WASHBURN UNIVERSITY OF TOPEKA BOARD OF REGENTS A G E N D A ____________________________________________________________ DATE: February 18, 1998 BUSINESS MEETING: - 6:00 p.m. Kansas Room, Memorial Union ____________________________________________________________ I. Call to Order Chairperson Parks II. Roll Call Mr. Craig Mrs. Porter Mr. Dick Mr. Roth Mr. Engel Mrs. Wagnon Mr. Ferrell Dr. Ybarra Mrs. Parks III. Approval of Minutes of January 20, 1998 meeting as circulated. IV. President's Report V. New Business A. Information Items: 1. The Washhburn Student of the 21st Century 2. Budget Status Report for the Six Months Ended December 31, 1998 3. Summary of First Five Years of Program Review 4. Bylaw Amendment - 1st Reading a. Revision to the University TIAA-CREF Retirement Program b. Library Faculty Representation on University Council 5. Faculty Salary Survey B. Consent Agenda: 1. Public Fund Investments 2. Personnel a. Faculty Personnel C. Action Items: 1. FY 1999 Revised Budget Guidelines 2. Establish a Department of Art and a Department of Theatre from the Current Combined Department of Art and Theatre Arts 3. Voluntary Phased Retirement Program 4. Nomination of Trustee to Finnup Foundation Trust Agenda Item No. V.A.1. Washburn University Board of Regents SUBJECT: The Washburn Student of the 21st Century DESCRIPTION: Throughout the Fall semester, we have studied, analyzed, and discussed what the characteristics of our student body should be in the years ahead. Our task has been to analyze the needs of our students, match those needs with our strengths, compare those needs and strengths with demographic data, and synthesize all of that information into a plan that will help guide Washburn. We will use this data to strengthen and focus the targeting of our programs and services to the needs of our students and to our own strengths. We have made extensive use of focus group techniques including town hall meetings, open forums, discussions with faculty, deans, Board members, students and administration. Based upon this consultation and advice of the entire university, we will discuss the major findings and how this should direct the development of a plan for the future. FINANCIAL IMPLICATIONS: None. RECOMMENDATIONS: This item is submitted for discussion only. date Jerry B. Farley, President Agenda Item No. V.A.2. Washburn University Board of Regents SUBJECT: Budget Status Report for the Six Months Ended December 31, 1997 DESCRIPTION: The projected year end June 30, 1998 net from educational and general operations is a positive $221,716 (assuming unexpended appropriations of $1,297,000). The forecast for operations of our auxiliary enterprises is also a positive net of $51,536. Educational and general revenues are projected to total $38,741,153. The most significant change which has occurred since the last report in November, is that our tuition forecast has been adjusted downward as a result of a small decrease in Spring credit hour enrollments. The net decrease in tuition is $227,618. Other more positive revenue changes include the Continuing Education fee estimates which were increased by $100,000 following a review of the first six months of operations. Likewise, KTWU revenue was increased by $26,000 as a result of additional fundraising activities. Interest income and miscellaneous income are expected to be $91,600 greater than originally budgeted. SUMMARY: An operating surplus is forecast for the educational and general and auxiliary enterprise funds. While variations in revenues have occurred, the total budget is well within acceptable limits. date Jerry B. Farley, President Agenda Item No. V.A.3. Washburn University Board of Regents SUBJECT: Summary of First Five Years of Program Review DESCRIPTION: WU has completed the first five-year cycle of program review. The purpose of Washburn's program review will be discussed. A brief review of the self-study process will be given. A few examples of improvements in programs due to the program review process will be discussed. FINANCIAL IMPLICATIONS: None RECOMMENDATION: For Information Only ___________________ ___________________________ (date) Jerry B. Farley, President Agenda Item No. V.A.4.a. Washburn University Board of Regents SUBJECT: Revision to the University TIAA-CREF Retirement Program Present University policy, found in Article VI of the University Bylaws and in I.3.5.1. of the Business and Financial Affairs Handbook restricts entry into the University's TIAA-CREF retirement program to three specific times in a year following the completion of the one year waiting period. The administration proposes making the entry date the first pay period following completion of the one year waiting period. The proposed change also would permit one to make up to four (4) salary