Faculty Senate (2009 - 2010 minutes): 2010-04-09 meeting

2010·20.4 MB·English

by  George Washington University, Faculty Senate

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THE GEORGE VASHINGTON I]NWERSITY
Washington, D.C.
\-.
MINUTES OF TIIE REGT]I-AR MEETING
OF THE FACI'LTY SENATE HELD ON
APRrL 2m0 rN THE STATE ROOM
%
Prcsent
Ptesident Knapp, Executive Vice Prcsideat fot Academic Afrrits lehman,
Associate Registrat Andetsen, and Padiamentarian Charnovitz; Deans
Phillips and Reum; Ptofessots Barnhill, Benton-Short, Boyce, Biles, Cordes,
Cotty, Dickson, Galston, Gatcia, Garis, Gteen, Gdffitl1, Hatrington, Helget,
flotez, Klareo, Lipscomb, Pagel Parsons, Rehmanr Robinson, Simon,
Vindsot, and Virtz
Absent
Deans Bartatq Btown" Burke, Dolling, Futtelt I-awtence, and Scotg
Ptofessots Catanza, lohnson, Placl and Vilmarth
CALLTO ORDER
The meetiagwas called to otdet by President Knapp at 2:15 p.m.
SHORT RECESS FOR THE PTJRPOSE OF IIAVING A GROI]P PHOTOGRAPH
TAKEN OF THE 2O(x)-10 FACTJLTY SENAIE
A shot adiournment was declarcd in otdet to have the aonual photogtaph of the
Senate taken.
APPROVAL OF THE MINUTtsS
The minutes of the tegulat meeting of March T2rzEl}were approved as distributed.
INTRODUCTION OF RESOLUTIONS
Ptesident Knapp requested and teceived unanimous corsent to nead a Resolution of
Apprcciation fot Ptofessot Robinsoa, whose term as Chair of the Senate Executive
Committee would be finished on Apil 30. Following his reading of the Resolution,
Ptofessot Robinson exprcssed het appteciation fot the generous wotds and the kind
sentiments e>rptessed in the Resolution. She added that she was honoted to have had the
oppomrnity to patticipate in the wotk of the Faculty Senate and in advancing and achieving
the University's rnission. (Resolution 09/4 was adopted and is enclosed.)
President Knapp noted that this was the last Senate meeting fot Ptofessor Grffit\ a
long-sening membet of the Senate. He said he had enioyed wotking with Professot Gtiffith
and wished hirn the best in the funrre.
Both of these exptessions of appteciation werc greeted with a round of apptause
from the Senate.
Faculty Senate Minutes, Aptil9, 2010 Page2
RESOLUTION (x)/5 ..A RESOLUTION ON THE PROPOSAL FOR A NEW SCHOOL
OF NURSING'
As specified in Senate nrles conceming consideration of a Resolution not citculated
with the meeting agenda, motion was made and seconded, and a vote was takenr to
considet Resolution (X)/5. The motion to intoduce Resolution U)/5 was approved. [Note:
the term cFaculty Senate' (or "Senate') in these minutes is the entity to which the
Univetsiq/s Faculty Code ard Faculty Orgaaization PIaa tefet, The term 'Medical Faculty
Senate" is used where the reference pertains to the Faculty Senate of the Medical Centet.l
Ptofessor Biles, a member of the Special Committee on the Proposed School of
Nrrsing formed by the Faculty Senate Executive Committee, prcserted the Resolution. He
reviewed each clause, beginning with the fitst Whereas Clause, ufrich erplains that the
Faculty Senate Executive Committee was not given aa oppornmity to discuss the possible
fotmation of a School of Nusing befote its meeting on Febnrary 25, approximate$ fve
weeks ago.
The second Vheteas Clause of Resolutiot O9/5 referc to provisions in the Faculty
Codewhich rccognize the impotance of the cteation of a new school and explicitly provides
that the Facrrlty Senate [which is compdsed of elected representatives of eight of the degree-
$anting schools of the Univercityl is entitled to an oppornrnity to make recommendations
concerniag the formation of new schools.
