened was that the patient records from the school of Dental Medicine didn’t smell very good either. So what do you do? Can you discard those? So before they could make a decision, they put them all in the freezer. In the meantime they contacted the campus and the campus contacted Central Administration and it looks as if it’s about seven years you need to do it, so they are going to remain in the freezer for a few more years. The issue being that if you have to restore those records it’s going to be an interesting event. There’s certainly going to have to be some radiation to get rid of the bacteria. The issue is: How long do you keep records? This includes students who, from the registrar’s point of view, are rejected from some type of application. You actually have to keep those, and we have to know how long to actually keep these things. Otherwise, we’re under some kind of liability if you throw them away too soon. Peter Pilegi, we are very pleased to say, is making some progress on identifying someone from the Brooklyn Health Sciences who will eventually join us in this millennium. We talked about a nursing conference on nursing education that is being held by the Deans, I think that will be the 9th of April. Miller: I’ll just comment that I don’t think that Brian didn’t spend any time at all on the capital plan that is in the Governor’s budget. If you define it the same way in the context of what was called the $2 billion plan the last time, define it as the $3 billion plan. It does have $350 million for hospitals in it which is an order of magnitude five times of what they were getting in the previous plan. The first $1.2. billion of it is earmarked to campuses specifically for capital renewal projects, which we call “deferred maintenance” without offending anybody. With that the campuses would have broad discretion as to its use of their portion of that. There is a limited amount of money for plan adaptation, and a large portion of that is going to be tied to campus matching from a fundraising point of view. What we’re trying to do is keep the Legislature and the Governor from lining all that money out. We’re trying to leave as much discretion for the campuses as we can, but we’re quite optimistic about that. There is a guy in System Administration who has an interest in records retention, Don Brida, and anytime you find somebody who’s interested in records retention you should keep him. We’re going through to true-up with the state archives what the requirements are, and then we’re going through functionally to make sure that our functional areas system administration are not over- retaining. We’re also making an investment in scanning technology, and we are consolidating our two warehouses into one. If any of you are interested, I think that we have all of the books ever printed by the SUNY press (I didn’t say published, I said printed) in the warehouse and we would certainly like to make those available to the Faculty Senate. President Hildreth: Just for the record, we did contact Brooklyn Health Science center and we’re told that they were going to have an election for a senator. We haven’t heard anything more because other things came up, and we didn’t follow up on that; but we’ll follow up after the meeting. Male voice: Dick, did you mean that? Could we have a list of titles? The SUNY press put out some pretty interesting books. Do you really mean that those titles are available to us? Dick Miller: Absolutely, and I’ll make it an action item to send those out over the listserv. We have a lot of other things in there. We have the largest order of No. 1 pencils ever placed in the United States. I’ll bring the entire inventory to the October meeting. President Hildreth: I had two reasons to go the warehouse. I really did want to get the minutes for the first meeting, and I also was instructed by someone to take a look at the sixteen square feet that have been allocated for the SUNY Senate and see if we could get rid of some of that. It was worthwhile, actually, because I thought that we were totally out of the Governance Handbook, and I have found that to be a very useful document. We were totally out of copies of that in the office. Male Voice: We’ve also been looking for a better place to have receptions. People are kind of tired of the Gallery, and we’re going to start having receptions at the warehouse. President Hildreth: Well there’s a lot of room in there and it certainly would be different. Technology Colleges. Jeff? Jeff: Although the bad weather today seems to have downsized our group a little, we still managed to pull together four of the five Schools of Technology for a really good discussion. I’d sort of convinced myself a day or two ago that, for once, I’m going to break with character and try to be positive about what’s going on with the Colleges of Technology. So I asked my colleagues from the two- year colleges to use the idea of being positive as sort of a theme for our discussions. There were no discussions and we adjourned immediately. No, I’m kidding. We actually did find a few positive things to talk about which I think are worth noting. First of all, in assessment, the notion of campus-wide assessment was a real struggle at the two-year colleges, and I’m sure at all of the colleges at first. But what my colleagues and I are finding is that it’s really produced a very positive result in the close inspection of our programs and assessment right up-close of what we’re doing, how we’re doing it