reduction agreements per calendar year rather than just one. The current policy also precludes persons in the one year waiting period to participate in a salary reduction agreement for elective deferral of his/her income to a TIAA-CREF. The administration proposes that all eligible employees be authorized to participate in a salary reduction agreement. University contributions towards one's retirement program, however, would only be made after completion of the one year period. To effect these changes in the University retirement policy, which also will require a change in the University's Retirement Plan Document, the administration proposes the following amendments to the Bylaws and Business And Financial Affairs Handbook. That which is interlineated would be struck and that which is underlined would be added. Bylaws Revisions Article VI §2 revised as follows: As a condition of employment, the University requires participation in the University's retirement plan by eligible employees [begin new text]on the[end new text] {begin strikeout}each plan year after{end strikeout} [begin new text]beginning of the pay period following[end new text] completion of one year of service. Article VI, §6 revised as follows: The entry date for {begin strikeout}nine-month faculty members shall be at the beginning of the fall semester. The entry dates for all other employees (including faculty) are January 1 or July 1{end strikeout} all employees shall be the first day of the pay period in which she or he becomes eligible for participation. Business And Financial Affairs Handbook Revisions I.3.5.1. SECTION 2 as follows: As a condition of employment, the University requires participation in the University's retirement plan by eligible employees on the {begin strikeout}first entrance date{end strikeout} [begin new text]beginning of the pay period following[end new text] completion of one year of service. I.3.5.1 SECTION 3 as follows: The entry date for {begin strikeout}nine-month faculty members shall be at the beginning of the fall semester. The entry dates for all other employees (including faculty) are January 1 or July 1{end strikeout} all employees shall be the first day of the pay period in which she or he becomes eligible for participation. I.3.5.1 SECTION 6 as follows: The Board of Regents, effective July 1, 1963, authorized a voluntary program of tax deferment on compensation applied to the TIAA-CREF Annuity Program. Effective {begin strikeout}July 1{end strikeout} March 1, 199{begin strikeout}2{end strikeout}[begin new text]8 [end new text] any employee in the TIAA-CREF Program has the option of electing a modification of salary contract by voluntarily reducing the salary by an amount not in excess of the maximum elective deferral which the employee is eligible to elect under the Internal Revenue Code. OASI and Medicare deductions apply to gross wages and not the net deferred wages. {begin strikeout}An{end strikeout} [begin new text]No more than four (4) [end new text] Election of Retirement Program Options agreement[begin new text]s[end new text] {begin strikeout} must be signed and presented to the Personnel Office not alter than December 1 prior to the calendar year in which it becomes effective{end strikeout} [begin new text]may be made in a calendar year[end new text]. I. 3.5.1. SECTION 7 to amend the first paragraph thereof as follows: (changes appear only in the first paragraph of the section, the last 3 paragraphs are omitted from this item) The Board of Regents, at its February 27, 1974 meeting, approved a plan for a Supplemental Retirement Annuities Program as established by TIAA-CREF. The Board of Regents authorized a modification to the policy at the September 22, 1976 meeting to allow participants to take advantage of possible larger amounts for deferments. The cashable annuity contract - the Supplemental Retirement Annuity (SRA) - has been available from TIAA-CREF for use under the annuity option (tax deferred annuity) program since July 1, 1974. This has given eligible faculty and staff members a choice of the type of annuity contract available for accumulating tax-deferred annuity funds over and above the Washburn basic TIAA-CREF Retirement Plan. An employee {begin strikeout}shall not be{end strikeout} [begin new text]is[end new text] eligible to enter the SRA Program {begin strikeout}unless the employee is also in the regular Washburn TIAA-CREF Deferred Retirement Plan {end strikeout} [begin new text]if employed in a benefit eligible position requiring 1,000 or more hours of work per year[end new text]. Entrance into the SRA Program is limited to {begin strikeout}one{end strikeout} [begin new text]no more than four[end new text] salary reduction agreement[begin new text]s[end new text] per calendar year, and