I. Call to Order
Chairperson Dick called the meeting of the Board of Regents to order at 7:15 p.m. in the Kansas Room of the Washburn Memorial Union.
II. Roll Call
Present were: Mr. Dick, Mr. Engel, Mr. Etzel, Mr. Felker, Mrs. Lee, Mrs. Parks and Mr. Roth.
III. Approval of Minutes of April 10, 2002 meeting as mailed
It was moved and seconded to approve the Minutes of the April 10, 2002 meeting as mailed. Motion passed unanimously.
IV. Old Business
1. Art and Fitness Projects
President Farley reported that since the April 10 Regents meeting, members of the Board and administration have interacted with the architects who have captured the concepts Regents suggested previously in a re-design of the Student Fitness/Wellness Center and Art Building projects. He said the re-design has retained all of the programmatic aspects of the project and the buildings' exteriors have incorporated some of the look of the rest of the campus.
President Farley then introduced Vice President for Academic Affairs, Dr. Ron Wasserstein who said he is "extra enthusiastic about this project," noting it had its inception in January 2000 with the formation of the buildings committees. He emphasized that the "program aspects of the buildings haven't changed; the budget has not changed in the slightest, and the end result is that this is really going to add to the campus, making that part of our part of our campus extremely attractive.
It was moved and seconded to approve the Art Building/Mulvane Museum renovation project in the amount of $4.25 million and the Student Fitness/Recreation Center project in the amount of $5.45 million and to authorize Gould Evans Associates to conclude the schematic design phase of each of the projects and begin the design development and construction document phase. Motion passed unanimously.
V. Officer Reports
A. Chair's Report
Chairperson Dick said he'd like to briefly mention that six years ago a survey was conducted concerning the Board of Regents effectiveness. He said the survey suggested there is a perception that the Board needs to be better informed and that since then the Board has tried to engage itself in a better understanding of the needs of the campus. He said a number of members of the Board of Regents, over the past four or five years, has been attending the annual National Conference of the Association of Governing Boards. He said he has observed that increasingly we are hearing comments like 'we wish we did things the way Washburn is doing them.' He said it's very gratifying to hear our peers recognize a lot of work we've done with the help of all of the faculty and staff doing things which needed to be done in an appropriate fashion.
C. President's Report
President Farley said the University's School of Nursing has been very successful this year, noting the past rate of the state's licensure exam by Washburn nursing graduates is 100% compared to an average state past rate of 82.9% and a national pass rate of 85.5%. He said this is a remarkable accomplishment.
Dr. Farley announced that Sue Hamon is the recipient of the Phi Kappa Phi award for excellence awarding her a scholarship to attend either graduate or medical school.
He reported also that the National Jurist magazine shows the Washburn University School of Law as the 11th best law school of the nation for the money.
President Farley noted this weekend is commencement weekend beginning Friday evening with a dinner for the Honorary Degree candidates, Gerald Goodell and Charles Axton. He said the graduating class is approximately 600 students this year.
He reported that LINC, an acronym for Learning in the Community, performed a clean up of Shunga Creek south of the University as part of its annual service. He said LINC is a service organization which has also been involved this year with working with the Chesney Park Neighborhood Improvement Association.
Dr. Farley announced the annual Mountain Plains Art Fair will be held June 1-2 this year. As was the case last year, it will be located in the area north of Whiting Field House. He said it's a fund raiser for the Mulvane Art Museum conducted by the Friends of the Mulvane Art Museum.
He announced that the Sunflower Music Festival will be returning to Topeka and Washburn University. He said it's a world class event featuring chamber music and will be held this year June 7-15.
Dr. Farley said it's with some pride and regret that he is announcing the retirement of Dr. Robert Stein from the High Q event. He said Dr. Stein has been leading the event for the past 19 years and that he's done a remarkable job.
He said alumni weekend was held two weeks ago and it was a smashing success which concluded with the University Ball. He said the Ball went extraordinarily well and raised $60,000 for the Leadership Scholarship.
In response to a query from Vice Chair Engel, Dr. Farley said the Kansas Board of Regents Wednesday heard each of the six four-year state educational institutions present budget information including proposals for the increase of tuition and other fees associated with attending those schools. He said the Kansas Board would not take action Thursday, May 16, but would defer action until its June 26-27 meeting. He said the increases range from 6-7% to a high of 20-25%.
D. Treasurer's Report
Vice President for Administration and Treasurer, Wanda Hill, presented 1. Depository Security Transactions - March/April, 2002, 2. Liquidated Claims Approval - April 2002, and 3. Public Fund Investments - April, 2002 as outlined in the agenda. It was moved and seconded to approve agenda items V.D.1. through 3.
4. Quarterly Report for Quarter Ended March 31, 2002
In her outline of the Quarterly Report for the third quarter of Fiscal Year '02, Vice President Hill noted there really aren't any significant changes in comparing with other years. She noted the increase in the tuition and fee revenues is the result of an increase in enrollments, that the lag in out-district tuition is largely a timing difference, and noted that sales tax revenue as compared with last year also lagged but noted there is a bounce-back in sales tax revenues and so, to the extent what previously was a 12.4% deficit in sales tax revenue as compared to last year, it's now gone up to only 11.4% decrease.
It was moved and seconded to accept the Quarterly Report.
B. Committee Report(s)
Regent Engel, Chair of the Finance Committee, reported the committee last met May 9. He said we are able to report improvement in the sales tax outlook but that at the time of the committee meeting the members didn't think they'd have to be concerned about a cut in the budget which, because of the inaction of the Legislature to date, they may have to now. He said the potential cut is the result of the inaction is some $350,000 higher than what they had initially thought. He said they are hoping at the next meeting to develop enough of the budget to get into the next fiscal year.