The thfud Vheteas Clause of Resolution 09/5 indicates that the Faculty Senate
carurot perfotm an effective and tesponsible role in Univetsity decisioa-mql.t.g unless
infotmation necessaty fot the development of sound well-infotmed tecommendations has
been made available to it by administative officets of the Univetsity. Futher, information
ptovided to the Faculty Senate concetning the ptoposed School of Nursing has not thus fat
included sufficient suppoting infotmation to enable the Senate to perform its C,gde-
mandated fuaction.
Ptofessot Biles went on to teview the three Resolving Clauses of Resolution 09/5
which ptovide:
1.
That, the Faculty Senate has not been provided sufficiert ioformation to
enable the Senate to fulfiIl its tesponsibility under Aticle IX of the Faculty
Codeto evaluate the futue ptospects for the ptoposed School oglrfs6ing and
to develop sound, well-infotmed tecommendations tegatding the potential
advantages, disadvantages, benefits and risks ofthe proposed School of
Nusing.
2.
Thaq a comptehensive sttategic and financid plan fot the fotmation and
implemenation of the ptoposed School of Nursing, as descdbed in the ieport
of the Special Committee on the Ptoposed School ofNusing attached to this
Resolution as Appendix d should be prcpated and provided to the Special
Committee and the Faculty Senate as s(x)n as is feasible.
3.
That, no furthet action should be taken tegarding any approval for the
establishrnent of the ptoposed School ofNursing at the Geotge Washington
Univetsity unless a comprchensive stategic and financial plan has been
Faculty Senate Minutes, Apd 9, 2m0 Page 3
dweloped and ptovided to the Speciat Committee and the Faculty Senate at
least 60 days in advance of any potentid action by the Board of Tiustees
dealing with apptoval of the ploposed School of Nusing, so that the Senate
\- will have a teasonable oppornrnity to considet the comprehensive plan and
ptovide sound well-infotmed recommendations to the Administmton and
the Board of Tnrstees beforc any such action is taken.
Following his temadrs, Ptofessot Biles moved adoption of Resolution W/S and the
motion was seconded. Discussion followed. Ptofessot Grifftn inqufued about the timetable
fot considemtion of the N".ting School Ptoposal by the Board of Tnrstees. professor
Robinson said het-undetstanding is that the Boatd intends to act on the prcposal at its
meetings in May, 2010. She added that the Academic Atrairc Committee of the-Boatd was
glven a ptoposal corncemitrg establishrnent of the school at its meeting in February 2010,
and that the Senate Executive Committee's initial discussion with Seniorassociate DLan for
Hedth Sciences Jean Johnson did not occur until two weeks later.
Ptofessot Biles tequested and rcceived the pdvilege of the floot fot professot Edwatd
Chetian, Chait of the Special Committee on the ftopoJed School of Nusing, and for Dt.
Jean Johnson- Ptofessot Chetian advised that the Special Committee had reviewed the
b{eng chars ptesented to the Faculty Senate Executive Committee Februaqy Xi that
outlined the need fot a School of Nutsing, but did not provide detailed information about
the ptoposed school The Special Committee believes that it is critical to develop a detailed
sttategic plan befote the Univercity undertakes the maior commitment to create a new
thogl The. Sp.g"l lgmgittee ptepared the tepor contained in the Appendix to
Resolution 09/5 an.d outlined the elements and information that should be provided in a
stmtegic plan fot the school
Ptofessot Cotdes asked if the prcposed school would be an independent, degree-
granting school, ot a school within a school, such as the Ttachtenbery School of public
Policy ot the School of Media and Public Affrfus. Ptofessor Chetian said he understood the
N.r""iog school would be an independen! free-standing school.
Pmfessot Gartis obsered that the prccess is moving fotward very fasg and inquired
about the maior teason for establishment of a reparate sch-ool Ptofessor Chetian said that
appatently the nusing depattment is very stong, aad that is the basis fot it to become a
sep:mate school.
Professot Barnhill asked if someone could give the Senate an idea about the number
of students maiodng in autsing and how that compares to the artrnitisuative overhead that
would be associated with the school. He also asked if it wete anticipated that the ptoposed
Slhoo-l of Nursing would be housed in a facility of its own. prcsident Knapi ,.io u"
thought it was a good idea to ask fot prelirninary answerc to these sorts of questions, but he
utged that the Senate focus on the Resolution, which raises a different issue than the
substantive question of whether oi oot to establish a Nursing school.
