SC.05.07

UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN

Report of the November 11, 2004, Board of Trustees Meeting

A meeting of the University of Illinois Board of Trustees (BOT) was held on Thursday November 11, 2004 at the Pine Lounge of the Illini Union at the Urbana-Champaign campus. The meeting was called to order at 8:35 AM by Chair Lawrence Eppley.

Following roll call, public comments were received. Six people addressed the Board for about five minutes each, all speaking about the Chief issue (two in favor and four against). Then President James Stukel introduced guests and observers present at the meeting.

Chair Eppley thanked President Stukel, Consultative Committee to Assist in the Selection of a President, and members of BOT for their hard and diligent work in the search for a new University President. He indicated that over 120 nominations were received. He added that twelve candidates were interviewed by the Committee over three days in Chicago. Five candidates met with the Board before a final decision was made.

At this time, items from the Regular Agenda and Roll Call Agenda were presented including designation of the James J. Stukel Towers consisting of 750 student residences in Chicago. Other items presented included designation of Beef Cattle and Sheep Field Laboratory in U-C; establishing the Center for Lung and Vascular Biology in Chicago; two-million dollar university wide facilities renewal program; three resolutions of appreciation; amendment to the services and management agreement between U of I and Research Park, LLC and BOT; awarding contracts for third party and consulting services in support of the development and commercialization of new technologies; and expansion of the Research Park east of First street on the U-C campus. The complete list of agenda items is available for review at the Senate Office.

Professor Michael Grossman gave an annual report on behalf of the UIUC Senate. He began with the charge of the Senate and pointed out some of the major activities of the UIUC Senate during the 2003-04 academic year including curriculum reform; revising the Code; educational policies; nominating members for president and chancellor search committees; offering advice to the President on re-appointment of Chancellor and Vice-chancellors; meeting with local legislators; and liaison with the BOT.

Sidney Micek, President of the University of Illinois Foundation gave a report and discussed the Foundation’s efforts in procuring private support for U of I and ongoing plans for fund raising. He stressed that the Foundation’s first priority is raising funds from private donors.

Professor Elliot Kauffman of UIC, Co-Vice Chair of the Consultative Committee to Assist in the Selection of a President thanked the BOT as well as the search committee members and particularly its Chair, as well as Baker-Parker and Associates consulting firm for their efforts in the search process.

Vice President Chester Gardner gave an extensive presentation to the Board on the University’s financial needs and the impact of FY 2006 tuition, fees, and financial aids. He defined top universities as large, comprehensive, and well funded. He then stressed the significance of “return on investment” and characterized education at U of I as affordable. Gardner added that students and State of Illinois receive tangible benefits from the high quality of education and research programs at the U of I.

Gardner described the guiding principles for setting the tuition as need for crucial new investments in academic programs and student services; faculty and staff salary increases; adjustments for other inflationary cost increases; and adjustment for constrained state support. He estimated that additional funds of over forty-seven million dollars are needed for in FY 2006 for a 3% salary increase; O&M new areas; utility price increases; insurance and liability; deferred maintenance; Illinois ventures; and University IT and decision support. Gardner emphasized that any shortage of funds due to budget cuts will have to come from the salary increase portion of this figure.

Vice President Gardner expressed concern over the faculty salary competitiveness, particularly at the U-C campus as well as the very high increase in our student to faculty ratios compared to some other institutions. Gardner gave a detailed analysis of establishing tuition increases and asked the Board to prepare themselves for establishing tuition rates for next year at their next meeting. A printout of VP Gardner’s PowerPoint presentation including related facts and figures is available at the Senate Office for review.

In other business, the Board unanimously approved Dr. B. Joseph White as the new President of the University of Illinois via a voice vote. The Board also gave outgoing President Stukel the title of Emeritus Professor and Emeritus President.

Before lunch, the Board reconvened in executive session to discuss pending, probable or imminent litigation against, affecting, or on behalf of the University. The Board had invitational lunch with Deans and a number of other guests. After lunch, the Board held meetings of its committees. At the recommendation of the Buildings and Grounds Committee, the Board approved the design for South Campus Mixed Use Development in Chicago. The Board also approved the Committee’s recommendations for site and design approval for Advanced Chemical Technology Building in Chicago, site and design approval for 4H Dining Facility in C-U, and site and design approval for Indoor Golf Facility in C-U. Hard copies of information about these projects are available at the Senate Office for review.

At the recommendation of the Budget and Audit Committee, the Board approved the University’s FY 2005 $3.382 billion revenue and expenditure budget. Also, the University Hospital Committee presented The Future of the Medical Center to the Board. Hard copies of the PowerPoint presentations given at the BOT meeting on the budget and the University Hospital are available at the Senate Office for review. Finally, the Technology and Economic Development Committee reported on the highlights of the Technology Commercialization for FY 2005, first quarter. A hard copy of that report is also available at the Senate Office for review.

The Board meeting continued with approval of June 17, 2004 meeting minutes followed by trustee reports and announcements of future meetings. The meeting adjourned at about 4PM.

Respectfully Submitted,

Abbas Aminmansour

UIUC Senate Observer