must be mutually approved by the employee and the University. FINANCIAL IMPLICATIONS: Fiscal impact over period July 1, 1994 to June 30, 1996, if policy had been in effect: approximately $33,418. Future fiscal impact dependent upon hire dates, salary and current vesting of new employees. There is no fiscal impact on University for permitting elective deferral to TIAA-CREF during one year waiting period. RECOMMENDATION: President Farley recommends approval of proposed revisions to the Bylaws following second reading at the March meeting and of the amendments to policy regarding elective deferral for employees effective February 19, 1998. _________________________ ____________________________ (Date) Jerry B. Farley, President Agenda Item No. V.A.4.b. Washburn University Board of Regents SUBJECT: LIBRARY FACULTY REPRESENTATION ON UNIVERSITY COUNCIL DESCRIPTION: The changes to the Faculty Handbook and the University ByLaws indicated on the attached pages were approved by the General Faculty on January 29, 1998. Items to be added are underlined and items to be deleted are struck through. FINANCIAL IMPLICATIONS: None RECOMMENDATION: President Farley recommends approval of proposed revisions to the Bylaws and the Faculty Handbook following second reading at the March meeting. ______________________ ______________________________ date Jerry B. Farley, President Proposed change to Section I, part VI.A.2 of the Faculty Handbook: 2. Membership of the University Council shall be: *Five faculty members from the College of Arts and Sciences, each elected by a different Division of the College. *One faculty member elected by the School of Law. *One faculty member elected by the School of Applied Studies *One faculty member elected by the School of Nursing. *One faculty member elected by the School of Business. *One faculty member elected by the University Libraries *The President of the University (ex officio). *The Vice President for Academic Affairs (ex officio). *The Vice President for Administration (ex officio) *The Chief Student Affairs Officer (ex officio) *The Director of the University Library (ex officio) *The President of the Washburn Student Association (ex officio) *The senior elected Faculty Representative to the Board of Regents Elected members serve two-year terms unless otherwise stipulated. All elected and all ex officio members are alike voting members of the Council. Proposed change to Section I, part VI.A.3 of the Faculty Handbook: 3. Non-voting representatives to the University Council shall be: a. The Deans of the Major Academic Units b. Three students selected by the Student Association, and one by the Student Bar Association c. The junior elected Faculty Representative to the Board of Regents d. The Director of the University Library Proposed change to Article V, Section 10, paragraph b, subparagraph 1 of the Bylaws b. 1. Membership of the University Council shall be: Five faculty members from the College of Arts and Sciences, each elected by a different Division of the College; One faculty member elected by the School of Law; One faculty member elected by the School of Applied Studies; One faculty member elected by the School of Nursing; One faculty member elected by the School of Business; One faculty member elected by the University Libraries; The senior elected Faculty Representative to the Board of Regents; The President of the University (ex-officio); The Vice President for Academic Affairs (ex-officio); The Vice President for Administration (ex-officio); The Chief Student Affairs Officer (ex-officio); The Director of the University Library (ex-officio); The President of the Student Association (ex-officio). Elected members serve two-year terms unless otherwise stipulated. All elected and all ex-officio members are alike voting members of the Council. Proposed change to Article V, Section 10, paragraph b, subparagraph 2 of the Bylaws 2. Non-voting representatives to the University Council shall be: (i) The Deans of the Major Academic Units; (ii) Three students selected by the Student Association, and one by the Student Bar Association; (iii) The junior elected Faculty Representative to the Board of Regents. (iv) The Director of the University Library Agenda Item No. V.B.1. Washburn University Board of Regents SUBJECT: Public Fund Investments DESCRIPTION: The Treasurer reports the following public fund investments: Amount Invstmnt Period Pub. Fund Rate s Wall Str. Jrnl Rates T-Bill Rate Success- ful Bidder Rate $1,100,000 149 days 5.33 % 5.51% 4.965% Mercanti le 5.26% $2,520,000 331 days 5.32% 5.51% 4.910% Mercantile 5.40% $1,000,000 154 days 5.35% 5.54% 5.13% Mercantile 5.34% $250,000 161 days 5.35% 5.54% 5.13% Mercantile 5.34% $1,000,000 122 days 5.31% 5.21% 4.98% UMB Bank 5.21% $1,000,000 136 days 