Dt. Johnson e*plained that thete cutently is a Deparment of Nursing, which ofrerc
Mastet's degrees with sevetal tracks, a Doctor or Nooi"g Ptactice prcgfilm and a secoad
degtee Bachelot of Science Ptogtam. flete are curently aboot 350 snrdents. Gvns nusiag
Ptgt"- I d""lty tT"!.d at Foggy Bottom and the Vitginia Science and Techn"bd
Campus. The Bachelot's prcgt"m-ai the Vfuginia Campus was approved in Apdl2009, ;6
Faculty Senate Minutes, Apdl 9, 2010 Page 4
commenced in Fall,2009 with 20 studene. The program now has ovet 4(X) applications fot
50 positions, and has excellent pattnerc in Vitginia who hite nurses and ate looking fotwatd
to the nusing prograrn's expansion. Last fall, a School Fotmation Committee was
constituted, and Ptofessor Simon was a member of that Committee. It tecommended the
initiation of a Nutsing School because it was seen as an area for which demand is strong
and increasing. Thete is also the oppotnrnity to expand teseatch and cteate an endowment
fot the School, which would not be possible at the departmental level Aftet the School
Fotmation Committee completed its wotk, a Resolution was submitted to the Executive
Committee of the Medical Faculty Senate which apptoved ig and on to the full Medical
it
Faculty Senate, which also approved Once that ptocess was complete, Dt. Johnson said,
a discussion about the proposed Nusing School took place on Febnraty ?61 2010 with the
[Univemityl Facufty Senate Executive Committee.
Dean Johnson confitmed Ptofessot Chetiants assertion that the Faculty Senate
Executive Committee did not teceive a proposd for the School's formation, but tathet was
ptovided with a bdefir.g paper. She added that she was well aware that a full ptoposal
needed to be ptepared and presented to the Boatd of Tnrstees, and that this would need to
be complete by Aptil 21r2tl0. flowevet, neither the Faculty Senate E:recutive Co,mmittee ot
the Faculty Senate indicated that a ptoposal would be requeeted, not was a timetable fot the
receipt of this infotmation prcvided. She added that when she met with the Senate
Executive Committee Febtuary 26, she anticipated a collegial prcblem-sohing activity, and
although she appteciated het contacts with Ptofessot Chetiatr, up to this point had yet to
meetwith the Specid Committee itself,,
Professor Wirtz spoke in support of the Resolution, saying he thought if thete is a
rush to iudgment in ssl2Uishing this new school, a tepeat of the Faculty Senate's expetience
with the School of Public Health and Health Services (SPHHS) was likely to result. Aftet 13
years, the SPHHS remains non-compliant with tt,e Faculty Codein key ways. If a Nutsing
School is to be established, it should be done tighq not rushed. The only thing that
Resolution 09/5 does is to formalize the ptocess that the Senate Executive Committee
established to make sure that ptoblems experienced with the SPHHS would not be
tepeated.
Ptofessor Corry asked what consequences would occur if the decision to establish a
Nutsrng School is delayed by si* months to a year. Dt. Johnson tesponded that the maiot
disadvantage has to do with the ability to recnrit new faculty - it is difficult to attact
tenuted faculty (who are most likely to be teseatch-intensive) to a Depatmeng as opposed
to a School of Nusing. The ability to establish an endowment ot mise funds for the School
would also be delayed.
Discussion followed. In response to a question about the genetd stnrcturre of the
information tequested in Resolution 09/5, Dr. Johnson tesponded that neady all of the
infotmation requested in the Appendix to Resolution (X)/5 has alteady been developed and
ptovided to the Academic Affairs Committee of the Board of Ttustees, which approves new
progr,rms.
Ptofessot Gdffith spoke in support of Resolution W/5. He said he was a membet of
the Committee which studied the formation of the SPHHS, and that was a vety frusttating
expedence because the Committee was not given adequate infotmation and its
deliberations wete nrshed aloog. Items identified by the Committee as potential ptoblems
Faculty Senate Minutes, Aptil 9,2010 Page 5
wete largely ignored. He agteed with Ptofessor Wiftz that the Faculty Senate should have
the time to perfotm its task corectly and added that he hoped Dt. Johnson would be able to
provide the rcquested matedal in very shott ordet.