He said the committee reviewed the five-year plan of buildings maintenance and renovation. He said we have a very fine physical plant as all buildings are rated as satisfactory or better, noting that here satisfactory is about a B-. He did say there are some concerns about the International House, noting there will be a need in the near future to review that project.
He said lastly the committee talked about the capital improvement piece for the FY'03 Budget offering to explain it to members of the Board and if they were willing to take action at this meeting.
Regent Engel reported the capital improvement budget is funded separately from the other portions of the University's budget as it is financed by the 3 mill property tax levy for the Debt Retirement and Construction Fund. He said typically the administration starts with a "wish list" from the component parts of the institution which is then ranked and prioritized. He said the expenditures projected for FY'03 are from funds accumulated in FY'02. Vice Chair Engel briefly reviewed a handout of the capital improvement and equipment request for FY'03 which total $1,590,200 for capital improvements and $371,406 for equipment requests. It was moved and seconded to approve the capital improvement and equipment budget for FY'03 as described in the materials. Motion passed unanimously.
Vice Chair Engel reported the next meeting of the Finance Committee will be Thursday, May 30, at 10:00 a.m. in Morgan Hall Room 204.
President Farley interjected that the Kansas House of Representatives is meeting this evening as well and we are waiting to see if they will come to some resolution on the revenue side of the adopted budget for FY'03. If nothing is approved this evening, the Legislature may adjourn and the Governor will call a special session of the Legislature, possibly in the second week of June. He said if no new revenue measures are approved for funding the adopted budget, the Governor is required to adjust the budget, which would mean an 8% decrease across the board for all of the state agencies and state funded subdivisions, which is an amount double of what we thought it might be initially.
Regent Engel said it's possible that even at the June meeting we won't know any more then than what we do now in terms of state funding for the University and it's not inconceivable there would have to be a special Board meeting, although it might possibly be able to addressed at the July meeting of the Board. He said if the Legislature were to do something tonight, it would be possible to have something in June for the Board to consider. He said there are lots of options, some of which are not desirable, but the administration would be proposing a conservative budget.
In response to a query from Regent Lee about how much might be required for the shortfall of state funds to be offset by a tuition increase, President Farley said it's upsetting to consider a tuition increase just to offset the loss of state funds. He noted each $1 of tuition will generate approximately $125,000 in revenue. He said if the reduction in state aid to Washburn were $850,000, that would mean a $6-$7 increase just to offset the loss of state funding.
VI. New Business
A. Action Items
1. Deferred Compensation Plan (457 Plan)
It was moved and seconded to adopt a Section 457 Plan for University employees. Motion passed unanimously.
B. Consent Agenda
It was moved and seconded to approve the Consent Agenda. Motion passed unanimously.
As approved by action of the Board:
1. Report of Purchases between $25,001 and $50,000
ratify the following procurements: servers and accessories for the AIS project from Sun Microsystems in the amount of $39,397.00; asbestos abatement in Morgan Hall by Remediation Contractors in the amount of $34,500.00; office work stations and installation for ITS Dept. and Henderson Learning Resources Center by Design Business Interiors in the amount of $31,971.30;
a. Faculty Personnel - Lavoie
leave of absence for the 2002-2003 academic year to Professor Richard Lavoie; and,
b. Faculty Personnel - Lasso
leave of absence for the Spring 2003 semester to Professor Rogelio Lasso.
* C. Chairperson Dick reported that he had asked the administration to develop a resolution encouraging the Legislature to adopt revenue measures which would fund the FY'03 higher education budget adopted by the Legislature.
President Farley circulated the draft resolution, noting a hand written insertion making a change in the draft.
It was moved and seconded to adopt the following Resolution:
WHEREAS, in 2000 and 2001 the Kansas Legislature demonstrated its commitment to higher education by fully funding the provisions of the Higher Education Coordination Act; and,
WHEREAS, the 2002 Kansas Legislature has faced a fiscal crisis of unprecedented proportions; and,
WHEREAS, the 2002 Kansas Legislature has adopted a budget for Fiscal Year 2003, appropriating the same funding levels for higher education as were authorized for Fiscal Year 2002, and forwarded said budget to the Governor; and,
WHEREAS, the 2002 Kansas Legislature has been responsible in adopting a budget which minimizes harmful impacts on higher education given the fiscal condition facing the state; and,
WHEREAS, the Washburn University Board of Regents acknowledges and appreciates the efforts by the 2002 Kansas Legislature to "hold harmless" higher education expenditures; and,
WHEREAS, the Washburn University Board of Regents remains totally committed in support of full funding for the Higher Education Coordination Act and expects full funding of such act to continue as a top Legislative priority;
NOW, THEREFORE, BE IT RESOLVED the Washburn University Board of Regents urges the 2002 Kansas Legislature to fund the higher education budget for Fiscal Year 2003; and
Copies of this Resolution shall be delivered to the President of the Senate, the Speaker of the House, the Majority Leader of the Senate, the Majority Leader of the House, the Minority Leader of the Senate, the Minority Leader of the House and all members of the Shawnee County Legislative Delegation.
Adopted May 15, 2002
(date) Harold L. Dick
Chairperson, Washburn Board of Regents
Motion passed unanimously.
* Item added at the meeting with the consent of the Board.
It was moved and seconded to adjourn. The meeting adjourned at 8:27 p.m.
Kenneth P. Hackler
Secretary, Board of Regents