5.31% 5.21% 4.98% M UMB Bank 5.21% $500,000 360 days 5.28% 5.50% 4.995% Mercantile 5.36% $1,000,000 307 days 5.28% 5.50% 4.995% Mercantile 5.31% $1,500,000 181 days 5.32% 5.50% 4.995% MIP's 5.32% $150,000 246 days 5.32% 5.50%% 4.995% Mercantile 5.26% Bids for investment of the University's public funds are solicited from area financial institutions in accordance with University policy and in conformance with State law regarding public fund investment (K.S.A.9-1401 et.seq. and 12-675 et.seq.) FINANCIAL IMPLICATIONS: RECOMMENDATION: President Farley recommends approval by the Board of Regents of the Public Fund Investments reported in the description above. ________________________ _____________________________ (date) Jerry B. Farley, President Agenda Item No. V.B.2.a. Washburn University Board of Regents SUBJECT: Faculty Personnel DESCRIPTION: Hire Kelly M. Brady as a Lecturer in Biology to teach classes normally taught by Lee Boyd who is on a Sabbatical. This is a full-time, one semester ONLY contract. Hire Dr. Mariusz Dobek as a Lecturer in Political Science to teach a class normally taught by David Jervis , who is on a one- year, unpaid Leave of Absence to accept a Fulbright Fellowship. This is a part-time, one semester ONLY contract. FINANCIAL IMPLICATIONS: Brady's salary, $10,000, will come from Boyd's line #13500-09-2. Brady's line # will be 13500-13-2. Dobek's salary, $3,502, will come from Jervis' line# 26500-05-2 which will be Dobek's line # this semester. RECOMMENDATION: President Farley recommends that the Board approve the above faculty personnel changes. _____________________ ____________________________ (date) Jerry B. Farley, President Agenda Item No. V.C.1. Washburn University Board of Regents SUBJECT: FY 1999 Revised Budget Guidelines DESCRIPTION: In May 1997, the Board of Regents approved the FY 1999 Budget recommendations which were submitted to the State Board of Regents in June 1997. The Governor has recommended a $479,469 increase in State-aid. The Administration has prepared Budget proformas and tentative revised FY 1999 Budget Guidelines based upon the Governor's proposals for Washburn and current other Budget information. FINANCIAL IMPLICATIONS: Proposed Guidelines a) 3.5% Salary/Wage Increase $ 735,000 b) 2.5% Other Operating Expense Increase 137,500 c) Funding of Prior Commitments 246,375 d) Increase Benefits TBD* TOTAL $1,118,875 These proposed expenditure increases are recommended to be funded as follows: a) Increase in State-aid $ 479,469 b) Increase in Tuition (not to exceed a 3% increase in rates ($3 PCH) 330,549 c) Increase in Tax Estimates 200,000 d) Increase Benefit Reimbursement TBD* e) Other Revenues 108,857 TOTAL $1,118,875 *In addition, changes to the Benefit package are being considered. No change in the Benefit mill levy is being considered. RECOMMENDATION: President Farley recommends Board of Regents approval of FY 1999 Revised Proposed Budget Guidelines described above. The Administration's intent is for the 3.5% salary increase to be based on merit. __________________ _____________________________ (date) Jerry B. Farley, President Agenda Item No. V.C.2. Washburn University Board of Regents SUBJECT: Establish a Dept. of Art & a Dept. of Theatre from the Current Combined Dept. of Art and Theatre Arts DESCRIPTION: The Departments of Art and Theatre Arts have been a combined department for seventeen years. Essentially the departments were organized and operated separately under one chair. Other than office supplies and operating expenses, a few shared endowments, and a secretary who serves both departments, the units themselves have been self-sufficient and autonomous. In the program review process, each area is evaluated separately. Since 1981, there has been significant development in both areas. Art is now accredited by the National Association of Schools of Art and Design. Continued growth is anticipated in both Art and Theatre due to the new fine arts general education. Rationale: 1. Each area is a distinct discipline with no shared courses, instructors, or degree plans. 2. A chair who has the time, energy, expertise and desire to lead two distinct disciplines has not been identified. This fact, coupled with academic concerns, suggest that now is an opportune time to separate the departments. 3. Although the areas operated effectively under one chair in the past, growth and future development necessitates leadership of each area from an artist who is a professional participant in the discipline. 4. Public visibility and each department's unique identity will be fostered in establishing these departments as independent units. One area will not overshadow the other. 5. Continued and possible future accreditation of art and theatre programs may be facilitated by separating the departments. 