\-
Executive Vice Ptesident fot Acadernic Amai$ Lehn an said he thought it is very
important to tealize that in otder to obtain approval fot progmms by the Academic Affafus
Committee of the Boatd of Trustees, essentiall5r all of the infotmation tequested in
Resolution 09/5 must be ptovided. The Academic Afrairs Committee will not even consider
ptoposals that do not contain this infotmation, and Yice Ptesident l-ehrnan said he would
not allow a ptoposd to go fotward with incomplete information. Vice President Lehman
uged that the Senate think about a School that was suceessfrrlly put into place, i.e., the
College of Ptofessional Studies. Formation of the CPS was studied by a group of people
appointed by the administmtion and faculty membem selected by the Faculty Senate, and
this group wotked togethet to ptoduce the tepot thatwas consideted by the Faculty Senate.
Vice Ptesident I-ehrnan urged that the Special Committee, or possibly eyen an e>ipanded
Special Committee, meet and wotk dircctly with Dr. Johnson, and complete its work mpidly.
Thete is a ctitical need in the state of Vitginia fot nuses, and fotmation of the Nusing
School is an impotant pat of the evolution of medical programs at the Univercity. Th;
ptudent thing to do is for eveqrone to collabotate and move deliberations to the end point.
Ptofessot Biles asked Ptofessot Chedan to commen! since as Chair of the Special
Committee, he has been working with Dt Johnson to acquite infotmation. PtofessorBiles
said his imptession is that the information outlined in the App.ndi= to Resolution 09/5 is
appatently not available at this point. Professot Chetian said he had met with Dt. Johnson
twice in the past ten days, and had inqufued about these items. He said he was told Dr.
Johnson had most of the matetial, howeveq he did oot as yet have it Ptofessor Chedan said
he endotsed Vice Ptesident Lchrnan's encoumg€ment of a spitit of cooperation, and in fact
\-, that spitit is thete. He also said he pesonally suppored the establishrnent of a School of
Nusing, but the ptopet ptocess fot doiog this needs to be followed. Ptofessor Chetian said
he would do whatevet is tequited to help Dr. Johnson pull together the necessary
infotmation. He also said that he had already suggested the narnes of several people h th;
School of Business who are expedenced in uniting strategic plans, developing matket
tesearch studies ot otherwise might be helpfui to Dt Johnson in collecting data.
Professot Simon noted that the Faculty Code tequircs that the Faculty Senate and its
Executive Committee must be ptovided infotmation coocemiag the formation of new
schools, howevet, the only approval that is requfued is at the Board of Trustees level.
President KnaPp concured with this observation, saying that what the Senate has the power
to do is to make tecommendations to the Board. As a membet of the School Formation
Committee, Professot Simon said he recalled seeing some of the information tequested by
the Special Committee, including an economic plan and information on the new schoolrs
endowment. He added he did not see why the information should not be available.
Dt
Johnson said she appreciated the oppommity to meet with Professot Chedan
twice thus far. She said the fimt meeting was to advise het that the Special Committee had
met and ou rined some of the Committee's expectations. \Fhat has not been clear to her,
she added, is who needed to teceive the infotmation first She said she was aware that a fuII
ptoposal-- not difierent pieces of the proposd given to different people at differeat times --
fot the Boatd of Tnrstees was due in the office of the Executive Vice President for Academic
Afrairc by Apdl21. She said the firct she had heard about a specific tirne frame was when
Faculty Senate Minutes, Apdl9, 2010 Page 6
she tead Resolution W/5 attheit second meeting. Dt. Johnson said what she would view as
collabomtion would be for the Specid Committee to meet with hetself and othet membets
of the Depatment of Nursing Education so that issues of evetyone's concetn could be
identified and a way could be found to rcsolve these. She said she thought this was what
Yice Ptesident Lehrnanwas tdking aboutwhen he btought up the fonnation ptocess for the
CPS, and that is what she would tike to see happen with tespect to the School of Nusing.
