MSU FACULTY COUNCIL MEETING MINUTES January 31, 2001 PRESENT: Morrill, Sherwood, McDermott, Kommers, Peed, Linker, Leech, Benham, Howard, Stewart, Larsen, Harkin, Mooney, Jacobs for Lefcort, Weaver, Amend for McClure, Locke, Lansverk, Levy, Bogar, Bond, Jelinski, Francis, McKinsey, Lynch, Prawdzienski, Butterfield, Scott, Griffith. ABSENT: Young, Hatfield, White, Anderson, Jost, Nehrir, Fisher, Carlstrom. The meeting was called to order by Chair Ron Larsen at 4:10 PM. A quorum was present. The minutes of the January 24, 2001, meeting were approved as distributed. Chair's report - Ron Larsen. There will be a rally for public education at the Capitol Building in Helena on March 3. University System Hearing with Joint Appropriations Education Subcommittee - Craig Roloff, Assistant Vice President for Administration and Finance. - The Montana University System's presentation today at the subcommittee went well. The presentations by the President and the Provost were well-received, and remarks at the end of the hearing by students and alumni were excellent. MSU did a good job of addressing the state's return on its investment in MSU, the effect MSU has on economic development, and the excellence of programs at MSU. - President Gamble sees the current budget situation as a challenge. - There will be communication with the campus about the progress of the budget requests. - The biennium budget process started last summer. The MUS asked for a $500/resident student increase in both FY02 and FY03. Both Racicot's and Martz's budget proposals included a $100/year increase. The focus has since shifted away from the proposal to funding gaps within the executive budget. Increases for the Bozeman campus, presented by Rod Sunsted, Associate Commissioner for Fiscal Affairs, include: - Tuition requirements, mandated as 50% of the budget increase: $5.2 million. - Of this, $1.2 million will be used to annualize the current biennium's pay plan. - The pay plan for next biennium (4%/year with substantial increases in health insurance) is only half-funded by the legislature. The other half, $3.7 million, would come from increased tuition. - Of increased costs for the state auditors, MSU would pay half from tuition. - Expenditure issues not included in the proposed executive budget: - Library inflation (8%/year) - $700,000. - Vacancy savings costs (4% plus insurance) - $2.2 million. - Retirement pay-outs (an on-going cost which is excluded from the legislative budget) - last year -$880,000. - Banner operation - $600,000. - Revenue issues: - Non-resident students declined this year by about 130 students. If that rate of decline continues, the marginal cost over the next biennium would be about $1.5 million, or the total cost would be about $5 million. - Utility costs have increased considerably and will continue to do so, and it appears at a faster pace than earlier predicted. - The cost to backfill the physical plant maintenance budget for money spent on utilities is about $300,000. - Water/garbage increases for the next biennium - $100,000. - Gas/electricity increases for the next biennium - $1 million. - The total additional cost for the biennium for the Bozeman campus is $14.8 million, or an annual increase of $628/resident student/year or a tuition increase of about 14% per year. This assumes no increase in funding from the legislature. If the legislature gives the $100/per student/year increase proposed in the executive budget, there will be money to cover utility inflation, only. - The best recovery realities: - MSU may get some money to cover the cost of utility inflation. - Because the Library is at the heart of education, there may be some money for Library inflation. - The campus may recover from the decline in non-resident students. - The regents may be willing to consider a slightly higher tuition increase than previously anticipated. - In summary, Craig stated that President Gamble has set a good tone with the legislature and that he will make a difference with the legislature. - The legislative time-line is expected to be as follows. - The Subcommittee will take executive action next week on the MUS budget. - In mid-February, the entire appropriations bill will be ready to forward to the House Appropriations Committee. - By the end of February, the House Appropriations Committee will consider it and forward it to the House floor. - The Senate committee should have it by mid-March. - The full Senate will consider it. - The appropriations bill will likely go to a conference committee. - Assumptions for student growth at MSU are that there will be modest resident growth and modest non-resident decline. - It was suggested MSU build a retirement pool, as Grants and Contracts currently does for G&C funded salaries. The Board of Regents allows the retirement costs to be paid one year in arrears, which makes it easier to budget these costs. - It was suggested more consideration be given to energy conservation on campus. Although there is room for improvement, Craig stated that MSU consumes less natural gas than five years ago, even with more space. - President Gamble believes in accountability, assessment, and setting priorities, and these will most likely be taken into consideration when MSU's budget is put together this spring. As there was no further business, the meeting adjourned at 5:00 PM. Joann Amend, Secretary Ron Larsen, Chair