6. Funding should be awarded and justified independently for separate programs. Neither area should rely on the other for funding. The General Faculty approved the establishment of two departments on January 29, 1998. FINANCIAL IMPLICATIONS: No additional expenditures requested in 1997-98 and none anticipated in 1998-99. RECOMMENDATION: President Farley recommends approval of the establishment of two departments as approved by the General Faculty. _____________________ ________________________________ (date) Jerry B. Farley, President Agenda Item No. V.C.3. Washburn University Board of Regents SUBJECT: Phased Retirement Program DESCRIPTION: Kansas statutes provide for phased retirement programs. A phased retirement program has been adopted by the Kansas Board of Regents' institutions. This phased retirement proposal has its genesis in the University's Personnel Committee, and is brought forward through the University Council as an option they see as value to the University. Phased retirement programs have been adopted by universities to provide for a systematic transition from full time to retired status, provide departments a way to better plan for retirements, lower expenses by decreasing the size of the faculty or staff, retain quality older faculty or faculty with specific needed ability, or create openings to change the age, tenure, ethnic, gender or quality of the faculty. The phased retirement proposal which is attached clearly indicates that individual retirement proposals from those seeking phased retirement must be in the "best interest" of the University. This provides Washburn with the ability to evaluate each situation individually on its respective merits based upon economic and administrative criteria which the University shall determine. For example, a highly paid senior faculty might be replaced by entry level junior faculty or a faculty member whose speciality is phased out could be replaced by faculty from another speciality area or the position could be deleted entirely. Each individual proposal for a phased retirement would be presented to the Board of Regents for final approval. Following consultations with the Washburn Board of Regents and other members of the Washburn community, I am proposing that the program presented in January be implemented with the following changes. First, all benefit eligible employees may apply to participate. Second, that the phased retirement agreement entered into have a non-competition clause prohibiting employment of a phased retiree at a higher education entity providing services in the state of Kansas. Third, this program will be in effect for three years beginning July 1, 1998 and ending June 30, 2001. Specific Board approval will be required to renew this program. Adding this as an employment option does provide additional flexibility to Washburn University. FINANCIAL IMPLICATIONS: Each individual phased retirement plan will be reviewed on its own merits including the fiscal implications. RECOMMENDATION: President Farley recommends approval by the Board of Regents for the Phased Retirement Program. ______________________ _____________________________ (date) Jerry B. Farley, President Washburn University Voluntary Phased Retirement Program Subject: Voluntary Phased Retirement Program For: All Employees Generally The Voluntary Phased Retirement Program permits eligible employees to reduce their workload in preparation for full retire- ment from Washburn University. When approved for the program, pursuant to written agreement, the employee's appointment with the University is reduced and her/his salary is also proportionately reduced from her/his full-time salary. The employee receives employer-paid benefits based on her/his full-time salary. Who is Eligible for Phased Retirement? Any employee in a benefits-eligible position who has completed at least ten (10) years of full-time service shall be eligible to participate in the Phased Retirement Program upon reaching 55 years of age. How is Participation in the Program Requested and Approved? The employee shall submit a letter to her/his supervisor. If entry into the agreement is in the best interest of Washburn University, the supervisor shall forward the proposed agreement through normal channels to the President, and then to the Washburn Board of Regents for consideration. How Long can an Employee Participate in the Program? The maximum length of a phased retirement agreement shall be five (5) years. By entering into the agreement, the participating employee agrees to retire from Washburn University at the expiration of the agreement. What is in the Phased Retirement Agreement? Each phased retirement agreement shall specify: 6) the fractional time appointment (from 25% to 75% of their full time