Discussion followed. It was established that the Boatd of Ttustees Committee on
Academic Atrai$ would meet on May ti and the full Boad would meet the following day'
on May 14. Dt. Johnson said that she could make the final Nusing School ptoposd
available to the Senate on Tuesdap April 13. Furthet discussion followed on the issue of
whethet ot not the 60 day tirnetable in Resolution 09/5 could be rcvised downwatd.
Professor Biles asked Ptofessor Chedan how long he thought it would take to rcview the
ptoposal Ptofessor Chedan rcsponded that if what he called the plan' ot othets tetmed the
proposal, was available on Aptil 1ll, it rnight take a week ot two to look at it, aJxd then the
Committee's necornmendations would have to be ttansmitted to the Senate Execrrtive
Committee. As to whethet or not the whole task could be completed by May 136, he was
uncettain. Vice Ptesident I-ehrnan said he thought it might be possible fot the Senate to
schedule a special meeting befote May ti6 to comsidet the issue.
Professor Chedan pointed out that befote any collabotation or futthet work takes
place, thete must be a document to discuss, and at prcsent thete is no docu-'ent on the
table.
Professot Robinson said one of the problems is that the Faculty Senate Executive
Committee was drawn into this process quite l,ate. Thete may have been a misconception
that by obtaining approvals ftom the Medical Centet Faculty Senate, the ptocess of
consultation was complete. The present situation was aot of the Faculty Senatets makitg.
She added that Vice President Lehman was quite tight - fotmation of the CPS was
something that the arlrninisttation and Senate wotked on vely successfrrlly, but the
diEerencJwas that thete was u greatdeal of 'qre. She said it seemed to het the discussions
lasted at least a year. That sinration is quite diffetent than the ptoblem befote the Senate
now. She said she did not thfuk the Speciat Committee needed to be orpandcd, as
suggested by the Vice Presidenq but she agteed with Ptofessot Chedan that the immediate
o..a is a d-ocument with which to work As to a specid Senate meeting, the Senate
Executive Committee meets next on Apdl 23d, arrd that means a Resolution about the
Nutsrng School should be teceived by then. A special meeting of the Senate could be
scheduled if the Specid Committee has completed its wotk
Ptofessot WirE said he thought the Senate discussion was headed in the dght
dfuectiono however, it was not clear that dl of the issues involved can be tesolved in 30 dayst
or even in 60. In particular, item 8 of the App.odi* to Resolution W/5, which calls for a
detailed plan for the separation of the Nusing Department ftom the Health Sciences
PtogamJ and othet UeAical School ties, is important Related questions include what the
tole of the Medical Faculty Senate is in the fotmation of a school, and to what extent the
Nursing School will be protected ftom the politicd nuances involved in the Medical School
Faculty Senate. He said his seose of the situation is that a numbet of thorny issues ate
involved, and as appreciative as he was of the need to move ahea4 he did not want to see
the Senate replicaiethe effots that occured in the fotmation of the SPHHS. fle concluded
Faculty Senate Minutes, Apdl9, 2010 PageT
with the observation thag while everyone is on the same wavelength in tetms of
collabotation, the ptocess should not be rushed for the sake of a speedy conclusion.
Ptofessot Griffith asked what would happen if the proposal is not considered at the
Boatd of Tnrstees'meetings in May. Vice President Lehrnan said that it might be possible
to ptesent it at the June Boatd rctleat, if the Board wete willing to conduct a regulat meeting
then. Ptofessot Griffith spoke in favot of the Resolutioo, as he was entfuely in sympathy
with Ptofessot Wittzts tematks. He added that it seerned 1s hirn the ptocess was on a fast
ttain that was headed downhill. The issues suroundirg the fotmation of a new N".siog
School are not gortrg to be easity ot quickly tesolvable and if too tight a time schedule is
agteed upon, then the pressnie will be to meet the schedule mther t\an solve the problems.