and how well we’re doing it. I really think that it’s added a great deal to the colleges and having a sense of ownership of that assessment process. The next positive item that we should mention is the basic change in the character of our institutions that’s coming about because of the shift from two- year to four-year programs. There are some real growing pains to deal with in that process, most notably the tendency to bring a lot of attraction and attention to the four-year programs at the expense of two-year programs. All of the colleges are grappling with that problem very nicely, I think. On the positive side, it really has infused the campuses with a new sense of purpose. I, myself, am in a traditionally two-year program that has gone four-year, and it’s really changed my attitude about what I do every day. It’s really made it a more exciting place to be; and I think that all of the colleges will gain that same advantage of having the breadth of the four-year culture on campus. We are cautiously optimistic about enrollment signs. All of the Schools of Technology are either holding even this year or showing slight increases, and I think that’s a good sign at any time. We’re thinking that the dual whammy that’s been thrown at us of economic downturn and a really uncertain national and international state of affairs may actually play into our hand and lead some students to stay a little closer to home and spend a little less for an education. Possibly that’s some of the explanation for our enrollment success this year. We’re thinking very positively about the treatment that we’re getting from System Administration, 7% growth rate as opposed to the other areas of SUNY that are pegged slightly lower than that in terms of potential growth. That’s simply, I think, an acknowledgement of what has happened to the two-year schools over the years and having negative growth in enrollment. I think that we’ve finally turned the corner on that. We’re also, as a group, very positive that we still have some problems to deal with. The Colleges of Technology are, by a rule, located in rural areas and are very small. That presents two problems for us. (1) It makes it difficult to attract new faculty, particularly for the upper-level courses, and it also has made it a little difficult to attract a diverse faculty and student body. The small size creates problems in many very subtle ways; for example, in a large institution where there might be twenty people teaching economics. At Alfred State College or any of the other two-year Colleges of Technology, there are only one or two. Any change in that formula has a very large effect on both the students and the curriculum. We constantly have to struggle with trying to keep a good balance of teaching faculty and course loads and course sizes. The problems that we’ve experienced with respect to attracting new faculty and keeping faculty has inevitably led to a rather heavy reliance on adjuncts at our campus, and I’m sure at the other Colleges of Technology. And those adjuncts, through no fault of their own, are hired on short notice with little prep time and, I think, don’t do as much service to SUNY as we could have them do if they were given a little bit more prep time. This also at times opens the door wide-open for outsourcing options like GEN which concern us a great deal, as they do all the sectors. We’ve learned over the years to deal with this, but it is a constant struggle, and that is to deal with the high cost of our technology programs, most of which are higher than average in cost. What I was hearing today was that at some of the Colleges of Technology, there seems to be a little bit of a shift in emphasis towards the less lab-oriented, higher- enrolled, less expensive courses. Finally, a few years ago, there was an entity called the UCT. I think that that group, the gathering of our Colleges of Technology, produced a lot of good dialogue among the campuses, and we’ve lost that sense of unity among the Colleges. One of the results of that is the developing atmosphere of competitiveness between the Colleges of Technology, and we ask SUNY to be mindful of that in the oversight of the development of new courses, that the Colleges of Technology don’t wind up directly competing curriculum for curriculum and major for major as we go about this evolution into a new academic format. I’ve noticed as I was jotting these down, that I’m beginning to sound a bit like some of the comments that Tim Phillips made from the Comprehensive Colleges. Perhaps that is a sign that we are going through the change that I think everybody is expecting us to make towards a more four-year baccalaureate- based campus. I guess that I’ve covered all of the points. I hope that Senator Miller will inform the Chancellor that the Colleges of Technology were optimistic and positive this time. Thank you very much. Dick Miller: The first thing I’ll tell him is how much you appreciate the support from System Appreciation. On assessment, if you have campus-level anecdotal of positive outcomes from campus-level assessment, I hope that you’ll share them with the system in very specific terms and either get them into the Provost shop or my shop so that we can make the case that campus-level assessment is working and having a benefit, because there are those that do not feel that. I guess that the only other thing I would say on the UCT is that you align the sector groups of this body the way we have them aligned centrally now.