teaching or administrative load) to be served as mutually agreed upon by the University, through the Board of Regents, and the employee. Duties may be divided throughout each fiscal year as agreed to by these parties; 2) that the agreement concerning the fractional time appointment or assignment of duties may be modified by mutual agreement; 3) the initial salary to be paid for the fractional time appointment; 4) the full-time benefits to be enjoyed by the employee; 5) the duration of the agreement, which shall not exceed five (5) years, and the date of full retirement. Benefits under the Program While participating in the program, the employee continues to receive the following benefits: 1) the same health care benefits as "full-time" employees; 2) life insurance and disability benefit based on actual salary; 3) sick leave and personal leave (if eligible) based on fractional time appointment 4) employer's contributions to the Retirement Plan based on full- time salary; 5) the employee may contribute to the Retirement Plan and to Supplemental Retirement Annuity Program to the extent permitted by federal regulations; 6) for tenured members, retention of tenure; 7) continued full use of university facilities; 8) continued eligibility for annual salary increases; and 9) holiday pay (if eligible) based on the fractional time appointment. The employee is also eligible to participate in other voluntary benefit programs available to unclassified employees including, but not limited to, the educational assistance program and the cafeteria plan. Miscellaneous 1) Participants in the Phased Retirement Program may partially annuitize their Retirement Plan. 2) Funding for the program will come from the existing salary base. 3) Regulations of the Board of Regents shall be used and followed relative to operation and implementation of the program. 4) An appointment under a phased retirement agreement must be at least 25% but no more than 75% of the employee's full time load. 5) Entry into a phased retirement agreement shall be voluntary on the part of Washburn University. Washburn University shall refuse to enter into the agreement when it is not in the best interests of the institution. Considerations that would affect the University's best interests include: (a) the ability of a department, school, or area to accommodate the partial retirement without loss of program integrity and without placing an undue burden on other employees (b) the extent of the financial impact that the partial retirement would have on the University (c) the impact that the partial retirement would have on the University's ability to complete its mission and to fulfill its obligations to its students and communities. 6) The agreement may be rescinded within seven (7) days of the signature at the option of the employee. After that time, the agreement shall be irrevocable, except that it may be rescinded by mutual agreement of the University and the employee. 7) The agreement may, by mutual consent, be modified by changing the participant's fractional time appointment prior to the specified date of retirement or permitting the employee to take full retirement at an earlier date. 8) Employees who have retired at the end of their agreement shall not be precluded from re-employment on a post-retirement basis as a result of accepting a phased retirement agreement. 9) The phased retirement agreement entered into shall have a non- competition clause prohibiting employment of a phased retiree at a higher education entity providing services in the state of Kansas. 10) This program will be in effect for three years beginning July 1, 1998 and ending June 30, 2001. Specific Board approval will be required to renew this program. Agenda Item No. V.C.4. Washburn University Board of Regents SUBJECT: Nomination of Trustee To Finnup Foundation Trust DESCRIPTION: The Finnup Foundation Trust is a major benefactor to Washburn University providing approximately $85,000 annually to students attending Washburn University from the Garden City area. There are three Class A Trustees, one of whom is designated by Washburn. Mr. Richard G. Vogel was a trustee until his recent passing. His son, Richard James (Jim) Vogel has assisted in those duties for several years and has been a volunteer to the foundation in a variety of capacities. The Finnup Foundation recognizes the service and ability of Richard James Vogel and has suggested that we nominate him to succeed his father. Jim is an alum of Washburn and has a keen and current and dedicated interest in this University. RECOMMENDATIONS: President Farley recommends that Richard James Vogel be named Washburn University's representative to the Finnup Foundation Trust. ________________ __________________________ date Jerry B. Farley, President