The tesult may well be unsatisfactory. The Senate definitely needs to take the *i'ne
necessary to allow proper vetting of the ptoposal
Ptesident Knapp said he w.rs not aware that the ptoposal has any beadng on the
structrue of the Medical Centet other than whether to have a third school within the Medical
Centet, namely the School of Nusing. Thete is no proposal to brcak up the Medical Centet
ot its Senate, to eliminate the position of the Yice Ptesident for Health Affairs, or anything
of that kind. Ptofessot Wirtz rcsponded that there is a mechanism in place now where the
vatious units of the Medical Center report to the Vice Ptesideut for Health Affafus with
tegatd to certain parts of what they do. Other Schools of the University iepoft ditectly to the
Executive Vice Ptesident for Academic Affafus. Another question is the extetrt to which the
sttucturre prcposed fot the Nusrng School would in faci be independent of the kinds of
ptoblems that have adsen in connection with other schools within the Medical Centet. One
of these questions is the extent to which schools in the Medical Center should be orempt
ftom certain provisions of the Faculty Code, Professor Simon said he rccognized that there
is still a ptoblem with the footnote on page 18 of the Code. It needs to be corected to make
\-, a distinction between clinical and non-clinical faculty. Assuming that Dt. Johnson presents
the ptoposal by Apdl 13, My ptoblems with it can be discussed, but he added that he did
not knowwhat problems might arise until the ptoposalwas made available.
Discussion followed about the tirneline contained in ResolutiotOg/5 for receipt of
the Nutsing School proposal Ptofessot Cherian said if he wete asked if 30 days would be
suffcient to teview the ptoposal, his iudgmeat would be it was unfikely, as a ptoposal
addtessing all of the pertinent issues would likely be ovet lffi pages ia length. Frofissot
Robinson teitemted the possibility that it might be necessaty fot the Boatd to look at the
proposal in June at their teteaL She added that she hoped the process could be completed
before then, but absent a proposat no one knours.
Ptofessot Gdston offeted a friendly amendment to amend the phtase in the thfud
Resohiag Clause of Resolution ftom 'at least 60 days' to sat least 30 days., Discussion
followed. Ptofessor Batnhill asked whether or not enough ''re was belng allowed for the
Special Committee and the Senate to read and undemtand the proposal and the Special
it
Committee's conclusions about He also asked if Yice Presideni I-ehman could prorid.
"
compamtive aaalysis of the student, faculty, and administrative costs for other schools at the
University fot compatison with the Nusing School ptoposal. Vice Ptesident Lehman
tesponded that this infotmation is obtainable and that he would make it available, although
he was uncettain about the level of detail that could be ptovided. Following further
discussion, Ptofessor Galston's ftiendly amendment was not accepted by Professor Biles.
Ptofessor Simon said he would accept the alteted ti'neline and moved the taoguage offeted
Faculty Senate Minutes, Apil 9,2010 Page 8
by Professot Galston. The motion to amend was seconded. A vote was taken, and the
amendtnent was adopted.
Following further discussion, a vote was taken on Resolution 09/5. Resolution 09/5 ^
as amended, was adopted. (Resolution 09/5 is attached.)
T]PDATE ON THE T'NTVERSITY BT]DGET
Ptofessor Cordes, Chafu of the Fiscal Planning and Budgeting Committee (FP&B),
presented the update as a Powetpoint tepotq which is eoclosed.
Ptofessot Cotdes first commented on the information in the update pertaining to
budget ptoiections and second quatet financial resufts. In summary, proiections at this
point indicate that both revenues and expenses (above the line items) ate someurhat higher
thaa fotecast. Gross tuition revenue wilt be highet than ptoiected, apptoximately $17
million, because there arc 2(X) more freshrnen than anticipated. flowevet, additional
expenditues for financial aid - some $1L5 million will be requfued to support these
additional students, many of whom demonstmted financidneed.
On the expense side of the budget in the atea of compensation, the update indicates
a net iaffease of fil million. This was due to $4.3 million in turnover costs budgeted fot
that did not matedalize and $2.6 million in other salaty and wage costs, oftet by $4 million
in fringe benefits savings. The University has incuted additiond erpenses for puchased
services, i16fuding rcgulatory and compliance costs and continuing arnourlts fot the
development of a u'rifi6d web presence. The Univetsity has done bettet than pmiected in its
collection of bad debt.
Professot Cordes desctibed the below the line components of the proiected budget.
These include debt service and mandatoty purposes, endowment support, capital
expenditutes, and support/investment. Fot many yearc, the belou, the line numbet was a
negative one, indicating that money was flowing into Univetsity rcsen'es ftom the above the
line items. That number is now positive, indicating that that the Univetsity is dtawing ftom
its rcserres to meet cetain needs. The odginal proiection for this yeai was a dtawdoqm on
reserves of apptoximately $10 rnilliea, but because othet tesults ate mote favotable than
anticipated, the drawdown may be less.
Ptofessor Codes teviewed infotmation in the update concerning the Univetsiqfs
endovrment RoughV the sarne arnorurt is taken each year ftom the endourment fot various
puposes. Thus, in some yezus the percentage of the endowment matket value paid out will
be less than 5olo, and in others such as this yeat, more than Soh. That figue includes the
payout ftom Square 54 as well as supplemental payouts that have been coming ftom the
endovrment for the last couple of yearc fot the Sttategic Plan fot Academic Excellence.
Professor Cordes briefly teviewed information issued by two bond mting agencies in
March when the Univercity bomoured $200 million. (Ihis infotmation is enclosed.)
Genetally, both agencies are pleased with the ovetdl financial cfucumstances of the
Univetsity, paticulady the above the line opetating surplus, and liquid tesenes of
approximately $270 rnillion. One negative mentioned in the tating tePorts - the Medical
School,s accrcditation difficulties - has been tesolved. The agencies also rccogaize the
impotance of enrollments to the Univetsiqfs ovemll financid picture.
Faculty Seoate Minutes, Apd 9, 2010 Page 9
Prcfessot Cordes commented on the Budget Wotking Gtoup on which membets of
the FP&B Committee, Deans, and membes appointed by the Senate and the
\- Administmtion seffe. The gtoup meets at least once a year to discuss budget development.
Mindful of the cap on entollment at the Foggy Bottom sarnpusl the Office of the Executive
Vice President and Tteasutet is exploring ways to addtess this, including apptoaching
various campus entities in otdet to gauge their willingness to move. Last year the
Univetsity was within 70 FTE enrollments of the cap. This year, it appeats that the
Univetsity is apptoximately 2il) FTE entollments rrdei the cap, and this will provide a little
mote r(x)m to maneuvet if the adrnissions yreld this year is bettet than expected.
Ptofessor Cotdes also teported that the Board of Trustees has been committed to
matntatnilS a medt pool inctease for faculty and staff. It was mentioned to the Budget
Vo*ing Gtoup that the Boatd is considering a medt pool going forward of 3oh tathet than
4%. While this seems a small teduction, thete are consequences going forwatd if the
baseline mte is changed. Genetdly such decisions ate not made on a year,by-year basis;
not are tuitioa inctease tates. With the effect of compounding over a pedod of t'.tre, the
effects on the exllense side of the Univetsity budget would begrn to be ivideng and about
four yeats from now, the expense budget would basically be lowered by about Sl2 million.
Ptofessot Cordes showed an example of what this means for salades, rcughty speaking.
A1out four years from now, an individual's baseline salary would be toughty a couph of
thousand dollars less undet a3Yomeitpool than one allowing 47o. Professot Codes raid n.
hoped the Board worrld stay the coruse with the hrgher figue, dependeng of coume, upon
enrollments and othet key factots, particutady because last yeat it was clear that the
Univetsity had some 6a16hing up to do in comparison with ie matket basket schools.
[Following the meeting, Ptofessot Cotdes supplied a corection where two lines of textwete
ttansposed on slide 1[2 @age 32 of the minutes). This slide ptovides infotmation on metit
\-, pool percentages. The corect infotmation has been substituted in the Budget Update
posted to the Senate website and will be retained in the pennanent tecords olthe Sinate
Office.l
Ptofessot Cotdes touched bdeffy on the Innovation Task Fotce - a group of faculty
and staff that has been tasked with the mission of rying to identiS either nry sources of
revenue ot achieve savings in the Univerciqfs opetations. The goal over the next five yeats
is to ptoduce the financial equivalent of $60 million pet yeaf which could be earnarked for
the imptovemeot of acadernic prograrns at the Univesity. The Task Force is led by a
Steering Committce (headed by Associate Yice Prcsident-l*"n1 and two wotking g"orrpr,
one on teaming processes and anothet on business processes. White the Task F;. *ili
not hold the toqm foatt p6e,tings otigina[y envisioned, it wilt plovide other ways for frculty,
staff, and students to ptovide input 6enssming the proposals selected by til Task fotcl.
The Task Fotce has alrcady identified $2.8 million io.oo".t d resources. Oo. eatly tesult
is that savings identified by the Task Fotce have been ptovided to the Columbian bolege
of Ars and Sciences to improve its academic advising. A notional accormt showing tf,e
soruces of savings achieved and the uses fot those funds will be established and featuted on
the Task Forcets website.
Ptofessot Cotdes concluded his tepott by commenting btiefly on the ptoposed
Science and Engineedng Complex. fle chamctedzed the 2fi)8 estimate-of the possibli cost
of the ptoiect (included in the update) as illustative. The prorect will ideally have firnding
Faculty Senate Minutes, Aptil 9, 2010 Page 10
soruces that will leave the opemting budget unaffected in othet wotds, be budget neutral
These soutces would be the three-legged stool desctibed by President Knapp - tevenuc
ftom Squate 54, increased indfuect cost recoveries ftom reseatch, and philaathopy. As the
benchrnarking and progmmming phase of the ptoiect has iust been conctude4 a cost
esti ate fot the ptoiect has not yet been developed. This cost estimate will have to account
for lost patking frcilities once the Univemity Gamge is demolished. Thete are 111(X) spaces
in that facility, and the cost of rcplacing ftom 8fi) to 900 spaces will need to be aken into
account, as the SEC will not be able to accommodate mote than 3fi) to 400 spaces.
Ptoponents of the SEC point to significant benefits, howevet, the SEC still poses budgetary
challenges.
Professor Hotez inquircd about the revenue stteern from the Squate 54 lease, as he
odginalty had heard es '.nates of $9 to $10 million per yeat, and the amount ptoiected in
Ptofessot Cordest update is substantialty less. Ptofessot Cordes confirmed that the annual
arnount of the ground lease is $9 to $10 million per year. llourevet, the decision was made
to capitalize the asset value of the lease payments and add that amouot to the Univemiqfs
endowment. The standard fotmul,a fot payouts ftom the endowmenq applied to this
capitati"ed figue, would yield apptoximately $7 million pet yeff beginning in Fn0.
[Accotding to footnote 5 in the endowment budget support information ptovided about the
Square 54 item in the update, "the payout fot FY08 and FY(D [$4.5 and $5.8 rnillion
rcspectivelyl are anounts rcptesentative of site development costs. $33 millim in gtound
rent distributions in excess of estimated development costs was teinvested in the
endowment. Beginning in F"f10 the payout ftom gtound rcnt distributions will be based on
the Universiqy's cuttent payout policy. Consistent with that policy, payout will also be
distributed ftom ptioryeat teiavestments. Any gtound rcnt not disttibuted as payoutwill be
reinvested. An estimated $2 million will be teinvested in F"n0."I
Ptofessor Bamhill asked what information Professor Cotdes could supply on
University prciections tegatding likely incteases to the endowment telated to this ptoiect.
Professot Cordes tesponded that he did not have that infotmation. President KntpP
confirmed that Ptofessor Barnhill's quety was about fundtaising and not about the
endowment per se. A planning process is underway concerning many aspects of the
Universiq/s fundmising activitiesr including the feasibility of fundtaising for a wide variety
of purposes and/or the overdl concept of a comptehensive capital campaign. The teason
that cost estimates for the SEC have not been prcvided to the University community is
because those financial numbets do not yet exist.
AIVNUAL REPORT ON CORE INDICATORS OF ACADEMIC EXCELLENCE
Executive Vice President for Academic Affaits Lehnran ptesented the Annual R.po.t,
which is enclosed. He began by thrnkingJoe Knop, Dfuectot of Instinrtional Reseatch, and
Annie Wooldridge, Director of Faculty Rectuitment and Petsonnel for theit assistance in
prrlling together the data and infotmation contained in the Annual Repott and in the
Biennial Report on the Rectuitment and Retention of Women and Minority Faculty.
Vice Prcsident Lehr"an rcviewed the topics covered in the Annual Repott, which
include faculty composition and tends, teaching loads and student-faculty mtios, class
sizes and disttibutions, frculty salaties, and enrollrnent infotmation and ttends in
undetgraduate, gtaduate certificate, Mastet's, Doctomf and Law and Medical progtams.